MIRA
INFORM REPORT
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Report Date : |
04.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
ZHONGSHAN CLG AUTOMATION EQUIPMENT CO LTD |
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Registered Office : |
No. 4, Second Zhongshan Road, Zhongshan, Guangdong Province-528 400 pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
24.10.2000 |
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Com. Reg. No.: |
442000000020528 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacturing and Selling Automation Equipment. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Small Company |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
NAME AND Address
ZHONGSHAN CLG AUTOMATION EQUIPMENT CO., LTD.
NO. 4
SECOND ZHONGSHAN ROAD, ZHONGSHAN,
GUANGDONG PROVINCE, 528400 PR CHINA
TEL: 86 (0)
760-8920838 FAX: 86 (0)
760-8819519
EXECUTIVE SUMMARY
INCORPORATION
DATE : OCT. 24,
2000
REGISTRATION
NO. : 442000000020528
REGISTERED
LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF
EXECUTIVE :
MR. TIAN LEI (CHAIRMAN)
STAFF
STRENGTH :
100
REGISTERED
CAPITAL : CNY 4,000,000
BUSINESS
LINE :
MANUFACTURING
TURNOVER : cny
11,990,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 5,500,000 (AS OF DEC. 31, 2006)
PAYMENT
:
AVERAGE
RECOMM.
CREDIT RANGE : up to usd
40,000
MARKET
CONDITION :
AVERAGE
FINANCIAL
CONDITION : fairly
STABLE
OPERATIONAL
TREND : steady
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY
7.19= US$1 AS OF 2008-2-2
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
Oct. 24, 2000.
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 designing, developing, manufacturing, repairing and selling
optical, mechanical and electronic integration equipment and parts; designing
and manufacturing automation system engineering and technology service;
installing, repairing and reforming
electromechanical products; selling industrial controlling components;
importing and exporting various goods and technology.
SC is mainly engaged
in manufacturing and selling automation equipment.
Mr. Tian Lei has
been chairman of SC since 2000.
SC is known to
have approx. 100 staff members 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 Zhongshan. Our checks reveal that
SC rents the total premise about 5,000 square meters.
http://www.clg.com.cn
. The design is professional and the content is well organized. At present it
is in both Chinese and English versions.
No significant event
or changes were found during our checks with local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Tian Lei 63
Chen Jinfei 25
Ou Guohong 4
Other 6 individuals 8
Chairman:
Mr. Tian Lei , in
his 50’s with university education. He is currently responsible for the overall
management of SC.
Working
Experience(s):
From 2000 to present Working in SC as chairman.
General Manager:
Ms. Ou Guohong , in
her 40’s with university education. She is currently responsible for the daily
management of SC.
Working
Experience(s):
From 2000 to present Working
in SC as general manager.
SC is mainly engaged
in manufacturing and selling automation equipment.
SC’s products mainly
include:
v
Pipe bender
v
CNC pipe
spinning machine
v
Condenser and
Evaporator bender
v
Equipment for
pipe production
v
Pipe for automobile
and air-conditioner
v
Special
equipment for automobile manufacture and components
v
Motor
processing equipment
SC sources its
materials 100% from domestic market. SC sells 60% of its products in domestic
market, and 40% to the overseas market, mainly American and European countries.
The buying terms of
SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include
T/T, L/C and Credit of 30-60 days.
*Major Client
Shangyu WanJie
Refrigeration Parts Factory
Major Supplier
Delta-CIMIC
Electronics Co., Ltd. Guangzhou Branch
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’s suppliers declined to make any
comments.
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
Communication Huagui Sub-branch
AC#：484601200018150051901
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
As of Dec. 31, 2006
Cash
& bank 90
Inventory 530
Accounts
receivable 6,980
Advances to suppliers 370
Other receivables 200
Other current assets 4,870
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Current assets 13,040
Fixed
assets net value 1,800
Projects under construction 0
Long term investment 0
Other assets 130
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Total assets 14,970
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Short
loans 0
Accounts
payable 4,380
Advances
from clients 700
Taxes
payable 0
Salaries
payable 0
Other
payable 3,070
Other current liabilities 1,320
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Current liabilities 9,470
Long term liabilities 0
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Total liabilities 9,470
Equities 5,500
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Total liabilities & equities 14,970
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Income Statement
Unit: CNY’000
As of Dec. 31, 2006
Turnover 11,990
Cost of goods sold 8,770
Sales expense 1,500
Management expense 950
Finance expense 260
Profit before tax 420
Less: profit tax 80
Profits 340
Important Ratios
2006
*Current ratio 1.38
*Quick ratio 1.32
*Liabilities to
assets 0.63
*Net profit margin
(%) 2.83
*Return on total
assets (%) 2.27
*Inventory /Turnover
×365 16days
*Accounts
receivable/Turnover ×365 212days
*Turnover/Total
assets 0.80
* Cost of goods
sold/Turnover 0.73
PROFITABILITY: AVERAGE
The turnover of SC
appears average in 2006.
SC’s net profit
margin is average in 2006.
SC’s return on total
assets is average in 2006.
SC’s cost of goods
sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of
SC is maintained in a normal level in 2006.
SC’s quick ratio is
maintained in a normal level in 2006.
The accounts receivable
of SC is fairly large.
The inventory of SC
is average.
SC’s turnover is in
an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC
is average.
The risk for SC to
go bankrupt is average.
Overall financial condition of the SC: Fairly
stable.
SC is considered
small-sized in its line with fairly stable financial conditions. The large
amount of accounts receivable could be a threat to SC’s financial
condition. Credit dealings of small
amount can be considered for it at present.
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%)