MIRA
INFORM REPORT
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Report Date : |
26.07.2007 |
IDENTIFICATION DETAILS
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Name : |
Zhejiang Biok KP
Chemical Co., Ltd. |
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Registered Office : |
Zhongguan
Industrial Zone, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
August 15, 2003 |
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Com. Reg. No.: |
3305211061008 |
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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 : |
Up To usd 150,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
Zhejiang Biok KP
Chemical Co., Ltd.
zhongguan industrial zone,
TEL :
86 (0) 572-8409637
FAX :
86 (0) 572-8409631
EXECUTIVE SUMMARY
INCORPORATION DATE : august 15, 2003
REGISTRATION NO. : 3305211061008
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
250
REGISTERED CAPITAL : CNY 15,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 200,700,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 21,850,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
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 August 15, 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 manufacturing pmida, glyphosate, domestic commerce, exporting
its products and technology, importing machinery and equipment, materials, and
technology needed for its production, excluding the goods forbidden by the
government.
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Shen Detang
has been chairman of SC since 2003.
SC owns about 250
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 Deqing county. Our
checks reveal that SC owns the total premise about 33,000 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the local
Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Shenghua Biok Biological Co., Ltd. 51
Shanghai Kaipu Fine Chemical Co., Ltd. 49
Zhejiang Shenghua Biok Biological Co., Ltd.:
=================================
Zhejiang Shenghua Biok Biological Co., Ltd.
is one of
Shanghai Kaipu Fine Chemical Co., Ltd.:
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Shanghai K.P. Fine Chemical Co., Ltd. is a
corporation produces pesticide and some kinds of chemical stuff. It was founded
on March 1989, and the headquarter is at Rm. 603, Building 1, No. 189 West
Zhongshan Rd., Shanghai China. Its main products include:(IDA) Glyphosate 95%
tech (8000 mts per year),Glyphosate 41% IPA (15000 klits per year),Glyphosate
62% IPA (10000 mts per year) and Phosphorous acid 98% (3000 mts per year).
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Chairman:
Mr. Shen Detang, 41 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
Before 2003 Worked in Deqing County Biological Chemical Corporation as general manager;
From 2003 to present Working in SC as chairman, and also working in Zhejiang Shenghua Biok
Biological
Co., Ltd. as general manager.
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General Manager:
Mr. Chen Dongliang, about 40 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 manufacturing and selling chemical products.
SC’s products
mainly include: pmida, glyphosate
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier:
==============
Zhejiang Shenghua Biok Biological 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.
Industrial and Commercial Bank of
AC#：1205280290002454913
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
13,290 |
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Inventory |
21,260 |
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Accounts receivable |
26,980 |
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Other Accounts
receivable |
10 |
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To be
apportioned expense |
0 |
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Other current
assets |
7,520 |
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Current assets |
69,060 |
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Fixed assets net
value |
27,380 |
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Projects under
construction |
0 |
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Long term investment |
1,580 |
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Other assets |
3,210 |
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Total assets |
101,230 |
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Short loans |
27,490 |
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Accounts payable |
22,310 |
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Other Accounts
payable |
1,500 |
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Advances from
customers |
12,060 |
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Withdraw the expenses
in advance |
0 |
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Other current
liabilities |
16,020 |
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Current
liabilities |
79,380 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
79,380 |
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Equities |
21,850 |
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Total
liabilities & equities |
101,230 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
200,700 |
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Cost of goods
sold |
180,210 |
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Sales expense |
3,630 |
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Management expense |
6,280 |
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Finance expense |
3,180 |
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Profit before
tax |
8,490 |
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Less: profit tax |
3,170 |
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Profits |
5,320 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.87
*Quick ratio 0.60
*Liabilities to
assets 0.78
*Net profit
margin (%) 2.65
*Return on total
assets (%) 5.26
*Inventory
/Turnover ×365 39 days
*Accounts
receivable/Turnover ×365 49 days
*Turnover/Total
assets 1.98
* Cost of goods
sold/Turnover 0.90
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 fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair
level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is maintained in an average
level.
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The accounts receivable of SC is maintained in an
acceptable level.
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SC’s short-term loan appears LARGE.
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SC’s turnover is in an acceptable level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is fairly high.
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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.
The large amount of short loans could be a threat to SC’s financial conditions.
A credit line up to USD 150,000
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%)