MIRA
INFORM REPORT
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Report Date : |
01.08.2007 |
IDENTIFICATION DETAILS
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Name : |
changshu jinshen medical chemistry products co., ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
September 23, 1996 |
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Com. Reg. No.: |
3205812102820 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing and selling sulphadoxine. |
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 70,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
changshu jinshen medical chemistry products co., ltd.
TEL: 86 (0)
512-52401163
FAX: 86 (0)
512-52400526
EXECUTIVE SUMMARY
INCORPORATION DATE : september 23, 1996
REGISTRATION NO. : 3205812102820
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
120
REGISTERED CAPITAL : CNY 5,180,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 28,950,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 10,790,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.56 = US$1 AS OF 2007-8-1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
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 September 23, 1996.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. 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 CNY 30,000. 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 30% 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 sulphadoxine, importing and exporting
its products, excluding the goods and technology limited or forbidden by the
government.
SC is mainly
engaged in manufacturing and selling sulphadoxine.
Mr. Qian Bolin has
been chairman of SC since 1996.
SC owns about 120
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 8,000 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Qian Bolin 62.5
Qian Jinfang 37.5
l
Chairman and
General Manager:
Mr. Qian Bolin, 55 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1996 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in manufacturing and selling sulphadoxine.
SC’s products
mainly include: sulphadoxine
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, T/T and Credit of 30 days. The
payment terms of SC include T/T, L/C and Credit of 30 days.
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.
SC’s management
declined to release its bank details.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
1,240 |
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Inventory |
850 |
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Accounts
receivable |
3,270 |
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Other Accounts
receivable |
670 |
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To be
apportioned expense |
0 |
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Other current
assets |
2,000 |
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Current assets |
8,030 |
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Fixed assets net
value |
6,970 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
4,720 |
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Total assets |
19,720 |
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Short loans |
0 |
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Accounts payable |
2,240 |
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Other Accounts
payable |
4,340 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
2,350 |
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Current
liabilities |
8,930 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total liabilities |
8,930 |
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Equities |
10,790 |
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Total
liabilities & equities |
19,720 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
28,950 |
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Cost of goods
sold |
26,230 |
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Sales expense |
460 |
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Management expense |
1,140 |
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Finance expense |
30 |
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Profit before
tax |
1,120 |
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Less: profit tax |
330 |
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Profits |
790 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.90
*Quick ratio 0.80
*Liabilities to
assets 0.45
*Net profit
margin (%) 2.73
*Return on total
assets (%) 4.01
*Inventory
/Turnover ×365 11 days
*Accounts
receivable/Turnover ×365 42 days
*Turnover/Total
assets 1.47
*Cost of goods
sold/Turnover 0.91
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is fairly high, 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 normal level.
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The inventory of SC is maintained in an average
level.
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The accounts receivable of SC is maintained in an
acceptable level.
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SC has no short-term loan in 2006.
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SC’s turnover is in an average 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 above average.
Overall financial
condition of the SC: Stable.
Over the past 11 years, SC has made a stable growth with acceptable
profit. A credit line up to USD 70,000
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%)