MIRA
INFORM REPORT
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Report Date : |
02.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
tianjin dielve insulators co., ltd. |
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Registered Office : |
Gonglukou, Yangliuqing, Xiqing District Tianjin 300380 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
29.09.2000 |
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Com. Reg. No.: |
120000400000821 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing and Selling
Electric Insulators and Components. |
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 250,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
tianjin dielve insulators co., ltd.
gonglukou,
yangliuqing, xiqing district
tianjin 300380 pr
china
TEL: 86 (0)
22-27950940 FAX: 86 (0) 22-27950269
EXECUTIVE SUMMARY
INCORPORATION DATE : sep. 29, 2000
REGISTRATION NO. :
120000400000821
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
93
REGISTERED CAPITAL : USD 1,800,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 149,100,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 22,310,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 250,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.94 =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
Note: SC’s name should be the above stated one, instead of the given name
Tianjin Dielve Industries Co., Ltd.
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 Sep.
29, 2000.
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 designing, developing, manufacturing and selling electric insulators
and components; technical consultation & services.
SC is mainly
engaged in manufacturing and selling electric insulators
and components.
Mr. Li Yufeng has
been chairman of SC since 2000.
SC is known
to have approx. 93 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the economic development zone of Tianjin. Our
checks reveal that SC rents the total premise about 8,000 square meters.
SC is not known to host web site of its own at present.
E-mail: tjdielve@public.tpt.tj.cn
Till December 31, 2007, SC’s paid-up capital reached CNY 14,900,000.
MAIN SHAREHOLDERS:
Name
% of Shareholding
SEVES S.P.A 90
Tianjin Jin-jing Glass Bulb Co., Ltd. 10
Tianjin Jin-jing Glass Bulb Co., Ltd.
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Address: Gonglukou, Yangliuqing, Xiqi
District, Tianjin
l
Chairman:
Mr. Li Yufeng, in his 40’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.
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General Manager:
Mr. Paul, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working in SC as general
manager.
SC is mainly
engaged in manufacturing and selling electric insulators
and components.
SC’s products mainly include: glass insulators.
The annual production ability is 2 million pieces insulators, and the products are widely used in 35-500kV
transmission lines.
SC sources its
materials 70% from domestic market, mainly Sichuan, and 30% from overseas
market. SC sells 90% in domestic market, mainly Guangdong, and 10% to overseas
market, mainly Southeast Asia, Europe, and America.
The buying terms of SC include T/T, Check, L/C, and Credit of 30-60
days. The payment terms of SC include L/C and Credit of 30-60 days.
*Major Supplier:
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Chengdu Longquan Liming Fastener Factory
*Major Customer:
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Shenzhen Power Supply Bureau of Guangdong Power Grid Corp.
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.
Industrial and
Commercial Bank of China
AC#0302085109109570638
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2007 |
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Cash & bank |
12,540 |
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Inventory |
39,850 |
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Accounts
receivable |
69,750 |
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Other Accounts
receivable |
5,500 |
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Advances to
suppliers |
100 |
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To be
apportioned expense |
0 |
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Other current
assets |
50 |
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Current assets |
127,790 |
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Fixed assets net
value |
7,430 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
200 |
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Total assets |
135,420 |
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Short loans |
32,610 |
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Accounts payable |
58,870 |
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Advance from
clients |
810 |
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Other Accounts
payable |
18,020 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
2,800 |
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Current
liabilities |
113,110 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total liabilities |
113,110 |
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Equities |
22,310 |
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Total
liabilities & equities |
135,420 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2007 |
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Turnover |
149,100 |
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Cost of goods
sold |
117,650 |
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Sales expense |
17,530 |
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Management expense |
12,580 |
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Finance expense |
-630 |
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Profit before
tax |
1,370 |
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Less: profit tax |
140 |
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Profits |
1,230 |
Important Ratios
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As
of Dec. 31, 2007 |
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*Current ratio |
1.13 |
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*Quick ratio |
0.78 |
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*Liabilities
to assets |
0.84 |
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*Net profit
margin (%) |
0.82 |
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*Return on
total assets (%) |
0.91 |
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*Inventory
/Turnover ×365 |
98days |
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*Accounts
receivable/Turnover ×365 |
171days |
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*Turnover/Total
assets |
1.10 |
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* Cost of
goods sold/Turnover |
0.79 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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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.
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SC’s quick ratio 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 LARGE.
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The short-term loan of SC appears fairly large.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is high.
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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. The large amount of accounts receivable could be a threat to SC’s
financial condition. A credit line up to USD 250,000 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%)