MIRA
INFORM REPORT
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Report Date : |
08.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
Zhejiang Jiaxin Copper Co., LTD. |
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Registered Office : |
No .037 Baifeng
Road, Lianghu Industrial Park, Shangyu, Zhejiang Province, 312300 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
26.06.2003 |
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Com. Reg. No.: |
330600400005146 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing copper
tubes, brass tubes and many other kinds of high quality copper products. |
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 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name and address of the company
Zhejiang Jiaxin Copper Co., LTD.
NO.037 Baifeng
Road, Lianghu Industrial Park,
ShangYu, ZheJiang
PROVINCE, 312300 PR CHINA.
TEL: 86 (0)
575-82432258 FAX: 86 (0)
575-82432028
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 26, 2003
REGISTRATION NO. : 330600400005146
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
enterprise
STAFF STRENGTH :
200
REGISTERED CAPITAL : USD 6,080,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 107,544,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 37,624,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 200,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.2685 = 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 wholly foreign-owned enterprise at local Administration for
Industry & Commerce (AIC The official body of issuing and renewing business
license) on June 26, 2003.
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 manufacturing, processing, selling copper tubes, copper
rods, aluminium tubes, water course tubes, auto cooling and air conditioner
parts.
SC is mainly
engaged in manufacturing copper tubes, brass tubes and other kinds of high
quality copper products.
Ms. Wang Yanyan (王焱焱)
has been legal representative and chairman of SC since June 2003.
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 and factory in the industrial zone of Shangyu. SC’s accountant
refused to release detailed information of the premise.
http://www.chinajiaxin.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
SC’s quality system meets the international standards of ISO9001 and
ISO14001.
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
|
2004-6 |
Registered capital |
USD 1,100,000 |
USD 6,080,000 |
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Main Shareholders |
Huang Kecheng (Hong Kong resident) (46%) Zhejiang Jinxin Copper Co., Ltd. ( 54%) |
Zhejiang Jinxin Copper Co., Ltd (9.77%) Huang Kecheng(Hong Kong resident) (25%) Lin Ping (25.23%) Wang Yanayan（ (40%) |
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2005-6 |
Main Shareholders |
Zhejiang Jinxin Copper Co., ltd (9.77%) Huang Kecheng (Hong Kong) (25%) Lin Ping (25.23%) Wang Yanayan (40%) |
Huang Kecheng (Hong Kong resident) (25%) Zhejiang Jinxin Copper Co., ltd (75%) |
|
2007 |
Main Shareholders |
Huang Kecheng (Hong Kong resident) (25%) Zhejiang Jinxin Copper Co., ltd (75%) |
Huang Kecheng (Hong Kong resident) (30%) Zhejiang Jinxin Copper Co., ltd (70%) |
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2007-11 |
Registration No. |
002574 |
330600400005146 |
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Registered Legal Form |
Chinese-foreign equity joint venture enterprise |
Wholly foreign-owned enterprise |
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Main Shareholders |
Huang Kecheng (Hong Kong resident) (30%) Zhejiang Jinxin Copper Co., ltd (70%) |
Caihong Group Co., Ltd (Samoa) (Chinese Pinyin) (100%) |
MAIN SHAREHOLDERS:
Name % of
Shareholding
Caihong Group Co., Ltd (Samoa) (Chinese
Pinyin) 100
l
Legal representative, chairman and general
manager:
Ms. Wang Yanyan ID # 330622711217362. She is currently responsible for
the overall management of SC.
X `
Working Experience(s):
From 2003 to present Working
in SC as chairman, legal representative and general manager.
*Officials:
=======
Name Title
Lin Ping Director
Lin Shuihe Director
SC is mainly
engaged in manufacturing copper tubes, brass tubes and many other kinds of high
quality copper products.
Main Products: copper
tube, copper tube series, red brass seamless pipes, automobile brass tube,
brass pipe, refrigeration system of pipe fitting, etc.
SC sources its materials 70% from domestic
market, and 30% from overseas market. SC sells 80% of its products in domestic
market, and 20% to overseas 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 known to invest in the following
companies:
Shangyu Jiaxin Copper Co., Ltd
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.
SC’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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Cash & bank |
25,558 |
62,625 |
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Short-term
investments |
880 |
1,279 |
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Notes receivable |
6,233 |
3,042 |
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Inventory |
8,187 |
16,116 |
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Accounts
receivable |
19,624 |
50,356 |
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Advances to
supplies |
80,791 |
15,531 |
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Other receivables |
31,470 |
40,554 |
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Subsidies
receivable |
0 |
263 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
172,743 |
189,766 |
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Fixed assets |
43,335 |
48,036 |
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Fixed assets net
value |
37,369 |
38,417 |
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Projects under
construction |
4,952 |
6,322 |
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Long-term
investments |
300 |
300 |
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Intangible
assets |
3,918 |
6,565 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
219,282 |
241,370 |
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============= |
============= |
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Short loans |
53,850 |
89,790 |
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Notes payable |
27,050 |
14,223 |
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Accounts payable |
62,522 |
11,480 |
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Other Accounts
payable |
16,655 |
41,784 |
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Accrued payroll |
206 |
0 |
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Welfare expenses
payable |
147 |
0 |
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Taxes payable |
139 |
-56 |
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Surcharge
payable |
-4 |
-13 |
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Accrued expenses |
0 |
0 |
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Advances from
customers |
15,675 |
28,538 |
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Other current
liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
176,240 |
185,746 |
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Long term liabilities |
0 |
18,000 |
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------------------ |
------------------ |
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Total
liabilities |
176,240 |
203,746 |
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Shareholders
equities |
43,042 |
37,624 |
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------------------ |
------------------ |
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Total
liabilities & equities |
219,282 |
241,370 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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Turnover |
63,569 |
107,544 |
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Cost of goods sold |
60,779 |
106,813 |
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Taxes and additional of main operation |
395 |
52 |
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Operation expense |
0 |
657 |
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Management expense |
2,171 |
1,564 |
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Finance expense |
2,617 |
4,018 |
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Investment
income |
40 |
30 |
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Non-operating
income |
342 |
115 |
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Non-operating expense |
250 |
3 |
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Operation Profit |
-2,261 |
-5,419 |
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Less: profit tax |
0 |
0 |
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Net profit |
-2,261 |
-5,419 |
Important Ratios
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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*Current ratio |
0.98 |
1.02 |
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*Quick ratio |
0.93 |
0.93 |
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*Liabilities
to assets |
0.80 |
0.84 |
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*Net profit
margin (%) |
-3.56 |
-5.04 |
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*Return on
total assets (%) |
-1.03 |
-2.25 |
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*Inventory
/Turnover ×365 |
48 days |
55 days |
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*Accounts
receivable/Turnover ×365 |
113 days |
171 days |
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*Turnover/Total
assets |
0.29 |
0.45 |
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* Cost of
goods sold/Turnover |
0.96 |
0.99 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line, and it was rising in
2006.
l
SC’s net profit margin is fair, and it was declining in 2006.
l
SC’s return on total assets is fair, and it was declining in 2006.
l
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
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 inventory of SC is maintained in an average 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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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 high.
l
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 short loans could be a threat to SC’s financial
condition. A credit line up to USD 200,000 would appear to be within SC’s
capacities.
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%)