MIRA
INFORM REPORT
|
Report Date : |
20.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ZHEJIANG NARADA POWER SOURCE Co., Ltd. |
|
|
|
|
Registered Office : |
No. 459, Wensan Road, Hangzhou, Zhejiang Province,
310013 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
08.12. 1997 |
|
|
|
|
Com. Reg. No.: |
330000000000600 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and Selling Different Sorts of Batteries. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 1,500,000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
ZHEJIANG NARADA POWER SOURCE Co., Ltd.
NO. 459, WENSAN
ROAD, HANGZHOU, ZHEJIANG PROVINCE, 310013 PR CHINA
459
TEL: 86 (0)
571-28827000 FAX: 86 (0)
571-28806800-1031
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 8, 1997
REGISTRATION NO. : 330000000000600
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
200
REGISTERED CAPITAL : CNY 186,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 936,290,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 260,860,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 1,500,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL
REPUTATION : well-known
EXCHANGE RATE :
CNY
6.98 = 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
SC was registered as a Shares limited co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on December 8, 1997.
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 operating high performance sealed batteries, fuel
batteries, lithium ion batteries, nickel-hydrogen batteries, solar batteries
and other high performance environmental protection batteries; communication
network power systems; researching and developing high performance electrode
materials, producing and selling self-made products; importing and exporting
business.
SC is mainly engaged
in manufacturing and selling different sorts of batteries.
Mr. Wang
Haiguang has been legal representative
and chairman of SC since 2000.
SC is known
to have approx. 200 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Hangzhou. Our checks reveal that SC
rents the total premise about 5,000 square meters.
http://www.naradabattery.com.cn/ The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
Email: gmo@narada.biz
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hangzhou Narada Power Co., Ltd.
27.66
Shanghai Yidu Industrial Investment Co.,
Ltd.
13.65
Shanghai Narada Group Co., Ltd.
10.88
Zhejiang Huaou Venture Capital Co., Ltd.
7.35
Hangzhou Huaxing Enterprise Corporation.
6.82
Shanghai Baifu Holding Co., Ltd.
4.3
Chen Bo
13.34
Shi Jinfeng
2.15
Other 19 Individuals
13.85
l
Legal representative and chairman:
Mr. Wang Haiguang , born in 1962 with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Chen Bo , born in 1968 with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 1997 to present Working
in SC as general manager.
SC is mainly
engaged in manufacturing and selling different sorts of batteries.
SC’s products
mainly include batteries.
SC sources its materials 70% from domestic
market, and 30% from overseas market, mainly U.S.A. and Europe. SC sells 70% of
its products in domestic market, and 30% to overseas market, mainly U.S.A.,
India and Singapore.
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:
Zhejiang
Narada Power Source Co., Ltd. Hangzhou Narada Battery Branch Company.
Zhoushan
Narada Huayuan Battery Co., Ltd.
Shanghai
Narada Power Technology 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.
Bank of China Zhejiang Branch
AC#800105671908091001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
|
Cash & bank |
126,730 |
|
Inventory |
76,700 |
|
Accounts
receivable |
345,290 |
|
Advances to
suppliers |
24,100 |
|
Notes receivable |
8,400 |
|
Other
receivables |
16,380 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
597,600 |
|
Fixed assets |
62,150 |
|
Fixed assets net
value |
33,370 |
|
Projects under
construction |
320 |
|
Long term
investment |
77,380 |
|
Intangible
assets |
13,520 |
|
Other assets |
4,430 |
|
|
------------------ |
|
Total assets |
726,620 |
|
|
============= |
|
Short loans |
325,000 |
|
Accounts payable |
34,190 |
|
Other payable |
12,320 |
|
Notes payable |
19,280 |
|
Taxes payable |
8,810 |
|
Advances from
clients |
5,340 |
|
Other current
liabilities |
1,300 |
|
|
------------------ |
|
Current
liabilities |
406,240 |
|
Long term
liabilities |
59,520 |
|
|
------------------ |
|
Total
liabilities |
465,760 |
|
Equities |
260,860 |
|
|
------------------ |
|
Total
liabilities & equities |
726,620 |
|
|
============= |
Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
|
Turnover |
936,290 |
|
Cost of goods
sold |
740,600 |
|
Taxes and
additional of main operation |
4,270 |
|
Sales expense |
69,170 |
|
Management expense |
24,070 |
|
Finance expense |
28,400 |
|
Asset impairment
loss |
18,440 |
|
Investment
income |
2,250 |
|
Profit before
tax |
56,970 |
|
Less: profit tax |
9,920 |
|
Profits |
47,050 |
Important Ratios
=============
|
|
as
of Dec. 31, 2007 |
|
*Current ratio |
1.47 |
|
*Quick ratio |
1.28 |
|
*Liabilities
to assets |
0.64 |
|
*Net profit
margin (%) |
5.03 |
|
*Return on
total assets (%) |
6.48 |
|
*Inventory
/Turnover ×365 |
30 days |
|
*Accounts
receivable/Turnover ×365 |
135 days |
|
*Turnover/Total
assets |
1.29 |
|
* Cost of
goods sold/Turnover |
0.79 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average level.
l
The accounts receivable of SC appears large.
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 average.
l
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 fairly stable financial conditions.
The large amount of short loans could be a threat to SC’s financial condition.
A credit line up to USD 1,500,000 appears to be within SC’s capacities.
RATING
EXPLANATIONS
|
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 |
|
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%)