MIRA INFORM REPORT
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Report Date : |
22.03.2012 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN YONGLITAI AXLE CO., LTD. |
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Registered Office : |
No. 12 Zhenzhong Er Road, Shiwan Town,
Chancheng District, Foshan, Guangdong Province 519040 Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
25.11.2005 |
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Com. Reg. No.: |
440602000001538 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling
automotive axle |
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No. of Employees
: |
220 |
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 500,000 |
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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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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
FOSHAN YONGLITAI AXLE CO., LTD.
NO. 12 ZHENZHONG ER
ROAD, SHIWAN TOWN, CHANCHENG DISTRICT
FOSHAN, GUANGDONG
PROVINCE 519040 PR CHINA
TEL: 86 (0) 757-83650722/83650210/83650214
FAX: 86 (0)
757-82701920
EXECUTIVE SUMMARY
Date of Registration : NOVember 25, 2005
REGISTRATION NO. : 440602000001538
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 50,000,000
staff : 220
BUSINESS CATEGORY : manufacturing
Revenue : CNY 255,700,000 (AS OF
DEC. 31, 2011)
EQUITIES : CNY 66,980,000 (AS OF DEC. 31, 2011)
WEBSITE : www.ltcmc.com
E-MAIL : sales@ltcmc.com
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD 500,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.32 = 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.: 440602000001538 on November
25, 2005.
SC’s Organization Code Certificate
No.: 78296731-1
SC’s registered capital: cny 50,000,000
SC’s paid-in capital: cny 50,000,000
Registration Change Record:
|
Date |
Change of Contents |
Before the
change |
After the change |
|
-- |
Legal
Representative |
Luo Mingzhao |
Wu Yingzhen |
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Registered Capital |
CNY 3,000,000 |
cny 50,000,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wu Yingzhen |
26 |
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Other individuals |
74 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Wu Yingzhen |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Wu Yingzhen 26
Other individuals 74
MANAGEMENT
Wu Yingzhen, 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
BUSINESS OPERATION
SC’s registered business scope includes manufacturing, selling
automotive axle and automotive parts; manufacturing, selling and repairing
common machinery; importing and exporting various goods and technology.
SC is mainly
engaged in manufacturing and selling automotive axle.
SC’s products mainly include:
American Axle
Series
German Axle Series
Bogie Types Series
Suspension Axle
Series
Tandem Pendel Axle
Types
SC sources its materials
90% from domestic market, and 10% from the overseas market, mainly European
countries. SC sells 40% of its products in domestic market, and 60% to the
overseas market, mainly U.S.A. and Europe.
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 Customer:
==============
Guangdong Mingwei Special Vehicle Co., Ltd.
*Major Supplier:
==============
Kaifeng Zhaoyang Auto Parts Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 220
staff at present.
SC
owns an area as its operating office and factory, but the
detailed information is unknown.
RELATED COMPANY
SC is
not known to have any subsidiary at present.
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:
China Construction Bank Foshan Branch
AC#:
44001668937053000844
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
17,840 |
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Accounts
receivable |
34,390 |
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Advances to
suppliers |
0 |
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Other receivable |
10,960 |
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Inventory |
87,060 |
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Non-current
assets within one year |
0 |
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Other current
assets |
4,880 |
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------------------ |
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Current assets |
155,130 |
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Fixed assets |
40,330 |
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Construction in
progress |
0 |
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Intangible
assets |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
4,380 |
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------------------ |
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Total assets |
199,840 |
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============= |
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Short-term loans |
20,000 |
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Notes payable |
0 |
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Accounts payable |
82,240 |
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Wages payable |
0 |
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Advances from
clients |
0 |
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Other payable |
2,710 |
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Other current
liabilities |
27,910 |
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------------------ |
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Current
liabilities |
132,860 |
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Non-current
liabilities |
0 |
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------------------ |
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Total
liabilities |
132,860 |
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Equities |
66,980 |
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------------------ |
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Total
liabilities & equities |
199,840 |
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============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2011 |
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Revenue |
255,700 |
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Cost of sales |
220,150 |
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Sales expense |
8,000 |
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Management expense |
13,070 |
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Finance expense |
4,120 |
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Profit before
tax |
10,040 |
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Less: profit tax |
1,520 |
|
8,520 |
Important Ratios
=============
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As
of Dec. 31, 2011 |
|
*Current ratio |
1.17 |
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*Quick ratio |
0.51 |
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*Liabilities
to assets |
0.66 |
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*Net profit
margin (%) |
3.33 |
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*Return on
total assets (%) |
4.26 |
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*Inventory /
Revenue ×365 |
125 days |
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*Accounts
receivable/ Revenue ×365 |
50 days |
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*
Revenue/Total assets |
1.28 |
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* Cost of
sales / Revenue |
0.86 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is average, 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 fair level.
l
The inventory of SC appears large.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level.
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. The large amount of inventory may be
a threat to SC’s financial condition. A credit line up to USD 500,000 is
recommended upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.59 |
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UK Pound |
1 |
Rs.80.34 |
|
Euro |
1 |
Rs.67.14 |
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 |
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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.