MIRA
INFORM REPORT
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Report Date : |
29.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
GOODYEAR DALIAN
TIRE CO., LTD. |
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Registered Office : |
No.25 Shiqiao Street, Shahekou District, Dalian, Liaoning Province,
116033 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
08.04.1992 |
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Com. Reg. No.: |
00623 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Producing and Selling Tires. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 5,000,000 |
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Status : |
Very Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
GOODYEAR DALIAN
TIRE CO., LTD.
NO.25 SHIQIAO STREET, SHAHEKOU DISTRICT,
DALIAN,
LIAONING PROVINCE, 116033 PR CHINA
TEL: 0086-411-86535099 FAX:
0086-411-86663531
EXECUTIVE SUMMARY
INCORPORATION DATE :
APR. 8, 1992
REGISTRATION NO. :
00623
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. MICHAEL JON MARTENS (CHAIRMAN)
STAFF STRENGTH :
693
REGISTERED CAPITAL : US$
312,560,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,408,610,000 (AS OF DEC.
31, 2007)
EQUITIES :
CNY 1,022,460,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 5,000,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL
KNOWN
EXCHANGE RATE :
CNY 6.83179 = USD 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 Chinese-foreign
equity joint venture enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Apr. 8, 1992.
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 developing and producing radial ply
tires, tire tubes and other products, selling the products in domestic and
foreign markets; importing, exporting, and wholesaling similar products,
commission agent and other related services; purchasing the products not under
quota licensing control in domestic and overseas market.
SC is mainly
engaged in producing and selling tires.
Mr. Michael Jon
Martens has been legal representative and chairman of SC since February, 2008.
SC is known to have approx. 693 employees 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 Dalian. Our checks
reveal that SC owns the total premise about 180,000 square meters.
http://www.goodyear.com.cn/excellence.html
The design is professional and the content is well organized. At present it is
in Chinese version.
SC’s former legal
representative was Mr. John H S Tseng（曾新生）,
and the former registered capital was US$ 146,560,000.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Goodyear S.A 75
Dalian Bingshan Group Co., Ltd. 25
==================
As a large-sized group enterprise with new
property right relations, Dalian Bingshan Group Co., Ltd. (DBGC)
is China's largest base of manufacturing refrigeration and air
conditioning complete equipment, a base of manufacturing equipment for farm
products' further processing, and also one of the China's main bases of
manufacturing petrochemical general equipment. DBGC is composed of 48
companies, of which, 2 are listed companies, 13 are state-run companies and 33
are Sino-foreign joint venture companies. It has about thirteen thousand
of enrolled employees, and RMB 10 billion of total properties.
l
Legal representative, chairman and
general manager:
Mr. Michael Jon Martens, about 45 years old with university education. He
is currently responsible for the overall management of SC.
Working Experience(s):
From
February, 2008 to present Working
in SC as chairman, legal representative and general manager.
l
Vice-General manager:
Mr. Yang Shiqiang, about 48 years old, with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as vice-general manager.
SC is mainly
engaged in producing and selling tires.
SC’s products mainly include: Car, Van, SUV & Light Truck Tires,
Commercial Truck Tires, Off The Road Tires, ATV Tires, Trailer and RV Tires,
Racing Tires and Aviation Tires.
SC sources its materials 80% from domestic market and 20% from the
overseas market. SC sells 40% of its products to overseas market and 60% in domestic market.
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C, and Credit of 30-60 days.
*Major Supplier*
=============
Qingdao EGUSSA Co., Ltd.
*Major Customer*
==============
FAW-VW Automobile 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 Dalian Branch
AC#: N/A
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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Cash & bank |
86,920 |
130,450 |
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Bills receivable |
2,470 |
5,130 |
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Accounts
receivable |
269,280 |
291,010 |
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Other
receivables |
5,910 |
7,120 |
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Advances to
suppliers |
1,080 |
5,590 |
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Inventory |
188,890 |
213,180 |
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Prepaid expenses |
0 |
0 |
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Other current
assets |
5,180 |
0 |
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------------------ |
------------------ |
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Current assets |
559,730 |
652,480 |
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Fixed assets |
1,164,680 |
1,089,150 |
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Fixed assets net
value |
1,133,140 |
1,049,600 |
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Projects under
construction |
31,540 |
39,550 |
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Long term
investment |
0 |
0 |
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Other assets |
54,580 |
93,980 |
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------------------ |
------------------ |
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Total assets |
1,778,990 |
1,835,610 |
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============= |
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Short loans |
399,250 |
365,490 |
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Bills payable |
72,000 |
106,200 |
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Accounts payable |
195,470 |
203,590 |
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Welfare payable |
0 |
0 |
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Advances from
clients |
0 |
0 |
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Accrued payroll |
4,250 |
7,910 |
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Tax payable |
-9,610 |
3,940 |
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Other payable |
107,240 |
124,980 |
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Surcharge
payable |
0 |
0 |
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Other current
liabilities |
1,650 |
1,040 |
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------------------ |
------------------ |
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Current
liabilities |
770,250 |
813,150 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
770,250 |
813,150 |
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Equities |
1,008,740 |
1,022,460 |
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------------------ |
------------------ |
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Total
liabilities & equities |
1,778,990 |
1,835,610 |
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============= |
Income Statement
Unit: CNY’000
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|
as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Turnover |
1,205,020 |
1,408,610 |
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Cost of goods
sold |
915,150 |
1,062,940 |
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Sales expense |
154,030 |
177,750 |
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Management expense |
105,650 |
128,570 |
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Finance expense |
15,630 |
19,030 |
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Profit before
tax |
12,650 |
11,290 |
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Less: profit tax |
1,420 |
-2,430 |
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Profits |
11,230 |
13,720 |
Important Ratios
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as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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*Current ratio |
0.73 |
0.80 |
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*Quick ratio |
0.48 |
0.54 |
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*Liabilities
to assets |
0.43 |
0.44 |
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*Net profit
margin (%) |
0.93 |
0.97 |
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*Return on
total assets (%) |
0.63 |
0.75 |
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*Inventory
/Turnover ×365 |
58 days |
56 days |
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*Accounts
receivable/Turnover ×365 |
82 days |
76 days |
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*Turnover/Total
assets |
0.68 |
0.77 |
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* Cost of goods
sold/Turnover |
0.76 |
0.75 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line, and it increased in
2007.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears fairly large.
l
SC’s short-term loan is in a fairly large level.
l
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
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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.
A credit line up to USD 5,000,000 would appear to be within SC’s capacities
upon a periodical review basis.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.54 |
|
UK Pound |
1 |
Rs.84.86 |
|
Euro |
1 |
Rs.66.95 |
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%)