MIRA
INFORM REPORT
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Report Date : |
26.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
zhejiang ruihua
chemical co., ltd. |
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Registered Office : |
Daoxu Town,
Shangyu, Zhejiang Province, 312368 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
August 29, 2006 |
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Com. Reg. No.: |
003767 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Engaged in manufacturing
and selling reactive dyes. |
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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
zhejiang ruihua
chemical co., ltd.
daoxu town, shangyu,
zhejiang PROVINCE, 312368 PR CHINA
TEL: 86 (0) 575-82049865
FAX: 86 (0) 575-82041281
EXECUTIVE SUMMARY
INCORPORATION DATE : august 29, 2006
REGISTRATION NO. : 003767
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH :
500
REGISTERED CAPITAL : usd 6,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
n/a (AS OF DEC. 31, 2006)
EQUITIES :
CNY 25,570,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 100,000 (periodical review)
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.33 = 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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on August 29, 2006.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing reactive dyes, selling its owned
products.
SC is mainly
engaged in manufacturing and selling reactive dyes.
Mr. Ruan Jiachun
has been chairman of SC since 2006.
SC is known to have
approx. 500 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 Shangyu. Our checks
reveal that SC rents the total premise about 20,000 square meters.
SC is not known to host web site of its own at present.
SC started its normal operation in January of 2007.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Runtu Co., Ltd. 75
Hong Kong Jima Chemical Co., Ltd. 25
Zhejiang Runtu Co., Ltd.:
==================
Zhejiang Runtu Co .Ltd. is a large-scaled
enterprise founded in 1986. It is specialized in manufacturing and selling
disperse dyes, cationic dyes, reactive dyes, vat dyes, sulphur dyes, acid dyes,
chemical intermediates, printing & dyeing auxiliary agents for textile,
sodium hydrosulfite and sulfuric acid. At present, it is one of "five-
one- batch enterprises" supported by Zhejiang government, the executive
director unit of China dyes industry association, one of top-100 companies of
Zhejiang province and AAA taxpayer of Zhejiang province.
Add: Daoxun town, Shangyu, Zhejiang, China.
Office: +86-575-82041282
Tel: +86-575-82042874
Sell: +86-575-82042753
Website: http://www.runtuchem.com
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Chairman:
Mr. Ruan Jiachun, about 50 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working in SC as chairman, and also working in Zhejiang Runtu Co., Ltd. as
director.
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General Manager:
Mr. Yang Guoqi, about 45 years old 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 reactive dyes.
SC’s products
mainly include: reactive dyes
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 70% of its products in domestic market, and
30% to overseas market, mainly Southeast Asian market.
The buying terms of SC include Check, 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 Customers:
==============
Zhejiang Runtu 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.
Construction Bank of China Shangyu Sub-Branch
AC#：33001656435053002946
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
950 |
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Inventory |
0 |
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Accounts
receivable |
0 |
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Other Accounts
receivable |
0 |
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Advances to
suppliers |
14,870 |
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To be
apportioned expense |
0 |
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Other current
assets |
9,560 |
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------------------ |
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Current assets |
25,380 |
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Fixed assets net
value |
0 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
25,380 |
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Short loans |
0 |
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Accounts payable |
0 |
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Other Accounts
payable |
-190 |
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Advances from
clients |
0 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
0 |
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Current
liabilities |
-190 |
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Long term
liabilities |
0 |
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Other liabilities |
0 |
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Total
liabilities |
-190 |
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Equities |
25,570 |
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Total
liabilities & equities |
25,380 |
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Note: SC started its
normal operation in January of 2007, so its income statement is not available
at present.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with a short history. In view of
SC’s background and operation size, a credit line up to USD 100,000 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%)