MIRA
INFORM REPORT
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Report Date : |
14.03.2011 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN HENGLITAI MACHINERY CO., LTD. |
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Registered Office : |
No. 12, Zhenzhong 2nd Road, Shiwan Town, Chancheng
District, Foshan, Guangdong Province 528031 Pr |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
07.05.1999 |
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Com. Reg. No.: |
440600000018716 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling ceramic mechanical equipment. |
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 2,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Name and address
FOSHAN
HENGLITAI MACHINERY CO., LTD.
NO. 12, ZHENZHONG 2ND
ROAD, SHIWAN TOWN, CHANCHENG DISTRICT, FOSHAN, GUANGDONG PROVINCE 528031 PR
CHINA
TEL: 86 (0) 757-82271219 FAX: 86 (0) 757-82724702
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 7, 1999
REGISTRATION NO. : 440600000018716
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
600
REGISTERED CAPITAL : CNY 25,600,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 856,610,000 (UNaudited, AS OF DEC. 31, 2010)
EQUITIES :
CNY 405,900,000 (UNaudited, AS OF
DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
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 -
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 May 7, 1999.
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 manufacturing, selling and repairing
machinery equipment; manufacturing and selling auto parts; importing and exporting
commodities and technologies. (with permit if needed)
SC is mainly
engaged in manufacturing and selling ceramic mechanical equipment.
Mr. Luo
Mingzhao is legal representative and
chairman of SC at present.
SC is known to
have approx. 600 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 Foshan. Our
checks reveal that SC owns the total premise about 22,000 square meters.
http://www.hlt.cc/
The design is professional and the content is well organized. At present the
web site is in Chinese and English versions.
E-mail: business@hlt.cc
SC was awarded the title of National CAD Technical Application
Demonstration Enterprise in 2001.
SC passed ISO9001:2000 Certificate in 2003.
The national industry standard JC/T910-2003 “Hydraulic Tile Press” drew up
by SC was issued by State Development and Innovation Commission in 2003.
SC was appraised of Top 500 of China Machinery and Top 10 Construction
& Building Machinery in 2004.
SC was appraised as one of the “Three-Strong” Enterprises of Foshan
Building & Sanitation Ceramic Machine Equipment Manufacturing in 2005.
SC was appraised as 2005-2006 Advanced Unit of National Building
Material Industry Machine Standardization. YP series hydraulic tile press was
awarded Famous Brand of China Building Material Industry by the Association of
China Building Material Machine Industry in 2006.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Wu Yingzhen 14.92
ID# 440601196311173418
Liang Tongcan 14.62
ID# 440601196409283412
Luo Mingzhao 9.62
ID# 440601194808273415
Liang Hanzhu 8.72
D# 440622195909202831
Chen Guoqiang 8.72
ID# 440601195507280317
Yang Deji 7.94
ID# 440601640319341
Chen Chenda 6.26
ID# 330623196007020030
Lin Nuanzhao 6.26
ID# 440601195203073415
Wu Guizhao 1.80
ID# 440601195802153433
Ou Qiongzhi 1.80
ID# 440621194901153122
Other Individual Shareholders 19.34
l
Legal representative and chairman:
Mr.
Working Experience(s):
At present Working
in SC as legal representative and chairman.
Also working in Foshan Henglitai Machinery
Co., Ltd. Sanshui Branch as principal.
SC is mainly
engaged in manufacturing and selling ceramic mechanical equipment.
SC’s products mainly include YP series of hydraulic press equipment,
fixed single crank charger, BXC-linear five-colored feeding system, air cooler,
etc.
SC sources its
materials 80% from domestic market and 20% from overseas market. SC sells 50%
in domestic market and 50% to overseas market, mainly
SC is famous for its main products of YP
series of hydraulic presses, which are the first choice of ceramic factories to
produce wall / floor tiles. Now altogether YP series of hydraulic presses have 15
types for customers’ option. SC is currently the largest R&D and production
base of hydraulic presses in
The buying terms of SC include Check, T/T, L/C 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 declined to release its major suppliers and clients.
Guangdong Fotao Group Litai Machinery Co., Ltd.
Branch:
------------
Foshan Henglitai Machinery Co., Ltd. Sanshui Branch
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.
SC’s accountant
refused to release the bank details.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Cash & bank |
250,140 |
291,160 |
|
Inventory |
271,060 |
464,190 |
|
Accounts
receivable |
65,860 |
62,730 |
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Advances to
suppliers |
14,670 |
13,580 |
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Other
receivables |
24,560 |
13,860 |
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Other current
assets |
7,940 |
81,680 |
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------------------ |
------------------ |
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Current assets |
634,230 |
927,200 |
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Fixed assets net
value |
34,170 |
91,900 |
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Long term
investment |
78,660 |
850 |
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Projects under
construction |
41,410 |
12,540 |
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Intangible and
other assets |
13,070 |
15,050 |
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------------------ |
------------------ |
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Total assets |
801,540 |
1,047,540 |
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=========== |
=========== |
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Short loan |
20,000 |
0 |
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Accounts payable |
145,450 |
122,010 |
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Advances from
clients |
267,530 |
494,930 |
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Taxes payable |
12,220 |
9,780 |
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Other Accounts
payable |
22,190 |
13,990 |
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Other current
liabilities |
14,450 |
210 |
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------------------ |
------------------ |
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Current
liabilities |
481,840 |
640,920 |
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Long term
liabilities |
120 |
720 |
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------------------ |
------------------ |
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Total
liabilities |
481,960 |
641,640 |
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Equities |
319,580 |
405,900 |
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------------------ |
------------------ |
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Total
liabilities & equities |
801,540 |
1,047,540 |
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=========== |
=========== |
Income Statement
Unit: CNY’000
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As
of Dec. 31, 2010 |
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Turnover |
856,610 |
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Cost of goods sold |
672,310 |
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Sales expense |
25,420 |
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Management expense |
38,520 |
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Finance expense |
-2,580 |
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Profit before tax |
128,270 |
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Less: profit tax |
19,290 |
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Profits |
108,980 |
Note: The Financial Report for Year 2010 hasn’t been audited.
Important
Ratios
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
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*Current ratio |
1.32 |
1.45 |
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*Quick ratio |
0.75 |
0.72 |
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*Liabilities
to assets |
0.60 |
0.61 |
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*Net profit
margin (%) |
/ |
12.72 |
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*Return on
total assets (%) |
/ |
10.40 |
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*Inventory
/Turnover ×365 |
/ |
198 days |
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*Accounts
receivable/Turnover ×365 |
/ |
27 days |
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*Turnover/Total
assets |
/ |
0.82 |
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* Cost of
goods sold/Turnover |
/ |
0.78 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in 2010.
l
SC’s net profit margin is fairly good in 2010.
l
SC’s return on total assets is fairly good in 2010.
l
SC’s cost of goods sold is average, comparing with
its turnover in 2010.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears average in 2009.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets in 2010.
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 good.
SC is considered medium-sized in its line with fairly good financial
conditions. The large amount of inventory could be a threat to SC’s financial
condition. A credit line up to USD 2,000,000 would appear to be within SC’s
capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.21 |
|
|
1 |
Rs.72.55 |
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Euro |
1 |
Rs.62.43 |
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 |
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.