MIRA
INFORM REPORT
|
Report Date : |
23.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
SHANDONG RUIXING CHEMICAL CO., LTD. |
|
|
|
|
Registered Office : |
Ruixing Industry Zone, Dongping County,
Taian, Shandong Province, 271500 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2005 |
|
|
|
|
Date of Incorporation : |
OCT. 24, 2003 |
|
|
|
|
Com. Reg. No.: |
3709232800204 |
|
|
|
|
Legal Form : |
Limitied
Liabilities Company |
|
|
|
|
Line of Business : |
Engaged in development,
manufacturing and selling chemical raw materials. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
Up To
USD 300,000 |
|
|
|
|
Status : |
Satisfactory
|
|
|
|
|
Payment Behaviour : |
Unknown
|
|
|
|
|
Litigation : |
Clear |
name & address
SHANDONG RUIXING CHEMICAL CO., LTD.
RUIXING INDUSTRY ZONE, DONGPING COUNTY, TAIAN,
SHANDONG PROVINCE, 271500 PR CHINA
TEL: 86 (0) 538-2418216
FAX: 86 (0) 538-2418216
EXECUTIVE SUMMARY
INCORPORATION DATE :
OCT. 24, 2003
REGISTRATION NO. :
3709232800204
REGISTERED
LEGAL FORM : LIMITIED LIABILITIES COMPANY
STAFF STRENGTH :
2,700
REGISTERED CAPITAL :
cny 100,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 1,010,860,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 189,714,000 (AS OF DEC. 31, 2005)
PAYMENT :
average
RECOMM. CREDIT RANGE :
UP TO USD 300,000
(PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
fairLY STABLE
OPERATIONAL TREND :
steady
GENERAL REPUTATION :
average
EXCHANGE RATE :
CNY 7.78 =US1$ AS OF
2007-1-23
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
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. 24, 2003.
Company Status: Chinese-foreign contractual
joint venture enterprise This form of
business in PR China is defined as a legal person. It is a limited co.
jointly invested by one or more foreign companies and one or more PR China
controlled companies within the territories of PR China. The investing
parties are free to agree on the proportion of capital investment, method
of profit distribution and liabilities bearing according to the provisions
of the contract. The joint venture usually have a limited duration of 10 to
50 years.
SC’s registered business scope
includes manufacturing and selling agricultural use ammonium
bicarbonate, stearic acid, glycerin, morpholine, amylum, sorbierite, industry
use and agricultural use dextrose, carbamide, carbinol, formaldehyde,
hexamethylenamine, activator, woven bag, compound fertilizer, ammonia, NAP/PF
compound sol oil displacement agent; setting GB2
heating power pipeline, GC2 industry pipeline; manufacturing pressure vessel,
low and medium pressure; importing and exporting business; dealing with
medicine, chemical products and raw materials, machinery equipments and
components, instrument and meter, and groceries; restaurant and quarter
services; freight, buying and purchasing corn.
SC is mainly engaged in
development, manufacturing and selling chemical raw materials.
Mr. Meng Guangyin has been chairman of SC since 2003.
SC owns approximately 2,700 staff
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 Dongping. Our checks
reveal that SC rents the total premise about 500,000 square meters.
SC is not known to host website of its own at present.
Changes
of its registered information:
|
Date
of change |
Item |
Before
the change |
After
the change |
|
2005-1-11 |
Registered
capital |
CNY
10,000,000 |
CNY
100,000,000 |
Careful investigation were made with the
local AIC, and no shareholdings information of SC was found.
Phone
calls were made to SC for interviews. However, they are very sensitive and
refused to release any shareholding details.
l
Chairman:
Mr. Meng
Guangyin, in his 40’s with university education. He
is currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman.
l
General Manager:
Mr. Wang
Qingwei, in his 40’s 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
development, manufacturing and selling chemical raw materials.
SC’s
products mainly include: hexamethylenaminec, stearic acid, glycerin, corn
amylum, dextrose powder, carbinol, formaldehyde, oil displacement agent,
carbamide.
SC sources its materials 100% from domestic
market, SC sells 80% of its products in domestic market, and 20% to the
overseas market.
The buying terms of SC include Check, T/T and Credit of 60-90
days. The payment terms of SC include Check, T/T, L/C and Credit of 60-90 days.
SC is
not known to have any subsidiary at present.
Overall
payment appraisal:
( ) Excellent ( ) Good (
) Average ( ) Fair
( ) Poor (X) 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
refused to release its bank details.
Financial Summary
===============
Unit: CNY’000
|
|
as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
|
Account receivable |
7,234 |
5,909 |
|
Current assets |
219,270 |
383,113 |
|
Fix assets |
432,510 |
463,379 |
|
Total Assets |
767,033 |
1,225,448 |
|
Total liabilities |
633,253 |
1,035,734 |
|
Equities |
133,780 |
189,714 |
|
|
|
|
|
Turnover |
835,100 |
1,010,860 |
|
Cost of good sold |
711,852 |
874,027 |
|
Sales expense |
10,712 |
11,448 |
|
Management expense |
29,896 |
34,571 |
|
Finance expense |
20,389 |
28,188 |
|
Profit before tax |
60,430 |
76,251 |
Important Ratios
=============
|
|
As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
|
*Current ratio |
0.35 |
0.37 |
|
*Liabilities
to assets |
0.83 |
0.85 |
|
*Net profit
margin (%) |
7.24 |
7.54 |
|
*Return on
total assets (%) |
7.88 |
6.22 |
|
*Fixed
assets/Total assets |
0.56 |
0.38 |
|
*Accounts
receivable/Turnover ×365 |
3days |
2days |
|
*Turnover/Total
assets |
1.09 |
0.82 |
|
* Cost of
goods sold/Turnover |
0.85 |
0.86 |
PROFITABILITY: FAIRLY GOOD
l
The
turnover of SC appears fairly good in its line.
l
SC’s
profit before tax appears fairly good.
l
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
l
The
current ratio of SC is maintained in a fair level.
l
The
accounts receivable of SC appears average.
l
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 fairly high.
l
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 fairly stable financial conditions. A
credit line up to USD 300,000 would appear to be within SC’s capacities upon a
periodical review basis.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|