MIRA INFORM REPORT
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Report Date : |
11.05.2011 |
IDENTIFICATION DETAILS
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Name : |
HUIZHOU LCY ELASTOMERS CORP. |
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Registered Office : |
No. 299, Shihua Middle Road, Shihua Zone, Dayawan Economic
And Technological Development Zone, Huizhou, Guangdong Province 516082 pR |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
06.01.2006 |
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Com. Reg. No.: |
441300400012763 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
manufacturing and Selling Rubber |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 1,000,000 |
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Status : |
Moderate |
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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
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
China |
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 |
Company name &
address
HUIZHOU LCY ELASTOMERS CORP.
NO. 299, SHIHUA MIDDLE
ROAD, SHIHUA ZONE, DAYAWAN ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE,
HUIZHOU,
GUANGDONG PROVINCE
516082 PR CHINA
TEL: 86 (0)
752-5599000 FAX: 86 (0) 752-5599011
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 6, 2006
REGISTRATION NO. : 441300400012763
REGISTERED LEGAL
FORM : Wholly foreign-owned enterprise
STAFF STRENGTH :
150
REGISTERED CAPITAL : USD 20,500,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,233,930,000 (UNaudited, AS OF DEC. 31, 2010)
EQUITIES :
CNY 191,160,000 (UNaudited, AS OF
DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 1,000,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.50= 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 wholly foreign-owned enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Jan. 6, 2006.
Company Status: Wholly foreign-owned enterprise 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 researching, developing, manufacturing and selling liquor styrenebutadiene rubber products and other related products; selling products in domestic and overseas market. (with permit if needed).
SC is mainly engaged in manufacturing and selling rubber.
Ms. Yang Saifen is legal representative and chairman of SC at present.
SC is known to have approx. 150 employees at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the development zone of
Huizhou. The information about premise is unknown.
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 and Commerce.
MAIN
SHAREHOLDERS:
Name
% of Shareholding
(B.V.I.) Lcy Elastomers Corp. 100
l
Legal representative and Chairman:
Ms. Yang Saifen, born in 1959. She is currently responsible for the
overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman.
SC is mainly
engaged in manufacturing and selling rubber.
SC’s products mainly include butyl benzene thermoplastic rubber, 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.
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.
According to http://www.lcy.com.tw/
· Lcy Chemical Corp.
· Zhenjiang Lcy Warehousing & Storage Co., Ltd.
· Lcy Technology Co.
Etc.
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.
Agricultural
Bank of China
AC#: N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Cash & bank |
187,100 |
89,680 |
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Inventory |
66,110 |
133,240 |
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Bills receivable |
34,830 |
82,690 |
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Accounts
receivable |
9,420 |
58,180 |
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Advances to
suppliers |
5,970 |
30,850 |
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Other
receivables |
9,160 |
16,460 |
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Other current
assets |
10 |
30 |
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------------------ |
------------------ |
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Current assets |
312,600 |
411,130 |
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Fixed assets net
value |
383,440 |
363,140 |
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Long term
investment |
0 |
0 |
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Projects under
construction |
15,070 |
20,540 |
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Intangible and
other assets |
43,930 |
42,670 |
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------------------ |
------------------ |
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Total assets |
755,040 |
837,480 |
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=========== |
=========== |
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Short loan |
520,260 |
493,740 |
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Accounts payable |
95,000 |
127,010 |
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Bills payable |
0 |
0 |
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Advances from
clients |
14,420 |
6,710 |
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Taxes payable |
8,050 |
9,420 |
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Other Accounts
payable |
1,820 |
5,440 |
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Other current
liabilities |
2,780 |
4,000 |
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------------------ |
------------------ |
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Current
liabilities |
642,330 |
646,320 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
642,330 |
646,320 |
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Equities |
112,710 |
191,160 |
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------------------ |
------------------ |
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Total
liabilities & equities |
755,040 |
837,480 |
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=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
|
Turnover |
1,233,930 |
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Cost of goods sold |
1,100,740 |
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Sales expense |
18,940 |
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Management expense |
12,100 |
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Finance expense |
24,230 |
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Profit before tax |
78,440 |
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Less: profit tax |
0 |
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Profits |
78,440 |
Note: The Financial Report for Year 2010 hasn’t been audited.
Important
Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
0.49 |
0.64 |
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*Quick ratio |
0.38 |
0.43 |
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*Liabilities
to assets |
0.85 |
0.77 |
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*Net profit
margin (%) |
/ |
6.36 |
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*Return on
total assets (%) |
/ |
9.37 |
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*Inventory
/Turnover ×365 |
/ |
39 days |
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*Accounts
receivable/Turnover ×365 |
/ |
17 days |
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*Turnover/Total
assets |
/ |
1.47 |
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* Cost of
goods sold/Turnover |
/ |
0.89 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears 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 fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average in 2009, but
fairly large in 2010.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears large.
l
SC’s turnover is in an average level, comparing
with the size of its total assets in 2010.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short-term loan could be a threat to SC’s
financial condition. A credit line up to USD 1,000,000 would appear to be
within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.73 |
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UK Pound |
1 |
Rs.73.21 |
|
Euro |
1 |
Rs.63.90 |
RATING EXPLANATIONS
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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 |
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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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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.