MIRA
INFORM REPORT
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Report Date : |
16.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHANDONG WEIQIAO ALUMINIUM & ELECTRICITY CO., Ltd. |
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Registered Office : |
No.1 Weifang Road, Zouping County, Binzhou
City, Shandong Province, 256200
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
25.12.2002 |
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Com. Reg. No.: |
3716001800985 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Manufacturing
and Selling Alumina and Electrolytic Aluminium. |
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 15,000,000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
SHANDONG WEIQIAO ALUMINIUM & ELECTRICITY CO., Ltd.
no.1 weifang road,
zouping county, binzhou city,
shandong PROVINCE,
256200 PR CHINA
TEL: 86 (0)
543-4162096 FAX: 86 (0) 543-4166000
EXECUTIVE SUMMARY
INCORPORATION DATE :
december 25, 2002
REGISTRATION NO. : 3716001800985
REGISTERED LEGAL FORM : One-person Limited
Liability Company
STAFF STRENGTH :
15,000
REGISTERED CAPITAL : CNY 5,000,000,000
BUSINESS LINE : manufacturing
TURNOVER :
CNY 11,494,510,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 5,339,460,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 15,000,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.83 = 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 one-person limited liability company
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on December 25, 2002.
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered
business scope includes manufacturing and selling alumina and electrolytic aluminium;
international trade.
SC is mainly
engaged in manufacturing and selling alumina and electrolytic aluminium.
Mr. Zhang Bo has
been chairman of SC since 2002.
SC is known to
have approx. 15,000 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 Binzhou. Our checks
reveal that SC owns the total premise about 1,000,000 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shandong Weiqiao Pioneering Group Co., Ltd. 100
Shandong Weiqiao Pioneering Group Co., Ltd.
is located at the southern end of Lubei plain, closely adjoining Jiaozhou-Jinan
Railway and Jinan-Qingdao Expressway. With the total capital fund of CNY 38
billion, the AAA credit class of bank, the AA credit class of customs and the A
paying tax class, the group is one super grand multiple–producing factory
combining spinning, weaving, weaving, dyeing-finishing, apparel, home-textile,
thermoelectricity and aluminum industry. With its first-class tech-equipment,
productive capacity and the economic benefit, it ranks the first place in the
same trade of China for 9 years in succession. It is the most competitive
amongst the national cotton–chemical textile meatpacking industry and the
universally biggest cotton–textile factory. And in 2006, it ranked 81st among
the “China Top 500 Industry Enterprise”, 34th of the “China Manufacturing
Enterprise”, 91st of “China Impex Enterprise”, and 9th of “China Top 500 of
competition”. In January to November of 2007, the company realized a sales
revenue as high as CNY 6045942.2 Million, an 33.78% increase over that in the
same period last year; Total profits and taxes CNY 734503.1 Million, an 36.32%
increase over that in the same period last year; Profits of CNY 519039.6
Million, an 68.58% increase over that in the same period last year; and the
total amount of foreign currency earned through exportation reaching USD
95423.0 Million, an 20.15% increase over that in the same period last year.
l
Chairman:
Mr. Zhang Bo, 38 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working
in SC as chairman, and also working in Weiqiao Textile Company
Limited
as chairman.
SC is mainly
engaged in manufacturing and selling alumina and electrolytic aluminium.
SC’s products mainly
include: alumina, and electrolytic aluminium
SC sources its materials 100% from domestic
market, mainly Shandong. SC sells 80% of its products in domestic market, and
20% to overseas market, mainly Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier:
==============
Shandong Longyuan Environment-Friendly 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’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.
SC declined to
release its bank details.
Balance Sheet
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Unit: CNY’000 |
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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Cash & bank |
25,620 |
216,020 |
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Inventory |
1,070,490 |
1,948,430 |
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Accounts
receivable |
0 |
66,270 |
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Other Accounts
receivable |
0 |
1,000 |
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Advances to
suppliers |
1,339,820 |
1,560,500 |
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To be
apportioned expense |
0 |
0 |
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Other current
assets |
0 |
10 |
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------------------ |
------------------ |
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Current assets |
2,435,930 |
3,792,230 |
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Fixed assets net
value |
4,394,460 |
8,211,010 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
2,200,560 |
3,016,420 |
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------------------ |
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Total assets |
9,030,950 |
15,019,660 |
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============= |
============= |
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Short loans |
0 |
186,440 |
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Accounts payable |
68,490 |
266,380 |
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Other Accounts
payable |
3,897,250 |
8,141,410 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current
liabilities |
120,250 |
1,083,330 |
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------------------ |
------------------ |
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Current
liabilities |
4,085,990 |
9,677,560 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
2,420 |
2,640 |
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------------------ |
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Total
liabilities |
4,088,410 |
9,680,200 |
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Equities |
4,942,540 |
5,339,460 |
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------------------ |
------------------ |
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Total
liabilities & equities |
9,030,950 |
15,019,660 |
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Income Statement
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Unit: CNY’000 |
as of Dec. 31, 2007 |
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Turnover |
11,494,510 |
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Cost of goods
sold |
10,588,370 |
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Sales expense |
180,870 |
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Management expense |
113,690 |
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Finance expense |
44,540 |
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Profit before
tax |
563,290 |
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Less: profit tax |
166,380 |
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Profits |
396,910 |
Important
Ratios
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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*Current ratio |
0.60 |
0.39 |
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*Quick ratio |
0.33 |
0.19 |
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*Liabilities
to assets |
0.45 |
0.64 |
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*Net profit
margin (%) |
/ |
3.45 |
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*Return on
total assets (%) |
/ |
2.64 |
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*Inventory
/Turnover ×365 |
/ |
62 days |
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*Accounts
receivable/Turnover ×365 |
/ |
2 days |
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*Turnover/Total
assets |
/ |
0.77 |
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* Cost of
goods sold/Turnover |
/ |
0.92 |
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 fairly high, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a poor level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears large.
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The accounts receivable of SC is maintained in an average level.
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SC’s short-term loan is in an average level in 2007.
l
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.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
Over the past 6 years, SC has made a stable growth with fairly stable
financial conditions. The large amount of inventory could be a threat to SC’s
financial condition. A credit line up to USD 15,000,000
would appear to be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.46.34 |
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UK Pound |
1 |
Rs.82.96 |
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Euro |
1 |
Rs.65.82 |
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%)