MIRA
INFORM REPORT
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Report Date : |
02.08.2007 |
IDENTIFICATION DETAILS
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Name : |
HUBEI CHUYUAN IMPORT & EXPORT 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 : |
Apr. 25, 2002 |
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Com. Reg. No.: |
4210001110587 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in importing
and exporting fine chemical products. |
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 10,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
HUBEI CHUYUAN IMPORT & EXPORT CO., LTD.
NO.
TEL : 86 (0)
716-7226610
FAX : 86 (0) 716-7226609
EXECUTIVE SUMMARY
INCORPORATION DATE :
APR. 25, 2002
REGISTRATION NO. :
4210001110587
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
25
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
CNY 4,840,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 10,190,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : FAIR
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.57 = US$1 AS OF 2007-08-22
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 Municipal Administration for Industry and Commerce (AIC - The official body of issuing and renewing business license) on Apr. 25, 2002.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. At least two shareholders and no more than
fifty 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 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 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 scopes include importing and exporting commodities and technology, excluding
commodities and technology limited or prohibited by the state, and import and
export of above mentioned goods.
SC is mainly
engaged in importing and exporting fine chemical products.
Mr. Yang Zhicheng
has chairman of SC since 2002.
SC owns about 25
staff.
SC is
currently operating at the above stated address, and this address houses its
operating office in the Commercial zone of Shishou. Our checks reveal that SC
rents the total premise about 300 square meters.
SC is
not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
Shareholding
Hubei Chuyuan Fine Chemical Group Co., Ltd. 40
Hubei Chuyuan High-New Chemical Co., Ltd. 40
Hubei Huali Dye Industry Co., Ltd.
20
Hubei Chuyuan Fine Chemical Group Co., Ltd.
Add: Shishou High New
Tel: 86 0716-7226471
Fax: 86 0716-7226471
Hubei Chuyuan High-New Chemical Co., Ltd.
Add: Shishou High New
Tel: 86 0716 7295976
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Chairman and
General Manager:
Mr.Yang Zhicheng, 52 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as chairman and general manager.
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Vice General
Manager:
Mr. Ni Jiabin, 51 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working in SC as vice general manager.
SC is mainly
engaged in importing and exporting fine chemical products.
SC’s products
include H acids, K acids and Tobiac Acid, etc.
SC sources its
materials 80% from domestic market, and 20% from foreign market, mainly Europe,
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 30-60 days.
*Major Suppliers:
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Hubei Chuyuan High-New 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 refused to release any information of its
suppliers and the trade reference was not available.
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.
The Industrial
and Commercial Bank of
AC#：39310093010003011
Relationship:
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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Cash & bank |
8,120 |
27,140 |
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Accounts payable
advance |
0 |
0 |
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Accounts
receivable |
62,550 |
76,240 |
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Inventory |
0 |
0 |
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Other accounts
receivable |
9,090 |
820 |
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Other current
assets |
10 |
1,370 |
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Current assets |
79,770 |
105,570 |
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Fixed assets |
460 |
210 |
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Long term
investment |
0 |
0 |
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Projects under
construction |
0 |
0 |
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Other assets |
0 |
0 |
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Total assets |
80,230 |
105,780 |
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============ |
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Short loans |
0 |
0 |
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Accounts payable |
60,610 |
87,730 |
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Salary payable |
0 |
0 |
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Tax payable |
0 |
0 |
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Account
receivable advance |
0 |
0 |
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Other accounts
payable |
5,030 |
7,020 |
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Drawing-expense
in advance |
3,830 |
0 |
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Other current
liabilities |
620 |
840 |
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Current
liabilities |
70,090 |
95,590 |
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Long term liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
70,090 |
95,590 |
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Equities |
10,140 |
10,190 |
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Total
liabilities & equities |
80,230 |
105,780 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2005 |
As of Dec. 31,
2006 |
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Turnover |
26,150 |
4,840 |
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Cost of goods
sold |
19,400 |
0 |
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Sales expense |
2,990 |
2,140 |
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Management expense |
1,750 |
1,260 |
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Finance expense |
1,800 |
1,160 |
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Profit before
tax |
120 |
40 |
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Less: profit tax |
40 |
0 |
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Profits |
80 |
40 |
Important Ratios
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2005 |
2006 |
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*Current ratio |
1.14 |
1.10 |
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*Quick ratio |
1.14 |
1.10 |
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*Liabilities
to assets |
0.87 |
0.90 |
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*Net profit
margin (%) |
0.31 |
0.83 |
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*Return on
total assets (%) |
0.00 |
0.04 |
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*Fixed
assets/Total assets |
0.01 |
0.002 |
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*Inventory
/Turnover ×365 |
0 |
0 |
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*Accounts
receivable/Turnover ×365 |
873days |
5750days |
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*Turnover/Total
assets |
0.33 |
0.05 |
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* Cost of
goods sold/Turnover |
0.74 |
0.00 |
PROFITABILITY:
FAIR
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The turnover of SC appears average in 2005, but it
decreased greatly in 2006.
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SC’s net profit margin is fair in 2005 and 2006.
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SC’s return on total assets is fair in 2005 and
2006.
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SC’s cost of goods sold is average, 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 accounts receivable and account payable of SC
are TOO large.
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SC’s turnover is in a fair level in 2006, 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.
Credit dealings with SC should be confined into small amount at present.
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%)