MIRA
INFORM REPORT
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Report Date : |
17.11.2006 |
IDENTIFICATION
DETAILS
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Name : |
CHANGSHU HUAMEI CHEMICAL INDUSTRY CO.,
LTD. |
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Registered Office : |
South Of Mocheng Town, Changshu City Jiangsu
Province 215556 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
11.05.1999 |
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Com. Reg. No.: |
008325 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing
glyphosate. |
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
Up To USD 20,000 |
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Status : |
Moderate |
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Payment Behaviour : |
Usually
correct |
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Litigation : |
Clear |
name
CHANGSHU HUAMEI CHEMICAL INDUSTRY CO., LTD.
address
SOUTH OF MOCHENG TOWN, CHANGSHU CITY JIANGSU PROVINCE 215556 PR CHINA
TEL: 86 (0) 512-52458356
FAX: 86 (0) 512-52491508
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAY 11, 1999
REGISTRATION NO. :
008325
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH :
80
REGISTERED CAPITAL :
usd 500,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 24,865,000 (AS OF DEC. 31,
2005)
EQUITIES :
CNY 11,374,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 20,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
fair
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY7.87 = US$1 AS OF 2006-11-17
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on May 11, 1999.
Company Status: Chinese-foreign equity joint
venture enterprise This form of
business in PR China is defined as a legal person. It is a limited co.
jointly invested by one or more foreign companies and one or more PR China
controlled companies within the territories of PR China according to a
certain proportion of capital investment. The investing parties exercise
business management, share profits and bear all risks and liabilities of
the co. together. The equity joint venture law requires that foreign party
contribute not less than 25% of the registered capital, with no maximum.
The joint venture usually have a limited duration of 10 to 50 years.
Enterprise with large investment, long construction periods, low investment
returns, introducing of advanced technology & advanced technology
products which have good competition position in international market may
extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing
chemicals, such as glyphosate, and selling self-made products.
SC is mainly engaged in
manufacturing glyphosate.
Mr. Xu Junliang has been chairman
of SC since 1999.
SC owns about 80 staff at
present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Changshu. Our checks
reveal that SC rents the total premise about 3,000 square meters.
SC is
not known to host website of its own at present.
Until
December 31, 2005, SC’s paid-up capital was CNY 4,150,000, and SC’s registered
total investment was USD 700,000.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Changshu Pesticide Factory
60
Hongying Chemical Corporation (America)
40
l
Chairman and General Manager
Mr. Xu
Junliang, ID : 320520450707211, 61 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1999 to present Working in SC as chairman and general manager.
l
Assistant Manager:
Mr. Yu
Yingxue, in his 40’s with university education. He is currently responsible for
the daily management of SC.
Working Experience(s):
From 1999 to present Working in SC as assistant manager.
SC is mainly engaged in
manufacturing glyphosate.
SC’s products mainly include : glyphosate, etc.
SC produces about 550 tons
of glyphosate
annually.
SC sources its materials 100%
from domestic market, mainly Jiangsu province; SC sells 5% of its products in domestic
market, mainly Guangdong and Jiangsu province, and 95% to overseas market, mainly
America, Singapore, and Malaysia.
The
buying terms of SC include 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
Supplier:
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Nantong Dongchang Chemical Co., Ltd.
*Major Customer:
==============
S
henzhen Nong-Li-Feng Industrial Development
Co., Ltd.
SC is
not known to have any subsidiary at present.
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 Mocheng Branch
AC# : 520801040004089
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
12,855 |
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Inventory |
8,505 |
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Accounts receivable |
17,073 |
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Other Accounts receivable |
19,741 |
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Accounts payable in advance |
0 |
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To be apportioned expense |
307 |
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Other current assets |
4,733 |
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Current assets |
63,214 |
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Fixed assets |
983 |
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Fixed assets net value |
391 |
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Projects under construction |
592 |
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Long term investment |
0 |
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Other assets |
1 |
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Total assets |
64,198 |
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Short loans |
0 |
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Accounts payable |
1,321 |
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Salaries payable |
0 |
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Welfares payable |
2,227 |
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Taxes payable |
-3,677 |
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Other Accounts payable |
38,114 |
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Withdraw the expenses in
advance |
0 |
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Other current liabilities |
14,839 |
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Current liabilities |
52,824 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
52,824 |
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Equities |
11,374 |
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Total liabilities &
equities |
64,198 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
24,865 |
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Cost of goods sold |
24,758 |
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Sales expense |
7 |
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Management expense |
309 |
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Finance expense |
-134 |
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Non-operating expense |
43 |
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Profit before tax |
-118 |
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Less: profit tax |
0 |
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Profits |
-118 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 1.20
*Quick ratio 1.04
*Liabilities to
assets 0.82
*Net profit
margin (%) -0.47
*Return on total
assets (%) -0.18
*Inventory
/Turnover ×365 125 days
*Accounts receivable/Turnover
×365 251
days
*Turnover/Total
assets 0.39
* Cost of goods
sold/Turnover 1.00
PROFITABILITY: FAIR
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The
turnover of SC appears fair in its line.
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SC’s
net profit margin is fair.
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SC’s
return on total assets is fair.
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SC’s
cost of goods sold is HIGH, comparing with its turnover.
LIQUIDITY: FAIR
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The
current ratio of SC is maintained in a normal level.
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SC’s
quick ratio is maintained in a normal level.
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The
inventory of SC appears LARGE.
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The
accounts receivable of SC appears TOO LARGE.
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SC has
no short-term loan in 2005.
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SC’s
turnover is in a fair level, comparing with the size of its total assets.
LEVERAGE: FAIR
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The
debt ratio of SC is fairly high.
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The
risk for SC to go bankrupt is above average.
Overall financial condition of the SC: Fair.
SC is
considered small-sized in its line with fair financial conditions. The large
amount of accounts receivable could be a threat to SC’s financial condition. A
credit line up to USD 20,000 would appear to be within SC’s capacities upon a
periodical review basis.
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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