MIRA
INFORM REPORT
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Report Date : |
28.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
shandong jingbo
agrochemicals co., ltd. |
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Registered Office : |
Jingbo Industrial
Park, Chenhu Town, Boxing County Shandong Province 256505 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Feb. 19, 1997 |
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Com. Reg. No.: |
371625018010304 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing
and selling agrochemical 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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
shandong jingbo
agrochemicals co., ltd.
jingbo industrial park, chenhu town, boxing
county
shandong province 256505 PR CHINA
TEL :
86 (0) 543-2511168
FAX :
86 (0) 543-2511020
EXECUTIVE SUMMARY
INCORPORATION DATE : feb. 19, 1997
REGISTRATION NO. : 371625018010304
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
190
REGISTERED CAPITAL : CNY 70,710,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 137,910,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 90,560,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 500,000 (PERIODICAL REVIEW)
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.39 = US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
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 Feb. 19, 1997.
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 synthetic split charging, mixture,
processing, manufacture and sales of pesticide; manufacturing and selling
chemical products, pesticide intermediates, plant growth regulators, minor
elements, fertilizer, agricultural films, packaging materials, and packaging
products; producing, processing and selling agricultural and byproducts;
pesticide tests, pesticide agency, business agency, and technical consulting
services.
SC is mainly
engaged in manufacturing and selling agrochemical products.
Mr. Dai Ronghua
has been chairman of SC since 1997.
SC is known to
have approx. 190 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 Boxing County. Our
checks reveal that SC owns the total premise about 15,000 square meters.
http://www.jingboagrochem.com
The design is professional and the content is well organized. At present it is
only in Chinese version.
E-mail: webmaster@jingbo.net
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Dai Ronghua 88.01
Han Lijun
1.14
Wang Qiang
0.84
Wang Dianhai
0.64
Yang Ruibo
8.56
Wen Peihong
0.81
l
Chairman and
General Manager:
Mr. Dai Ronghua, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working
in SC as chairman and general manager.
l
Sales Manager:
Mr. Bao Yongjian
Tel: 86-0543-2511012
Mobile Tel: 13854384111
Fax: 86-0543-2510096
SC is mainly
engaged in manufacturing and selling agrochemical products.
SC’s products
mainly include: weedicide, insecticide, etc.
SC sources its materials 100% from domestic
market, mainly Shandong province. SC sells 95% in domestic market, mainly
Jiangsu and Shandong province, and 5% to overseas market, mainly European and
American countries.
The buying terms of SC include T/T, Check and Credit of
30-60 days. The payment terms of SC include T/T, L/C, Check and Credit of 30-60
days.
*Major Customer:
============
Changzhou Wujin Tianlong 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.
China
Construction Bank
AC#：37001837808050008550
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
20,670 |
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Inventory |
88,710 |
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Accounts receivable |
4,710 |
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Other Accounts
receivable |
15,670 |
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Advances to
suppliers |
1,070 |
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To be
apportioned expense |
0 |
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Other current
assets |
690 |
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Current assets |
131,520 |
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Fixed assets |
57,560 |
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Fixed assets net
value |
57,530 |
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Projects under
construction |
30 |
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Long term
investment |
0 |
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Other assets |
82,020 |
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Total assets |
271,100 |
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Short loans |
23,000 |
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Bills payable |
23,000 |
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Accounts payable |
6,540 |
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Other Accounts
payable |
28,960 |
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Advances from
clients |
0 |
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Withdraw the
expenses in advance |
1,140 |
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Other current
liabilities |
-660 |
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Current
liabilities |
81,980 |
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Long term
liabilities |
90,560 |
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Other
liabilities |
8,000 |
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Total
liabilities |
180,540 |
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Equities |
90,560 |
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Total
liabilities & equities |
271,100 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
137,910 |
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Cost of goods
sold |
119,540 |
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Sales expense |
8,600 |
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Management expense |
7,820 |
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Finance expense |
10,150 |
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Profit before
tax |
-8,010 |
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Less: profit tax |
0 |
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Profits |
-8,010 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.60
*Quick ratio 0.52
*Liabilities to
assets 0.67
*Net profit
margin (%) -5.81
*Return on total
assets (%) -2.95
*Inventory
/Turnover ×365 235days
*Accounts
receivable/Turnover ×365 12days
*Turnover/Total
assets 0.51
*
Cost of goods sold/Turnover 0.87
PROFITABILITY:
FAIR
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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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 fair level.
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The inventory of SC appears LARGE.
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The accounts receivable of SC is maintained in an average
level.
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The short-term loan of SC is maintained in an average level.
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SC’s turnover is in a fair level, 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 average.
Overall
financial condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions. The large amount of inventory
could be a threat to SC’s financial condition. A credit line up to USD 500,000 would appear to be within SC’s
capacities upon a periodical review basis.
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%)