MIRA INFORM REPORT
|
Report Date : |
19.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
BAOTOU SUNSHINE CONSTRUCTION MACHINERY CO.,
LTD. |
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Registered Office : |
662 Kilometers, 110 National Road, West Of Minzu Dong Road Baotou,
Inner Mongolia 014010 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
09.01.2003 |
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Com. Reg. No.: |
150200000007819 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling
Engineering
Machinery |
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 : |
USD 300,000 |
|
Status : |
Moderate |
|
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name & address
BAOTOU SUNSHINE CONSTRUCTION MACHINERY CO.,
LTD.
662 KILOMETERS, 110 NATIONAL ROAD, WEST OF MINZU DONG ROAD
BAOTOU, INNER MONGOLIA 014010 PR CHINA
TEL: 86 (0)
472-2853202/2853209
FAX: 86 (0)
472-2853204
EXECUTIVE SUMMARY
Date of Registration : JANUARY 9, 2003
REGISTRATION NO. : 150200000007819
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
cny 47,300,000
staff : 191
BUSINESS CATEGORY :
trading
Revenue : CNY 214,030,000 (AS OF DEC. 31, 2010)
EQUITIES : CNY 46,510,000 (AS OF DEC. 31, 2010)
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD
300,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
FAIRLY
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.47 = USD 1
Adopted abbreviations
(as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 150200000007819 on January
9, 2003.
SC’s Organization Code Certificate
No.: 743885428
SC’s registered capital: CNY 47,300,000
SC’s paid-in capital: CNY 47,300,000
Registration Change Record:
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2010 |
Company
Name |
Baotou
Sunshine Construction Machinery Co., Ltd. |
Baotou
Sunshine Construction Machinery (Group) Co., Ltd |
|
2011-6 |
Company
Name |
Baotou
Sunshine Construction Machinery (Group) Co., Ltd.） |
Baotou
Sunshine Construction Machinery Co., Ltd. |
Note: According to SC’s accountant, SC could not meet
standard of “Group” in Tax Bureau, so it changed back to the original name, the
Group website also does not exist at present.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wang Wenjun |
84.57 |
|
Wen Weizhong |
15.43 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman,
and General Manager |
Wen
Weizhong |
|
Supervisor |
Wang
Wenjun |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Wang Wenjun 84.57
Wen Weizhong 15.43
MANAGEMENT
Wen Weizhong, Legal Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Also
working in Baotou Zhongjun Auto Trade Co., Ltd., Inner Mongolia Yongda
Investment Co., Ltd., and Inner Mongolia Wanfang Investment Co., Ltd. as legal
representative, in Baotou Zhongjun Auto Trade Co., Ltd. Jiuyuan Branch as
principal.
BUSINESS OPERATION
SC’s registered business scope includes processing
machinery; selling engineering machinery, complete set of equipment &
components, auto parts, mechanical & electrical products, automobiles,
steel materials, chemical products, motorcycles, building materials, rubber
products, lubricating oil, hardware, groceries, garment, and household
appliance; repairing and renting engineering machinery; earth & stone engineering
construction
SC is
mainly engaged in selling engineering machinery.
SC’s
products mainly include: excavator, road roller, etc.
Acting
brands: “CASE”, “ATLAS COPCO”, “Wacker”, etc.
SC sources its materials 40% from domestic market, and 60% from overseas market, mainly USA, Sweden, and Germany. SC sells 100% of its products in domestic market, mainly Inner Mongolia.
The
buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms
of SC include T/T and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 191
staff at present.
SC
rents an area as its operating office, but the detailed information is unknown.
RELATED COMPANY
· Baotou Zhongjun Auto Trade Co., Ltd.
· Shanxi Sunshine Construction Machinery Co., Ltd.
· Inner Mongolia Wanfang Investment Co., Ltd.
· Baotou Zhongjun Shipping Co., Ltd.
· Inner Mongolia Yongda Investment Co., Ltd.
Etc.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
|
11,060 |
|
|
Notes receivable |
950 |
|
Accounts
receivable |
46,280 |
|
Advances to
suppliers |
0 |
|
Other receivable |
30,400 |
|
Inventory |
30,450 |
|
Prepaid
expenses |
0 |
|
Other current
assets |
34,880 |
|
|
------------------ |
|
Current assets |
154,020 |
|
Fixed assets |
2,300 |
|
Construction in
progress |
0 |
|
Long-term equity
investment |
24,630 |
|
Intangible
assets |
0 |
|
Long-term
prepaid expenses |
0 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
5,930 |
|
|
------------------ |
|
Total assets |
186,880 |
|
|
============= |
|
Short-term loans |
19,650 |
|
Notes payable |
1,230 |
|
Accounts payable |
42,480 |
|
Advances from
clients |
0 |
|
Other payable |
33,280 |
|
Other current
liabilities |
14,470 |
|
|
------------------ |
|
Current
liabilities |
111,110 |
|
Non-current
liabilities |
29,260 |
|
|
------------------ |
|
Total
liabilities |
140,370 |
|
Equities |
46,510 |
|
|
------------------ |
|
Total
liabilities & equities |
186,880 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
|
Revenue |
214,030 |
|
Cost of sales |
196,220 |
|
Sales expense |
9,840 |
|
Management expense |
6,920 |
|
Finance expense |
-30 |
|
Profit before
tax |
1,000 |
|
Less: profit tax |
100 |
|
900 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
|
*Current ratio |
1.39 |
|
*Quick ratio |
1.11 |
|
*Liabilities
to assets |
0.75 |
|
*Net profit
margin (%) |
0.42 |
|
*Return on total
assets (%) |
0.48 |
|
*Inventory /
Revenue ×365 |
52 days |
|
*Accounts
receivable/ Revenue ×365 |
79 days |
|
*
Revenue/Total assets |
1.15 |
|
* Cost of
sales / Revenue |
0.92 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing
with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear average.
l
SC’s revenue is in an
average 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 average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable financial conditions. A credit line up to USD 300,000
appears to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.57 |
|
UK Pound |
1 |
Rs.71.75 |
|
Euro |
1 |
Rs.62.60 |
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 |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.