MIRA
INFORM REPORT
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Report Date : |
18.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
SANY HEAVY INDUSTRY Co., Ltd. |
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Registered Office : |
Sany Industry Town, Changsha Economic Technological Development Zone, Changsha,
Hunan Province, 410100 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
22.11.1994 |
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Com. Reg. No.: |
4300002000116 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling Heavy Equipment. |
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 5,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name and address of the company
SANY HEAVY INDUSTRY Co., Ltd.
sany industry town,
changsha economic TECHNOLOGICAL development zone, changsha, hunan PROVINCE,
410100 PR CHINA.
TEL: 86 (0)
731-4031555 FAX: 86 (0) 731-4031777
EXECUTIVE SUMMARY
INCORPORATION DATE : NOVEMBER 22, 1994
REGISTRATION NO. : 4300002000116
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
6,322
REGISTERED CAPITAL : CNY 992,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 4,574,461,000 (AS OF DEC.
31, 2006)
EQUITIES :
CNY 2,647,565,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 5,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
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 shares limited co. at Hunan Provincial
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on November 22, 1994.
Company Status: Shares limited co. This form of business in PR China is defined as a legal
person. Its registered capital is divided into shares of equal par value
and the co. raises capital by issuing share certificates by promotion or by
public offer. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to the extent of its
total assets. The co has independent property of legal person and enjoys
property rights of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co. requires at least two
promoters and no more than 200, half
of whom shall be domiciled in China.. Natural person are allowed to
serve as promoters. The minimum registered capital of a co. is CNY 5M. while
that of the co. with foreign investment is CNY 5M. The total capital of a
co. which propose to apply for publicly listed must be no less than CNY
30M. The board of directors must consist of five to nineteen
directors. If the co. raises capital by public offer, the promoters
must not subscribe less than 35% of the total shares. the promoters’ shares
are restricted to transfer- within one year of the offer. A state-owned enterprise that is restructured into a
shares limited co. must comply with the conditions & requirements
specified under the law & administrative rule.
SC’s registered
business scope includes manufacturing and selling construction engineering
machinery, hoisting machinery, garage, universal devices, electromechanically
products, metal products and electronic products; manufacturing and selling
carriages; selling hardware, minerals and metal materials with permit;
providing information, leasing construction engineering machinery; old engineering
machinery; exporting self-made electromechanical products; importing raw materials machinery, meters
& instruments, components and relevant technology for its production and
research; processing with imported materials, processing with supplied materials
and samples, assembling with supplied parts, compensation trade.
SC is mainly
engaged in manufacturing and selling heavy equipment.
Mr. Liang Wengen
has been legal representative and chairman of SC since 2000.
SC is known
to have approx. 6,322 staff members at present, including 335 technicians,
582 management staff and 741 sales representatives.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the development zone of Changsha. Our checks
reveal that SC owns the total premise about 180,000 square meters.
http://www.sany.com.cn/ The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
E-mail: sany@sany.com.cn
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600031.
MAIN SHAREHOLDERS: (AS OF AUGUST 17, 2007)
Name %
of Shareholding
Sany Group Co., Ltd.
64.134
Morgan China Superior Security Investment
Fund
1.619
Morgan Growth Xianfeng Stock Security
Investment Fund
1.223
Sany Automobile Manufacturing Co., Ltd.
1.074
JF Chinese Pioneers Stock A Fund
JF A 0.910
Morgan Mixed Double Income Balance Security
Investment Fund
0.843
Tongsheng Security Investment Fund
0.833
UBS AG 0.748
Citi - DEUTSCHE BANK AKTIENGESELLSCHAFT
DEUTSCHE BANK AKTIENGESELLSCHAFT 0.620
Wuxi Yilida Machinery Co Ltd.
0.548
Other Shareholders
27.448
l
Legal representative and chairman:
Mr. Liang Wengen (梁稳根), 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 and legal representative.
l
Vice-chairman:
Mr. Tang Guoxiu (唐国修), 45 years old with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working
in SC as vice-chairman.
*Officials:
=======
Name Title
Huang Jianlong Director
Yao Chuanda Supervisor
Li Daocheng Supervisor
Guo Chunming Vice-general
manager
SC is mainly
engaged in manufacturing and selling heavy equipment.
SC’s products mainly include truck-mounted concrete pumps,
trailer-mounted concrete pumps, excavator, reach stacker, and rotary drilling
rig, etc.
SC sources its materials 40% from domestic
market, and 60% from overseas market, mainly USA and Europe. SC sells 80% of
its products in domestic market, and 20% to overseas market, mainly Southeast
Asian 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.
*Major Suppliers:
=============
Sany Automobile Manufacturing Co., Ltd.
Kunshan Sany Heavy Machinery Co., Ltd.
*Major Customers:
==============
Hong Kong
Xinhengli Group Co., Ltd.
Shanghai Xinliheng
Machinery Co., Ltd.
SC is known to have the following subsidiaries:
Hunan Sany
Pump Machinery Co., Ltd.
Hunan
Sany Highway Machinery Co., Ltd.
Sany
Heavy Equipment Co., Ltd.
Shanghai
Gaoli Technology Investment Co., Ltd.
Shanghai
Sany Technology Co., Ltd.
Guangdong
Sany Machinery Co., Ltd.
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.
SC’s management declined
to release its bank details.
Consolidated
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 |
776,971 |
1,139,174 |
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Inventory |
1,208,711 |
1,495,604 |
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Accounts
receivable |
597,300 |
752,706 |
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Short-term
investments |
51,800 |
210,977 |
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Notes receivable |
181,492 |
197,862 |
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Advances to
supplies |
147,240 |
383,783 |
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Other
receivables |
139,236 |
123,116 |
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Prepaid expenses |
804 |
3,574 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
3,103,554 |
4,306,796 |
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Fixed assets |
1,363,381 |
1,635,224 |
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Fixed assets net
value |
1,160,731 |
1,315,336 |
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Project
materials |
66,057 |
34,363 |
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Projects under
construction |
315,883 |
76,262 |
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Long-term
investments |
59,483 |
109,876 |
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Intangible and
other assets |
52,100 |
74,421 |
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------------------ |
------------------ |
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Total assets |
4,757,808 |
5,917,054 |
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============= |
============= |
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Short loans |
1,321,000 |
987,300 |
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Accounts payable |
390,467 |
521,463 |
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Other Accounts
payable |
98,896 |
214,888 |
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Notes payable |
210,016 |
296,471 |
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Dividends
payable |
2,314 |
0 |
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Accrued payroll |
5,625 |
10,541 |
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Taxes payable |
24,439 |
92,100 |
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Welfares payable |
4,489 |
11,372 |
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Accrued expenses |
2,587 |
16,392 |
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Advances from
customers |
99,461 |
133,848 |
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Long-term
liabilities due with in one year |
0 |
100,000 |
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Other current
liabilities |
1,523 |
7,163 |
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----------------- |
----------------- |
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Current
liabilities |
2,160,817 |
2,391,538 |
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Long term
liabilities |
450,000 |
772,469 |
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------------------ |
------------------ |
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Total
liabilities |
2,610,817 |
3,164,007 |
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Minority Shareholders’
equity |
72,073 |
105,482 |
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Shareholders
equities |
2,074,918 |
2,647,565 |
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------------------ |
------------------ |
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Total
liabilities & equities |
4,757,808 |
5,917,054 |
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============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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Turnover |
2,537,397 |
4,574,461 |
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Cost of goods
sold |
1,649,150 |
2,935,343 |
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Sales expense |
322,815 |
568,682 |
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Management expense |
213,555 |
358,833 |
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Finance expense |
103,044 |
118,307 |
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Non-operating
income |
15,769 |
6,853 |
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Investment
income |
7,481 |
81,903 |
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Operation Profit |
269,700 |
682,516 |
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Less: profit tax |
35,860 |
73,883 |
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Minority interest income |
17,566 |
51,289 |
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Net profit |
216,274 |
557,344 |
Important Ratios
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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*Current ratio |
1.44 |
1.80 |
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*Quick ratio |
0.88 |
1.18 |
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*Liabilities to
assets |
0.55 |
0.53 |
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*Net profit
margin (%) |
8.52 |
12.2 |
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*Return on
total assets (%) |
4.55 |
9.42 |
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*Inventory
/Turnover ×365 |
174 days |
119 days |
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*Accounts
receivable/Turnover ×365 |
86 days |
60 days |
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*Turnover/Total
assets |
0.53 |
0.77 |
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* Cost of
goods sold/Turnover |
0.65 |
0.64 |
PROFITABILITY: FAIRLY GOOD
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The turnover of SC appears good in its line, and it increased in 2006.
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SC’s net profit margin is maintained in a fairly good, and it was rising
in 2006.
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SC’s return on total assets is maintained in a fairly good, and it was
rising in 2006.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal level in both 2 years.
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The quick ratio of SC is maintained in a normal level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC appears average.
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SC’s short-term loan appears fairly large.
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SC’s turnover is in an average 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:
Stable.
SC is well-known in its industry with stable financial conditions.
Credit dealings with SC in favorable terms can be considered.
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%)