MIRA
INFORM REPORT
|
Report Date : |
02.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
ZIBO DENUO ALUMINIUM CORPORATION |
|
|
|
|
Registered Office : |
NO. 19, |
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Country : |
|
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|
|
|
Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
03.04.2007 |
|
|
|
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Com. Reg. No.: |
370303228839234 |
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|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacture and sales of aluminium foils |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
2000000.00 Chinese
Yuan |
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|
|
|
Status : |
Moderate |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
|
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Name and address
|
ZIBO DENUO ALUMINIUM CORPORATION |
|
|
NO. 19, |
|
|
255086 |
|
|
Tel : |
86 533 13805339159 |
|
Fax |
86 533 6288156 |
|
Website |
http://www.denuocn.com/ |
|
GTM Reference No. |
G110323328 |
Currency in this report is Chinese Yuan
unless otherwise stated.
Exchange Rate: 1 USD=6.56 Chinese Yuan
"--"in this report indicates
"unavailable" due to insufficient information or "no
comments"
EXECUTIVE
SUMMARY
DATE OF establishment :
Apr 3rd, 2007
Aic Registration No. :
370303228839234
REGISTERED LEGAL FORM
: limited liability
company
REGISTERED CAPITAL :
90,000,000.00
main BUSINESS : manufacture
and sales of aluminium foils
TURNOVER :
199,789,000.00 (As of 2009)
net profit :
-24,943,000.00 (As of Dec.31th, 2009)
total assets :
519,265,000.00 (As of Dec.31th, 2009)
net worth : 47,409,000.00 (As of
Dec.31th, 2009)
employees : 200
import and export permits :
yes
base CREDIT limit : 2000000.00 Chinese Yuan
EXCHANGE RATE :
1 Usd=6.56 CNY (Mar.29TH, 2011)
Registered Address: NO.19,
Zip
Code: 255086
Telephone: 86
533 13805339159
Business Address: NO.19,
Zip Code: 255086
Telephone: 86
533 6073599 6073595
Fax:
86 533 6288156
SIC
Code (
REGISTRATION
|
Date of Establishment |
Apr 3rd, 2007 |
|
Registry |
Administration Bureau of Industry and Commerce -
|
|
Legal Representative |
Li Xuefeng |
|
AIC Registration Number |
370303228839234 |
|
Registered Legal Form |
limited liability
company |
|
Registered Capital |
90,000,000.00 |
|
Operating Period |
From apr
3rd, 2007 to apr 2nd, 2057 |
|
Business Scope |
Research and development of nanometer aluminums,
manufacture and sales of aluminum sheet, board tape foil, section aluminum,
machinery equipment, instrument and meter etc. Import and export of goods
(those need examined and approved must be operated with approval procedures
and licences.) |
|
Changes in Registration |
1.
Apr 25th,
2007 Subject’s business scope
was changed from Research and development of nanometer aluminums, manufacture
and sales of aluminum sheet, board tape foil, section aluminum, machinery
equipment, instrument and meter etc. to the present scope. 2.
May 23rd,
2008 Subject’s registration
address was changed from Room 119, Tower B, 3.
July 15th,
2009 Subject’s legal
representative was changed from Li Xuefeng to Wang Kecheng. 4.
Dec 1st,
2010 Subject’s legal representative
was changed from Wang Kecheng to Li Xuefeng. 5.
Dec 1st,
2010 Subject’s shareholders were changed from Wang
Kecheng, Lu Deqiang, Sun Xia, Wang Pengfen, Li Xuefeng, Zhang Baozhong, Zhang
Henghu, and Duan Xiaoming to its present shareholders. |
Limited liabilities co.
This form of
business in PR China is defined as a legal person. Its registered capital is
contributed jointly by at least two shareholders and no more than fifty. 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 listed as follows:
-manufacturing
co. : RMB 500,000.00
-trading
&wholesaling co. : RMB 500,000.00
-retailing
co. : RMB 300,000.00
-consultancy &
service co. : RMB 100,000.00
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 50% of the registered capital
while contribution by intangible assets must not exceed 20% 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.
REGISTRATION INFO:
AVAILABLE
FINANCIAL REPORTS:
AVAILABLE
FIELD
INVESTIGATION
1. Subject’s
income comes mainly from sales of aluminum foil (35%-45%). SC introduces and
adopts advanced production equipment and technology in the world. It can
produce, research, and operate the advanced aluminum foils. SC’s sales business
is developing as well as its engineering construction. So far, SC has
established trading relationship with More than 30 countries and regions
including
2.
SHAREHOLDERS
AND SHARES
As indicated in the following table:
|
Shareholder |
Capital Subscribed |
Percentage |
|
Wang Kecheng |
900,000.00 |
1% |
|
Sun Xia |
900,000.00 |
1% |
|
Wang Pengfen |
900,000.00 |
1.01% |
|
Li Xuefeng |
75,300,000.00 |
83.67% |
|
Zhang Baozhong |
4,000,000.00 |
4.44% |
|
Zhang Henghu |
4,000,000.00 |
4.44% |
|
Duan Xiaoming |
4,000,000.00 |
4.44% |
|
Total |
90,000,000.00 |
100% |
|
Shareholder |
Way of
investment |
Paid-up
Percentage |
|
Wang Kecheng |
Capital |
100% |
|
Sun Xia |
Capital |
100% |
|
Wang Pengfen |
Capital |
100% |
|
Li Xuefeng |
Capital |
100% |
|
Zhang Baozhong |
Capital |
100% |
|
Zhang Henghu |
Capital |
100% |
|
Duan Xiaoming |
Capital |
100% |
Background of major shareholder
|
Name |
Li Xuefeng |
|
ID NO. |
372330196812013323 |
|
Date of Birth |
Dec 1st, 1968 |
|
Gender |
Male |
|
|
|
|
Name |
Zhang Baozhong |
|
ID NO. |
372330196105113317 |
|
Date of Birth |
May 11th, 1961 |
|
Gender |
Male |
|
|
|
|
Name |
Zhang Hengwu |
|
ID NO. |
372330197012070033 |
|
Date of Birth |
Dec 7th, 1970 |
|
Gender |
Male |
MANAGEMENT
|
Name |
Li Xuefeng |
|
Title |
Chairman |
|
Gender |
Male |
|
Date of birth |
Dec 1st, 1968 |
|
ID No. |
372330196812013323 |
NUMBER OF EMPLOYEES
Employees: 200
Recent Recruitment：Yes
Recruitment Post: workshop worker,
international and domestic sales staff, documentary secretary etc.
BANKERS INFORMATION
|
Name |
Bank of |
|
Account No. for CNY |
15256101040035674 |
|
Tel of the interviewee |
86 533 3581206 |
|
Comment |
The interviewee confirmed that subject company
held an account in the said bank and the account information above is
correct. |
OFFICE FACILITIES
Geographic
Location: SC
is located in NO.19,
Property
Ownership:
not known
TRADEMARKS
& Patents
|
Registration NO. |
6100869 |
|
Image |
|
|
Address of the Applicant |
Room 119, Tower B, |
|
Period of Exclusive Right |
From Dec 14th, 2009 to Dec 13th,
2019 |
MAIN
PRODUCTS & SERVICES
|
Main business |
Manufacture and sales of aluminum foils |
|
Products and services |
SC products include house foils, medicinal foils,
container foils, packaging foils, cable foils, cigarette foils, etc. The
width and thickness of its products are respectively 200 |
SALES
INFORMATION
|
Percentage of domestic sales |
20% |
|
Regions |
All over |
|
Major domestic clients |
WEIFANG SHENGTAI MEDICINE CO.,LTD., SHIQIANG
MEDICINE GROUP CO. LTD. |
|
Sales Terms: |
Prompt payment; on credit |
|
|
|
|
Percentage of overseas sales |
80% |
|
Regions |
Europe, |
|
Overseas customers |
Foreign traders |
|
Sales Terms: |
L/C;
T/T |
|
Subject’s products are mainly marketed in
Europe and |
|
|
The above information was confirmed by SC’s
employee. |
|
PURCHASE
INFORMATION
|
Main Commodities Purchased |
Aluminium, production equipment, office
supplies, etc. |
|
Number of Major Suppliers |
More than 3 |
|
Major Suppliers |
Zouping Qixing Industrial Aluminium Co.,
Ltd., Aluminum Corporation of |
|
Main Terms of Payment |
Prompt payment; on credit |
|
Subject mainly purchase domestically according to
their clients’ orders. SC has a stable purchasing channel and it cooperates
well with some of its suppliers. |
|
|
The above information was confirmed by SC’s
employee. |
|
CREDIT
|
Supplier name |
Zouping Qixing Industrial Aluminium Co.,
Ltd. |
|
Item supplied |
Aluminum |
|
Title of interviewee |
Office worker |
|
Tel. |
86 543 4305570 |
|
Comment |
SC is a client of this company. SC’s payment
history is normal and has delinquency record. |
LITIGATION RECORDS
|
Court |
People’s court of Yunlong District, |
|
Defendant |
ZIBO DENUO ALUMINIUM CORPORATION |
|
File Date |
Mar 26th, 2010 |
|
File NO. |
(2010) Yun Zhi Zi 00496 |
FINANCE
Balance Sheet (Unit:
1,000 Chinese Yuan):
|
|
Dec. 31st, 2007 |
Dec. 31st, 2008 |
Dec.
31st, 2009 |
|
Current assets |
|
|
|
|
Money capital |
8,792 |
33,306 |
125,020 |
|
Short-term investment |
|
|
1,000 |
|
Notes receivable |
|
2,489 |
2,048 |
|
Net ball of account receivable |
|
2,904 |
26,491 |
|
Payment in advance |
77,244 |
76,051 |
79,294 |
|
Other account receivable |
10,562 |
9,785 |
44,179 |
|
Inventory |
|
21,489 |
23,654 |
|
Expenses to be deferred |
|
1,544 |
590 |
|
Other current assets |
|
|
|
|
Total current Assets |
96,598 |
151,111 |
304,476 |
|
Long term
investment |
|
|
|
|
Long term investment |
|
|
|
|
Fix assets |
|
|
|
|
Original value of fixed assets |
740 |
183,059 |
192,683 |
|
Accumulated depreciation |
31 |
5,197 |
16,983 |
|
Net Fixed Assets |
709 |
177,862 |
175,700 |
|
Net value of Fixed Assets |
709 |
177,862 |
175,700 |
|
Project being constructed |
20,950 |
9,044 |
5,224 |
|
Total fixed assets |
21,665 |
187,815 |
181,344 |
|
Intangible
assets |
|
|
|
|
Intangible assets |
33,444 |
32,796 |
32,124 |
|
Deferred assets |
|
|
|
|
Total intangible assets and deferred assets |
33,444 |
32,796 |
32,124 |
|
Total assets |
153,803 |
372,590 |
519,265 |
|
Current liabilities |
|
|
|
|
Short term loans |
20,000 |
15,000 |
73,030 |
|
Notes payable |
1,630 |
71,000 |
175,725 |
|
Account payable |
528 |
2,651 |
10,795 |
|
Deposit received |
|
-1,125 |
38 |
|
Other account payable |
6,254 |
10,374 |
11,360 |
|
Wages payable |
154 |
450 |
693 |
|
Welfare payable |
62 |
|
|
|
Tax unpaid |
169 |
-2,112 |
-3,785 |
|
Accrued expenses |
|
|
|
|
Other current liabilities |
|
|
|
|
L/T debt due in 1 year |
|
|
|
|
Total current liabilities |
28,803 |
96,238 |
267,856 |
|
L/T liabilities |
|
|
|
|
L/T loan |
35,000 |
204,000 |
204,000 |
|
L/T account payable |
|
|
|
|
Other non-current liability |
|
|
|
|
Total L/T liabilities |
35,000 |
204,000 |
204,000 |
|
Total liabilities |
63,803 |
300,238 |
471,856 |
|
Owner’s interest |
|
|
|
|
Paid-up capital |
90,000 |
90,000 |
90,000 |
|
Contributed surplus |
|
|
|
|
Surplus reserves |
|
|
|
|
Undistributed profits |
|
-17,648 |
-42,591 |
|
Total owner’s interest |
90,000 |
72,352 |
47,409 |
|
Liabilities and owner’s interest |
153,803 |
372,590 |
519,265 |
Income Statement (Unit:
1,000):
|
|
Dec 31st, 2007 |
Dec. 31st, 2008 |
Dec. 31st, 2009 |
|
Main business income |
0 |
114,562 |
199,789 |
|
Main business cost |
0 |
113,645 |
196,623 |
|
Tax and associate charge |
1 |
34 |
1 |
|
Main business profit |
0 |
916 |
3,132 |
|
Other business profit |
|
-1,177 |
-5,648 |
|
Asset depreciation |
|
|
|
|
Operation expenses |
|
2,053 |
4,984 |
|
- management expenses |
|
4,837 |
7,161 |
|
Financial expenses |
|
8,829 |
23,478 |
|
Operation profit |
0 |
-15,980 |
-38,139 |
|
Investment profit |
|
-2,206 |
727 |
|
Subsidy income |
|
470 |
16,580 |
|
Non business income |
|
111 |
53 |
|
-Non business expenses |
|
42 |
8 |
|
Total profit |
0 |
-17,647 |
-24,943 |
|
-Income tax |
0 |
0 |
0 |
|
Net profit |
0 |
-17,647 |
-24,943 |
Important Ratios:
|
|
2007 |
2008 |
2009 |
|
Return on net assets (%) |
0.00 |
-24.39 |
-52.61 |
|
Return on total assets (%) |
0.00 |
-4.74 |
-4.80 |
|
Net profit margin (%) |
—— |
-15.40 |
-12.48 |
|
Turnover of total assets |
0.00 |
0.31 |
0.38 |
|
Turnover of current assets |
0.00 |
0.76 |
0.66 |
|
Turnover of account receivable |
—— |
39.45 |
7.54 |
|
Inventory turnover |
—— |
5.29 |
8.31 |
|
Asset liability ratio (%) |
41.48 |
80.58 |
90.87 |
|
Current ratio |
3.35 |
1.57 |
1.14 |
|
Quick ratio |
3.35 |
1.35 |
1.05 |
Major Financial Information
|
|
2007 |
2008 |
2009 |
|
Main business income |
0 |
114,562 |
199,789 |
|
Total profit |
0 |
-17,647 |
-24,943 |
|
Net profit |
0 |
-17,647 |
-24,943 |
|
Total assets |
153,803 |
372,590 |
519,265 |
|
Total liabilities |
63,803 |
300,238 |
471,856 |
|
Total owner’s interest |
90,000 |
72,352 |
47,409 |
|
Source from |
government |
government |
government |
|
Whether audited or not |
Yes
|
Yes
|
Yes
|
Notes
to finance:
Subject’s
investment profit in 2008 is negative because it suffered a loss in that year.
Subject’s
main business income in 2007 is 0 because it didn’t start operation till the
end of the year.
INDUSTRIAL COMPARISON
SIC Code (
|
Indicators (2009) |
SC |
Industry average |
|
Return on net assets (%) |
-52.61 |
16.28 |
|
Return on total assets (%) |
-4.80 |
6.58 |
|
Net profit margin (%) |
-12.48 |
5.34 |
|
Turnover of total assets |
0.38 |
1.3 |
|
Turnover of current assets |
0.66 |
2.21 |
|
Turnover of account receivable |
7.54 |
12.91 |
|
Asset liability ratio (%) |
90.87 |
58.6 |
|
Current ratio |
1.14 |
1.26 |
|
Quick ratio |
1.05 |
0.93 |
ANALYSIS
We mainly analyze SC’s indicators in 2009. All
of SC’s profitability indicators are negative and below industry average which
indicate that its profitability is poor. SC’s turnover of total assets and
turnover of current assets are below average which indicates that its asset
operation ability is poor. SC’s turnover of account receivable is below average
which indicates that its debt recovery speed is slow. SC’s asset liability
ratio is above average which indicates that its long-term solvency is poor. In
addition, SC’s current ratio and quick ratio indicate that its short-term
solvency is poor.
INDUSTRY
PROFILE
Industry
SIC Code (
Description: manufacture and processing of common non-ferrous metal and
composite including copper, copper composite, aluminum and aluminum composites
etc.
Status Quo & Trend
Non-ferrous metal processing is a basic raw material industry that is
related to the national economic development and defense military construction.
In H1 of 2010, the output value of non-ferrous metal industry increased 18.6%
y/y. the growth rate was 11.7 points higher than that in the same period of
2009.
In 2010, the demand and price of metal materials increased and the price
may be kept at a high level within a certain period of time. In this situation,
enterprises in this industry may face with great increase in business. In
addition, government policies may also have positive effects on the development
if this industry.
GENERAL
COMMENTS
Subject
company is a limited liability company which was established in April, 2007. SC
mainly deals with manufacture and sales of aluminium foils and it is a
large-scale enterprise in its industry. SC’s business development condition and
reputation has been improving in recent years.
SC’s
main business income in 2009 increased a
lot compared with that of 2008 which reflects that its business development
condition is satisfactory. SC has enough money capitals in 2009. SC has many
notes payable in 2009 which indicates that it occupied part of its suppliers’
capital. That is favorable to its capital turnover but also make its
debt-paying pressure stronger. In addition, SC’s asset liability ratios in 2008
and 2009 are all high which indicate that its long-term solvency is poor and
its debt-paying pressure is strong.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.65 |
|
|
1 |
Rs.71.93 |
|
Euro |
1 |
Rs.63.24 |
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 |
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 |
|
-- |
NB |
New Business |
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.