MIRA
INFORM REPORT
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Report Date : |
12.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
WESTERN METAL MATERIALS CO LTD |
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Registered Office : |
No. 56, Keji 3rd Road, Hi-Tech Zone, Xi’an, Shaanxi
Province, 710065 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
28.12.2000 |
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Com. Reg. No.: |
610000100028269 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling different sorts of Metal Materials |
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 2,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
WESTERN METAL MATERIALS CO., LTD.
NO. 56, KEJI 3RD ROAD, HI-TECH ZONE,
XI’AN,
SHAaNxi PROVINCE, 710065 PR CHINA
56
TEL: 86 (0) 29-88331520 FAX: 86 (0) 29-88331527
EXECUTIVE SUMMARY
INCORPORATION DATE : december 28, 2000
REGISTRATION NO. : 610000100028269
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
661
REGISTERED CAPITAL : CNY 91,420,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 552,812,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 381,992,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 2,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.93 = 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 correct company name should be the heading
one, instead of the given name – Westah Metal Materials Co., Ltd.
SC was registered as a Shares limited co. at Shaanxi
Provincial Administration for Industry & Commerce (AIC - The official body
of issuing and renewing business license) on December 28, 2000.
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 developing, manufacturing and selling rare metal
materials of plate, belt, foil, wire, rod, tube and deep-processing products,
composite materials & its products, noble metal materials and other new
type materials; exporting its products and technology and importing machinery,
parts, materials and technology needed for its produce, excluding the items
limited or prohibited by the state; processing with imported materials,
processing with imported samples, assembling with imported parts, and
compensation trade in agreement.
SC is mainly
engaged in manufacturing and selling different sorts of metal materials.
Mr. Xi Zhengping
has been legal representative and chairman of SC since 2006.
SC is known
to have approx. 661 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 Xi’an. Our checks reveal that SC
owns the total premise about 20,000 square meters.
http://www.c-wmm.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: yxb@c-nin.com
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002149.
SC is confirmed as High-Tech enterprise by Science and Technology
Department of Shaanxi Province and receives identification of CSQA ISO 9002
Quality System in 2001. Its credit degree is AA.
MAIN
SHAREHOLDERS: (as of december 31st,
2007)
Name %
of Shareholding
Northwest Institute for Non-ferrous metal
Research
46.95
Zhejiang Innovation Investment Group Co.,
Ltd.
10.94
Shenzhen Capital Group Co., Ltd.
8.75
Zhuzhou Cemented Carbide Group Corp., Ltd.
5.47
China Nonferrous Metals Industry Technical
Development and Exchange Center
1.64
Jiujiang Tanbres Smeltery
1.09
Wang Qizhi
0.33
Xu Wenjin
0.3
Wang Jinshan
0.23
Peng Jixin
0.17
Other shareholders
24.13
================
Northwest Institute for Non-ferrous metal
Research
Northwest Institute for Nonferrous Metal
Research (NIN) is the key national base for the research of rare metal
materials, an important center for professional technology development in
China, the proponent of the National Engineering Research Center for Rare Metal
Materials Processing and Northwest Quality Supervision & Test Center of
Chinese Nonferrous Metal Industry etc. Up to now, there are CNY 1.6 billion
assets and over 3000 sets of instruments and equipment in NIN. Its consolidated
income approached to CNY 1.37 billion in 2006.
Shenzhen Capital Group Co., Ltd.
Renamed in October 2002, Shenzhen Capital
Group Co., Ltd. (SCGC) is an investment holding group controlling a large
quantity of investing subsidiaries and co-managed funds. The SCGC entity is a
restructure of its predecessor, Shenzhen Venture Capital Co., Ltd. (SZVC).
SZVC, a venture capital firm incorporated in August 1999 backed by the
government.
Main Business
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Venture Capital Investment
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Value-Added Services related
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To promote the development of hi-tech industry in Shenzhen and greater
China
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Following the road to developing well managed funds, venture capital
investment is the pillar of our business.
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Legal representative and chairman:
Mr. Xi Zhengping, senior engineer, born in
1966 with Doctor Degree. He is currently responsible for the overall management
of SC.
Working Experience(s):
1998-2005 Worked in
Northwest Institute for Non-ferrous metal Research as vice-president;
From June 2005 to present Working
in Northwest Institute for Non-ferrous metal Research as president;
From 2006 to present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Gao Zhizhu, senior engineer, born in
1964 with university education. He is currently responsible for the daily
management of SC.
Working Experience(s):
2003-2007 Worked
in Xi’an Tianli Clad-metal Materials Co., Ltd. as general manager;
From 2007 to present Working in SC as general
manager.
SC is mainly
engaged in manufacturing and selling different sorts of metal materials.
SC mainly engaged in the R & D, manufacture and sales of such products
as sheet, strip, foil, wire, bar and tube of rare metal materials, as well as
their deep-processed products, clad materials and its equipment, rare and
precious metal, etc. It has seven series of products, such as refractory metal
materials, pressure vessels, explosive clad materials, precious metal products,
pipe fittings, fine chemical products and metal fiber products. They are widely
used in many areas such as astronautics, metallurgy, petroleum, chemical
industry, chemical fiber, electronics and energy.
SC sources its materials 80% from domestic
market, mainly Shaanxi, and 20% from overseas market, mainly U.S.A. and Europe.
SC sells 70% of its products in domestic market, and 30% 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:
=============
Western Superconducting Technologies Co., Ltd.
Western Titanium Technologies Co., Ltd.
*Major Customers:
==============
Hong Kong
Chinapack
Analogic
Corporation
Tianjin Aviation Electro-mechanical Co., Ltd.
SC is known to have the following subsidiaries:
Xi’an
Tianli Clad-metal Materials Co., Ltd.
Xi’an
Filter Metal Materials 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, 2006 |
as of Dec. 31, 2007 |
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Cash & bank |
68,889 |
174,266 |
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Inventory |
111,291 |
161,683 |
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Accounts
receivable |
54,181 |
34,747 |
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Notes receivable |
12,300 |
9,579 |
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Advances to
supplies |
9,583 |
26,201 |
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Other
receivables |
4,545 |
5,454 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
260,789 |
411,930 |
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Fixed assets net
value |
102,023 |
118,698 |
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Projects under
construction |
23,023 |
73,816 |
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Long-term
investments |
7,073 |
6,907 |
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Intangible and
other assets |
30,055 |
29,029 |
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Total assets |
422,963 |
640,380 |
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============= |
============= |
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Short loans |
142,000 |
104,000 |
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Accounts payable |
38,012 |
55,188 |
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Other Accounts
payable |
3,992 |
4,284 |
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Notes payable |
10,000 |
0 |
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Advances from
clients |
7,320 |
21,712 |
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Taxes payable |
4,622 |
848 |
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Accrued payroll |
3,359 |
1,079 |
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Long-term
liabilities due with in one year |
11,500 |
5,000 |
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Other current
liabilities |
1,895 |
1,109 |
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----------------- |
----------------- |
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Current
liabilities |
222,700 |
193,220 |
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Long term
liabilities |
27,720 |
65,168 |
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------------------ |
------------------ |
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Total
liabilities |
250,420 |
258,388 |
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Shareholders
equities |
172,543 |
381,992 |
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Total
liabilities & equities |
422,963 |
640,380 |
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============= |
Consolidated
Income Statement
Unit: CNY’000
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Turnover |
543,388 |
552,812 |
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Cost of goods
sold |
474,159 |
472,945 |
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Sales expense |
4,951 |
5,113 |
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Management expense |
18,737 |
20,295 |
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Finance expense |
7,892 |
8,632 |
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Operation Profit |
38,153 |
48,963 |
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Less: profit tax |
3,999 |
4,305 |
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Net profit |
34,154 |
44,658 |
Important Ratios
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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*Current ratio |
1.17 |
2.13 |
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*Quick ratio |
0.67 |
1.30 |
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*Liabilities
to assets |
0.59 |
0.40 |
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*Net profit
margin (%) |
6.29 |
8.08 |
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*Return on
total assets (%) |
8.07 |
6.97 |
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*Inventory
/Turnover ×365 |
75 days |
107 days |
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*Accounts
receivable/Turnover ×365 |
36 days |
23 days |
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*Turnover/Total
assets |
1.28 |
0.86 |
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* Cost of
goods sold/Turnover |
0.87 |
0.86 |
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 was increased; and it still remains at a fairly
good level in 2007.
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SC’s return on total assets was decreased, and it remains at a fairly
good level in 2007.
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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 2007.
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SC’s quick ratio was increased, and it maintained in a normal level in
2007.
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The inventory conversion period of SC appears long in 2007.
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The accounts receivable of SC appears average in both 2 years.
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SC’s short-term loan appears fairly large in both 2 years.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY GOOD
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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:
Fairly good.
SC is considered medium-sized in its line with fairly good financial
conditions. The large amount of inventory could be a threat to SC’s financial condition.
A credit line up to USD 2,000,000 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%)