MIRA
INFORM REPORT
|
Report Date : |
10.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
GUANGDONG CHIGO AIR CONDITIONING CO., LTD. |
|
|
|
|
Registered Office : |
Shengli Industrial Zone, Lishui Town, Nanhai District, Foshan,
Guangdong Province, 528244 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
June 16, 1997 |
|
|
|
|
Com. Reg. No.: |
002058 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
|
|
Line of Business : |
Engaged in
manufacturing and selling air conditioners. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
Up To usd 3,000,000 |
|
|
|
|
Status : |
Very Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name & address
GUANGDONG CHIGO AIR CONDITIONING CO., LTD.
SHENGLI INDUSTRIAL ZONE, LISHUI TOWN, NANHAI DISTRICT, FOSHAN,
GUANGDONG PROVINCE, 528244 PR CHINA
TEL : 86 (0) 757-85660491
FAX : 86 (0) 757-85608592
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 16, 1997
REGISTRATION NO. : 002058
REGISTERED LEGAL FORM : Wholly foreign-owned
enterprise
STAFF STRENGTH :
16,000
REGISTERED CAPITAL : CNY 353,140,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 4,487,160,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 615,260,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 3,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
CNY7.26 = US$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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on June 16, 1997.
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 and selling household air
conditioners, refrigerators, freezers, electromagnetic ovens, microwave ovens,
electronic terrines, audio equipment, commercial air conditioners, gas water
heaters, gas kitchen ware, computers, above products components, and after
services.
SC is mainly
engaged in manufacturing and selling air conditioners.
Mr. Li Xinghao has
been chairman of SC since 1997.
SC is known to
have approx. 16,000 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 Foshan. Our checks reveal
that SC owns the total premise about 3,000,000 square meters.
http://www.china-chigo.com The
design is professional and the content is well organized. At present the web site
is both in Chinese and English versions.
E-mail: sale@china-chigo.com
Changes of its registered information are as follows:
|
Date
of change |
Item |
Before the change |
After the change |
|
2005 |
Registered legal form |
shares limited company |
wholly foreign-owned enterprise |
|
Shareholders |
Li Xinghao 90.85% Other 32 individuals 9.15% |
Chigo Development Holdings Limited (BVI)
100% |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chigo Development Holdings Limited (BVI) 100
l
Legal
Representative, Chairman and General Manager:
Mr. Li Xinghao, about 50
years old with university education. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 1997 to present Working in SC as legal representative, chairman and general manager.
l
Vice General
Manager:
Ms. Zhang Ping, about 45 years old with university education. She is currently responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working in SC as vice general manager.
SC is mainly engaged
in manufacturing and selling air conditioners.
SC’s products
mainly include: “Chigo” brand air conditioners.
SC sources its materials 80% from domestic market, and 20% from international
market, mainly Japan. SC sells 90% of its products in domestic market, and 10%
to overseas market, mainly USA, Europe and Southeast Asian market.
The buying terms of SC include T/T, L/C and Credit of 30-45 days. The
payment terms of SC include T/T, L/C and Credit of 30-45 days.
*Major Customer:
==============
SUNING APPLIANCE CO., LTD.
*Major Supplier:
==============
MITSUBISHI ELECTRIC CO., LTD
SC is
known to have a subsidiary at present:
Ningbo Intelligence Electronics Co., Ltd.
Address:
No.885 Dazha Road, Jiangbei District, Ningbo, Zhejiang Province.
Tel: 86
0574-87679963
Fax: 86
0574-87679963
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.
Agricultural
Bank of China Foshan Branch Lishui Town Sub-Branch
AC#:
519501042222959
Relation:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
|
Cash & bank |
1,062,060 |
|
Inventory |
687,070 |
|
Accounts
receivable |
574,950 |
|
Other Accounts
receivable |
10,690 |
|
To be
apportioned expense |
0 |
|
Other current
assets |
83,360 |
|
|
------------------ |
|
Current assets |
2,418,130 |
|
Fixed assets net
value |
200,340 |
|
Projects under
construction |
0 |
|
Long term
investment |
0 |
|
Other assets |
104,250 |
|
|
------------------ |
|
Total assets |
2,722,720 |
|
|
============= |
|
Short loans |
253,650 |
|
Accounts payable |
1,122,600 |
|
Other Accounts
payable |
28,090 |
|
Advances from
customers |
482,290 |
|
Withdraw the
expenses in advance |
0 |
|
Other current
liabilities |
220,830 |
|
|
------------------ |
|
Current
liabilities |
2,107,460 |
|
Long term
liabilities |
0 |
|
Other
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
2,107,460 |
|
Equities |
615,260 |
|
|
------------------ |
|
Total
liabilities & equities |
2,722,720 |
|
|
============= |
Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
|
Turnover |
4,487,160 |
|
Cost of goods
sold |
3,880,800 |
|
Sales expense |
337,840 |
|
Management expense |
79,220 |
|
Finance expense |
44,220 |
|
Profit before
tax |
129,270 |
|
Less: profit tax |
22,880 |
|
Profits |
106,390 |
Important Ratios (as of Dec. 31, 2006)
=============================
*Current ratio 1.15
*Quick ratio 0.82
*Liabilities to
assets 0.77
*Net profit
margin (%) 2.37
*Return on total
assets (%) 3.91
*Inventory
/Turnover ×365 56 days
*Accounts receivable/Turnover
×365 47 days
*Turnover/Total
assets 1.65
*Cost of goods
sold/Turnover 0.86
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in an average level.
l
SC’s quick ratio is maintained in an average level.
l
The inventory of SC is maintained in a normal level.
l
The accounts receivable of SC is maintained in an acceptable level.
l
SC’s short-term loan is fairly large.
l
SC’s turnover is in an average level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is normal.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is considered large-sized in its line with stable financial conditions.
A credit line up to USD3,000,000
would appear to be within SC’s capacities.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)