MIRA INFORM REPORT
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Report Date : |
27.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
ZHEJIANG HAILIANG CO LTD |
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Registered Office : |
Diankou Town
Industrial Zone, Zhuji,, Ejiang Province, 311814 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
29.10.2001 |
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Com. Reg. No.: |
330000400001267 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling Copper Products. |
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 4,000,000 |
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Status : |
Very Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
ZHEJIANG HAILIANG
CO., LTD.
DIANKOU TOWN INDUSTRIAL
ZONE, ZHUJI,
ZHEJIANG PROVINCE,
311814 PR CHINA
TEL: 86 (0) 575-87069033 FAX:
86 (0) 575- 87069031
EXECUTIVE SUMMARY
INCORPORATION
DATE : OCT. 29, 2001
REGISTRATION
NO. : 330000400001267
REGISTERED
LEGAL FORM : SHARES LIMITED COMPANY
STAFF
STRENGTH : 3,398
REGISTERED
CAPITAL : CNY 400,100,000
BUSINESS
LINE :
MANUFACTURING
TURNOVER : cny 6,768,104,000
(AS OF DEC. 31, 2007)
EQUITIES : cny 692,038,000
(AS OF DEC. 31, 2007)
PAYMENT
: AVERAGE
RECOMM.
CREDIT RANGE : up to usd 4,000,000
(periodical review)
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : fairly stable
OPERATIONAL
TREND : steady
GENERAL
REPUTATION : WELL KNOWN
EXCHANGE
RATE : CNY 6.86= 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 shares limited company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Oct. 29, 2001.
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 processing copper tubes, copper
belts, copper foil and the related copper products.
SC is mainly engaged in manufacturing and
selling copper products.
Mr. Feng Hailiang has been chairman of SC
since 2007.
SC is known to have approx. 3,398
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 Zhuji. Our checks reveal that SC owns the total premise about 120,000 square meters.
http://www.hailiang.com/gufen/index.htm
The design is professional and the content is well organized. At present it is
in Chinese version.
E-Mail: gfoffice@hailiang.com
SC listed in
Shenzhen Stock Exchange in Jan. 2008 with the stock number of 002203.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hailiang Group Co., Ltd. 41.86
Z&P ENTERPRISES CORPORATION (Pembroke Pines) 30.07
Chen Dong 2.18
Yang Lin 2.12
Cao Jianguo 1.75
Qian Angjun 1.33
Zhu Zhangquan 1.32
Wang Ming 1.1
Shaoxing Zhongyu Metal Goods and Materials Co., Ltd. 0.98
Fu Linzhong 0.94
Other shareholders 16.35
Hailiang Group Co., Ltd.
HAILIANG GROUP has been committed to high efficiency, excellent
performance and quality services. HAILIANG has adopted a series of growth
strategies, focusing on brand building, R&D, foreign trade, as well as
cultivating a harmonious corporate culture. At present, the company has over
8,400 employees, CNY 9.3 billion of total assets and 48 subsidiaries. With
copper processing as the core business, it has developed into a large-scale
private group with global impacts, covering real estate, education, nonferrous
metal trade, machine building, plastic tube processing and hotel management. In
2007, HAILIANG realized a total operating income of CNY 25.87 billion, profit
and tax of CNY 804 million, with export revenue of US＄ 488 million.
Address: Diankou Down, Zhuji City, Zhejiang Province, China
Web: http://www.hailiang.com/english/
E-mail: Foreigntrade@hailiang.com
Tel: +086 575 87063852
Fax: +086 575 87067885
l
Chairman:
Mr. Feng Hailiang, in his 40’s with university education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to 2004 Worked in Hailiang Group Co., Ltd., as chairman.
From 2005 to 2006 Worked in Shanghai Hailiang Holdings Group Co., Ltd., as chairman.
From 2007 to present Working
in SC as chairman.
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General
Manager:
Mr. Cao Jianguo, in
his 40’s with university education. He is currently responsible for the daily
management of SC.
Working Experience(s):
From 2007 to present
Working in SC as general
manager.
SC is mainly engaged in manufacturing and
selling copper products.
SC’s products mainly include:
LWC
Straight Tubes
Plumbing Copper Tubes & Fittings
SC sources its materials 70% from domestic
market, and 30% 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 Clients:
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Zhejiang Unik Plastic Tube Co., Ltd.
Hailiang Group Co., Ltd.
*Major Supplier:
=============
Zhejiang Henggu Package Materials Co., Ltd.
SC is
known to have 7 subsidiaries as below,
Zhejiang
Keyu Metal Materials Co., Ltd.
Hailiang
Group Zhejiang Copper Processing Research Institute Co., Ltd.
Shaoxing
Jinshi Machinery and Equipment Co., Ltd.
Zhejiang
Hailiang International Trade Co., Ltd.
Shanghai
Hailiang Copper Co., Ltd.
Vietnam
Hailiang Metal Products Co., Ltd.
Hong
Kong Hailiang Copper Trading 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’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 and
Commercial Bank of China Zhuji Sub-branch
AC# N/A
Relationship: Normal.
China Construction Bank Diankou Office
AC#3306 5634 4012 6110 69836
Relationship: Normal.
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 |
155,117 |
299,149 |
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Accounts receivable |
659,720 |
561,886 |
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Accounts payable advance |
106,189 |
106,233 |
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Bills receivable |
11,867 |
49,534 |
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Other receivables |
3,089 |
5,640 |
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Inventory |
465,283 |
870,959 |
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Other current assets |
7,950 |
0 |
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------------------ |
------------------ |
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Current assets |
1,409,215 |
1,893,401 |
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Fixed assets net value |
407,137 |
710,770 |
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Projects under construction |
180,949 |
110,665 |
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Long term investment |
0 |
26,908 |
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Other assets |
112,417 |
96,480 |
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------------------ |
------------------ |
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Total assets |
2,109,718 |
2,838,224 |
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============= |
============= |
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Short loans |
209,019 |
576,370 |
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Accounts payable |
881,248 |
1,056,137 |
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Accounts receivable advance |
93,837 |
42,588 |
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Bills payable |
90,000 |
73,000 |
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Taxes payable |
12,653 |
-5,086 |
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Salaries payable |
18,671 |
23,082 |
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Other payable |
10,086 |
12,949 |
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Long term liabilities due within one year |
30,000 |
130,000 |
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Other current liabilities |
4,187 |
3,072 |
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Current liabilities |
1,349,701 |
1,912,112 |
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Long term liabilities |
160,918 |
131,082 |
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------------------ |
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Total liabilities |
1,510,619 |
2,043,194 |
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Minority Shareholders’ equity |
/ |
102,992 |
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Equities |
599,099 |
692,038 |
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------------------ |
------------------ |
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Total liabilities & equities |
2,109,718 |
2,838,224 |
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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 |
6,214,608 |
6,768,104 |
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Cost of goods sold |
5,913,895 |
6,394,116 |
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Sales expense |
77,033 |
104,889 |
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Management expense |
45,960 |
82,407 |
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Finance expense |
30,653 |
14,784 |
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Profit before tax |
156,683 |
177,733 |
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Minority Shareholders’ profit and loss |
/ |
3,127 |
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Less: profit tax |
-12,880 |
367 |
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Profits |
169,563 |
174,239 |
Important Ratios
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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*Current ratio |
1.04 |
0.99 |
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*Quick ratio |
0.70 |
0.54 |
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*Liabilities to assets |
0.72 |
0.72 |
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*Net profit margin (%) |
2.72 |
2.57 |
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*Return on total assets (%) |
8.01 |
6.13 |
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*Inventory /Turnover ×365 |
27days |
47days |
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*Accounts receivable/Turnover ×365 |
39days |
30days |
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*Turnover/Total assets |
2.95 |
2.38 |
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* Cost of goods sold/Turnover |
0.95 |
0.94 |
PROFITABILITY: FAIRLY GOOD
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The turnover of
SC appears fairly good in 2006 and 2007.
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SC’s net profit
margin is average in 2006 and 2007.
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SC’s return on total
assets is fairly good in 2006 and 2007.
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SC’s cost of
goods sold is fairly high in 2006 and 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 fair level in 2006 and 2007.
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The accounts
receivable of SC is average in 2006 and 2007.
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The inventory
of SC appears fairly large.
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The short term
loan of SC is average.
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SC’s turnover
is in a fairly good level in 2006 and 2007, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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The debt ratio
of SC is average in 2006 and 2007.
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The risk for SC
to go bankrupt is low.
Overall financial condition of the SC: Fairly
Stable.
SC is considered medium-sized
in its line with favorable market conditions. Over the past 7 years, SC has
made a stable growth with satisfactory profit. A credit line up to USD
4,000,000 would appear to be within SC’s capacities 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.67.34 |
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%)