MIRA
INFORM REPORT
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Report Date : |
18.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
jiangsu baoling
chemical co., ltd. |
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Registered Office : |
No. 41, Yaogang
Road, Nantong City, Jiangsu Province 226601 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
May 16, 1997 |
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Com. Reg. No.: |
3200001103603 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing pesticide and chemical intermediate. |
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 : |
Up To usd 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
jiangsu baoling
chemical co., ltd.
no. 41, yaogang road, nantong city
jiangsu province 226601 PR CHINA
TEL :
86 (0) 513-85056008
FAX : 86 (0) 513-83518952
EXECUTIVE SUMMARY
INCORPORATION DATE : may 16, 1997
REGISTRATION NO. : 3200001103603
REGISTERED LEGAL FORM : shares limited co.
STAFF STRENGTH :
615
REGISTERED CAPITAL : cny34,908,400
BUSINESS LINE :
manufacturing
TURNOVER : cny 302,150,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 85,410,000 (AS OF
DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 500,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.72 = US$1 AS OF 2007-04-17
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 shares limited co. at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on May 16, 1997.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The characteristics of the
shares limited co. are as follows: The establishment of the co.
requires at least five promoters and at least three of them must be PR-
China controlled legal persons. Natural person can not be allowed to serve
as promoters. The minimum registered capital
of a co. is CNY 10M. while that of the co. with foreign investment is CNY
30M. The total capital of a co. which propose to apply for publicly listed
must not less than CNY 50M. The board of directors must
consist of an odd number of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within three
years of the offer. Directors can not transfer the shares they hold in the
co. during their terms of office. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s
registered business scope includes manufacture, sales, and technical development of
pesticide, dyestuff, and chemical products; manufacturing and selling
conventional machinery, apparatus and instruments; exporting its homegrown
product and technology; importing raw materials, accessory, machinery,
apparatus and instruments, components, and related technology needed by
manufacture and scientific research; undertaking Chinese foreign equity joint venture enterprise and Chinese foreign
contractual joint venture enterprise; and operating
compensation trade.
SC is
mainly engaged in manufacturing pesticide and chemical intermediate.
Mr.
Zhu Wenxin has been chairman of SC since 1997.
SC
owns about 615 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
Nantong. Our checks reveal that SC owns the total premise about 60,000 square
meters.
http://www.baolingchem.com The
design is professional and the content is well organized. At present, the web
is both in Chinese and English versions.
E-mail: ntdcf@pub.nt.jsinfo.net
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name Investment (’000) % of Shareholding
Nantong Dyeing Factory 27,408.4 78.52
Nantong Chongchuan Guangming 595
1.70
Industry Corp.
Shenyang Chemical Research Institute 1,200 3.44
Gu Shuji 245 0.70
Hu Weiping 245
0.70
Liu Xihan
245 0.70
Wang Jiadao 245
0.70
Yao Jianping 1,000 2.87
Yu Jianping 245
0.70
Yuan Huiliang 965 2.76
Zhang Deming 1,000 2.87
Zhou Hongsheng 1,000 2.87
Zhu Wenxin 270
0.77
Zhu Yixin 245
0.70
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Legal
Representative and Chairman:
Mr. Zhu Wenxin, born in 1949, 58
years old with university education. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 1970 to 1984 Worked in Nantong Chemical Plant as Technician and section chief;
From 1984 to present Working in Nantong Dyeing Plant as factory manager;
From 1997 to present Working in SC as legal representative and chairman.
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Vice-chairman:
Mr. Hu Weiping, born in 1959, 48 years old with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 1997 to present Working in SC as
vice-chairman.
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General Manager:
Mr. Gu Shuji, born in 1950, 58 years old with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 1997 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing pesticide and chemical
intermediate.
SC’s products mainly include: Metalaxyl, Propamocarb, Mancozeb,
Profenofos, and Triazophos, etc.
SC sources its
materials 90% from domestic markets, mainly
Anhui, and 10% from overseas market, mainly India and Japan. SC sells 70% of
its products in domestic markets, mainly Guangxi and Jiangsu, and 30% to
overseas market, mainly India and Pakistan.
The buying terms of SC include T/T, L/C and Credit of 30-60
days. The payment terms of SC include T/T, L/C and Credit of 15-30 days.
*Major Supplier:
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Anhui Harvest Fine Chemicals Industy Co., Ltd.
Address: No. 1084, Jinzhai South Road, Hefei City, Anhui
Province
Tel: 0551-3660059
Fax: 0551-3638849
*Major Customer:
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Guangxi Tianyuan Biochemistry Co., Ltd.
Address: No. 1, West Section, Chuangxin Road, Keyuan Ave. Nanning City, GuangxiTel: 0771-2310528Fax: 0771-2310515
SC is known to have the following subsidiaries at present:
Nantong Baosheng Chemical Co., Ltd.Nantong Baoye Chemical Co., Ltd.Nantong DAS Chemical Co. Ltd.Nantong Rotam Chemical Industry Co., Ltd.
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.
Industrial and Commercial Bank of China
AC#: 1118201000036927
Relation: Normal
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
27,780 |
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Inventory |
52,580 |
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Accounts receivable |
38,640 |
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Other Accounts
receivable |
32,600 |
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Accounts payable
in advance |
3,200 |
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To be
apportioned expense |
0 |
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Other current
assets |
240 |
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Current assets |
155,040 |
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Fixed assets |
61,620 |
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Fixed assets net
value |
35,010 |
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Projects under
construction |
26,610 |
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Long term
investment |
36,140 |
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Other assets |
410 |
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Total assets |
253,210 |
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Short loans |
68,700 |
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Accounts payable |
13,950 |
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Accounts
receivable in advance |
3,050 |
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Salaries payable |
0 |
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Welfares payable |
1,610 |
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Taxes payable |
-1,880 |
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Other Accounts
payable |
24,270 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
27,430 |
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Current
liabilities |
137,130 |
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Long term
liabilities |
30,670 |
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Other
liabilities |
0 |
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Total
liabilities |
167,800 |
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Equities |
85,410 |
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Total
liabilities & equities |
253,210 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
302,150 |
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Cost of goods
sold |
235,420 |
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Sales expense |
11,940 |
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Management expense |
28,120 |
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Finance expense |
6,220 |
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Non-operating
income |
5,260 |
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Profit before
tax |
25,710 |
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Less: profit tax |
6,220 |
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Profits |
19,490 |
Important Ratios
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As
of Dec. 31, 2006 |
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*Current ratio |
1.13 |
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*Quick ratio |
0.75 |
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*Liabilities
to assets |
0.66 |
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*Net profit
margin (%) |
6.45 |
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*Return on
total assets (%) |
7.70 |
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*Inventory
/Turnover ×365 |
64 days |
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*Accounts
receivable/Turnover ×365 |
47 days |
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*Turnover/Total
assets |
1.19 |
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* Cost of
goods sold/Turnover |
0.78 |
PROFITABILITY: FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
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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 fair level.
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The inventory of SC is maintained in a slightly large level.
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The accounts receivable of SC is maintained in a normal level.
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The short-term loan of SC appears LARGE.
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SC’s turnover is in a good level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Stable.
SC is considered
medium-sized in its line with stable financial conditions. The large amount of short-term loan could be a threat to SC’s financial
condition. A credit line up to USD 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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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%)