MIRA
INFORM REPORT
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Report Date : |
08.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
HUAFEI COLOUR
DISPLAY SYSTEMS CO., LTD. |
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Registered Office : |
No. 1 Huafei Road, Xuanwu District,
Nanjing, Jiangsu Province, 210028 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
27.04.1988 |
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Com. Reg. No.: |
320100400000030 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing
Color Display Tube, Monitor Tube and its Spare Parts 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 8,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
HUAFEI COLOUR
DISPLAY SYSTEMS CO., LTD.
NO. 1 HUAFEI ROAD, XUANWU DISTRICT, NANJING,
JIANGSU PROVINCE,
210028 PR CHINA
TEL: 0086-25-85421166-3120 FAX:
0086-25-85422352
EXECUTIVE SUMMARY
INCORPORATION DATE :
APR. 27, 1988
REGISTRATION NO. :
320100400000030
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. SHAO YONGCHANG (CHAIRMAN)
STAFF STRENGTH :
2,663
REGISTERED CAPITAL : US$
289,120,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 2,689,270,000 (AS OF DEC.
31, 2007)
EQUITIES :
CNY 1,350,350,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 8,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.84510 = 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 Chinese-foreign
equity joint venture enterprise at local Administration for Industry &
Commerce (AIC - The official body of issuing and renewing business license) on
Apr. 27, 1988.
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 developing, designing, producing
and selling tricolour tube, monitor tube and relevant components.
SC is mainly
engaged in manufacturing color display tube, monitor tube and its spare parts
etc.
Mr. Shao Yongchang
is legal representative and chairman of SC at present.
SC is known to have approx. 2,663 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industry zone of Nanjing. Our checks reveal
that SC owns the total premise about 2,400,000 square meters.
SC is not known to host website of its own at present.
SC’s former registered no.
was 000016.
SC has passed the certificate of ISO9002 and ISO14001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
(Netherlands) LG. Philips Display Investment
Co., Ltd. 55
Nanjing Huadong Electronics Information
&Technology Co., Ltd. 20
Nanjing Panda Electronics Company Limited. 25
========================
Nanjing Panda
Electronics Company Limited (the “Company”) is a large integrated
telecommunications company which is engaged in scientific research and
development, production, sale and technological services. In April 1992, the
Company was established after the reorganization of the original Panda
Electronics Group Company. The history of the Company can be traced back to
1936 and is the earliest electronics enterprise in the PRC. Shares of the
Company were listed on The Stock Exchange of Hong Kong Limited and Shanghai
Stock Exchange on 2 May 1996 and 18 November 1996 respectively. (http://www.panda.cn/panda/pandastockouterweben/companyinfo.htm
)
l
Legal representative and chairman:
Mr. Shao Yongchang, in his 70’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Zhang Yinhua, about 47 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
SC is mainly
engaged in manufacturing color display tube, monitor tube and its spare parts
etc.
SC’s products mainly include: color display tube and graphoscope.
SC sources its materials 90% from domestic market and 10% from the overseas
market. SC sells 30% of its products to overseas market and 70% in domestic market.
The buying terms of SC include Check, L/C, T/T 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
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 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 declined to
release its banking details.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2007 |
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Cash & bank |
27,500 |
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Bills receivable |
162,710 |
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Accounts
receivable |
549,890 |
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Other
receivables |
4,950 |
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Advances to
suppliers |
760 |
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Inventory |
193,260 |
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Prepaid expenses |
0 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
939,070 |
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Fixed assets net
value |
2,186,540 |
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Projects under
construction |
21,680 |
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Long term
investment |
105,490 |
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Other assets |
5,930 |
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------------------ |
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Total assets |
3,258,710 |
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============= |
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Short loans |
240,260 |
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Bills payable |
654,540 |
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Accounts payable |
760,800 |
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Welfare payable |
7,200 |
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Advances from
clients |
6,690 |
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Accrued payroll |
8,930 |
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Tax payable |
200 |
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Long-term
liabilities due with in one year |
14,240 |
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Other payable |
11,560 |
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Accrued expenses |
133,150 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
1,837,570 |
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Long term
liabilities |
70,790 |
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------------------ |
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Total
liabilities |
1,908,360 |
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Equities |
1,350,350 |
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------------------ |
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Total
liabilities & equities |
3,258,710 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2007 |
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Turnover |
2,689,270 |
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Cost of goods
sold |
2,702,010 |
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Sales expense |
93,310 |
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Management expense |
165,560 |
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Finance expense |
53,930 |
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Investment
income |
-31,860 |
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Profit before
tax |
-363,830 |
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Less: profit tax |
0 |
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Profits |
-363,830 |
Important Ratios
=============
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as
of Dec. 31, 2007 |
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*Current ratio |
0.51 |
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*Quick ratio |
0.41 |
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*Liabilities
to assets |
0.59 |
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*Net profit
margin (%) |
-13.53 |
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*Return on
total assets (%) |
-11.16 |
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*Inventory
/Turnover ×365 |
27 days |
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*Accounts
receivable/Turnover ×365 |
75 days |
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*Turnover/Total
assets |
0.83 |
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* Cost of
goods sold/Turnover |
1.00 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line.
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SC’s net profit margin is poor.
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SC’s return on total assets is poor.
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SC’s cost of goods sold is high, comparing with its turnover, which
makes the net profit negative.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a fair level.
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The inventory conversion period of SC appears average.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan is in an average level.
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SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: FAIR.
SC is considered large-sized in its line with fair financial conditions.
The large amount of accounts receivable could be a threat to SC’s financial
condition. A credit line at the above amount appears below SC’s capacities,
while a credit line up to USD 8,000,000 is recommended.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.01 |
|
UK Pound |
1 |
Rs.84.16 |
|
Euro |
1 |
Rs.65.20 |
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%)