MIRA
INFORM REPORT
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Report Date : |
28.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
CHINALCO HENAN ALUMINUM FABRICATION CO LTD |
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Registered Office : |
No. 6, Fenghua Road, Hi-Tech Development Zone, Luoyang, Henan
Province, 471000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
August 12, 2005 |
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Com. Reg. No.: |
4103001004995 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Management and Investment in its subsidiaries. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
CHINALCO HENAN
ALUMINUM FABRICATION Co., Ltd.
NO. 6, FENGHUA ROAD, HI-TECH DEVELOPMENT ZONE,
LUOYANG, HENAN PROVINCE, 471000 PR CHINA.
6
TEL: 86 (0) 379-65112727
FAX: 86 (0) 379-65112733
EXECUTIVE SUMMARY
INCORPORATION DATE : AUGUST 12, 2005
REGISTRATION NO. : 4103001004995
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 200
REGISTERED CAPITAL : CNY 932,460,000
BUSINESS LINE : INVESTMENT
& MANAGEMENT
TURNOVER : CNY 139,450,000 (AS OF
DEC. 31, 2006)
EQUITIES : CNY 794,030,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 1,000,000
(periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.24 = US1$
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 Aug. 12, 2005.
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
aluminum, aluminum alloy plate, aluminum coils, aluminum foil and other
aluminum profile extruded products.
SC is mainly
engaged in management and investment in its subsidiaries.
Mr. Wang Jinghai has been legal representative and chairman of SC since
2005.
SC is
known to have approx. 200 staff members at present.
SC is currently operating
at the above stated address, and this address houses its operating office in
the industrial zone of Luoyang. Our checks reveal that SC rents the total
premise about 2,000 square meters.
http://www.hnal.com.cn/ The design is professional and the content
is well organized. At present it is in Korean, Chinese and English versions.
Email: hnal@hnal.com.cn
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Aluminum Corporation of China 71.01
Luoyang Xin’an Electric Power
Group Co., Ltd. 1.07
China Nonferrous Metals Processing
Technology Co., Ltd 13.01
Yichuan Electric Power Group Co., Ltd. 4.37
Luoyang Economic Investment Co., Ltd. 10.54
l
Legal representative and chairman:
Mr. Wang Jinghai, in his 40’s with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Zhou Jiang, in his 40’s with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working
in SC as general manager.
SC is mainly
engaged in management and investment in its subsidiaries.
SC’s subsidiaries
are mainly engaged in manufacturing and selling aluminum products, mainly
include aluminum ingot, aluminum coils, aluminum foil and aluminum plate, etc.
SC is known to have the following subsidiaries:
Luoyang CNPT Wanji Aluminum Fabrication Co., Ltd.
Luoyang Hot Rolling Factory
Luoyang Cold Rolling Factory
Zhengzhou Aluminum Processing Factory
Etc.
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.
Luoyang Commercial Bank Nanchang Road Sub-branch.
AC#7590102010100009
Relationship:
Normal.
Balance Sheet (as of
Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
419,840 |
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Inventory |
0 |
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Accounts receivable |
206,090 |
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Notes receivable |
108,210 |
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Other
receivables |
73,460 |
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Internal office
account |
1,792,340 |
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Other current
assets |
10 |
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------------------ |
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Current assets |
2,599,950 |
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Fixed assets |
8,550 |
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Fixed assets net
value |
8,480 |
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Projects under
construction |
19,880 |
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Long term
investment |
369,610 |
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Other assets |
16,030 |
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Total assets |
3,013,950 |
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============= |
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Short loans |
1,120,000 |
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Accounts payable |
-85,070 |
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Other payable |
-850 |
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Notes payable |
116,000 |
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Taxes payable |
-22,090 |
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Advances from
clients |
7,760 |
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Other current
liabilities |
740 |
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------------------ |
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Current
liabilities |
1,136,490 |
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Long term
liabilities |
1,083,430 |
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Total
liabilities |
2,219,920 |
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Equities |
794,030 |
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Total
liabilities & equities |
3,013,950 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
139,450 |
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Total Cost |
138,330 |
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Add:
Income from other operations |
-540 |
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Sales expense |
0 |
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Profit before
tax |
580 |
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Less: profit tax |
0 |
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Profits |
580 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
2.29 |
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*Quick ratio |
2.29 |
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*Liabilities
to assets |
0.74 |
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*Net profit
margin (%) |
0.42 |
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*Return on
total assets (%) |
0.02 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
539 days |
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*Turnover/Total
assets |
0.05 |
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*
Cost/Turnover |
0.99 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a normal level.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan appears LARGE.
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There is no inventory in 2006.
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SC’s turnover is in a poor level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
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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: Fairly stable.
SC is considered medium-sized in its line with a short history. The
large amount of short loans could be a threat to SC’s financial condition. A credit
line up to USD 1,000,000 would appear to be within SC’s capacities upon a
periodical review basis.
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%)