MIRA
INFORM REPORT
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Report Date : |
13.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHANDONG SWAN COTTON INDUSTRIAL MACHINERY STOCK Co., Ltd. |
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Registered Office : |
No. 400, Tenth Area,
East Village Of Luokou, Tianqiao District,
Ji’nan, Shandong Province, 250032 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
08.07. 2002 |
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Com. Reg. No.: |
370000018076439 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling Cotton Machinery. |
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 700,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
SHANDONG SWAN COTTON INDUSTRIAL MACHINERY STOCK Co., Ltd.
NO. 400, TENTH
AREA, EAST VILLAGE OF LUOKOU, TIANQIAO DISTRICT,
JI’NAN, SHANDONG
PROVINCE, 250032 PR CHINA
TEL: 86 (0)
531-85706476 FAX: 86 (0)
531-85704882
EXECUTIVE SUMMARY
INCORPORATION DATE : JULY 8, 2002
REGISTRATION NO. : 370000018076439
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
400
REGISTERED CAPITAL : CNY 60,180,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 215,220,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 106,890,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 700,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.90 = 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 Shares limited co. at Shandong
Provincial Administration for Industry & Commerce (AIC - The official body
of issuing and renewing business license) on July 8, 2002.
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 cotton processing machinery
and parts, grain & oil processing machinery; selling cotton, steel materials
and hardware; international trade with licenses.
SC is mainly
engaged in manufacturing and selling cotton machinery.
Mr. Huang Junqiang
has been legal representative and chairman of SC since 2002.
SC is known
to have approx. 400 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 Ji’nan. Our checks
reveal that SC owns the total premise about 20,000 square meters.
http://www.sdmj.com.cn/ The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
Email: swan@sdmj.com.cn
News:
Ø
“Swan Cotton Machinery” has passed the examination of product production
license;
Ø
Complete Set of Swan Cotton Ginning Equipments has won the title “The
Products of Shandong Famous Brand”
Many kinds of main machine and key spare parts produced by company are
appraised famous brand products. The company is evaluated by financial circle
as “Three A” grade enterprise in continuous years. It is the first of the same
trade in china to pass ISO9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shandong Cotton Machinery Corporation.
13.19
Shandong Tianyuan Fiber Co., Ltd.
7.91
Shandong Agricultural Means Of Production
Co., Ltd.
7.91
Shandong Jianghe Cotton Machinery Co., Ltd.
42.5
Shandong Supply and Marketing Cooperative
General Company
28.4
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Shandong Agricultural Means of Production
Co., Ltd., with a history of more than 50 years, is an international trading
corporation. It is specialized in agricultural means of production such as
fertilizers, pesticide, polyethylene membrane, and so on.
l
Legal representative and chairman:
Mr. Huang Jianqiang, in his 50’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working
in SC as chairman and legal representative.
SC is mainly
engaged in manufacturing and selling cotton machinery.
SC’s products
mainly include seed cotton cleaner, saws, ribs, channel saws and space blocks,
etc.
SC sources its materials 80% from domestic
market, mainly Shandong, and 20% from overseas market, mainly U.S.A. 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.
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 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.
Agriculture Bank of China Ji’nan Branch Luokou Sub-branch
AC#15-121301040004661
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
14,740 |
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Inventory |
11,830 |
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Accounts
receivable |
70,040 |
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Advances to
suppliers |
34,940 |
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Notes receivable |
600 |
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Short-term
investment |
39,000 |
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Other
receivables |
7,480 |
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Other current
assets |
9,240 |
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Current assets |
187,870 |
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Fixed assets |
54,240 |
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Fixed assets net
value |
23,140 |
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Projects under
construction |
280 |
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Long term investment |
11,920 |
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Other assets |
33,520 |
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Total assets |
256,730 |
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Short loans |
20,000 |
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Accounts payable |
98,550 |
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Other payable |
25,520 |
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Advances from
clients |
2,570 |
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Other current
liabilities |
3,200 |
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Current
liabilities |
149,840 |
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Long term
liabilities |
0 |
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Total
liabilities |
149,840 |
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Equities |
106,890 |
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Total
liabilities & equities |
256,730 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
215,220 |
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Cost of goods
sold |
172,270 |
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Sales expense |
13,910 |
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Management expense |
23,700 |
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Finance expense |
1,290 |
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Profit before
tax |
4,040 |
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Less: profit tax |
1,330 |
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Profits |
2,710 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
1.25 |
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*Quick ratio |
1.17 |
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*Liabilities
to assets |
0.58 |
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*Net profit
margin (%) |
1.26 |
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*Return on
total assets (%) |
1.06 |
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*Inventory
/Turnover ×365 |
20 days |
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*Accounts
receivable/Turnover ×365 |
119 days |
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*Turnover/Total
assets |
0.84 |
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* Cost of
goods sold/Turnover |
0.80 |
PROFITABILITY:
FAIRLY GOOD
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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 is maintained in an average level.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan is in an average level.
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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 low.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions. A credit line up to USD 700,000 appears 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%)