MIRA
INFORM REPORT
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Report Date : |
14.08.2007 |
IDENTIFICATION DETAILS
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Name : |
YINGKOU ASTRON CHEMICALS CO., LTD. |
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Registered Office : |
Wanghai Industrial Zone, Bayuquan District, Yingkou, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
05.11.1998 |
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Com. Reg. No.: |
000925 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Manufacturing and Selling Zirconium and Titanium Products |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 2,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
YINGKOU ASTRON CHEMICALS CO., LTD.
WANGHAI INDUSTRIAL ZONE, BAYUQUAN DISTRICT,
TEL: 86 (0) 417-6191943
FAX: 86 (0) 417-6192170
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 5, 1998
REGISTRATION NO. : 000925
REGISTERED LEGAL FORM : Wholly
foreign-owned
CHIEF EXECUTIVE :
MR. Alexander Brown (CHAIRMAN)
STAFF STRENGTH :
575
REGISTERED CAPITAL : USD 13,558,900
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 949,730,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 291,160,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE :
CNY 7.56 = US$1 AS OF 2007-08-24
Adopted
abbreviations:
ANS - amount not stated
NS - not stated SC - subject
company (the company inquired by you)
NA - not available
CNY -
Note: The telephone number client given in the order of
024-83963392 is owned by the foreign trade department of SC in
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 Nov. 5, 1998.
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 processing zirconium mineral
dust; manufacturing zirconium ceramics optical filming materials, crystal
lattice material, precious metals automotive off gas cleaner, and titanium
mineral dust.
SC is mainly engaged in manufacturing and selling zirconium and titanium
products.
Mr. Alexander. Brown has been chairman of SC since 1998.
SC is known to have approx. 575 staff members 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 Yingkou. Our
checks reveal that SC owns the total premise about 60,000 square meters.
http://www.astron.com.cn. The
design is professional and the content is well organized. At present it is in
Chinese and English versions.
E-Mail: hr@astron.com.cn
SC’s former registered capital was USD 12,825,800 and in the end of 2006
it was added up to the present one.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Astron Resources Co., Ltd. (
Chairman:
Mr. Alexander. Brown , in his 50’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working
in SC as chairman.
General Manager:
Mr. Kang Rong in his 30’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working in SC as general manager.
SC is mainly engaged in manufacturing and selling zirconium and titanium
products.
SC’s products mainly include: fused zirconia , silicon micro mist , zirconium chemical products, zircon sand (锆英石砂), coating
material and titanium products.
SC sources its materials 20% from domestic market and 80% from the
overseas market, mainly
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major client:
==========
Astron Resources Co., Ltd. (
SC is known to have branches and offices in
Address:
Tel: 86 0371-3752775
Quanzhou Branch
Address:
Tal: 86 0595 22535825
Shanghai Branch
Address; F 20/F,
Tel: 86 021-68862585
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.
Bank of China Development Zone Sub-Branch
AC#：04755008091001
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 |
73,060 |
32,820 |
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Accounts paid in advance |
10,010 |
0 |
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Accounts receivable |
39,970 |
135,470 |
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Inventory |
140,470 |
235,930 |
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Other accounts receivable |
12,600 |
53,500 |
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Other current assets |
20,400 |
67,350 |
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Current assets |
296,510 |
525,070 |
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Fixed assets |
97,870 |
100,790 |
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Long term investment |
0 |
0 |
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Projects under construction |
1,160 |
2,480 |
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Other assets |
10,220 |
13,130 |
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Total assets |
405,760 |
641,470 |
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Short loans |
0 |
19,690 |
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Accounts payable |
24,990 |
186,040 |
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Salary payable |
0 |
1,530 |
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Tax payable |
2,040 |
15,060 |
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Account received in advance |
0 |
5,790 |
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Other accounts payable |
104,660 |
113,270 |
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Other current liabilities |
970 |
8,930 |
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Current liabilities |
132,660 |
350,310 |
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Long term liabilities |
0 |
0 |
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Other liabilities |
0 |
0 |
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Total liabilities |
132,660 |
350,310 |
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Equities |
273,100 |
291,160 |
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Total liabilities & equities |
405,760 |
641,470 |
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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 |
888,120 |
949,730 |
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Cost of goods sold |
672,450 |
804,180 |
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Sales expense |
40,300 |
37,600 |
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Management expense |
32,730 |
33,610 |
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Finance expense |
1,060 |
2,560 |
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Profit before tax |
142,620 |
85,020 |
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Less: profit tax |
10,700 |
10,610 |
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Profits |
131,920 |
74,410 |
Important Ratios
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2005 |
2006 |
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*Current ratio |
2.24 |
1.50 |
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*Quick ratio |
1.18 |
0.83 |
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*Liabilities to assets |
0.33 |
0.55 |
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*Net profit margin (%) |
14.85 |
7.80 |
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*Return on total assets (%) |
32.51 |
11.54 |
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*Fixed assets/Total assets |
0.24 |
0.16 |
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*Inventory /Turnover ×365 |
58days |
90days |
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*Accounts receivable/Turnover ×365 |
16days |
48days |
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*Turnover/Total assets |
2.19 |
1.48 |
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* Cost of goods sold/Turnover |
0.76 |
0.85 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears fairly good in 2005 and there was an increase
in 2006.
SC’s net profit margin decreased in 2006, but it is maintained in a
fairly good level.
SC’s return on total assets is maintained in a good level, even though
it decreased in 2006.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in 2006.
SC’s quick ratio is maintained in a normal level in 2006.
The inventory of SC is fairly large in 2006.
The accounts receivable of SC is average in 2006.
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY GOOD
The debt ratio of SC is average.
The risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Fairly good.
SC is considered medium-sized in its line with fairly good financial
conditions. A credit line up to USD 2,000,000 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. |
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%)