MIRA
INFORM REPORT
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Report Date : |
21.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
Suzhou Kern-Liebers Precision Elements CO., LTD. |
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Registered Office : |
No. 88-8 East Nanjing Road, Taicang Economic
Development Zone, Jiangsu Province, 215400 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
14.10.2003 |
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Com. Reg. No.: |
001118 |
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Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and Selling Diesel Engine Oil Fuel Pump Parts. |
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 50,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name and address of the company
Suzhou Kern-Liebers Precision Elements CO., LTD.
NO. 88-8 EAST NANJING ROAD, TAICANG ECONOMIC
DEVELOPMENT ZONE,
JIANGSU PROVINCE, 215400 PR CHINA
88-8
TEL: 86 (0)
512-53578996 FAX: 86 (0) 512-53578997
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT. 14, 2003
REGISTRATION NO. : 001118
REGISTERED LEGAL FORM : CHINESE FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
170
REGISTERED CAPITAL : CNY 31,109,702
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 9,540,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 21,030,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 50,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.25= 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 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 Oct. 14, 2003.
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 manufacturing diesel engine oil
fuel pumps and parts; selling its self-made products.
SC is mainly engaged
in manufacturing and selling diesel engine oil fuel pump parts.
Mr. HAMS JOCHEM
STEI M has been chairman of SC since 2003.
SC is known
to have approx. 170 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 Taicang. Our checks
reveal that SC owns the total premise about 15,000 square meters.
www.kern-liebers.com.cn
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
Hugo Kern und Liebers GmbH & Co.
KG. 92
Kern-Liebers (Taicang) Co., Ltd.
8
Hugo Kern und Liebers GmbH & Co. KG.
Dr.-Kurt-Steim-Strasse 35, D-78713
Schramberg
Phone +49-7422-511-0
Fax +49-7422-511-200
l
Chairman:
Mr. HAMS JOCHEM STEI M German, in his 60’s with university education. He
is currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman.
l
General Manager:
Mr. Zhang Zhenwei (张臻伟) in his 40’s with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2003 to present
Working in SC as general
manager.
SC is mainly
engaged in manufacturing and selling diesel engine oil fuel pump parts.
SC’s products
mainly include:
High Level
Knitting elements
Kinds of high-tech
spring products
Blood lancet for
single use
Precisely stamping
parts
Clamping rings
parts
SC sources its
materials 80% from domestic market, and 20% from the overseas market, mainly
European countries. 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, 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 Clients:
===========
Hugo Kern und Liebers GmbH & Co.
KG.
BOSCH China
*Major Supplier:
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Peter Wolter (Germany)
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 refused to release any information of its
domestic suppliers and the trade reference was not available.
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 China Taicang Sub-branch
AC#27767308091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
530 |
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Inventory |
5,270 |
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Accounts
receivable |
2,970 |
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Advances to
suppliers |
0 |
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Other
receivables |
1,610 |
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Other current
assets |
80 |
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------------------ |
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Current assets |
10,460 |
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Fixed assets net
value |
17,200 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
1,240 |
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------------------ |
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Total assets |
28,900 |
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============= |
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Short loans |
5,000 |
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Accounts payable |
-440 |
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Advances from
clients |
0 |
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Taxes payable |
0 |
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Salaries payable |
0 |
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Other payable |
3,310 |
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Other current
liabilities |
0 |
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Current
liabilities |
7,870 |
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Long term
liabilities |
0 |
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Total
liabilities |
7,870 |
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Equities |
21,030 |
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------------------ |
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Total
liabilities & equities |
28,900 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
9,540 |
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Cost of goods
sold |
9,400 |
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Sales expense |
140 |
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Management expense |
1,860 |
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Finance expense |
60 |
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Profit before
tax |
-1,910 |
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Less: profit tax |
0 |
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Profits |
-1,910 |
Important Ratios
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2006 |
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*Current ratio |
1.33 |
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*Quick ratio |
0.66 |
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*Liabilities
to assets |
0.27 |
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*Net profit
margin (%) |
-20.02 |
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*Return on
total assets (%) |
-6.61 |
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*Inventory
/Turnover ×365 |
202days |
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*Accounts
receivable/Turnover ×365 |
114days |
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*Turnover/Total
assets |
0.33 |
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* Cost of
goods sold/Turnover |
0.99 |
PROFITABILITY:
POOR
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The turnover of SC appears average 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 high, 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 fair level in 2006.
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The accounts receivable of SC is fairly large.
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The inventory of SC is fairly large.
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The short loans of SC average.
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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 low.
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The risk for SC to go bankrupt average.
Overall financial
condition of the SC: Fair.
Credit Opinion: USD 500,000
SC is considered medium-sized in its line with fair financial conditions.
A credit line at the above amount appears beyond SC’s capacities, while a
credit line up to USD 50,000 would appear to be within SC’s capacity upon a
periodical review basis.
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%)