MIRA
INFORM REPORT
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Report Date : |
26.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
QINGDAO HONGTAI
METAL CO., LTD. |
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Registered Office : |
Tonghe Street, Pingdu, Qingdao, Shandong Province, 266706 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
26.11.1999 |
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Com. Reg. No.: |
370283400003094 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and Selling Copper Pipes. |
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 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
QINGDAO HONGTAI
METAL CO., LTD.
TONGHE STREET, PINGDU, QINGDAO,
SHANDONG PROVINCE, 266706 PR CHINA
TEL: 86 (0) 532-85335968 FAX: 86 (0) 532-87318899
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 26, 1999
REGISTRATION NO. : 370283400003094
REGISTERED LEGAL FORM : Chinese-foreign
equity joint venture enterprise
STAFF STRENGTH :
245
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
cny 553,130,000 (AS OF DEC. 31, 2007)
EQUITIES :
cny 35,420,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 200,000 (periodical review)
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRly
stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.88= USD1
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 Nov. 26, 1999.
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 processing
copper alloy materials, copper and copper alloy pipes, steel bars, copper belt,
and other non ferrous metal materials; wholesaling and retailing electrolytic
copper, charcoal and plastic products.
SC is mainly
engaged in manufacturing and selling copper pipes.
Mr. Li
Baocheng has been chairman of SC since
1999.
SC is known
to have approx. 245 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 Pingdu. Our checks
reveal that SC owns the total premise about 110,000 square meters.
http://www.hongtai-copper.com
. It is the website of its parent company. The design is professional and the
content is well organized. At present it is in both Chinese and English
versions.
SC has got the certificate of ISO 9001: 2000, etc.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Canasia Copper Tube Co., Ltd. Canada 25
Qingdao HongTai Copper Co., Ltd. 75
Qingdao HongTai Copper Co., Ltd. with an
area of 246,679 square meters was established in March 1993, and has registered
capital CNY 43,000,000. It specializes in producing all kinds of Red Copper
Tube. Its Annual Production has got to 50,000 tons.
Add: Tonghe Street, Pingdu, Qingdao, Shandong Province
TEL: 86 (0) 532-85335968
FAX: 86 (0)
532-87318899
l
Chairman:
Mr. Li Baocheng, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1999 to present Working
in SC as chairman.
Also working in Hongtai Copper Co., Ltd., as chairman.
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General Manager:
Mr. Leng Chuanzhong, in his 30’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2005 to present
Working in SC as general
manager.
SC is mainly
engaged in manufacturing and selling copper pipes.
SC’s products
mainly include: copper pipes.
SC sources its
materials 90% from domestic market, and 10% from the overseas market, mainly
European countries. SC sells 60% of its products in domestic market, and 40% to
the overseas market, mainly American and European countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Suppler:
============
Qingdao Yuntong Century Marketing Co., Ltd.
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.
Agriculture Bank of China Pingdu Sub-branch
AC#100101040009898
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2007 |
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Cash & bank |
2,100 |
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Inventory |
50,530 |
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Accounts
receivable |
1,800 |
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Advances to
suppliers |
5,060 |
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Other
receivables |
5,980 |
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Other current
assets |
25,250 |
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Current assets |
90,720 |
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Fixed assets net
value |
45,400 |
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Projects under construction |
260 |
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Long term
investment |
0 |
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Other assets |
3,980 |
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Total assets |
140,360 |
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============= |
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Short loans |
25,960 |
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Accounts payable |
46,980 |
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Advances from
clients |
0 |
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Bills payable |
20,000 |
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Taxes payable |
-20 |
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Salaries payable |
0 |
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Other payable |
4,520 |
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Other current
liabilities |
0 |
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Current
liabilities |
97,440 |
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Long term
liabilities |
7,500 |
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Total
liabilities |
104,940 |
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Equities |
35,420 |
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Total
liabilities & equities |
140,360 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2007 |
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Turnover |
553,130 |
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Cost of goods
sold |
546,770 |
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Sales expense |
2,070 |
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Management expense |
3,160 |
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Finance expense |
5,090 |
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Profit before
tax |
-4,240 |
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Less: profit tax |
0 |
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Profits |
-4,240 |
Important Ratios
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2007 |
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*Current ratio |
0.93 |
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*Quick ratio |
0.41 |
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*Liabilities
to assets |
0.75 |
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*Net profit
margin (%) |
-0.77 |
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*Return on
total assets (%) |
-3.02 |
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*Inventory
/Turnover ×365 |
33days |
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*Accounts
receivable/Turnover ×365 |
1day |
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*Turnover/Total
assets |
3.95 |
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* Cost of goods
sold/Turnover |
0.99 |
PROFITABILITY:
FAIR
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The turnover of SC appears fairly good in 2007.
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SC’s net profit margin is fairl in 2007.
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SC’s return on total assets is fair in 2007.
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SC’s cost of goods sold is high in 2007, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level in 2007.
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SC’s quick ratio is maintained in a poor level in 2007.
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The accounts receivable of SC is average in 2007.
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The inventory of SC appears fairly large.
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The short loans of SC are average in 2007.
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SC’s turnover is in a fairly good level in 2007, comparing with the size
of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is fairly high in 2007.
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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 inventory could be a threat to SC’s financial condition. A
credit line up to USD 200,000 appears acceptable upon a periodical review
basis.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.42.79 |
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UK Pound |
1 |
Rs.85.04 |
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Euro |
1 |
Rs.67.39 |
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%)