MIRA
INFORM REPORT
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Report Date : |
25.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
CHANGZHOU NIUTANG
CHEMICAL PLANT Co., Ltd. |
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Registered Office : |
No. 51, Yanzheng Road,
Niutang Town, Wujin District, Changzhou, Jiangsu Province, 213163 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
June 2, 1995 |
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Com. Reg. No.: |
3204832109983 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in
manufacturing and selling different sorts of chemicals. |
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 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
CHANGZHOU NIUTANG
CHEMICAL PLANT Co., Ltd.
NO. 51, YANZHENG ROAD, NIUTANG TOWN, WUJIN
DISTRICT,
CHANGZHOU, JIANGSU PROVINCE, 213163 PR CHINA.
TEL: 86 (0) 519-86392751
FAX: 86 (0) 519-86391145
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 2, 1995
REGISTRATION NO. : 3204832109983
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 800
REGISTERED CAPITAL : CNY 72,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 353,150,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 64,360,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 300,000 (periodical reviwe)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.38 = US1$
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 June 2, 1995.
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 folacin, TGIC, p-hydroxyphenyl acetamide,
L- asparagines, Third-polyisocyanurate, 4-Hydroxyphenyl acetic acid,
4-Hydroxyphenethy lalcohol, NT552, dichloroethane, Magnesium DL-aspartate, DL-Aspartic acid and sodium acetate; import and
export of various goods and technologies, excluding the items prohibited or
limited by the country; manufacturing edulcorator and sucralose.
SC is mainly
engaged in manufacturing and selling different sorts of chemicals.
Mr. Wang Fangda has been legal representative and chairman of SC since
1995.
SC is
known to have approx. 800 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
Changzhou. Our checks reveal that SC owns the total premise about 30,000 square
meters.
http://www.niutang.com/ The design
is professional and the content is well organized. At present it is in both
Chinese and English versions.
Email: niutang@public.cz.js.cn
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Cai Ya 3.25
Chen Yang 3
Ji Cheng 6
Jiang Huaqing 8
Wang Fangda 20.75
Wang Licheng 13
Wang Liping 13
Wang Rendi 8
Wang Shenggen 3
Wang Yunda 8
Wang Zhizheng 3
Xu Jianping 3
Min Zhigang 8
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Legal representative and chairman:
Mr. Wang Fangda, ID 320421440930191, 63 years
old with high school education. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 1995 to present Working in SC as chairman and legal representative.
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General manager:
Mr. Wang Licheng, ID # 320421681130191, 39
years old with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling different sorts of chemicals.
SC’s products mainly include food additives, feed additives,
medical intermediates and TGIC, etc.
SC sources its materials 90%
from domestic market, and 10% from overseas market, mainly Europe. SC sells 30%
of its products in domestic market, and 70% to overseas market, mainly USA,
Europe and Hong Kong.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C 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.
Agriculture Bank of China Changzhou Niutang Sub-branch.
AC#：10602701040006731
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
273,300 |
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Inventory |
80,320 |
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Accounts
receivable |
77,010 |
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Advances to
suppliers |
39,330 |
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Notes receivable |
-1,000 |
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Other
receivables |
231,220 |
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Prepaid expenses |
450 |
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Other current
assets |
2,600 |
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Current assets |
703,230 |
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Fixed assets |
127,170 |
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Fixed assets net
value |
79,330 |
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Projects under
construction |
0 |
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Long term
investment |
38,650 |
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Other assets |
3,490 |
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Total assets |
824,700 |
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Short loans |
224,390 |
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Accounts payable |
125,550 |
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Other payable |
131,950 |
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Notes payable |
236,920 |
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Accrued payroll |
-270 |
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Taxes payable |
-1,300 |
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Welfare expenses
payable |
4,170 |
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Advances from
clients |
16,550 |
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Other current
liabilities |
960 |
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Current
liabilities |
738,920 |
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Long term
liabilities |
21,420 |
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Total
liabilities |
760,340 |
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Equities |
64,360 |
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Total
liabilities & equities |
824,700 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
353,150 |
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Cost of goods
sold |
334,180 |
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Taxes
and additional of main operation |
2,100 |
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Add:
Income from other operations |
22,610 |
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Sales expense |
8,200 |
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Management expense |
13,940 |
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Finance expense |
18,060 |
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Profit before
tax |
-80 |
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Less: profit tax |
0 |
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Profits |
-80 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.95 |
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*Quick ratio |
0.84 |
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*Liabilities
to assets |
0.92 |
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*Net profit
margin (%) |
-0.02 |
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*Return on
total assets (%) |
-0.01 |
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*Inventory
/Turnover ×365 |
83 days |
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*Accounts
receivable/Turnover ×365 |
80 days |
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*Turnover/Total
assets |
0.43 |
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* Cost of
goods sold/Turnover |
0.95 |
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 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 average level.
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SC’s short-term loan appears LARGE.
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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 high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with favorable market conditions.
The large amount of short loans could be a threat to SC’s financial condition.
A credit line up to USD 300,000 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%)