MIRA
INFORM REPORT
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Report Date : |
24.10.2008 |
IDENTIFICATION DETAILS
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Name : |
GUANGDONG SIHUI
INSTRUMENT TRANSFORMER WORKS CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
18.06. 2003 |
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Com. Reg. No.: |
4412222000970 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Producing and Selling Instrument Transformers and Electric Equipment. |
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 550,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
GUANGDONG SIHUI INSTRUMENT
TRANSFORMER WORKS CO., LTD.
NO.
TEL: 0086-758-3233698 FAX:
0086-758-3231206
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUN. 18, 2003
REGISTRATION NO. :
4412222000970
REGISTERED LEGAL FORM : LIMITED
LIABILITIES CO.
CHIEF EXECUTIVE :
MR. ZHANG SHUHUA (CHAIRMAN)
STAFF STRENGTH :
500
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 101,510,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 76,640,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.84130 = USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a limited liabilities co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Jun. 18, 2003.
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 producing and selling instrument
transformers and electric equipment; processing hardware moulds; exporting its
products and technology, importing machinery equipment, parts, raw materials
and technology needed in the manufacture, excluding the items limited or
forbidden by the state.
SC is mainly
engaged in producing and selling instrument transformers and electric
equipment.
Mr. Zhang Shuhua
has been legal representative and chairman of SC since 2003.
SC is known to have approx. 500 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 Sihui. Our checks reveal
that SC owns the total premise about 30,000 square meters.
http://www.gdshp.com.cn/pre/gsjj.asp
The design is professional and the content is well organized. At present it is
in Chinese version.
E-Mail: gdshp@21cn.com
No significant events or changes were found during our checks with the local
Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Shuhua 60
Xu Guofeng 40
l
Legal representative, chairman and general
manager:
Mr. Zhang Shuhua, born in 1954, with university education. He is 
currently responsible for the overall
management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman, legal representative and general manager.
l
Vice-General manager:
Mr. Xu Guofeng, born in 1965, with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working
in SC as vice-general manager.
SC is mainly
engaged in producing and selling instrument transformers and electric
equipment.
SC’s products mainly include: transformers, dry-type
transformers, switches, metering trucks of switchgear boards and insulating
articles ect.
SC sources its materials 90% from domestic market and 10% from the
overseas market. SC sells 20% of its products to overseas market and 80% 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.
*Major Customer*
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Guangzhou Baiyun Electric Equipment 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 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.
Agriculture Bank
of
AC#650001040007628
Relationship:
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2007 |
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Cash & bank |
3,920 |
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Bills receivable |
0 |
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Accounts
receivable |
50,540 |
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Other receivables |
840 |
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Advances to
suppliers |
4,080 |
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Inventory |
19,840 |
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Prepaid expenses |
1,430 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
80,650 |
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Fixed assets net
value |
25,980 |
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Projects under
construction |
3,650 |
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Long term
investment |
0 |
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Other assets |
4,420 |
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------------------ |
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Total assets |
114,700 |
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============= |
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Short loans |
300 |
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Bills payable |
0 |
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Accounts payable |
11,200 |
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Welfare payable |
0 |
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Advances from
clients |
1,300 |
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Accrued payroll |
940 |
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Tax payable |
1,190 |
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Other payable |
20,490 |
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Surcharge
payable |
60 |
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Other current
liabilities |
10 |
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Current
liabilities |
35,490 |
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Long-term loans |
1,290 |
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Specified
payables |
1,280 |
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Total
liabilities |
38,060 |
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Equities |
76,640 |
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Total
liabilities & equities |
114,700 |
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Income Statement
Unit: CNY’000
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as of Dec. 31,
2007 |
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Turnover |
101,510 |
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Cost of goods
sold |
77,250 |
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Sales expense |
10,880 |
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Management expense |
8,700 |
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Finance expense |
270 |
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Profit before
tax |
3,990 |
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Less: profit tax |
640 |
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Profits |
3,350 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
2.27 |
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*Quick ratio |
1.71 |
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*Liabilities
to assets |
0.33 |
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*Net profit
margin (%) |
3.30 |
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*Return on
total assets (%) |
2.92 |
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*Inventory
/Turnover ×365 |
72 days |
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*Accounts receivable/Turnover
×365 |
182 days |
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*Turnover/Total
assets |
0.89 |
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* Cost of
goods sold/Turnover |
0.76 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a fairly
good level.
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SC’s quick ratio is maintained in a fairly good
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 an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly good.
SC is considered medium-sized in its line with fairly good 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 to be beyond
SC’s capacities, while a credit line up to USD 550,000 is recommended.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.95 |
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1 |
Rs.79.56 |
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Euro |
1 |
Rs.63.65 |
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%)