MIRA
INFORM REPORT
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Report Date : |
18.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
NORTH CHINA
ALUMINIUM CO., LTD. |
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Registered Office : |
Huancheng Road, Zhuozhou City, Hebei Province, 072750 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
09.12.1993 |
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Com. Reg. No.: |
130000400001590 |
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Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing And Selling Various Aluminum Alloy Materials, Deep
Proceeded Products And Various Doors, Windows And Curtain Wall, etc. |
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 3,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NAME & ADDRESS
NORTH CHINA
ALUMINIUM CO., LTD.
HUANCHENG ROAD, ZHUOZHOU CITY,
HEBEI PROVINCE, 072750 PR CHINA
TEL: 86 (0) 312-3805762 FAX:
86 (0) 312-3804924
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 9, 1993
REGISTRATION NO. : 130000400001590
REGISTERED LEGAL FORM : CHINESE FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
2,200
REGISTERED CAPITAL : CNY 344,800,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 1,744,070,000 (AS OF DEC. 31, 2007)
EQUITIES :
cny 468,360,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 3,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : 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 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 Dec. 9, 1993.
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 and selling various aluminum alloy
materials, deep proceeded products, moulds and proceeding equipment; designing,
manufacturing, selling and installing various aluminum alloy doors &
windows, curtain wall and aluminum alloy decoration materials, etc.
SC is mainly
engaged in manufacturing and selling various aluminum alloy materials, deep
proceeded products and various doors, windows and curtain wall, etc.
Mr. Zhang Shoulian
has been chairman of SC since 2006.
SC is known
to have approx. 2,200 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 Zhuozhou. Our checks
reveal that SC owns the total premise about 250,000 square meters. 
http://www.chinanca.com
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
SC is a state-level “Technology-Advanced Enterprise” and one of the key
520 enterprises supported by the State Economic and Trade Commission. In 1995,
SC took the lead to abstain an IS 9002 certificate in the industry and improved
the certificate to ISO 9001-2000 in 2004. SC had the honor to get the third
place in the industry of Aluminum foil in 2004.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hong Kong Zexian Co., Ltd. 51.00
Aluminum Corporation of China (CHINALCO) 18.89
CITIC Development Co., Ltd. 16.31
Hebei Metallurgy Group Corp. 13.80
Aluminum Corporation of China (CHINALCO)
Aluminum Corporation of China (CHINALCO), an
investment management and holding company authorized by the state, is a
backbone state-owned enterprise under direct administration of the central
government. As of the end of 2007, its total assets have reached over CNY 200
billion, with its value growth rate of value retention on fixed assets and
return on equity leading among the state-owned enterprises with total assets
over CNY 100 billion. It is the world’s second largest alumina producer and the
third largest primary aluminum producer. With CHINALCO being the holding
company, Aluminum Corporation of China Limited (CHALCO) is listed on the Hong
Kong, New York and Shanghai stock exchanges. CHALCO is rated BBB+ by Standard
& Poor’s for three years.
Tel:(86) 10-6397-1767
Web: http://www.chalco.com.cn/
l
Chairman:
Mr. Zhang Shoulian, in his 50’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman.
l
General Manager:
Mr. Jiang Shixiong, in his 40’s with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2006 to present
Working in SC as general
manager.
SC is mainly engaged
in manufacturing and selling various aluminum alloy materials, deep proceeded
products and various doors, windows and curtain wall, etc.
SC’s products
mainly include: aluminum, aluminum alloy cast coil, billet for extruding, aluminum
sheet, strip coil, aluminum PS substate, positive PS plate, plain foil,
hydrophilic fin stock, paper-laminated and embossing foil in various colors,
aluminum-plastic compound for cable sheathing, self-adhesive foil tape and all
kinds of extruded tubes and bars, profiles and conducting plates and anodized
and colored products, etc.
SC’s brands
include: "YinHua", etc.
SC also can
undertake engineering projects of designing, manufacturing and assembling
various kinds of aluminum alloy curtain wall, window and door in high and
regular grades.
SC sources its
materials 90% from domestic market, 10% from the overseas market, mainly Japan.
SC sells 80% of its products in domestic market and 20% to Japan, South Korea,
European countries and Southeast Asia countries, etc.
The buying terms of SC include Check, T/T, L/C and Credit of 30-90 days.
The payment terms of SC include T/T, Check, L/C and Credit of 30-90 days.
SC’s suppliers include:
Japan Kobelco Co., Ltd.
Tianjin Machine Tool Electric Apparatus General Factory
Qinghai Aluminum Co., Ltd.
Sanmenxia Tianyuan Aluminum Group Industry
Co., Ltd.
Shanxi Guanlu Shares Co., Ltd.
SC’s clients include:
Zhuhao Gree Electrical Co., Ltd.
Guangdong Kelong Electrical Co., Ltd.
Zhuozhou Taoyuan Aluminum Foil Factory
SC is
known to have 8 business offices around China:
*Guangzhou
Office:
Tel: 86-020-87396325/87363829
E-mail ： gzb@chinanca.com
*Zhengzhou
Office
Tel: 86-0371-3841935
E-mail ： zzb@chinanca.com
*Xi’an
Office
Tel: 86- 029-6234157
E-mail ： xab@chinanca.com
*Nanjing
Office
Tel:
86-025-5630643/5636006
E-mail ： njb@chinanca.com
* Ji’nan
Office
Tel:
86-0531-8912091
E-mail ： jnb@chinanca.com
*Shenyang
Office
TEL:
86-024-86553699
E-mail： syb@chinanca.com
*Kunming
Office
TEL:
86-0871-3334628
*Beijing
Office
Tel: 86-010-67522029/67523653/63965092
SC is also known to have agencies in Shenzhen, Wenzhou, Nanhai, Qingdao,
Shanghai, Chengdu, Hangzhou, following are 3 of them:
1. Shenzhen Bowei Trading Co., Ltd.
Tel：86-0755-83175738 Fax：86-0755-83174728
Address： Room 405, Boshite Mansion,
Aoshida Road, Shangmeilin Industrial Zone, Shenzhen
2. Wenzhou Longwan Artificial Package Material
Corp.
Tel：86-0577-86358767
Fax：86-0577-86355668
Address： No. 26, Second Industrial
Zone, Zhuangyuan Town, Longwan District, Wenzhou, Zhejiang, PRC.
3. Nanhai Huangqi Xinxing Industrial Trade
Co., Ltd
Tel: 86-0757-5967275 07575909594 0757-5931341
Fax: 86-0757-5934359
Address: No. 301, Suit 9, Yihe New Village,
Huangqi Town, Nanhai Guangdong, PRC.
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 & Commercial Bank of China Zhuozhou Branch
AC#0409020009221000291
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
|
Cash & bank |
17,970 |
20,790 |
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Inventory |
243,130 |
209,940 |
|
Accounts
receivable |
129,710 |
100,610 |
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Advances to
suppliers |
550 |
2,640 |
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Other
receivables |
11,430 |
12,780 |
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Other current
assets |
8,570 |
76,900 |
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------------------ |
------------------ |
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Current assets |
411,360 |
423,660 |
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Fixed assets net
value |
473,710 |
429,990 |
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Projects under
construction |
25,210 |
41,390 |
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Long term
investment |
0 |
0 |
|
Other assets |
50,380 |
35,440 |
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------------------ |
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Total assets |
960,660 |
930,480 |
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============ |
============= |
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Short loans |
198,000 |
130,000 |
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Accounts payable |
143,430 |
108,070 |
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Advances from
clients |
9,160 |
17,000 |
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Taxes payable |
-1,850 |
-1,470 |
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Salaries payable |
5,310 |
5,310 |
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Other payable |
85,460 |
54,010 |
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Other current
liabilities |
19,520 |
22,200 |
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------------------ |
------------------ |
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Current
liabilities |
459,030 |
335,120 |
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Long term
liabilities |
50,000 |
127,000 |
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------------------- |
------------------ |
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Total
liabilities |
509,030 |
462,120 |
|
Equities |
451,630 |
468,360 |
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-------------------- |
------------------ |
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Total
liabilities & equities |
960,660 |
930,480 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2007 |
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Turnover |
1,744,070 |
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Cost of goods
sold |
1,611,080 |
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Sales expense |
28,880 |
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Management expense |
57,770 |
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Finance expense |
25,710 |
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Profit before
tax |
26,760 |
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Less: profit tax |
3,240 |
|
Profits |
23,520 |
Important Ratios
=============
|
|
2006 |
2007 |
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*Current ratio |
0.90 |
1.26 |
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*Quick ratio |
0.37 |
0.64 |
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*Liabilities
to assets |
0.53 |
0.50 |
|
*Net profit
margin (%) |
/ |
1.32 |
|
*Return on
total assets (%) |
/ |
2.47 |
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*Inventory
/Turnover ×365 |
/ |
44days |
|
*Accounts
receivable/Turnover ×365 |
/ |
21days |
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*Turnover/Total
assets |
/ |
1.88 |
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* Cost of
goods sold/Turnover |
/ |
0.92 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in 2007.
l
SC’s net profit margin is average in 2007.
l
SC’s return on total assets is fairly good in 2007.
l
SC’s cost of goods sold is fairly high in 2007, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fair level in 2006 but in a
normal level in 2007.
l
SC’s quick ratio is maintained in a poor level in 2006 and in a fair
level in 2007.
l
The accounts receivable of SC is average in 2007.
l
The inventory of SC is average in 2007.
l
The short loans of SC are average in 2006 and 2007.
l
SC’s turnover is in an average level in 2007, comparing with the size of
its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is well-known in its industry with stable financial conditions. Over
the past 15 years, SC has made a stable growth with fairly good profit. A credit
line up to USD 3,000,000 would appear to be within SC’s capacities.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
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%)