MIRA
INFORM REPORT
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Report Date : |
11.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
BAOYI GROUP CO.,
LTD. |
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Registered Office : |
Third Bridge Industrial Park, Oubei
Country, Yongjia Town, Zhejiang Province, 325105 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
14.03.1997 |
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Com. Reg. No.: |
330324000008049 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Producing and Selling Valves. |
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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
BAOYI GROUP CO.,
LTD.
THIRD BRIDGE INDUSTRIAL PARK, OUBEI COUNTRY,
YONGJIA TOWN,
ZHEJIANG PROVINCE, 325105 PR CHINA
TEL: 0086-577-67986666 FAX:
0086-577-67315333
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 14, 1997
REGISTRATION NO. :
330324000008049
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. ZHANG XIAODONG (LEGAL REPRESENTATIVE)
STAFF STRENGTH :
373
REGISTERED CAPITAL : CNY 66,600,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 71,750,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 75,940,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD
500,000 (PERIODICAL REVIEW)
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.84431 = 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 limited liabilities co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Mar. 14, 1997.
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 valves, pumps,
electromechanical devices, petroleum and natural gas equipment, cast carbon
steel, shoes & garments; real estate development; scientific research and
technical consultative services of valves and pumps; importing and
exporting commodities and technologies, not engage in any items prohibited by law and administrative
regulations; able to engage in items that need permit according to law and
administrative regulations, after obtaining the permit from relative
authorities.
SC is mainly
engaged in producing and selling valves.
Mr. Zhang Xiaodong
is legal representative and general manager of SC at present.
SC is known to have approx. 373 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 Yongjia Town. Our checks
reveal that SC owns the total premise about 25,000 square meters.
http://www.baoyi.com The design is professional and the content
is well organized. At present it is in Chinese version.
E-Mail: baoyi@baoyi.com
In 1996, SC was first certified by ISO 9001 in south Zhejiang and is
first safety registered unit in valve field, passed American API certified,
national quality technical Office and Ministry of Labor safety registered unit
in valve field, China petrochemical and China petroleum first-degree network
provider, China petrochemical industrial office /China petrochemical equip head
office nominated producers, China bank AAA grade credit corporation , Zhejiang
quality credibility corporation, Wenzhou high-tech corporation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Chenming 27.84
Zhang Xiaochun 14.432
Zhang Xiaoxia 14.432
Zhang Xiaoqiu 14.432
Zhang Xiaodong 14.432
Zhang Xiaozhong 14.432
l
Chairman:
Mr. Zhang Chenming, about 68 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
At
present Working in SC as
chairman, in Yongjia Zhengmao Real Estate Development Co., Ltd. as legal
representative.
l
Legal
representative and General manager:
Mr. Zhang Xiaodong, about 44 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as legal representative and general manager.
SC is mainly
engaged in producing and selling valves.
SC’s products mainly include: Gate Valve, Ball Valve, Globe Valve, Check
Valve and Plug Valve.
SC sources its materials 90% from domestic market and 10% from the
overseas market. SC sells 40% of its products to overseas market, mainly in Europe, America and Middle East, and 60% 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 Suppliers*
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Ruian Sanxing Antisepticise Smithing Plant
*Major Customers*
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SINOPEC Northwest Company
SC is known
to have the following subsidiaries at present:
Yongjia
Zhengmao Real Estate Development Co., Ltd.
Wenzhou
Chaoyue Valve Co., Ltd.
Yongjia Baoyi Cast Steel 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.
Bank of China
Yongjia Sub-branch
AC#820010203408091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2007 |
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Cash & bank |
10,030 |
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Bills receivable |
0 |
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Accounts
receivable |
32,630 |
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Other
receivables |
1,030 |
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Advances to
suppliers |
1,250 |
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Inventory |
7,490 |
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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 |
52,430 |
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Fixed assets |
56,570 |
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Fixed assets net
value |
38,550 |
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Projects under
construction |
18,020 |
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Long term
investment |
25,850 |
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Other assets |
14,300 |
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------------------ |
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Total assets |
149,150 |
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============= |
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Short loans |
35,140 |
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Bills payable |
6,550 |
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Accounts payable |
19,160 |
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Welfare payable |
520 |
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Advances from
clients |
0 |
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Accrued payroll |
0 |
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Dividends
payable |
1,180 |
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Tax payable |
-140 |
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Other payable |
1,300 |
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Surcharge
payable |
80 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
63,790 |
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Long term
liabilities |
9,420 |
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Total
liabilities |
73,210 |
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Equities |
75,940 |
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Total
liabilities & equities |
149,150 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2007 |
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Turnover |
71,750 |
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Cost of goods
sold |
57,000 |
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Sales expense |
4,560 |
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Management expense |
5,560 |
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Finance expense |
1,830 |
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Profit before
tax |
2,470 |
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Less: profit tax |
820 |
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Profits |
1,650 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
0.82 |
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*Quick ratio |
0.70 |
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*Liabilities
to assets |
0.49 |
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*Net profit
margin (%) |
2.30 |
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*Return on
total assets (%) |
1.11 |
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*Inventory
/Turnover ×365 |
39 days |
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*Accounts
receivable/Turnover ×365 |
166 days |
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*Turnover/Total
assets |
0.48 |
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* Cost of
goods sold/Turnover |
0.79 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is average, comparing with its turnover.
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 appears fairly large.
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SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
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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: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable & short loan could be a
threat to SC’s financial condition. A credit line up to USD 500,000 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.45.77 |
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UK Pound |
1 |
Rs.80.67 |
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Euro |
1 |
Rs.64.20 |
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%)