MIRA
INFORM REPORT
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Report Date : |
27.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
JiangSu
Sevencontinent Green Chemical Co., Ltd. |
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Registered Office : |
2/F, East, Postal Building,
No. 11, West Renmin Road, Zhangjiagang, Jiangsu Province, 215600 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
May 28, 1998 |
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Com. Reg. No.: |
3200002102513 |
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Legal Form : |
Shares Limited
Company |
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Line of Business : |
Engaged in
manufacturing and selling different sorts of pesticide. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 600,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
JiangSu
Sevencontinent Green Chemical Co., Ltd.
2/f, east, postal building, no. 11, west
renmin road,
zhangjiagang, jiangsu PROVINCE, 215600 PR
CHINA.
TEL :
86 (0) 512- 58693988
FAX :
86 (0) 512- 58686995
EXECUTIVE SUMMARY
INCORPORATION DATE : may 28, 1998
REGISTRATION NO. : 3200002102513
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 500
REGISTERED CAPITAL : CNY 42,380,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 240,645,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 71,511,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 600,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY
7.33 = 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
Note: The heading address is SC’s operating address, while the
given address is SC’s registered address (No. 28, Chengbei Road, Yangshe Town, Zhangjiagang,
Jiangsu Province.
SC’s correct company name should be Jiangsu SevenContinent Green Chemical Co., Ltd, instead of the given name – Jiangsu Seven Continent Geeen Chemical Co., Ltd.
SC was registered as a Shares limited co. at Jiangsu Provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 28, 1998.
Company Status: Shares limited co. This
form of business in PR China is defined as a legal person. Its registered
capital is divided into shares of equal par value and the co. raises
capital by issuing share certificates by promotion or by public offer.
Shareholders bear limited liability to the extent of shareholding, and the
co. is liable for its debts only to the extent of its total assets. The co
has independent property of legal person and enjoys property rights of
legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co. requires at least two
promoters and no more than 200, half of whom shall be domiciled in China.. Natural person are allowed to serve as promoters. The minimum registered
capital of a co. is CNY 5M. while that of the co. with foreign investment
is CNY 5M. The total capital of a co. which propose to apply for publicly
listed must be no less than CNY 30M. The board of directors must
consist of five to nineteen directors. If the co. raises
capital by public offer, the promoters must not subscribe less than 35% of
the total shares. the promoters’ shares are restricted to transfer- within
one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes selling pesticide and
chemicals, wholesaling and retailing chemical raw materials, technology
consultation services; exporting self-made pesticide chemicals, importing
materials, machinery, instruments & meters and parts needed for its
production and research; processing with imported materials, processing with
imported samples, assembling with imported parts, and compensation trade in
agreement; the following business is limited to operate by its branches:
manufacturing and processing pesticide and chemicals.
SC is mainly
engaged in manufacturing and selling different sorts of pesticide.
Mr. Zhou Yaode has been legal representative and chairman of SC since
1998.
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
Zhangjiagang. Our checks reveal that SC owns the total premise about 10,000
square meters.
http://www.sevencontinent.com The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
Email: info@sevencontinent.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Jiangsu Guotai International Group
Industrial Investment Co., Ltd. 14.3
Jiangsu Huachang (Group) Co., Ltd. 16.8
Ningbo Tide Import & Export Co, Ltd. 14.3
Cai Binbin 2.5
Cai Meihua 1.53
Chen Guangzhong
2.14
Ding Tiedong
2.04
Hu Chunhong
1.79
Wang BinGxiang 1.91
Wang Qunfei 1.73
Wang Shaohua 2.04
Yu Shineng 5.10
Yuan Weiqun 1.68
Zhang Guangyao 4.59
Zhang Jianfeng 2.04
Zhou Yaode 21.4
Zhu Xunwei 1.94
Zou Linli 2.17
Jiangsu Huachang (Group) Co., Ltd. is a
national large-scaled second grade chemical enterprise, and it is one of 100
chemical companies in China. They have 19 companies and enterprises, including
one important national hi-tech company, 3 hi-tech companies of Jiangsu
province. Its business includes chemical industry, electromechanical industry,
construction and hotel.
l
Legal representative and chairman:
Mr. Zhou Yaode, ID# 320521521102003, 55 years old
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 and legal representative.
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General manager:
Mr. Yu Shineng, ID# 320521631220005, 44 years old with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 1998 to present Working in SC as general manager.
SC is mainly engaged
in manufacturing and selling different sorts of pesticide.
SC’s products
mainly include fungicides, insecticide, herbicide and plant growth regulators.
SC sources its materials 80%
from domestic market, and 20% from overseas market, mainly USA and Europe. SC
sells 30% of its products in domestic market, and 70% to overseas market,
mainly Southeast Asian market.
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 known to invest in the following companies:
Zhangjiagang Chuangxing Pesticide Development Co., Ltd.
Zhangjiagang Huarui Hazard Waste Disposal Center Co., Ltd.
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.
SC’s management declined
to release its bank details.
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 |
8,945 |
24,140 |
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Inventory |
32,647 |
43,020 |
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Accounts
receivable |
26,791 |
43,303 |
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Advances to
supplies |
0 |
1,701 |
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Notes receivable |
97 |
2,840 |
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Other
receivables |
2,256 |
1,930 |
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Other current
assets |
68 |
66 |
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Current assets |
70,804 |
117,000 |
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Fixed assets |
83,691 |
96,474 |
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Fixed assets net
value |
62,496 |
80,999 |
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Projects under
construction |
23,211 |
11,708 |
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Project
materials |
3,757 |
8,214 |
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Long-term
investments |
4,264 |
3,948 |
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Intangible and
other assets |
0 |
10,264 |
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Total assets |
164,532 |
232,133 |
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============= |
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Short loans |
36,000 |
56,000 |
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Accounts payable |
8,891 |
40,520 |
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Other Accounts
payable |
13,309 |
5,058 |
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Accrued payroll |
1,413 |
1,912 |
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Notes payable |
4,000 |
12,480 |
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Taxes unpaid |
-2,251 |
-2,357 |
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Welfares payable |
1,313 |
1,254 |
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Accrued expenses |
2,011 |
1,566 |
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Advances from
clients |
0 |
3,383 |
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Other
current liabilities |
74 |
76 |
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Current
liabilities |
64,760 |
119,892 |
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Long term
liabilities |
31,920 |
40,730 |
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Total
liabilities |
96,680 |
160,622 |
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Shareholders
equities |
67,852 |
71,511 |
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Total
liabilities & equities |
164,532 |
232,133 |
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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 |
197,676 |
240,645 |
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Cost of goods
sold |
169,809 |
207,248 |
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Sales expense |
5,110 |
6,188 |
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Management expense |
11,335 |
12,865 |
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Finance expense |
3,643 |
4,387 |
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Operation Profit |
7,272 |
9,784 |
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Less: profit tax |
1,449 |
1,676 |
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Net profit |
5,823 |
8,108 |
Important Ratios
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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*Current ratio |
1.09 |
0.98 |
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*Quick ratio |
0.59 |
0.62 |
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*Liabilities
to assets |
0.59 |
0.69 |
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*Net profit
margin (%) |
2.95 |
3.37 |
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*Return on
total assets (%) |
3.54 |
3.49 |
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*Inventory
/Turnover ×365 |
60 days |
65 days |
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*Accounts
receivable/Turnover ×365 |
49 days |
66 days |
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*Turnover/Total
assets |
1.20 |
1.04 |
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* Cost of
goods sold/Turnover |
0.86 |
0.86 |
PROFITABILITY: AVERAGE
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The turnover of SC appears fairly good in its line, and it increased in
2006.
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SC’s net profit margin was increased; and it remains at an average level
in 2006.
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SC’s return on total assets was decreased; and it remains at an average
level in 2006.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal level in both 2 years.
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SC’s quick ratio is maintained in a fair level in both 2 years.
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The inventory of SC appears average.
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The accounts receivable of SC appears average.
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SC’s short-term loan of SC appears fairly large.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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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:
Fairly stable.
SC is considered medium-sized in its line with favorable market
conditions. A credit line up to USD 600,000 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%)