MIRA
INFORM REPORT
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Report Date : |
26.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
CHINA SHENMA GROUP CO., LTD. |
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Registered Office : |
No.63, Middle Jianshe Road, Pingdingshan, Henan Province,
467000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
27.11.1993 |
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Com. Reg. No.: |
4100001000266 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing Rubber Tire, Curtain and Industrial Silk. |
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 3,000,000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
CHINA SHENMA GROUP CO., LTD.
NO.63, MIDDLE JIANSHE ROAD,
PINGDINGSHAN, HENAN PROVINCE, 467000 PR CHINA.
TEL : 86 (0) 375-3921984
FAX : 86 (0) 375-3921100
EXECUTIVE SUMMARY
INCORPORATION DATE : NOVEMBER 27, 1993
REGISTRATION NO. :
4100001000266
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 17,000
REGISTERED CAPITAL :
CNY 1,745,621,262
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 2,749,604,000 (AS OF DEC. 31, 2005)
EQUITIES : CNY 1,542,630,000 (AS OF DEC. 31, 2005)
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
7.461 = US1$
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 limited liabilities company at provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on November 27, 1993.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered
business scope includes curtain, industry textile, industrial silk, civil silk,
rug silk, gauze, rug, rubber products, plastic products, chemical products
(excluding hazardous chemicals), chemical fiber, textile, rubber, engineering
plastic complete equipments and technology, nylon 66 salts (industrial salt);
technology and conculation services; exporting products manufactured by itself;
importing raw materials, machines and technology required in manufacturing;
undertakeing this enterprise’s Chinese-foreign joint venture and cooperative
business; undertaking this enterprise’s business of furnished raw material
processing and processing with provided samples; developing this enterprise’s
compensation trade; and leasing houses.
SC is
mainly engaged in manufacturing rubber tire, curtain and industrial silk. It
has 4 pillar industries, including curtain, nylon chemistry, engineering
plastics and chlor-alkali chemical.
Mr. Lv
Qinghai has been legal representative and chairman of SC since 2005.
SC is known to have approx. 17000 staff members 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
Pingdingshan. SC’s accountant refused to release the detail of their premise.
http://www.shenma.com/ The design
is professional and the content is well organized. At present it is in both
Chinese and English versions.
Email: market@shenma.com
SC’s quality system meets the international standard of
ISO9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Stated-owned Assets Supervision
and Administration Commission of Pingdingshan 53.03
China Orient Assets Management
Corporation 24.06
China Construction Bank Co., Ltd. Henan
Branch 22.91
l
Legal representative and chairman:
Mr. Lv Qinghai, about 48 years old. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2004 to 2005 Worked as Zhoukou City deputy mayor
From 2005 to present Working in SC as chairman and legal representative.
*Officials:
=======
Name Title
Zhang Yi Supervisor
Zhang Zhongcai Vice chairman
Gu Xinkuang Vice chairman and Vice general manager
Wang Baoping Director
Wang Yu Director
Zhang Zhaofeng Vice general manager
Gong Guoshun Vice general manager and director
SC is
mainly engaged in manufacturing rubber tire, curtain and industrial silk. It has
4 pillar industries, including curtain, nylon chemistry, engineering plastics
and chlor-alkali chemical.
SC sources its materials 80%
from domestic market, and 20% from overseas market. SC sells 70% of its
products in domestic market, and 30% to overseas 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 known to have the following subsidiaries:
Henan Shenma Chemical Co. Ltd.
Shenma Engineering Plastics Co., Ltd.
China Shenma Group Rubber Tire Co., Ltd.
Pingdingshan Shenma Chemical Fiber Weaving Co., Ltd.
China Shenma Group Material Processing
Co., Ltd.
Shenma Industrial Co., Ltd.
Shenma Chloride & Alkali Chemical Industry Share Co., Ltd.
Shenma BCF Carpet Yarn Co., Ltd.
Pingdingshan Shenma Sansuo Textile Co., Ltd.
Shenma Hotel Co., Ltd.
Shanghai Shenma Flat Chafer Fabric Co., Ltd.
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.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
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Cash & bank |
262,935 |
272,433 |
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Short-term
investments |
22,928 |
24,056 |
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Notes receivable |
50,766 |
30,301 |
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Inventory |
15,274 |
83,587 |
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Accounts
receivable |
294,446 |
461,247 |
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Advances to
supplies |
48,942 |
29,021 |
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Other
receivables |
1,514,978 |
1,726,621 |
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Prepaid expenses |
123 |
134 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
2,210,392 |
2,627,400 |
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Fixed assets |
466,610 |
462,711 |
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Fixed assets net
value |
260,383 |
256,011 |
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Projects under construction |
39,271 |
8,716 |
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Long-term
investments |
2,841,965 |
2,944,521 |
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Intangible
assets |
223 |
192 |
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------------------ |
------------------ |
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Total assets |
5,352,234 |
5,835,840 |
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============= |
============= |
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Short loans |
1,019,416 |
1,165,652 |
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Notes payable |
370,000 |
383,584 |
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Accounts payable |
32,989 |
39,768 |
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Other Accounts
payable |
874,190 |
995,267 |
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Accrued payroll |
4,014 |
7,753 |
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Taxes payable |
-25,303 |
-20,077 |
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Welfares payable |
0 |
1,679 |
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Surcharge
payable |
0 |
0 |
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Advances from
customers |
90,527 |
79,391 |
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Accrued expenses |
1,396 |
1,701 |
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Other
current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
2,367,229 |
2,654,718 |
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Long-term loans |
840,588 |
600 |
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Long-term
payable |
1,634,572 |
1,634,572 |
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Specified
payables |
2,920 |
3,320 |
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------------------ |
------------------ |
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Total
liabilities |
4,845,309 |
4,293,210 |
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Shareholders
equities |
506,925 |
1,542,630 |
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------------------ |
------------------ |
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Total
liabilities & equities |
5,352,234 |
5,835,840 |
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============= |
============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
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Turnover |
2,025,358 |
2,749,604 |
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Cost of goods sold |
1,859,302 |
2,582,831 |
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Income
from other operations |
-2,757 |
97,308 |
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Opearation expense |
34,972 |
31,373 |
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Management expense |
48,297 |
88,688 |
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Finance expense |
53,426 |
53,124 |
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Investment
income |
47,274 |
128,593 |
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Non-operating
income |
11,480 |
320 |
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Non-operating expense |
8,203 |
4,055 |
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Operation Profit |
77,154 |
215,753 |
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Less: profit tax |
0 |
0 |
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Net profit |
77,154 |
215,753 |
Important Ratios
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as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
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*Current ratio |
0.93 |
0.99 |
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*Quick ratio |
0.93 |
0.96 |
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*Liabilities
to assets |
0.91 |
0.74 |
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*Net profit
margin (%) |
3.81 |
7.85 |
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*Return on
total assets (%) |
1.44 |
3.70 |
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*Inventory
/Turnover ×365 |
3 days |
12 days |
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*Accounts
receivable/Turnover ×365 |
54 days |
62 days |
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*Turnover/Total
assets |
0.38 |
0.47 |
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*Cost of goods
sold/Turnover |
0.92 |
0.94 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line, and there was an
increase in 2005.
l
SC’s net profit margin is average, and there was an increase in 2005.
l
SC’s return on total assets is average, and there was an increase in
2005.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in an average level.
l
SC’s quick ratio is maintained in a fairly good level.
l
The inventory of SC is maintained in a good level.
l
The accounts receivable of SC is maintained in an average level.
l
SC’s short-term loan appears LARGE.
l
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered large-sized in its line with stable financial
conditions. 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 |
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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 |
|
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%)