MIRA
INFORM REPORT
|
Report Date : |
24.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
QUZHOU LONGHUA MEDICAL
CHEMISTRY CO., LTD. |
|
|
|
|
Registered Office : |
No. 10, Nanshan Road, Ecological Industrial Zone, Quzhou City
Zhejiang Province 324022 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
jan. 10, 2001 |
|
|
|
|
Com. Reg. No.: |
3308212000235 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Mnufacturing and selling various of chemical products. |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
Maximum Credit Limit : |
Up To usd 50,000 |
|
|
|
|
Status : |
Small Company |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
name & address
quzhou longhua
medical chemistry co., ltd.
NO. 10, NANSHAN ROAD, ECOLOGICAL INDUSTRIAL ZONE, QUZHOU CITY
ZHEJIANG PROVINCE 324022 PR
CHINA
TEL
86 (0) 570-3375632
FAX
86 (0) 570-3375389
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 10, 2001
REGISTRATION NO. : 3308212000235
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
8
REGISTERED CAPITAL : cny2,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
cny 18,010,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 4,280,000 (AS OF DEC. 31, 2006)
PAYMENT :
average
RECOMM. CREDIT RANGE : UP TO usd 50,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.73 = US$1 AS OF 2007-04-24
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 limited liabilities company at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Jan. 10, 2001.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. Shareholders bear limited liability to
the extent of shareholding, and the co. is liable for its debts only to
extent of its total assets. The characteristics of this form of co. are as
follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is listed as follows: -manufacturing co. : CNY 500,000.00 -trading &wholesaling
co. CNY
500,000.00 -retailing co. CNY 300,000.00 -consultancy & service
co. CNY
100,000.00 Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 50% of the registered capital while
contribution by intangible assets must not exceed 20% of the registered
capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered
business scope includes manufacturing and selling polyphosphoric acid,
phosphorus pentoxide, and chlorhexidine gluconate; importing and exporting
commodity.
SC is
mainly engaged in manufacturing and selling various of chemical products.
Mr. Jin Xiumin has
been chairman of SC since 2001.
SC owns about 8
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 Quzhou. Our checks
reveal that SC owns the total premise about 800 square meters.
http://www.longhuapharm.com The design
is professional and the content is well organized. At present, the web is both in
Chinese and English versions.
E-mail: longhua@longhuapharm.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Jin Xiumin 43
Jin Xiupin 42
Jin Xiuhan 15
l
Chairman and
General Manager:
Mr. Jin Xiumin, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working in SC as chairman and general manager.
l
Assistant Manager:
Mr. Zhang Haihua, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2001 to present Working in SC as assistant manager.
SC is mainly
engaged in manufacturing and selling various of chemical products.
SC’s products mainly include: polyphosphoric
acid, phosphorus pentoxide, and chlorhexidine gluconate, etc.
SC sources its materials 95% from domestic
market, mainly Zhejiang province, and 5% from overseas market, mainly America;
SC sells its products 20% to overseas market, mainly America, Britain, India,
and Italy, and 80% in domestic market, mainly Zhejiang province.
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:
==============
Quzhou Jinhuan Chemical Commercial Trade Co., Ltd.
*Major Customer:
==============
Zhejiang Hansha Chemical 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.
Construction
Bank of China Quzhou Branch
AC#：330684900012210000000168
Relationship:
Normal.
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
|
Cash & bank |
720 |
|
Inventory |
300 |
|
Accounts
receivable |
4,720 |
|
Other Accounts
receivable |
0 |
|
Accounts payable
in advance |
1,200 |
|
To be
apportioned expense |
0 |
|
Other current
assets |
170 |
|
|
------------------ |
|
Current assets |
7,110 |
|
Fixed assets |
2,460 |
|
Long term
investment |
0 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
9,570 |
|
|
============= |
|
Short loans |
1,000 |
|
Accounts payable |
0 |
|
Taxes payable |
20 |
|
Accounts
receivable in advance |
0 |
|
Other Accounts
payable |
3,560 |
|
Withdraw the
expenses in advance |
0 |
|
Other current
liabilities |
630 |
|
|
------------------ |
|
Current
liabilities |
5,210 |
|
Long term
liabilities |
80 |
|
Other
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
5,290 |
|
Equities |
4,280 |
|
|
------------------ |
|
Total
liabilities & equities |
9,570 |
|
|
============= |
Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
|
Turnover |
18,010 |
|
Cost of goods
sold |
15,350 |
|
Sales expense |
1,440 |
|
Management expense |
480 |
|
Finance expense |
110 |
|
Non-operating
expense |
80 |
|
Profit before
tax |
550 |
|
Less: profit tax |
180 |
|
Profits |
370 |
Important Ratios (as of Dec. 31, 2006)
=============================
*Current ratio 1.36
*Quick ratio 1.31
*Liabilities to
assets 0.55
*Net profit
margin (%) 2.05
*Return on total
assets (%) 3.87
*Inventory
/Turnover ×365 6 days
*Accounts
receivable/Turnover ×365 96 days
*Turnover/Total
assets 1.88
*Cost of goods
sold/Turnover 0.85
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average 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 acceptable, comparing with its
turnover.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in a
fairly good level.
l
The accounts receivable of SC appears fairly
large.
l
The short-term loan of SC is maintained in an
acceptable level.
l
SC’s turnover 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 above average.
Overall
financial condition of the SC: Stable.
SC is considered small-sized in its line with stable financial
conditions. A credit line up to
USD50,000 would appear to be within SC’s capacities.
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%)