%20CO%20,%20LTD%20%20-%20133682%2023-Feb-2011_files/image002.jpg){kind=small}
MIRA INFORM
REPORT
|
Report Date : |
23.02.2011 |
IDENTIFICATION DETAILS
|
Name : |
LITONG ALUMINUM INDUSTRY ( |
|
|
|
|
Registered Office : |
No. 21 Huanxi Road, Industrial Park
Of Huashi Town, Jiangyin, Jiangsu
Province, 214421 PR |
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|
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Country : |
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|
|
|
Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
31.01.2005 |
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|
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Com. Reg. No.: |
320281400009689 |
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|
|
|
Legal Form : |
Wholly Foreign-Owned |
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|
|
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Line of Business : |
Slitting,
Washing and Coating Aluminum Coil. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 50,000 |
|
Status : |
Satisfactory |
|
Payment
Behaviour : |
No complaints |
|
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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
|
|
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name and address
LITONG ALUMINUM INDUSTRY (
NO.
TEL: 86 (0) 510-86204288/86200576
FAX: 86 (0) 510-86200576
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 31, 2005
REGISTRATION NO. :
320281400009689
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
STAFF STRENGTH :
45
REGISTERED CAPITAL : HKD 6,000,000
BUSINESS LINE :
SLITTING, WASHING AND COATING
TURNOVER :
CNY 143,570,000 (UNAUDITED, AS OF DEC. 31, 2010)
EQUITIES :
CNY 9,820,000 (UNAUDITED, AS OF
DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.58 = USD 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
%20CO%20,%20LTD%20%20-%20133682%2023-Feb-2011_files/image015.gif){kind=small}
SC was registered as a wholly
foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Jan. 31, 2005.
Company Status: Wholly Foreign-Owned This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered
business scope includes slitting, washing and coating aluminum coil.
SC is mainly engaged
in slitting, washing and coating aluminum coil.
Mr.
Yuan Shian is legal representative,
chairman and general manager of SC at present.
SC is known to have approx. 45 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
Jiangyin. Our checks reveal that SC owns the total premise with an area of
about 6,800 square meters.
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SC is not known to host website of its own at present.
%20CO%20,%20LTD%20%20-%20133682%2023-Feb-2011_files/image017.gif){kind=small}
No significant events or changes were found during our checks with local
AIC.
%20CO%20,%20LTD%20%20-%20133682%2023-Feb-2011_files/image018.gif){kind=small}
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hong Kong Litong International
Holdings (Group) Limited 100
CR No.: 0846340
Date of Incorporation: Apr. 30, 2003
Company Status: Private
Hong Kong Litong
International Holdings (Group) Limited is a large-scale diversified enterprise by
integrating industry, trading, investment, importation and exportation. It
invested to set up 16 enterprises in mainland of China such as in Shanghai,
Guangdong, Jiangsu, Shandong, Henan, and Heilongjiang, etc.. In addition, it
set up two joint venture enterprises abroad and five overseas agencies in
%20CO%20,%20LTD%20%20-%20133682%2023-Feb-2011_files/image019.gif){kind=small}
l
Legal representative, chairman and
general manager:
Mr. Yuan Shian, ID# 362329580810003, born in
1958 with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager;
l
Directors:
l
Zhang XiaopingID# 360104195810311923
Zhu Zhiqiang ID# 32021919761224379X
%20CO%20,%20LTD%20%20-%20133682%2023-Feb-2011_files/image020.gif){kind=small}
SC is mainly
engaged in slitting, washing and coating aluminum coil.
Main Products:
coler-coated aluminum coils, etc.
SC sources its materials 100%
from domestic market. SC sells 50% of its products in domestic market, 50% to
overseas market.
The buying terms of SC include Check, 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.
Note: SC’s management refused to release information about its customers
and suppliers.
%20CO%20,%20LTD%20%20-%20133682%2023-Feb-2011_files/image021.gif){kind=small}
Litong Aluminum Industry (
Litong Aluminum Industry (
Litong Aluminum Industry (
Litong Aluminum Industry (He’nan) Co., Ltd.
Etc.
%20CO%20,%20LTD%20%20-%20133682%2023-Feb-2011_files/image022.gif){kind=small}
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.
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Bank of
AC#：N/A
Relationship:
%20CO%20,%20LTD%20%20-%20133682%2023-Feb-2011_files/image024.gif){kind=small}
Balance Sheet
|
Unit: CNY’000 |
as of Dec. 31,
2009 |
as of Dec. 31,
2010 (unaudited) |
|
Cash & bank |
3,900 |
3,030 |
|
Inventory |
19,090 |
34,150 |
|
Notes receivable |
30 |
1,230 |
|
Accounts
receivable |
4,180 |
1,690 |
|
Advances to
supplies |
0 |
0 |
|
Other receivables |
160 |
1,180 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
27,360 |
41,280 |
|
Fixed assets net
value |
5,200 |
4,980 |
|
Projects under
construction |
0 |
160 |
|
Long-term
investments |
0 |
0 |
|
Long-term
deferred expenses |
0 |
0 |
|
Intangible
assets |
780 |
760 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
33,340 |
47,180 |
|
|
============= |
============= |
|
Short loans |
0 |
1,000 |
|
Notes receivable |
7,000 |
7,000 |
|
Accounts payable |
7,810 |
7,060 |
|
Advances from
customers |
0 |
0 |
|
Wages payable |
0 |
0 |
|
Welfares payable |
0 |
0 |
|
Taxes payable |
-40 |
-890 |
|
Other Accounts
payable |
9,620 |
27,650 |
|
Accrued expenses |
0 |
-4,460 |
|
Other current
liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
24,390 |
37,360 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
24,390 |
37,360 |
|
Shareholders
equities |
8,950 |
9,820 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
33,340 |
47,180 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
as of Dec. 31,
2009 |
as of Dec. 31,
2010 (unaudited) |
|
Turnover |
87,990 |
143,570 |
|
Cost of goods sold |
84,790 |
138,860 |
|
Sales expense |
930 |
1,700 |
|
Management expense |
760 |
960 |
|
Finance expense |
20 |
220 |
|
Profit before
tax |
1,870 |
1,390 |
|
Less: profit tax |
240 |
510 |
|
Profits |
1,630 |
880 |
Important Ratios
=============
|
|
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
|
*Current ratio |
1.12 |
1.10 |
|
*Quick ratio |
0.34 |
0.19 |
|
*Liabilities
to assets |
0.73 |
0.79 |
|
*Net profit margin
(%) |
1.85 |
0.61 |
|
*Return on
total assets (%) |
4.89 |
1.87 |
|
*Inventory
/Turnover ×365 |
80
days |
87
days |
|
*Accounts
receivable/Turnover ×365 |
18
days |
5
days |
|
*Turnover/Total
assets |
2.64 |
3.04 |
|
* Cost of goods
sold/Turnover |
0.96 |
0.97 |
%20CO%20,%20LTD%20%20-%20133682%2023-Feb-2011_files/image025.gif){kind=small}
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average, and it
increased in 2010.
l
SC’s net profit margin is average in 2009 and 2010.
l
SC’s return on total assets is average in 2009 and
2010.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover in 2009 and 2010.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2009 and 2010.
l
SC’s quick ratio is maintained in a poor level in
2009 and 2010.
l
The inventory of SC is large in 2009 and 2010.
l
The accounts receivable of SC is average in 2009
and 2010.
l
The short-term loan of SC is average in 2010.
l
SC’s turnover is in a fairly good level in 2009 and
2010, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in 2009 and 2010.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
%20CO%20,%20LTD%20%20-%20133682%2023-Feb-2011_files/image026.gif){kind=small}
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
conditions. A credit line up to USD 50,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.20 |
|
|
1 |
Rs.73.07 |
|
Euro |
1 |
Rs.61.41 |
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 Company |
---- |
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.