MIRA
INFORM REPORT
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Report Date : |
2nd
November 2006 |
IDENTIFICATION
DETAILS
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Name : |
YINGKOU ASTRON CHEMICALS CO., LTD. |
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Registered Office : |
Wanghai Industrial Zone,
Bayuquan District, Yingkou, Liaoning Province, 115007 Pr China |
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Country : |
China |
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Financials (as on) : |
31/12/2005 |
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Date of Incorporation : |
Nov.
5, 1998 |
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Com. Reg. No.: |
000925 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged
in manufacturing and selling zirconium and titanium products. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Name & address
YINGKOU
ASTRON CHEMICALS CO., LTD.
WANGHAI
INDUSTRIAL ZONE, BAYUQUAN DISTRICT, YINGKOU,
LIAONING
PROVINCE, 115007 PR CHINA
TEL: 86
(0) 417-6191943
FAX: 86
(0) 417-6192170
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOV. 5, 1998
REGISTRATION NO. :
000925
REGISTERED LEGAL FORM : Wholly foreign-owned
enterprise
STAFF STRENGTH :
575
REGISTERED CAPITAL :
USD 12,825,800
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 888,120,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 273,100,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO usd 1,500,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
WELL KNOWN
EXCHANGE RATE :
CNY 7.90 = US$1 AS OF 2006-11-02
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 Nov. 5,
1998.
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 investors 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 processing zirconium powder, manufacturing zirconium ceramics optical
filming materials, crystal lattice material, precious metals automotive off gas
cleaner, and titanium powder.
SC is mainly engaged in
manufacturing and selling zirconium and titanium products.
Mr. Alexander. Brown has been
chairman of SC since 1998.
SC owns about 575 staff.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Yingkou. Our checks
reveal that SC owns the total premise about 60,000 square meters. SC is also
known to have a selling office at 19-1-12 Diwang International Garden, Wenyi
Road, Shenhe District, Shenyang with the total premise about 100 square meters.
http://www.astron.com.cn The design is
professional and the content is well organized. At present it is in Chinese version.
E-Mail: hr@astron.com.cn
No
significant events or changes were found during our checks with local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Astron Resources Co., Ltd. (Australia) 100
l
Chairman:
Mr.
Alexander. Brown in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working in SC as chairman.
l
General Manager:
Mr. Kang
Rong, in his 30’s with university education. He is currently responsible for
the daily management of SC.
Working Experience(s):
From 2003 to present
Working in SC as general
manager.
SC is mainly engaged in
manufacturing and selling zirconium and titanium products.
SC’s
products mainly include: fused zirconia, silicon micro mist , zirconium chemical products, zircon sand, coating material and
titanium products.
SC sources its materials 20% from
domestic market and 80% from the overseas market, mainly from South Africa. SC
sells 70% of its products in domestic market, and 30% to the overseas market,
mainly to Europe, American, Southeast Asia and Australia.
The
buying terms of SC include Check, L/C, T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Costumer:
==============
Astron Resources Co., Ltd. (Australia)
SC is
known to have branches and offices in Shanghai, Shandong, Sichuan, Yixing,
Chaozhou, Foshan, Zhengzhou and Quanzhou. The following are the major ones:
Zhengzhou
Branch
Address:
No. 9 Xinglongpu Road, Zhengzhou
Tel: 86
0371-3752775
Quanzhou
Branch
Address:
Sunshine Paris Quanxiu Road, Quanzhou, Fujian
Tal: 86
0595 22535825
Shanghai
Branch
Address;
F 20/F, International Building, No. 360 Pudong South Road, Shanghai
Tel: 86
021-68862585
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
refused to release any information of its suppliers and the trade reference was
not available.
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.
Construction
Bank of China Bayuquan Sub-Branch
AC#26317272
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2005 |
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Cash & bank |
73,060 |
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Accounts payable advance |
10,010 |
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Accounts receivable |
39,970 |
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Inventory |
140,470 |
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Other accounts receivable |
12,600 |
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Expenses
to be apportioned |
0 |
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Other current assets |
20,400 |
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Current assets |
296,510 |
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Fixed assets |
97,870 |
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Long term investment |
0 |
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Projects under construction |
1,160 |
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Other assets |
10,220 |
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Total assets |
405,760 |
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Short loans |
0 |
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Accounts payable |
24,990 |
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Salary payable |
0 |
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Tax payable |
2,040 |
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Account receivable advance |
0 |
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Estimated
liabilities |
0 |
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Other accounts payable |
104,660 |
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Drawing-expense in advance |
0 |
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Other current liabilities |
970 |
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Current liabilities |
132,660 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
132,660 |
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Equities |
273,100 |
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Total liabilities &
equities |
405,760 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
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Turnover |
888,120 |
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Cost of goods sold |
672,450 |
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Sales expense |
40,300 |
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Management expense |
32,730 |
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Finance expense |
1,060 |
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Profit before tax |
142,620 |
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Less: profit tax |
10,700 |
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Profits |
131,920 |
Important Ratios
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2005 |
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*Current ratio |
2.24 |
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*Quick ratio |
1.18 |
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*Liabilities
to assets |
0.33 |
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*Net profit
margin (%) |
14.85 |
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*Return on
total assets (%) |
32.51 |
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*Fixed
assets/Total assets |
0.24 |
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*Inventory
/Turnover ×365 |
58days |
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*Accounts
receivable/Turnover ×365 |
16days |
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*Turnover/Total
assets |
2.19 |
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* Cost of
goods sold/Turnover |
0.76 |
PROFITABILITY: FAIRLY GOOD
l
The
turnover of SC appears fairly good in 2005.
l
SC’s
net profit margin is fairly good in 2005.
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SC’s
return on total assets is fairly good in 2005.
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SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIRLY GOOD
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The
current ratio of SC is maintained in a fairly good level.
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SC’s
quick ratio is maintained in a fairly good level.
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The
inventory of SC is maintained in an acceptable level.
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The
accounts receivable of SC is average.
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SC
has no short-term loan in 2005.
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SC’s
turnover is in a fairly good level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY GOOD
l
The
debt ratio of SC is fairly low.
l
The
risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Fairly Good.
SC is
considered medium-sized in its line with fairly good financial conditions. A
credit line up to USD 1,500,000 would appear to be within SC’s capacities.
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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