MIRA
INFORM REPORT
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Report Date : |
13th
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
SHANGHAI FOREVER CHEMICAL CO., LTD. |
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Registered Office : |
Room 1104 No. 1239 Changde Road, Shanghai, 200070 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 : |
22.10.2003 |
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Com. Reg. No.: |
3101152015433 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in importing and exporting
chemical products, etc. |
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/normal. |
Small |
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Maximum Credit Limit: |
USD 50,000 |
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Status : |
Moderate
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
name & address
SHANGHAI FOREVER CHEMICAL CO., LTD.
ROOM 1104 NO. 1239 CHANGDE ROAD,
SHANGHAI, 200070 PR CHINA.
TEL: 86
(0) 21-62779751
FAX: 86
(0) 21-62779750
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT. 22, 2003
REGISTRATION NO. : 3101152015433
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : MS. DONG QINGDI (CHAIRMAN)
STAFF STRENGTH : 8
REGISTERED CAPITAL : RMB 3,500,000
BUSINESS LINE : INTERNATIONAL TRADE
TURNOVER :
RMB 37,180,000 (AS OF DEC. 31, 2005)
EQUITIES :
RMB 5,330,000 (AS OF DEC.
31, 2005)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 50,000
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : STABLE
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : RMB8.00 = US$1
AS OF 2006-08-04
Note: SC’s correct name should be the above stated one, instead of the given name - Shanghai Foreever Chemical Co., Ltd.
SC was reregistered as a limited liabilities company at Shanghai Municipal Administration for Industry & Commerce (The official body of issuing and renewing business license) on Oct. 22, 2003.
Company Status: Limited liabilities co. This form of business
in PR China is defined as a legal person. At least two shareholders and no
more than fifty 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 listed as follows: -Manufacturing
co. : RMB 500,000.00 -Trading
&wholesaling co. : RMB 500,000.00 -Retailing co. : RMB 300,000.00 -Consultancy &
service co. : RMB 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 importing and exporting various goods and technology; selling chemical materials, motor parts, knitting and textiles, machinery, metal materials, hardware and crafts.
SC is mainly engaged in importing and exporting chemical products.
Ms. Dong Qingdi has been chairman of SC since 2003.
SC owns 8 staff.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Shanghai. Our checks reveal that SC rents the total premise about 185 square meters.
http://www.forever-chem.net/ The design is professional and
the content is well organized. At present it is both in Chinese and English
versions.
No significant events or changes were found during our checks with the local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Dong Qingdi 49
Ma Yuehua 15
Haung Zhiyong 36
Chairman:
Ms. Dong Qingdi , 46 years old with university education. She is currently responsible for the overall management of SC.
Working Experience(s):
2003 to present Working in SC as chairman.
General
Manager:
Mr. Huang Zhiyong , 36 years old with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working in SC as general manager.
SC is mainly engaged in importing and exporting chemical products, etc.
SC’s products include:
Agriculture chemical:
1-(4-CHLOROPHENYL)-4
4-DIMETHYL-3-PENTANONE
2-(2,4-DICHLOROPHENYL)-2-BUTYL OXIRANE
2-CHLORO-5-CHLORO METHYL THIAZOLE,
Insecticide:
ABAMECTIN 1.8%EC
ACETAMIPRID 95%TECH,98%TECH,EC,SL,SP,WP,WS,WDG,
Herbicide:
BROMACIL 95%TECH, 80%WP
CLOPYRALID 95%TECH
GLYPHOSATE 41%,62%IPA SL
Fungicide:
CARBENDAZIM 98%TECH, 50%WP, 50%SC
DIFENOCONAZOLE 95%TECH, 25%EC
DIURON 95%TECH, 50%WP
SC sources its materials 80% from domestic market, 20% from international market, mainly from European Countries. SC sells 30% of its products in domestic market and 70% to South Korea, European countries and Southeast Asia countries, etc.
The buying terms of SC include Check, T/T, L/C and Credit of 30-90 days. The payment terms of SC include T/T, Check, L/C and Credit of 30-90 days.
*Major Suppliers:
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Shanghai Forever Chemical Factory
Yixing Xingnong Chemical Products Co., Ltd.
Lianyungang Huatong Chemical Co., Ltd.
*Major Customers
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Nanjing Haitui Chemical 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: A trade
enquiry currently conducted with SC's supplier(s) reveal the following:
Supplier
A
Products
sold: chemical
materials
Date
account opened: 2005
Line of
credit: No comment
Terms: 30
days
Average
monthly sales: No comment
Current
balance: No comment
Rating
Key : 3
Any
Special Comments: _______________________________________
Payment
record keys :
1 = Prompt
: Payment made before the credit period expires
2 = As
agreed terms : Payment made upon due date
3 = Slightly
slow but acceptable : Payment made 5 to 20 days beyond agreed terms
4 = Slow
: Payment made 16 to 45 days beyond agreed terms
5 = Poor
: Payment made over 45 days beyond agreed terms
6 = No
comment : Account is newly opened & record is not yet established
Note : In some instances, payment beyond terms can
be the result of disputes over merchandise, lost invoices, disputed accounts
& etc.
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
AC#11663308091
Relationship: Normal.
Balance Sheet
Unit: RMB’000
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As of Dec. 31, 2005 |
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Cash & bank |
840 |
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Accounts payable advance |
0 |
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Accounts receivable |
1,700 |
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Inventory |
5,070 |
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Other accounts receivable |
10 |
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Expenses to be apportioned |
0 |
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Other current assets |
2,330 |
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Current assets |
9,950 |
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Fixed assets |
350 |
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Projects under construction |
0 |
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Other assets |
850 |
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Total assets |
11,150 |
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Short loans |
0 |
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Accounts payable |
4,250 |
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Salary payable |
0 |
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Tax payable |
0 |
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Account receivable advance |
2,240 |
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Estimated liabilities |
0 |
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Long-term investment with in one year |
0 |
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Other accounts payable |
-1,220 |
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Drawing-expense in advance |
0 |
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Other current liabilities |
550 |
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Current liabilities |
5,820 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
5,820 |
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Equities |
5,330 |
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Total liabilities & equities |
11,150 |
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Income Statement
Unit: RMB’000
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As of Dec. 31, 2005 |
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Turnover |
37,180 |
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Cost of goods sold |
34,160 |
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Sales expense |
570 |
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Management expense |
960 |
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Finance expense |
110 |
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Profit before tax |
1,370 |
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Less: profit tax |
200 |
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Profits |
1,170 |
Important Ratios
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As of Dec. 31, 2005 |
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*Current ratio |
1.71 |
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*Quick ratio |
0.84 |
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*Liabilities to assets |
0.52 |
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*Net profit margin (%) |
3.15 |
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*Return on total assets (%) |
10.49 |
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*Fixed assets/Total assets |
0.03 |
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*Inventory /Turnover ×365 |
50days |
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*Accounts receivable/Turnover ×365 |
17days |
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*Turnover/Total assets |
3.33 |
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* Cost of goods sold/Turnover |
0.92 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is fairly good, comparing with its turnover.
LIQUIDITY:
AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC is fairly large.
The accounts receivable of SC is average.
The accounts payable of SC appears fairly large.
SC’s turnover is in an average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Stable.
SC is considered small-sized in its line with stable financial conditions. 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/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 |