MIRA
INFORM REPORT
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Report Date : |
26.07.2007 |
IDENTIFICATION DETAILS
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Name : |
QINGDAO YONGHONG CHEMICAL CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
17.10.2003 |
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Com. Reg. No.: |
3702822803111 |
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Legal Form : |
Limited liabilities company |
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Line of Business : |
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
QINGDAO YONGHONG CHEMICAL CO., LTD.
TEL: 86 (0) 532-82526236
FAX: 86 (0) 532-82526597
EXECUTIVE SUMMARY
INCORPORATION DATE : october 17, 2003
REGISTRATION NO. : 3702822803111
REGISTERED LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : MR. lan aimin (CHAIRMAN)
STAFF STRENGTH : 22
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE : trading
TURNOVER : CNY 6,860,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 420,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY7.55 = US$1 AS OF 2007-7-25
Adopted abbreviations:
ANS - amount not stated
NS - not stated SC - subject company (the company inquired by you)
NA - not available
CNY -
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 October 17, 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.
: 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 30% 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, building materials, rubber products, clothing knittings, general merchandise, household appliance, footwear and headwear, clothing supplementary materials, package products, instrument and meter, hardware, and electromechanical products, international trade.
SC is mainly engaged in selling chemical products.
Mr. Lan Aimin has been chairman of SC since 2003.
SC owns about 22 staff at present.
SC is currently operating at the above stated address, and this address houses its operating office in the industrial zone of Jimo. Our checks reveal that SC rents the total premise about 50 square meters.
http://www.yonghongchem.com.cn The design is professional and the content is well organized. At present the web site is both in Chinese and English versions.
E-mail: qdyh-888@163.com
No significant events or changes were found during our checks with the local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Lan Aimin 60
Wang Xiaojian 40
Chairman:
Mr. Lan Aimin , about 35 years old 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.
General Manager:
Mr. Wang Xiaojian , about 35 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 selling chemical products.
SC’s products mainly include: NAPHTHOLS, FAST BASES and
auxiliaries, such as incrassated dosage,
SC sources its materials 90% from domestic market, and 10% from
overseas market, mainly Southeast Asian market. SC sells 100% of its products
in domestic market, mainly
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC include Check, T/T and Credit of 30-60 days.
*Major Customer:
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Shan Dong LiJin YaMei Textile Co., Ltd.
*Major Supplier:
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Changzhou Wujin Qianhuangxinyuan 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 : 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.
Agricultural Bank of
AC#：122501040000689
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
110 |
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Inventory |
1,140 |
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Accounts receivable |
570 |
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Other Accounts receivable |
0 |
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To be apportioned expense |
0 |
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Other current assets |
660 |
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Current assets |
2,480 |
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Fixed assets net value |
10 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
0 |
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Total assets |
2,490 |
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Short loans |
0 |
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Accounts payable |
550 |
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Other Accounts payable |
1,370 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
150 |
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Current liabilities |
2,070 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
2,070 |
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Equities |
420 |
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Total liabilities & equities |
2,490 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
6,860 |
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Cost of goods sold |
5,860 |
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Sales expense |
770 |
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Management expense |
240 |
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Finance expense |
0 |
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Profit before tax |
-20 |
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Less: profit tax |
0 |
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Profits |
-20 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.20
*Quick ratio 0.65
*Liabilities to assets 0.83
*Net profit margin (%) -0.29
*Return on total assets (%) -0.80
*Inventory /Turnover ×365 61 days
*Accounts receivable/Turnover ×365 30 days
*Turnover/Total assets 2.76
* Cost of goods sold/Turnover 0.85
PROFITABILITY: FAIR
The turnover of SC appears average in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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 maintained in a fairly large level.
The accounts receivable of SC is maintained in an acceptable level.
SC has no short-term loan in 2006.
SC’s turnover is in an acceptable level, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is above average.
Overall financial condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions. A credit line up to USD 5,000 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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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%)