MIRA
INFORM REPORT
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Report Date : |
28.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHANGHAI CEDER COMPOSITES TECHNOLOGY INC |
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Registered Office : |
F1 No. 260 Liancao
Road, Minhang District, Shanghai, 201108 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
09.03.2006 |
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Com. Reg. No.: |
310000400458952 |
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Legal Form : |
Chinese Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing and selling composite
materials. |
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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Maximum Credit Limit : |
USD 3,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & Address
SHANGHAI CEDER
COMPOSITES TECHNOLOGY INC.
F1 NO. 260 LIANCAO
ROAD, MINHANG DISTRICT,
SHANGHAI, 201108 PR
CHINA
260 F1
TEL: 86 (0) 21-64342453
FAX:
86 (0) 21-64342452
EXECUTIVE SUMMARY
INCORPORATION
DATE : MAR. 9, 2006
REGISTRATION
NO. :
310000400458952
REGISTERED
LEGAL FORM : CHINESE FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF
STRENGTH :
130
REGISTERED
CAPITAL : USD 450,000
BUSINESS
LINE :
MANUFACTURING
TURNOVER : cny
560,000 (AS OF DEC. 31,
2006)
EQUITIES :
cny 1,920,000 (AS OF DEC. 31, 2006)
PAYMENT
:
AVERAGE
RECOMM.
CREDIT RANGE : UP TO USD
3,000 (PERIODICAL REVIEW)
MARKET
CONDITION :
FAIR
FINANCIAL
CONDITION : FAIR
OPERATIONAL
TREND : FAIRLY steady
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY
7.14= USD1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a Chinese foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Mar. 9, 2006.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR China is defined as a legal
person. It is a limited co. jointly invested by one or more foreign
companies and one or more PR China controlled companies within the
territories of PR China according to a certain proportion of capital
investment. The investing parties exercise business management, share
profits and bear all risks and liabilities of the co. together. The equity
joint venture law requires that foreign party contribute not less than 25%
of the registered capital, with no maximum. The investing parties are free
to agree on method of profit distribution and liabilities bearing according
to the proportion of capital investment. Each investing parties contributes
funds, tangible assets, technology & etc. The board of directors
excises the high authority. The joint venture usually has a limited
duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes processing and manufacturing carboform composite
materials and fiber glass products; selling self-made products.
SC is mainly engaged in manufacturing and
selling composites materials.
Mr. Wang Bin has been chairman of SC since
2006.
SC is known to have approx. 130
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 Shanghai. Our checks
reveal that SC rents the total premise about 5,000 square meters.
http://www.cedar-composites.com.
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
No significant events
or changes were found during our checks with local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Cui Qi (Canadian) 25
Shanghai Jinshan Industry Co., Ltd. 75
l
Chairman and General Manager:
Mr. Wang Bin, in his
30’s with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman and general manager.
l
Vice General Manager:
Mr. Shen Ruhao in
his 30’s with university education. He is currently responsible for the daily
management of SC.
Working Experience(s):
From 2006 to present
Working in SC as vice general
manager.
SC is mainly engaged in manufacturing and
selling composite materials.
SC’s products mainly include:
Bicycle parts
Frame, fork, handle bar
Wheel rim
Fender, chain guard, water cage
Snowboard parts
Binding frame
Medical parts
X-ray bed board
Head cradle
Pultruded profiles
Custom tube, shaft, board
SC sources its materials 80% from domestic
market, and 20% from the overseas market, mainly European countries. SC sells
15% of its products in domestic market, and 85% to the overseas market, mainly
American and European countries.
The buying terms of
SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
*Major Client:
===========
EDGE Egypt
*Major Supplier:
============
Changzhou Ashland Modern Chemical Co., Ltd.
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.
China Construction
Bank Minhang Sub-branch
AC#31001590217050000997
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
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As of Dec. 31, 2006 |
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Cash & bank |
250 |
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Inventory |
2,450 |
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Accounts receivable |
230 |
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Advances to suppliers |
60 |
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Other receivables |
170 |
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Other current assets |
0 |
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------------------ |
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Current assets |
3,160 |
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Fixed assets net value |
1,160 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
90 |
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------------------ |
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Total assets |
4,410 |
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============= |
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Short loans |
0 |
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Accounts payable |
1,820 |
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Advances from clients |
200 |
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Taxes payable |
-310 |
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Salaries payable |
0 |
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Other payable |
780 |
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Other current liabilities |
0 |
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Current liabilities |
2,490 |
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Long term liabilities |
0 |
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Total liabilities |
2,490 |
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Equities |
1,920 |
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Total liabilities & equities |
4,410 |
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Income
Statement
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Turnover |
560 |
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Cost of goods sold |
520 |
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Revenue expense |
30 |
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Management expense |
1,770 |
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Finance expense |
120 |
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Profit before tax |
-1,770 |
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Less: profit tax |
0 |
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Profits |
-1,770 |
Important
Ratios
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2006 |
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*Current ratio |
1.27 |
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*Quick ratio |
0.29 |
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*Liabilities to assets |
0.56 |
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*Net profit margin (%) |
-316.07 |
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*Return on total assets (%) |
-40.14 |
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*Inventory /Turnover ×365 |
1597days |
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*Accounts receivable/Turnover ×365 |
150days |
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*Turnover/Total assets |
0.13 |
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* Cost of goods sold/Turnover |
0.93 |
PROFITABILITY: POOR
l
The turnover of
SC appears fair in 2006.
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SC’s net profit
margin is poor in 2006.
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SC’s return on
total assets is poor in 2006.
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SC’s cost of goods
sold is fairly high in 2006, comparing with its turnover.
LIQUIDITY: FAIR
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The current
ratio of SC is maintained in a normal level in 2006.
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SC’s quick
ratio is maintained in a poor level in 2006.
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The accounts
receivable of SC is average.
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The inventory
of SC is large.
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There is no
short loan in 2006.
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SC’s turnover
is in a fair 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: Fair.
Credit Opinion: USD
500,000
SC is considered
small-sized in its line with fair financial conditions. A credit line at the above amount appears beyond SC’s capacities.
A credit line up to USD 3,000 appear acceptable.
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%)