MIRA
INFORM REPORT
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Report Date : |
09.08.2007 |
IDENTIFICATION DETAILS
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Name : |
PIZHOU LIANTAI CHEMICAL CO., LTD. |
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Registered Office : |
Industry Zone, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Dec. 27, 2001 |
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Com. Reg. No.: |
001141 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Engaged in manufacturing
and selling of health products additives. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Poor |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
name & address
PIZHOU LIANTAI CHEMICAL CO., LTD.
INDUSTRY ZONE,
PIZHOU,
TEL : 86 (0) 516-86401288
FAX : 86 (0) 516-86450988
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 27, 2001
REGISTRATION NO. :
001141
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
STAFF STRENGTH :
56
REGISTERED CAPITAL : USD 210,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,634,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY -474,000 (AS OF DEC. 31, 2006)
PAYMENT :
FAIR
RECOMM.
MARKET CONDITION :
FAIR
FINANCIAL CONDITION :
POOR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : FAIR
EXCHANGE RATE :
CNY 7.56 =US1$ AS OF 2007-8-8
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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Dec. 27, 2001.
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 investor 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 manufacturing soy bean isoflavones, ginkgo
flavoglcosides, selling its products.
SC is mainly
engaged in manufacturing and selling health products additives.
Mr. Xie Moutong
has been chairman of SC since 2001.
SC owns
approximately 56 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 Pizhou. Our checks
reveal that SC owns the total premise about 18,000 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 the local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
(B.V.I.) Keen Cheong Limited 100
l
Chairman:
Mr. Xie Moutong, born in 1957, 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.
l
General Manger:
Mr. Sheng Baolong, in his 40’s with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2006 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling of health products additives.
SC’s products mainly include: soy bean isoflavones and ginkgo
flavoglcosides.
SC sources its materials 70% from domestic
market, and 30% from overseas market. SC sells 30% of its products in domestic
market, and 70% to overseas market.
The buying terms of SC include Check, L/C, T/T and Credit of
30-60 days. The payment terms of SC include Check, L/C, T/T, and Credit of
30-60 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.
Industrial &
Commercial Bank of
AC#：1106026009200015623
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 |
4 |
102 |
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Accounts
receivable |
413 |
/ |
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Other
receivables |
865 |
1,196 |
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Accounts payable
advance |
923 |
351 |
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Inventory |
271 |
5,701 |
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Other current
assets |
0 |
289 |
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------------------ |
------------------ |
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Current assets |
2,476 |
7,639 |
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Fixed assets |
1,882 |
5,582 |
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Fixed assets net
value |
1,548 |
5,339 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
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Total assets |
4,024 |
12,978 |
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============= |
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Accounts payable |
0 |
235 |
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Other payable |
3,116 |
13,422 |
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Salaries payable |
2 |
36 |
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Welfare payable |
0 |
5 |
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Tax payable |
0 |
-249 |
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Accrued expenses |
0 |
0 |
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Other current
liabilities |
3 |
3 |
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Current
liabilities |
3,121 |
13,452 |
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Long term
liabilities |
0 |
0 |
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Total
liabilities |
3,121 |
13,452 |
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Equities |
903 |
-474 |
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Total
liabilities & equities |
4,024 |
12,978 |
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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 |
4,684 |
1,634 |
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Cost of goods
sold |
4,573 |
1,583 |
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Sales expense |
12 |
4 |
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Management expense |
348 |
473 |
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Finance expense |
0 |
1 |
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Profit before
tax |
-324 |
-1,377 |
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Less: profit tax |
0 |
0 |
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Profits |
-324 |
-1,377 |
Important Ratios
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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*Current ratio |
0.79 |
0.57 |
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*Quick ratio |
0.71 |
0.14 |
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*Liabilities
to assets |
0.78 |
1.04 |
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*Net profit
margin (%) |
-6.92 |
-84.27 |
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*Return on
total assets (%) |
-8.05 |
-10.61 |
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*Fixed
assets/Total assets |
0.47 |
0.43 |
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*Inventory
/Turnover ×365 |
21days |
1,273days |
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*Accounts
receivable/Turnover ×365 |
32days |
/ |
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*Turnover/Total
assets |
1.16 |
0.13 |
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* Cost of
goods sold/Turnover |
0.98 |
0.97 |
PROFITABILITY:
POOR
l
The turnover of SC appears poor in its line, and it
decreased in 2006.
l
SC’s net profit margin was decreased; it is remains
in a POOR level in 2006.
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SC’s return on total assets was also decreased; it
is remains in a POOR level in 2006.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: POOR
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The current ratio of SC is maintained in a fair
level.
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SC’s quick ratio is maintained in a poor level.
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The inventory of SC appears fairly large in 2006.
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The account receivable of SC appears acceptable in
2006.
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SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: POOR
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The debt ratio of SC is HIGH.
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The risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: POOR.
SC is considered small-sized in its line with poor financial conditions.
Great caution is required in providing credit to COD to small amount is
recommended.
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%)