MIRA
INFORM REPORT
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Report Date : |
1st
January, 2007 |
IDENTIFICATION
DETAILS
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Name : |
SHIANGTAI
CHEM & PHARM CO., LTD. |
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Registered Office : |
Rm.
826, Jinxiu Huatian Building, No. 159, Furong Middle Road, Changsha City,
Hunan Province 410008 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 : |
17.10.2002 |
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Com. Reg. No.: |
4301052000784 |
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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/normal. |
Small |
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Maximum Credit Limit : |
USD
5,000 |
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Status : |
Small
Company |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name & Address
shiangtai chem
& pharm co., ltd.
RM. 826, JINXIU HUATIAN BUILDING, NO. 159,
FURONG MIDDLE ROAD, CHANGSHA CITY, HUNAN PROVINCE 410008 PR CHINA
TEL: 86 (0)
731-2348129
FAX: 86 (0)
731-4473426
EXECUTIVE SUMMARY
INCORPORATION DATE :
oct. 17, 2002
REGISTRATION NO. :
4301052000784
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
5
REGISTERED CAPITAL :
CNY 500,000
BUSINESS LINE :
trading
TURNOVER :
cny 30,090,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 500,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
up to USD 5,000 (periodical review)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
fairly stable
OPERATIONAL TREND :
fairly steady
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.82 = US$1 AS OF 2006-12-30
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
Note: SC’s correct name should be the above stated
one, instead of the given name - Shingtai Chem & Pharm 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 Oct. 17, 2002.
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 selling chemical products and reagent.
SC is mainly engaged in selling
chemical products.
Mr. Yan Xiaoxiong has been chairman of SC since 2002.
SC owns about 5 staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Changsha. Our checks reveal that SC
rents the total premise about 100 square meters.
http://www.shtchem.com
The design is professional and the content is well organized. At present, the
web is both in English and Chinese versions.
E-mail: shiangtai@shtchem.com
No
significant events or changes were found during our checks with the local
Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Yan Xiaoxiong 90
Zeng Xiaohui 10
l
Chairman and General
Manager:
Mr. Yan
Xiaoxiong, in his 40’s with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as chairman and general manager.
SC is mainly engaged in selling
chemical products.
SC’s products mainly include:
Polymer additive, Cellulose ethers, and Lithium salts, etc.
SC sources its materials 70% from
domestic market, mainly Shandong and Hunan province, and 30% from overseas
market, mainly America; SC sells its products 20% to overseas market, mainly
India, and 80% in domestic market, mainly Hunan province.
The buying terms of SC include
T/T, L/C and Credit of 30-60 days. The payment terms of SC include T/T, L/C and
Credit of 15-30 days.
*Major
Supplier:
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Tai’an
Ruitai Cellulose Co., Ltd.
Address:
Wenyang Town, Feicheng City, Shandong Province
Tel:
0538-3851533/3850247
Fax:
0538-3850248
*Major Customer:
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Hunan Ruixiang New Materials Co., Ltd.
Address: Guangnan Road, Economic Development
Zone, Changsha City
Tel: 0731-4064371
Fax: 0731-4064372-2808
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.
China Merchants
Bank
AC#：806081735210002
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
830 |
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Inventory |
4,620 |
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Accounts receivable |
8,140 |
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Other Accounts receivable |
30 |
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Accounts payable in advance |
2,690 |
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To be apportioned expense |
0 |
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Other current assets |
570 |
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Current assets |
16,880 |
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Fixed assets |
630 |
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Long term investment |
0 |
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Other assets |
-10 |
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Total assets |
17,500 |
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Short loans |
0 |
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Accounts payable |
8,360 |
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Accounts receivable in advance |
6,970 |
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Other Accounts payable |
1,660 |
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Salaries payable |
6 |
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Welfares payable |
13 |
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Taxes payable |
-10 |
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Withdraw the expenses in
advance |
0 |
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Other current liabilities |
1 |
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Current liabilities |
17,000 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
17,000 |
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Equities |
500 |
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Total liabilities &
equities |
17,500 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
30,090 |
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Cost of goods sold |
26,350 |
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Sales expense |
2,590 |
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Management expense |
1,020 |
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Finance expense |
0 |
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Non-operating expense |
30 |
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Profit before tax |
100 |
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Less: profit tax |
0 |
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Profits |
100 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 0.99
*Quick ratio 0.72
*Liabilities to
assets 0.97
*Net profit margin
(%) 0.33
*Return on total
assets (%) 0.57
*Inventory
/Turnover ×365 56 days
*Accounts
receivable/Turnover ×365 99 days
*Turnover/Total
assets 1.72
*Cost of goods
sold/Turnover 0.88
PROFITABILITY: AVERAGE
l
The
turnover of SC appears average in its line.
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SC’s
net profit margin is acceptable.
l
SC’s
return on total assets is acceptable.
l
SC’s
cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
l
The
current ratio of SC is maintained in a normal level.
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SC’s
quick ratio is maintained in a fair level.
l
The
inventory of SC appears LARGE.
l
The
accounts receivable of SC appears TOO LARGE.
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SC
has no short-term loan, but its accounts payable appears TOO LARGE.
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SC’s
turnover is in an average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The
debt ratio of SC is high.
l
The
risk for SC to go bankrupt is above average.
Overall financial condition of the SC:
Fairly stable.
SC is
considered small-sized in its line with fairly stable financial conditions. The
large amount of accounts payable could be a threat to SC’s financial condition.
A credit line up to USD 5,000 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/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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