MIRA
INFORM REPORT
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Report Date : |
03.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
ningBo Lis Industrial Co., Ltd. |
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Registered Office : |
Hengxi Industrial Zone, Yinzhou District, Ningbo, Zhejiang Province, 315131 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
07.11.1995 |
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Com. Reg. No.: |
3302272014700 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling air Tools. |
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 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
ningBo Lis Industrial Co., Ltd.
hengxi industrial
zone, yinzhou district,
ningbo, zhejiang
PROVINCE, 315131 PR CHINA.
TEL: 86 (0)
574-88474413 FAX: 86 (0)
574-88473437
EXECUTIVE SUMMARY
INCORPORATION DATE : november 7, 1995
REGISTRATION NO. : 3302272014700
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
500
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 200,261,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 38,288,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 300,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.88 = 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
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Nov. 7, 1995.
Company Status: Limited liabilities co. This form of business in PR China is defined as a legal
person. No more than fifty shareholders contribute its registered capital
jointly. Shareholders bear limited liability to the extent of shareholding,
and the co. is liable for its debts only to extent of its total assets. The
characteristics of this form of co. are as follows: Upon the establishment of the co., an investment
certificate is issued to the each of shareholders. The board of directors is comprised of three to thirteen
members. The minimum registered capital for a co. is CNY 30,000. Shareholders may take their capital contributions in
cash or by means of tangible assets or intangible assets such as industrial
property and non-patented technology. Cash contributed by all shareholders must account for at
least 30% of the registered capital. Existing shareholders have pre-exemption right to
purchase shares of the co. offered for sale by the other shareholders and
to subscribe for the newly increased registered capital of the co.
SC’s registered
business scope includes manufacturing and processing mechanical parts, metal products,
fasteners, rubber & plastic; wholesaling and retailing metal materials,
building materials, electromechanical equipment, chemical materials, general
merchandise, and acting as an agent for it; export of its products and
technology, import of raw and auxiliary materials needed for its production,
instruments, mechanical equipment, spare parts and components and technology
import and export (excepted by those restricted by the State).
SC is mainly
engaged in manufacturing and selling air tools.
Mr. Li Jianchong
has been legal representative and chairman of SC at present.
SC is known
to have approx. 500 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Ningbo. Our checks
reveal that SC owns the total premise about 40,000 square meters.
http://www.lispraygun.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: sales@lispraygun.com lishi@mail.nbptt.zj.cn
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Li Jianchong ID # 330227721210393 60
Li Xueyuan ID # 330227461005391 40
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Chairman & General Manager:
Mr. Li Jianchong, 36 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman and general manager.
SC is mainly
engaged in manufacturing and selling air tools.
SC’s products are mainly divided into environmental protection air
painting spray gun series, elaborate painting spray gun series, high-pressure
painting or hopper spray gun series, low-pressure painting spray gun series,
mini spray gun series, pressure paint tank, mini air compressor and relevant
air tools and parts, etc.
SC’s main brands include: “Voylet” and “Muzi”.
SC sources its materials 80% from domestic
market, and 20% from overseas market, mainly U.S.A. and Europe. SC sells 70% of
its products in domestic market, and 30% to overseas market, mainly Europe and
Southeast Asian market.
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.
SC is
not known to have any subsidiary at present.
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.
Bank of Ningbo Yinzhou Sub-branch
AC#81250101302121091
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Cash & bank |
2,230 |
2,520 |
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Inventory |
2,184 |
3,573 |
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Accounts
receivable |
20,483 |
36,818 |
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Advances to
supplies |
342 |
0 |
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Other
receivables |
11,172 |
18,334 |
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Other current
assets |
77 |
56 |
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------------------ |
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Current assets |
36,488 |
61,301 |
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Fixed assets net
value |
41,512 |
48,892 |
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Projects under
construction |
3,040 |
4,313 |
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Long-term
investments |
390 |
390 |
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Intangible and
other assets |
3,460 |
3,440 |
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Total assets |
84,890 |
118,336 |
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============= |
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Short loans |
26,000 |
33,000 |
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Accounts payable |
22,581 |
37,372 |
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Other Accounts
payable |
1,365 |
5,952 |
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Advances from
clients |
2,556 |
0 |
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Taxes unpaid |
-1,019 |
86 |
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Welfares payable |
2,953 |
3,574 |
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Accrued payroll |
40 |
40 |
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Other current
liabilities |
34 |
24 |
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Current
liabilities |
54,510 |
80,048 |
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Long term
liabilities |
0 |
0 |
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Total
liabilities |
54,510 |
80,048 |
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Shareholders
equities |
30,380 |
38,288 |
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Total
liabilities & equities |
84,890 |
118,336 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Turnover |
136,560 |
200,261 |
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Cost of goods
sold |
115,202 |
166,970 |
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Taxes and
additional of main operation |
306 |
287 |
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Sales expense |
2,461 |
2,958 |
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Management expense |
10,916 |
15,544 |
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Finance expense |
1,611 |
2,212 |
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Non-operating
income |
5,753 |
20 |
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Operation Profit |
11,835 |
12,471 |
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Less: profit tax |
708 |
2,568 |
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Net profit |
11,127 |
9,903 |
Important Ratios
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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*Current ratio |
0.67 |
0.77 |
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*Quick ratio |
0.63 |
0.72 |
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*Liabilities
to assets |
0.64 |
0.68 |
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*Net profit
margin (%) |
8.15 |
4.95 |
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*Return on
total assets (%) |
13.1 |
8.37 |
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*Inventory
/Turnover ×365 |
6 days |
7 days |
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*Accounts
receivable/Turnover ×365 |
55 days |
67 days |
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*Turnover/Total
assets |
1.61 |
1.69 |
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*Cost of goods
sold/Turnover |
0.84 |
0.83 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good, and it increased in 2007.
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SC’s net profit margin is fairly good, but it was declining in 2007.
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SC’s return on total assets is average, but it was declining in 2007.
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SC’s cost of goods sold is average, 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 fair level.
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The inventory of SC appears small.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan of SC appears fairly large.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial conditions.
The large amount of accounts receivable could be a threat to SC’s financial
condition. A credit line at the above amount appears to be beyond SC’s
capacities, while a credit line up to USD 300,000 is recommended upon a
periodical review basis.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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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%)