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MIRA
INFORM REPORT
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Report Date : |
03.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
libbey glassware (china) Co., Ltd. |
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Registered Office : |
No. 2211, East Aimin Road, Langfang Economic And Technical Development
Zone, Hebei Province, 065001 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
22.12. 2004 |
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Com. Reg. No.: |
131000400002366 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing and Selling Glassware. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
libbey glassware (china) Co., Ltd.
NO. 2211, EAST
AIMIN ROAD, LANGFANG ECONOMIC AND TECHNICAL DEVELOPMENT ZONE, HEBEI PROVINCE,
065001 PR CHINA
TEL: 86 (0)
316-6089898 FAX: 86 (0) 316-6060989
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 22, 2004
REGISTRATION NO. : 131000400002366
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
enterprise
STAFF STRENGTH :
300
REGISTERED CAPITAL : USD 22,150,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 63,330,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 98,660,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 100,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.89 = USD 1
Adopted
abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
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Note: SC’s correct company name and address should be the
heading one, while the given name (Libbey Trading (Beijing) Co., Ltd.) and
address (Rm. 2005, Bldg. A, Xingke Building, No. 10, Jiuxianqiao Central Road,
Beijing) belongs to SC’s international trade department.
SC was registered as a wholly foreign-owned enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Dec. 22, 2004.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered
business scope includes designing and manufacturing special glassware, selling
its products.
SC is mainly
engaged in manufacturing and selling glassware
Mr. Kenneth G
Wilkes has been legal representative and chairman of SC since 2004.
SC is known
to have approx. 300 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the economic and technical development zone of Langfang.
Our checks reveal that SC owns the total premise about 45,000 square meters.
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SC is not known to host website of its own at present.
Email: HRLibbeyChina@libbey.cn
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SC started its business normally in March, 2007.
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MAIN SHAREHOLDERS:
Name %
of Shareholding
Libbey Asia Investment Co., Ltd. (Hong Kong) 100
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l
Chairman & General Manager:
Mr. Kenneth G Wilkes, American, in his 40’s with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working
in SC as chairman and general manager.
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SC is mainly
engaged in manufacturing and selling glassware.
SC’s products mainly include glassware.
SC sources its materials 90% from domestic
market, and 10% from overseas market, mainly U.S.A. and Europe. SC sells 50% of
its products in domestic market, and 50% to overseas market, mainly Holland,
Mexico, Japan, Korea and Hong Kong.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
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SC is
not known to have any subsidiary at present.
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Overall payment appraisal :
( ) Excellent (
) Good (X) Average (
) Fair ( ) Poor
( ) Not yet determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment
experience (through current enquiry with SC's suppliers), our delinquent
payment and our debt collection record concerning SC.
Trade payment experience : SC did not
provide any name of trade/service suppliers and we have no other sources to
conduct the enquiry at present.
Delinquent
payment record : None in our database.
Debt collection record :No overdue amount owed by SC was placed to us for
collection within the last 6 years.
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China
Construction Bank Langfang Economic and Technical Development Zone Sub-branch
AC#13001705208050500482
Relationship:
Normal.
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Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
|
Cash & bank |
8,070 |
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Inventory |
61,310 |
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Accounts
receivable |
2,390 |
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Advances to
suppliers |
730 |
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Other
receivables |
6,930 |
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Other current
assets |
810 |
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------------------ |
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Current assets |
80,240 |
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Fixed assets net
value |
391,000 |
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Projects under
construction |
45,000 |
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Long term
investment |
0 |
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Intangible
assets |
12,700 |
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Other assets |
3,100 |
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------------------ |
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Total assets |
532,040 |
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============= |
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Short loans |
0 |
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Accounts payable |
107,990 |
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Other payable |
3,750 |
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Taxes payable |
1,070 |
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Welfare expenses
payable |
340 |
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Accrued payroll |
1,910 |
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Advances from
clients |
18,320 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
133,380 |
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Long term
liabilities |
300,000 |
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------------------ |
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Total
liabilities |
433,380 |
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Equities |
98,660 |
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------------------ |
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Total
liabilities & equities |
532,040 |
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============= |
Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
63,330 |
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Cost of goods
sold |
70,290 |
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Sales expense |
1,710 |
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Management expense |
30,920 |
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Finance expense |
9,930 |
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Profit before tax |
-49,850 |
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Less: profit tax |
0 |
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Profits |
-49,850 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
0.60 |
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*Quick ratio |
0.14 |
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*Liabilities
to assets |
0.81 |
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*Net profit
margin (%) |
-78.7 |
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*Return on
total assets (%) |
-9.37 |
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*Inventory
/Turnover ×365 |
353days |
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*Accounts
receivable/Turnover ×365 |
14days |
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*Turnover/Total
assets |
0.12 |
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* Cost of
goods sold/Turnover |
1.11 |
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PROFITABILITY:
FAIR
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is poor.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is too high, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a POOR level.
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The inventory of SC appears LARGE.
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The accounts payable of SC appears large.
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SC has no short-term loan in 2007.
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SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
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SC is considered medium-sized in its line with a short operating history.
The large amount of inventory & accounts payable could be a threat to SC’s
financial condition. A credit line up to USD 100,000 appears acceptable upon a
periodical review basis.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.49.90 |
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UK Pound |
1 |
Rs.74.30 |
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Euro |
1 |
Rs.63.42 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)