MIRA
INFORM REPORT
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Report Date : |
1st
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
SHANGHAI
COLVO DYESTUFF INDUSTRIAL CO., LTD. |
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Registered Office : |
No. 23 Lane 828 Shenzhu Road, Minhang District, Shanghai, 201100
Pr China. |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
05.07.2000 |
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Com. Reg. No.: |
3101121031532 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in manufacturing and selling chemical 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 : |
USD
500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company name & Address
SHANGHAI COLVO DYESTUFF INDUSTRIAL CO.,
LTD.
NO. 23 LANE 828 SHENZHU ROAD, MINHANG DISTRICT, SHANGHAI, 201100
PR CHINA.
TEL: 86 (0) 21-54370286
FAX: 86 (0) 21-54370332
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUL. 5, 2000
REGISTRATION NO. :
3101121031532
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
180
REGISTERED CAPITAL :
CNY 75,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 340,444,000 (AS OF DEC. 31, 2005)
EQUITIES :
cny 217,644,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 500,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.77= US$1 AS OF 2007-2-1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
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 Jul. 5, 2000.
Company Status: Limited liabilities co. This form of
business in PR China is defined as a legal person. 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 listed as follows: -manufacturing
co. : CNY 500,000.00 -trading
&wholesaling co. : CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy &
service co. : CNY 100,000.00 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 50% of the registered capital
while contribution by intangible assets must not exceed 20% 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 reactive dye and cationic dye;
selling its products.
SC is mainly engaged in
manufacturing and selling chemical products.
Mr. Ruan Weixiang has been chairman of SC since 2000.
SC owns about 180 staff.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Shanghai. Our checks
reveal that SC owns the total premise about 6,000 square meters. SC is also
known to have a branch factory in Shangyu Zhejiang with the total premise about
12,000 square meters.
SC is
not known to host website of its own at present.
SC’s
former registered capital was CNY 15,000,000 and the former shareholders were
as below,
Zhejiang
Longsheng Group Co., Ltd. (75%)
Zheng
Wenjun 25%
In Dec.
2004, SC’s registered capital was added up to CNY 75,000,000 and the
shareholders were changed to be the following ones:
Zhejiang
Longsheng Group Co., Ltd. (95%)
Zhejiang
Longsheng Lianye Investment Co., Ltd. （5%）
In Mar.
2005 the shareholders were changed to be the present one.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Longsheng Group Co., Ltd. 100
Zhejiang Longsheng Group Co. Ltd, the key
subsidiary of Zhangjiang Longsheng Holding, is one of the national first type
private enterprises with self-managed import and export rights, and also the
only listed company in China’s dye industry.
The Group was established on June 13,1970.
After 37 years development, the headquarter in
Shangyu become a large enterprise which occupied an area of 2
million square meters，with more than 3,000 employees.
Longsheng also has shares in 13 subsidiaries
which distributing in Shanghai, Sichuan, Jiangxi, etc.
On August 1, 2004, the stock of the company
was listed on the Shanghai Stock Exchange (SSE) successfully.
Phone :
086-575-2042778、2042779
Fax :
0086-575-2042878
Phone of Sales Department :
0086-575-2042136、2516023
Phone of IN&EX Department :
0086-575-2517035、2517037
Address :
Daoxu Town, Shangyu , Zhejiang Province
Web :
http://www.longsheng.com
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Chairman:
Mr. Ruan
Weixiang, in his 40’s with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 2000 to present Working
in SC as chairman.
Also working in Zhejiang Longsheng Group Co., Ltd. as
general manager.
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General Manager:
Mr. Chen
Zhixin), in his 40’s 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 chemical products.
SC’s products mainly include:
reactive dye.
SC’s brands mainly include:
"Colvazol" "Colvazol EXcel" "Colvacio n P"
"Colvacelon React cn".
SC’s annual output can reach
10,000 tons. The annual output of Shangyu factory in 2005 reached 30,000 tons.
SC sources its materials 80% from
domestic market and 20% from the overseas markets mainly from Southeast Asia
and Europe. SC sells 70% of its products in domestic market and 30% to the
overseas markets, mainly to Europe.
The
buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
SC is
known to have one subsidiary and branch in Zhongshan and Shangyu as below,
Zhongshan
Colvo Dyestuff Industrial Co., Ltd.
Add : No. 5 Cuiyuan Street, Wufu Garden
Sanjiao Town, Zhongshan
Tel : 86-0760-5544088
Shanghai
Colvo Dyestuff Industrial Co., Ltd. Shangyu Branch
Add : Duopu Doaxu Town, Shangyu, Zhejiang
Tel : 86-575-2517261
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 refused to release any information
of its suppliers and the trade reference was not available.
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 Shanghai branch Caobaolu Road Caoheting Sub-branch
AC#： 0903001092001
Relationship:
Normal.
Financial Summary
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Accounts receivable |
50,024 |
49,571 |
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Inventory |
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Current assets |
252,889 |
268,160 |
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Fixed assets |
6,666 |
10,702 |
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Long term
investment |
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Total assets |
259,555 |
334,667 |
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Current liabilities |
77,374 |
117,023 |
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Total liabilities |
77,374 |
117,023 |
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Equities |
182,181 |
217,644 |
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Total liabilities
& equities |
259,555 |
334,667 |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
272,713 |
340,444 |
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Cost of goods sold |
238,159 |
290,061 |
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Sales expense |
1,649 |
1,285 |
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Management expense |
1,419 |
4,176 |
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Finance expense |
-250 |
294 |
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Profit before tax |
31,644 |
44,933 |
Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
3.27 |
2.29 |
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*Quick ratio |
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*Liabilities
to assets |
0.30 |
0.35 |
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*Net profit
margin (%) |
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*Return on
total assets (%) |
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*Fixed
assets/Total assets |
0.03 |
0.03 |
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*Inventory
/Turnover ×365 |
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*Accounts
receivable/Turnover ×365 |
67days |
53days |
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*Turnover/Total
assets |
1.05 |
1.02 |
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* Cost of
goods sold/Turnover |
0.87 |
0.85 |
PROFITABILITY: FAIRLY GOOD
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The
turnover of SC appears fairly good in its line.
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SC’s
net profit margin is fairly good.
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SC’s
return on total assets is fairly good.
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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.
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The
accounts receivable of SC appears average in 2005.
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SC’s
turnover is in a fairly good level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY GOOD
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The
debt ratio of SC is low.
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The
risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Stable.
Over the
past 7 years, SC has made a stable growth with acceptable profit. A credit line
up to USD 500,000 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/normal. |
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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