MIRA
INFORM REPORT
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Report Date : |
27.07.2007 |
IDENTIFICATION DETAILS
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Name : |
zhejiang chemicals
imports & exports corporation |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
September 10, 1982 |
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Com. Reg. No.: |
3300001002428 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in importing and exporting chemical products. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 200,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
zhejiang chemicals
imports & exports corporation
NO.37
TEL :
86 (0) 571-87048515
FAX :
86 (0) 571-87046240
EXECUTIVE SUMMARY
INCORPORATION DATE : September 10, 1982
REGISTRATION NO. : 3300001002428
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
200
REGISTERED CAPITAL : cny 22,000,000
BUSINESS LINE :
IMPORTING AND EXPORTING
TURNOVER :
CNY 785,750,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 34,540,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.56 = US$1 AS OF 2007-07-26
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was reregistered as a limited liabilities company at local provincial Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on September 10, 1982.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. Its registered capital is contributed
jointly by at least two shareholders and no more than fifty. 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 scopes include selling chemical products, and importing and exporting
commodity & technology.
SC is mainly engaged
in importing and exporting chemical products.
Mr. Jiang Limin
has been chairman of SC since 1982.
SC owns 200 staff
at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Hangzhou. Our checks reveal that SC
owns the total premise about 2,816 square meters.
http://www.zhechem.com The design is
professional and the content is well organized. At present, the web is only in
English version.
E-mail: info@zhechem.com
In 2005, SC increased its registered capital from CNY 16,000,000 to the
present.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Dongfang Group Holding Co., Ltd. 38
Staff Shares 62
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Chairman and
General Manager:
Mr. Jiang Limin, 54 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1982 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in importing and exporting chemical products.
SC’s products mainly include: chemical materials, dyestuffs, and
intermediates, etc.
SC sources its materials
60% from domestic market, and 40% from overseas market. SC sells 80% of its
products in domestic market, and 20% to overseas market.
The buying terms of SC include L/C, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
SC is
known to have many holding companies at present, as follows:
Zhejiang
Guoguang Exhibition Co., Ltd.
Zhejiang
Jialilai Garment Co., Ltd.
Zhejiang
Qianqiang Biochemistry Company
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.
Bank of
AC#：4518090010028
Relationship:
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
43,940 |
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Inventory |
10,170 |
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Accounts
receivable |
94,840 |
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Other Accounts
receivable |
340 |
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Accounts payable
in advance |
8,930 |
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To be
apportioned expense |
0 |
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Other current
assets |
31,860 |
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------------------ |
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Current assets |
190,080 |
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Fixed assets |
9,920 |
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Long term
investment |
11,690 |
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Other assets |
10,390 |
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Total assets |
222,080 |
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Short loans |
0 |
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Accounts payable |
52,510 |
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Accounts receivable
in advance |
23,470 |
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Other Accounts
payable |
14,160 |
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Salaries payable |
290 |
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Welfares payable |
2,940 |
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Taxes payable |
1,660 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
69,590 |
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Current
liabilities |
164,620 |
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Long term
liabilities |
22,920 |
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Other
liabilities |
0 |
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Total
liabilities |
187,540 |
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Equities |
34,540 |
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Total
liabilities & equities |
222,080 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
785,750 |
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Cost of goods
sold |
734,250 |
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Sales expense |
24,120 |
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Management expense |
12,120 |
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Finance expense |
66,180 |
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Non-operating income |
64,050 |
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Profit before
tax |
13,130 |
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Less: profit tax |
3,920 |
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Profits |
9,210 |
Important Ratios
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As
of Dec. 31, 2005 |
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*Current ratio |
1.15 |
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*Quick ratio |
1.09 |
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*Liabilities
to assets |
0.84 |
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*Net profit
margin (%) |
1.17 |
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*Return on
total assets (%) |
4.15 |
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*Inventory
/Turnover ×365 |
5 days |
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*Accounts
receivable/Turnover ×365 |
44 days |
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*Turnover/Total
assets |
3.54 |
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*Cost of goods
sold/Turnover |
0.93 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good
in its line.
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SC’s net profit margin is acceptable.
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SC’s return on total assets is average.
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SC’s cost of goods sold is high,
comparing with its turnover.
LIQUIDITY:
AVERAGE
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The current ratio of SC is maintained
in a normal level.
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SC’s quick ratio is maintained in a
normal level.
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The inventory of SC is maintained in a
slightly large level.
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The accounts receivable of SC is
maintained in a normal level.
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SC has no short-term loan in 2005.
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SC’s turnover is in a fairly good
level, comparing with the size of its total assets.
LEVERAGE: FAIR
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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: Stable.
SC is considered medium-sized in its line with stable financial
conditions. A credit line up to USD 200,000 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%)