MIRA
INFORM REPORT
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Report Date : |
27.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
bengbu wanli
chemical trading co., ltd. |
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Registered Office : |
Donghai Road
(West), New & High Technology Development Zone Bengbu City, Anhui Province
233000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Aug 18, 2005 |
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Com. Reg. No.: |
3403001002988 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in
selling chemical products. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 50,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
bengbu wanli
chemical trading co., ltd.
DONGHAI ROAD (WEST), NEW & HIGH TECHNOLOGY DEVELOPMENT ZONE
BENGBU CITY, ANHUI PROVINCE 233000 PR CHINA
TEL :
86 (0) 552-3018300
FAX :
86 (0) 552-3021122
EXECUTIVE SUMMARY
INCORPORATION DATE : aug 18, 2005
REGISTRATION NO. : 3403001002988
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
5
REGISTERED CAPITAL : cny 5,000,000
BUSINESS LINE :
trading
TURNOVER : CNY 51,650,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 4,966,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 50,000
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.37 =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 Renminbin
Note: SC’s name should be the above stated one, instead of the
given one Bengru Wanu Chemical Trading Co., Ltd.
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 Aug. 18, 2005.
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 scopes include selling chemical products;
and international trade.
SC is mainly
engaged in selling chemical products.
Mr. Li Dechang has
been chairman of SC since 2005.
SC is
known to have approx. 5 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the development zone of Bengbu. Our checks reveal that SC rents
the total premise about 100 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Anhui Bayi Chemical Industry Group Co., Ltd. 95
Anhui Bayi Chemical Industry Co., Ltd. 5
Anhui Bayi Chemical Industry Co., Ltd. a
“National Major High-Tech Enterprises” established in 1968, is located in
Bengbu city, it has become one of the most famous fine chemicals manufacturers
in China and ranked in the top 500 enterprises in Chinese chemical industry.
Tel: 0552-3036074
Fax: 0552-3029731
Website: http://www.bayichem.com
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Chairman and
General Manager:
Mr. Li Dechang, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working in SC as chairman and general manager.
SC is mainly
engaged in selling chemical products.
SC’s products
mainly include: various chemical products.
SC sources its
materials 100% from domestic market, mainly Anhui. SC sells its products 60% in
domestic market, and 40% to overseas market.
The buying terms
of SC include Check, T/T, and Credit of 30-60 days. The payment terms of SC
include Check, T/T, L/C, and Credit of 30-60 days.
*Major supplier:
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Bengbu Bayi Pharmaceutical Co., Ltd.
SC is
known to have a subsidiary at present:
Bengbu Bayi Pharmaceutical Co., Ltd.
Address:
No. 6288, Donghai Ave. Bengbu
Tel:
0552-4127903
Fax:
0552-4127650
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’s suppliers
declined to make any comments.
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
AC#：492643788228091001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
568 |
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Inventory |
930 |
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Accounts
receivable |
180 |
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Other Accounts
receivable |
6,070 |
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Advances to
suppliers |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
2,412 |
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------------------ |
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Current assets |
10,160 |
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Fixed assets |
40 |
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Long term
investment |
2,000 |
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Other assets |
-4 |
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Total assets |
12,196 |
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Short loans |
0 |
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Accounts payable |
4,539 |
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Advance from
clients |
530 |
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Other Accounts
payable |
2,140 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
21 |
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Current
liabilities |
7,230 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
7,230 |
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Equities |
4,966 |
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Total
liabilities & equities |
12,196 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
51,650 |
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Cost of goods
sold |
48,630 |
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Sales expense |
2,420 |
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Management expense |
589 |
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Finance expense |
63 |
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Profit before
tax |
-11 |
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Less: profit tax |
0 |
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Profits |
-11 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.41
*Quick ratio 1.28
*Liabilities to
assets 0.59
*Net profit
margin (%) -0.02
*Return on total
assets (%) -0.09
*Inventory
/Turnover ×365 7days
*Accounts
receivable/Turnover ×365 1day
*Turnover/Total
assets 4.23
* Cost of goods
sold/Turnover 0.94
PROFITABILITY:
FAIR
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The turnover of SC appears average 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 fairly good 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 has no short-term loan in 2006.
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SC’s turnover is in a fairly good level, comparing with the
size of its total assets.
LEVERAGE:
AVERAGE
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is average.
Overall
financial condition of the SC: Fairly stable.
SC is considered small-sized in its line with a short history and
favorable background. A credit line up to USD 50,000 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%)