MIRA INFORM REPORT

 

Report Date :

18.02.2012

 

IDENTIFICATION DETAILS

 

Name :

SOTECH MACHINERY CO., LTD.

 

 

Registered Office :

No. 105 East Nantou Road, Nantou Town, Zhongshan Guangdong Province 528427 Pr

 

 

Country :

China

 

 

Financials (as on) :

30.09.2011

 

 

Date of Incorporation :

18.04.1997

 

 

Com. Reg. No.:

442000000036535

 

 

Legal Form :

Shares Limited Company

 

 

Line of Business :

Manufacturing and Selling Packaging Machinery and Materials, and Printing Machinery.

 

 

No. of Employees :

474

 

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 3,000,000

Status :

Good

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

sc’s INFO.

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

Sotech Machinery Co., Ltd.

No. 105 East Nantou Road, Nantou Town, Zhongshan Guangdong Province 528427 PR China

TEL: 86 (0) 760-23380388

FAX: 86 (0) 760-23380870

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : april 18, 1997

REGISTRATION NO.                  : 442000000036535

LEGAL FORM                           : SHARES LIMITED COMPANY

CHIEF EXECUTIVE                    : guo jingsong (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : cny 87,100,000

staff                                      : 474

BUSINESS CATEGORY             : manufacturing

REVENUE                                : CNY 174,148,000 (FROM JAN. 1 TO SEP. 30, 2011)

EQUITIES                                 : CNY 558,257,000 (AS OF SEP. 30, 2011)

WEBSITE                                 : www.songde.com.cn

E-MAIL                                     : sec@sotech.cn

PAYMENT                                : AVERAGE

Recommended Credit Limit : UP TO USD 3,000,000 (PERIODICAL REVIEW)

MARKET CONDITION                : COMPETITIVE

FINANCIAL CONDITION                         : stable

OPERATIONAL TREND              : STEADY

GENERAL REPUTATION                       : fairly good

EXCHANGE RATE                     : CNY 6.30 = 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 on April 18, 1997. However, SC changed to present legal form, and was registered as shares limited company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 442000000036535 on September 20, 2007.

 

SC’s Organization Code Certificate No.: 61797967-7

 

SC’s registered capital: cny 87,100,000

 

SC’s paid-in capital: cny 87,100,000

 

Registration Change Record:

Date

Change of Contents

Before the change

After the change

2007-9-20

Legal Form

Limited Liabilities Company

Shares Limited Company

2011-10-31

Company Name

Zhongshan Sotech Packaging Machinery Co., Ltd.

Sotech Machinery Co., Ltd.

 

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

Name of Shareholder (s) (as of June 30, 2011)

% of Shareholding

Guo Jingsong

17.16

Zhongshan Sotech Industry Development Co., Ltd.

16.57

Zhang Xiaoling

15.37

Guangzhou Haihui Growth Venture Investment Center

10.93

Lei Yuanda

1.87

Liu Zhihe

1.49

Zhang Chunguang

1.49

Guo Xiaochun

1.42

Industrial and Commercial Bank of China- Southside Enhanced Bond Securities Investment Fund

1.01

Guodu Securities Co., Ltd.

1.01

Guangzhou Haihui Investment & Management Co., Ltd.

1.01

Other Shareholders

30.67

 

SC’s Chief Executives:-

Position

Name

Legal Representative and Chairman

Guo Jingsong

Vice Chairman

Zhang Xiaoling

General Manager

Li Yongcheng

Deputy General Manager

Hu Bingming

Liu Shuo

He Zhipan

Director

Yan Xiping

Lei Yuanda

Zhang Xingbin

He Zhipan

Zhang Xiaoling

Guo Jingsong

 

 

RECENT DEVELOPMENT

 

SC is a listed company in Shenzhen Stock Exchange Market with the code of 300173.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name (as of June 30, 2011)                                                                                          % of Shareholding

 

Guo Jingsong                                                                                                                                        17.16

 

Zhongshan Sotech Industry Development Co., Ltd.                                                                                    16.57

           

Zhang Xiaoling                                                                                                                                       15.37

 

Guangzhou Haihui Growth Venture Investment Center                                                                               10.93

 

Lei Yuanda                                                                                                                                            1.87

 

Liu Zhihe                                                                                                                                               1.49

 

Zhang Chunguang                                                                                                                                  1.49

 

Guo Xiaochun                                                                                                                                        1.42

 

Industrial and Commercial Bank of China- Southside Enhanced Bond Securities Investment Fund                 1.01

 

Guodu Securities Co., Ltd.                                                                                                                      1.01

 

Guangzhou Haihui Investment & Management Co., Ltd.                                                                             1.01

 

Other Shareholders                                                                                                                                30.67

 

Zhongshan Sotech Industry Development Co., Ltd.

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

Date of Registration: April 1, 2004

Registration No.: 442000000129206

Legal Form: Limited Liabilities Company

Chief Executive: Guo Jingsong

Registered Capital: CNY 3,000,000

 

Guangzhou Haihui Growth Venture Investment Center

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

Date of Registration: August 12, 2008

Registration No.: 440108000025185

Legal Form: Partnership

Chief Executive: Li Mingzhi

Registered Capital: CNY 273,730,000

 

Guangzhou Haihui Investment & Management Co., Ltd.

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

Date of Registration: September 6, 2007

Registration No.: 440108000005093

Legal Form: Limited Liabilities Company

Chief Executive: Li Mingzhi

Registered Capital: CNY 2,000,000

 

Guodu Securities Co., Ltd.

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

Date of Registration: December 28, 2001

Registration No.: 440301103444235

Legal Form: Limited Liabilities Company

Chief Executive: Chang Zhe

Registered Capital: CNY 2,622,980,000

 

 

MANAGEMENT

 

Guo Jingsong, Legal Representative and Chairman

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

Gender: M

Age: 50

Qualification: University

Working experience (s):

 

From 1998 to 2000, worked in Zhongshan Debao Packaging Machinery Co., Ltd. as chairman

From 2000 to present, working in SC as legal representative and chairman, also working in Zhongshan Sotech Industry Development Co., Ltd. as legal representative and chairman

Zhang Xiaoling, Vice Chairman

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

Gender: F

Age: 52

Qualification: Junior College

Working experience (s):

 

From 2000 to 2007, as director of SC

From 2007 to present, working in SC as vice chairman

 

Li Yongcheng, General Manager

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

Gender: M

Age: 49

Qualification: Postgraduate

Working experience (s):

 

From 1997 to 2007, working in Aogang Technology Company as general manager

From 2007 to present, working in SC as general manager

 

Hu Bingming, Deputy General Manager

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

Gender: M

Age: 31

Qualification: University

Working experience (s):

 

At present, working in SC as deputy general manager

 

Liu Shuo, Deputy General Manager

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

Age: 50

Qualification: University

Working experience (s):

 

From 2008 present, working in SC as deputy general manager

 

He Zhipan, Deputy General Manager

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

Age: 47

Qualification: University

Working experience (s):

 

From 2007 present, working in SC as deputy general manager

 

Other Directors

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

Yan Xiping

Lei Yuanda

Zhang Xingbin

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing, processing and selling packaging machinery and materials, printing machinery, optoelectronic materials and its equipment; technology development and research of new energy materials and equipment; exporting its products and technology; importing materials, instrument, machinery and equipment, parts and technology needed for its production, excluding the goods forbidden by the government.

 

SC is mainly engaged in manufacturing and selling packaging machinery & materials, and printing machinery.

 

Brand: Sotech

 

SC’s products mainly include:

Extrusion Machine

Solventless Laminator

Rotogravure Printing Presses

Dry Laminating Machines

Wet Laminating Machines

Coating Machines

Two Layer Coating Machines

  

 

SC sources its materials 100% from domestic market, mainly Zhongshan, etc. SC sells 60% of its products in domestic market, mainly Anhui, Xi’an, Harbin, etc, and 40% to overseas market, mainly Southeast Asia and Middle East.

 

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.

 

*Major Customer:

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

Xi'an Xizheng Printing Co., Ltd.

Anyang Hongqiqu Group

Printing Co., Ltd.

Anhui Jinhui Printing Co., Ltd.

Yunnan Province Yuxi Printing Co., Ltd.

 

*Major Supplier:

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

Dongcheng Rolls Manufacture Co., Ltd.

Xi’an Huaxin Blower Manufacturing Co., Ltd.

Zhongshan Zheng Hao Electric Co., Ltd.

 

Staff & Office:

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

SC is known to have approx. 474 staff at present.

 

SC owns an area as its operating office & factory of approx. 60,000 sq. meters at the heading address.

 

 

RELATED COMPANY

 

SC is known to have a subsidiary:

 

Guangdong Hui Ying Financial and Leasing Co., Ltd.

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

Date of Registration: April 14, 2010

Legal Form: Chinese-foreign equity joint venture enterprise

Chief Executive: Su Jin

Registered Capital: USD 10,000,000

 

 

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:

 

Ping’an Bank Zhongshan Branch

 

AC#: 3512100000255

 

 

FINANCIALS

 

Consolidated Balance Sheet

Unit: CNY’000

As of Dec. 31, 2010

As of Sep. 30, 2011

Cash

81,522

309,226

Notes receivable

4,670

3,116

Accounts receivable

88,588

132,545

Advances to suppliers

20,595

58,196

Interest receivable

0

723

Other receivable

2,325

2,657

Inventory

81,657

90,129

Other current assets

0

0

 

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

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

Current assets

279,357

596,592

Available-for-sale financial assets

0

0

Long-term equity investment

2,411

12,644

Fixed assets

41,543

46,891

Construction in progress

17,040

37,011

Project materials

0

0

Fixed asset depreciation

0

0

Intangible assets

50,572

49,855

Development expense

0

0

Long-term prepaid expenses

0

0

Deferred income tax assets

2,529

2,664

Other non-current assets

0

0

 

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

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

Total assets

393,452

745,657

 

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

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

Short-term loans

10,000

80,000

Held for trading financial liabilities

0

0

Notes payable

10,815

15,227

Accounts payable

64,802

35,491

Advances from clients

33,028

46,745

Payroll payable

1,646

282

Tax payable

9,971

3,738

Other payable

941

317

Other current liabilities

112

0

 

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

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

Current liabilities

131,315

181,800

Non-current liabilities

72,600

5,600

 

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

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

Total liabilities

203,915

187,400

Equities

189,537

558,257

 

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

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

Total liabilities & equities

393,452

745,657

 

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

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

 

 

 

 

Consolidated Income Statement

Unit: CNY’000

As of Dec. 31, 2010

From Jan. 1 to Sep. 30, 2011

Revenue

251,176

174,148

Cost of sales

161,512

114,511

Taxes and surcharges

1,452

1,011

    Sales expense

13,199

8,413

    Management expense

23,097

17,029

    Finance expense

4,220

167

Investment income

-39

451

Non-operating income

786

3,200

    Non-operating expense

251

100

Profit before tax

46,558

35,167

Less: profit tax

7,194

5,466

Profits

39,364

29,701

 

Important Ratios

 

As of Dec. 31, 2010

As of Sep. 30, 2011

*Current ratio

2.13

3.28

*Quick ratio

1.51

2.79

*Liabilities to assets

0.52

0.25

*Net profit margin (%)

15.67

17.06

*Return on total assets (%)

10.00

3.98

*Inventory / Revenue ×365/270

119 days

140 days

*Accounts receivable/ Revenue ×365/270

129 days

206 days

* Revenue/Total assets

0.64

0.23

* Cost of sales / Revenue

0.64

0.66

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: FAIRLY GOOD

The revenue of SC appears fairly good.

SC’s net profit margin is fairly good.

SC’s return on total assets is average.

SC’s cost of sales is average, comparing with its revenue.

 

LIQUIDITY: AVERAGE

The current ratio of SC is maintained in a fairly good level.

SC’s quick ratio is maintained in a fairly good level.

The inventory of SC appears large.

The accounts receivable of SC appears large.

SC’s short-term loans are in an average level.

SC’s revenue is in a fair level, comparing with the size of its total assets.

 

LEVERAGE: FAIRLY GOOD

The debt ratio of SC is average.

The risk for SC to go bankrupt is low.

 

Overall financial condition of the SC: Stable.

CONCLUSIONS

 

SC is considered medium-sized in its line with stable financial conditions. The large amount of inventory and accounts receivable may be a threat to SC’s financial condition. A credit line up to USD 3,000,000 is recommended upon a periodical review basis.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.21

UK Pound

1

Rs.77.75

Euro

1

Rs.64.58

 

 

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.