MIRA
INFORM REPORT
|
Report Date : |
07.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
oci (shanghai)
international trading ltd. |
|
|
|
|
Registered Office : |
Room 1701,
Zhongrong Hengrui, No. 620, Zhangyang Road, Pudong New Zone, Shanghai 200122 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
aug. 27, 2003 |
|
|
|
|
Com. Reg. No.: |
317572 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
|
|
Line of Business : |
Engaged in wholesaling chemical products. |
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 : |
Up To usd 100,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name & address
oci (shanghai)
international trading ltd.
room 1701, zhongrong hengrui, no. 620,
zhangyang road
pudong new zone, shanghai 200122 PR CHINA
TEL :
86 (0) 21-58362277
FAX :
86 (0) 21-58362331
EXECUTIVE SUMMARY
INCORPORATION DATE : aug. 27, 2003
REGISTRATION NO. : 317572
REGISTERED LEGAL FORM : wholly foreign-owned
enterprise
STAFF STRENGTH :
18
REGISTERED CAPITAL : usd 2,500,000
BUSINESS LINE :
trading
TURNOVER :
cny 92,480,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 23,860,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 100,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.72 = US$1 AS OF 2007-04-06
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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Aug. 27, 2003.
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 design consultation, technical consultation,
management consultation, installing and constructing consultation of
engineering items; environmental protection consultation, real estate
consultation, designing consultation of building projects, investing
consultation, and trade consulting services in the chemical and medical
industries; international trade, transiting
trade, the trade and trade agent in the free trade zone; increased to:
wholesaling chemical products.)
SC is
mainly engaged in wholesaling chemical products.
Mr. Jiang Xuezhi has been chairman of SC since 2003.
SC
owns about 18 staff at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the development zone of Shanghai. Our checks
reveal that SC owns the total premise about 200 square meters.
SC is not known to host website of its own at present.
Till December 31, 2006, SC’s paid-up capital reached CNY 19,850,000.
In 2006, SC increased its registered capital from USD 200,000 to the
present.
MAIN SHAREHOLDERS:
Name %
of Shareholding
OCI Hong Kong Ltd.
100
l
Chairman and
General Manager:
Mr. Mr. Jiang Xuezhi in his 50’s with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working in SC as chairman and
general manager.
SC is mainly
engaged in wholesaling chemical products.
SC’s products mainly include: aluminum
hydroxide, alumina, and potassium hydroxide, etc.
SC sources its materials 95% from
domestic markets, mainly Jiangsu province, and 5% from overseas market, mainly
Hong Kong. SC sells 20% of its products in domestic markets, mainly Shanghai,
and 80% to overseas market, mainly Hong Kong and Korea.
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 15-30 days.
*Major Supplier:
==============
Unid (Jiangsu) Chemical Co., Ltd.
Address: No. 88, Yinshan Road, New Zone, Zhenjiang
Tel: 0511-3365908
Fax: 0511-3365941
*Major Customer:
==============
DC Chemical Ltd. (Korea)
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.
China Everbright Bank Shanghai
Branch Pudong Sub-branch
AC#: 106097-36540188000020810
Relation: Normal
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
|
Cash & bank |
28,620 |
|
Inventory |
4,350 |
|
Accounts
receivable |
13,050 |
|
Bills receivable |
0 |
|
Other Accounts
receivable |
920 |
|
Accounts payable
in advance |
14,080 |
|
To be
apportioned expense |
0 |
|
Other current
assets |
1,560 |
|
|
------------------ |
|
Current assets |
62,580 |
|
Fixed assets |
9,190 |
|
Long term
investment |
0 |
|
Other assets |
220 |
|
|
------------------ |
|
Total assets |
71,990 |
|
|
============= |
|
Short loans |
23,800 |
|
Accounts payable |
18,260 |
|
Accounts
receivable in advance |
5,350 |
|
Other Accounts
payable |
70 |
|
Salaries payable |
0 |
|
Welfares payable |
0 |
|
Taxes payable |
0 |
|
Withdraw the
expenses in advance |
0 |
|
Other current
liabilities |
650 |
|
|
------------------ |
|
Current
liabilities |
48,130 |
|
Long term
liabilities |
0 |
|
Other
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
48,130 |
|
Equities |
23,860 |
|
|
------------------ |
|
Total
liabilities & equities |
71,990 |
|
|
============= |
Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
|
Turnover |
92,480 |
|
Cost of goods
sold |
90,390 |
|
Other profits |
13,140 |
|
Sales expense |
150 |
|
Management expense |
11,280 |
|
Finance expense |
910 |
|
Non-operating
income |
40 |
|
Profit before
tax |
2,930 |
|
Less: profit tax |
510 |
|
Profits |
2,420 |
Important Ratios
=============
|
|
As
of Dec. 31, 2006 |
|
*Current ratio |
1.30 |
|
*Quick ratio |
1.21 |
|
*Liabilities
to assets |
0.67 |
|
*Net profit margin
(%) |
2.62 |
|
*Return on
total assets (%) |
3.36 |
|
*Inventory
/Turnover ×365 |
17 days |
|
*Accounts
receivable/Turnover ×365 |
52 days |
|
*Turnover/Total
assets |
1.28 |
|
* Cost of
goods sold/Turnover |
0.98 |
PROFITABILITY: AVERAGE
l
The turnover 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 goods sold is fairly high, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly good
level.
l
SC’s quick ratio is maintained in a fairly good level.
l
The inventory of SC is maintained in a slightly large level.
l
The accounts receivable of SC is maintained in a normal
level.
l
The short-term loan of SC appears TOO LARGE.
l
SC’s turnover is in a fairly good 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:
Stable.
SC is considered
small-sized in its line with fairly good financial conditions. The large amount of short-term loan
could be a threat to SC’s financial condition. A credit line up to USD 100,000
would appear to be within SC’s capacities upon a periodical review basis.
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)