MIRA INFORM REPORT

 

 

Report Date :

30.08.2012

 

IDENTIFICATION DETAILS

 

Name :

LUVATA TUBE (ZHONGSHAN) LTD.

 

 

Registered Office :

No. 96 Xingpu Street, Huangpu Town, Zhongshan, Guangdong Province 528429 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

31.12.1992

 

 

Com. Reg. No.:

442000400018112

 

 

Legal Form :

Wholly Foreign Owned Enterprise

 

 

Line of Business :

manufacturing and selling copper tubes

 

 

No. of Employees :

420 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate 

Payment Behaviour :

Slow

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, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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 

 

LUVATA TUBE (ZHONGSHAN) LTD.

NO. 96 XINGPU STREET, HUANGPU TOWN, ZHONGSHAN

GUANGDONG PROVINCE 528429 PR CHINA

TEL: 86 (0) 760-23220822

FAX: 86 (0) 760-23222909-8173

 

 

EXECUTIVE SUMMARY

 

Date of Registration         : DECember 31, 1992

REGISTRATION NO.                  : 442000400018112

LEGAL FORM                           : WHOLLY FOREIGN OWNED ENTERPRISE

CHIEF EXECUTIVE                    : RONALD BEAL (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : USD 53,000,000

staff                                      : 420

BUSINESS CATEGORY             : manufacturing

Revenue                                : CNY 2,430,187,000 (AS OF DEC. 31, 2011)

EQUITIES                                 : CNY 431,378,000 (AS OF DEC. 31, 2011)

WEBSITE                                  : N/A

E-MAIL                                     : N/A

PAYMENT                                : AVERAGE

MARKET CONDITION                : AVERAGE

FINANCIAL CONDITION             : FAIR

OPERATIONAL TREND             : Ordinary

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                    : CNY 6.35 = 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

LEGAL STATUS & HISTORY

 

SC was established as a wholly foreign owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 442000400018112 on December 31, 1992.

 

SC’s Organization Code Certificate No.: 61813191-8

SC’s Tax No.: 442000618131918

 

SC’s Customs Registration No.: 4420944894

 

SC’s registered capital: USD 53,000,000

 

SC’s paid-in capital: USD 53,000,000

 

Registration Change Record:-

 

Date

Change of Contents

Before the change

After the change

--

Registered Capital

USD 39,208,667

USD 53,000,000

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Luvata Hong Kong Limited

100

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative and Chairman

Ronald Beal

General Manager

Lin Qiongrong

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                                                                  % of Shareholding

*  Luvata Hong Kong Limited                                                                          100

------------------------------

Registration No.: 0988811

Legal Form: Private

 

House # 77 Boulevard du Lac, The Beverly Hills, 23 Sam Mun Tsai Road, Tai Po, N.T., Hong Kong

Phone: +852-2634 1112

Fax: +852-2634 1128

 

 

MANAGEMENT

 

Ronald Beal, Legal Representative and Chairman

----------------------------------------------------------------

Ø  Gender: M

Ø  Nationality: USA

Ø  Qualification: University

Ø  Working experience (s):

 

From 2005 to present, working in SC as legal representative and chairman

Also working in Luvata Alltop Copper Products (Zhongshan) Co., Ltd. as legal representative

 

Lin Qiongrong , General Manager

-------------------------------------------------------

Ø  Gender: M

Ø  Age: 40’s

Ø  Qualification: University

Ø  Working experience (s):

From 2005 to present, working in SC as general manager

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes designing, developing, manufacturing and selling non ferrous metal composite materials, new type alloy materials; providing after sale service and technology consulting service.

 

SC is mainly engaged in manufacturing and selling copper tubes.


SC’s products mainly include: copper tube.

 

SC sources its materials 85% from domestic market, and 15% from the overseas market, mainly Malaysia, Japan, etc. SC sells 75% of its products in domestic market, and 25% to the overseas market, mainly Malaysia, Indonesia, etc.

 

The import & export status of SC in 2011 is as follows,

Country

Amount of Exports (USD)

Amount of Imports (USD)

Indonesia

12,900,000

--

Finland

--

4,350,000

Malaysia

23,190,000

35,160,000

Japan

4,920,000

28,530,000

Taiwan

4,420,000

--

Britain

5,000,000

--

Egypt

6,500,000

--

Hong Kong

--

15,060,000

 

The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.

 

*Major Customers:

==============

Gree Electric Appliances, Inc. of Zhuhai

Luvata Heat Transfer Solutions (Zhongshan) Co., Ltd.

 

*Major Supplier:

============

Zhongshan Jianming Package Materials Co., Ltd.

 

Staff & Office:

--------------------------

SC is known to have approx. 420 staff at present.

 

SC owns an area as its operating office & factory of approx. 74,800 sq. meters at the heading address.

 

 

RELATED COMPANY

 

n  Luvata Alltop Copper Products (Zhongshan) Co., Ltd.

n  Luvata Heat Transfer Solutions (Zhongshan) Co., Ltd.

n  Luvata Heat Transfer Solutions (Wuxi) Co., Ltd.

n  Luvata Suzhou Ltd.

 

 

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’s suppliers declined to make any comments.

 

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

 

Basic Bank:

Bank of China Zhongshan Branch

AC#: 05818608091001

 

 

FINANCIALS

 

Financial Summary

Unit: CNY’000

As of Dec. 31, 2011

Long term investment

0

Total assets

986,580

 

-------------

Long term liabilities

0

Total liabilities

555,202

Equities

431,378

 

-------------

Revenue

2,430,187

Profit before tax

-77,565

Less: profit tax

625

Profits

-78,190

 

Note: The detailed financials for Y2011 are not available in SAIC.

 

Important Ratios

=============

 

As of Dec. 31, 2011

*Liabilities to assets

0.56

*Net profit margin (%)

-3.22

*Return on total assets (%)

-7.93

* Revenue/Total assets

2.46

FINANCIAL COMMENTS

 

PROFITABILITY: FAIR

l  The revenue of SC appears fairly good in its line.

l  SC’s net profit margin is fair.

l  SC’s return on total assets is fair.

 

LIQUIDITY: 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: Fair.

 

 

CONCLUSIONS

 

SC is considered medium-sized in its line with fair financial conditions.


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.67

UK Pound

1

Rs.88.05

Euro

1

Rs.69.96

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.