MIRA
INFORM REPORT
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Report Date : |
01.06.2007 |
IDENTIFICATION DETAILS
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Name : |
BENGBU HAIXIN
CHEMICAL Co., Ltd. |
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Registered Office : |
Xiaobengbu, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
December 5, 1999 |
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Com. Reg. No.: |
3403002300019 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Research, manufacture
and trade of the intermediates of pharmaceuticals, dyes, food additives as
well as household chemicals. |
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 100,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
BENGBU HAIXIN
CHEMICAL Co., Ltd.
xiaobengbu,
TEL :
86 (0) 552-2080072
FAX :
86 (0) 552-2050070
EXECUTIVE SUMMARY
INCORPORATION DATE : december 5, 1999
REGISTRATION NO. : 3403002300019
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 200
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 108,574,000 (AS OF DEC. 31, 2005)
EQUITIES : CNY 32,326,000 (AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.82=US1$ AS OF 2006-12-28
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 December 5, 1999.
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 manufacturing dangerous
chemical products; importing and exporting various goods and technologies,
excluding those prohibited or limited by the government.
SC is mainly
engaged in manufacturing and selling chemicals.
Mr. Xie Fengxiang has been legal representative and chairman of SC since
1999.
SC owns approximately 200 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 Bengbu.
Our checks reveal that SC rents the total premise about 10,000 square meters.
http://www.haixinchem.com.cn/ The design is professional and the content is
well organized. At present it is both in Chinese and English version.
Email: sales@hisuns.com
SC’s former shareholders were Xie Fengxiang and
Hang Faying, and in July 2005, SC’s shareholders were changed to the present
ones.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hang Faying 51
Xie Fengxiang 39
Hang Yong 5
Wang Bin 5
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Legal representative and General manager:
Mr.
Working Experience(s):
From 1999 to present Working in SC as chairman and general manager.
SC specializes in
research, manufacture and trade of the intermediates of pharmaceuticals, dyes,
food additives as well as household chemicals.
SC’s products
mainly include: 4-aminoanisole, 2-aminoanisole, 2-nitroanisole, 2,4
dinitrochlorobenzene, 2,4-dinitroaniline, p-phenylenediamine,
3,4-dichloronitrobenzene, sodium thiosulfate , 2-nitrophenol etc.
SC sources its materials 40%
from domestic market, and 60% from overseas market, mainly
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
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.
SC’s management
declined to release its bank details.
Balance Sheet (as of
Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
17,882 |
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Inventory |
18,465 |
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Accounts
receivable |
14,987 |
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Notes receivable |
1,571 |
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Advances to
suppliers |
22,547 |
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Other
receivables |
789 |
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Other current
assets |
20 |
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Current assets |
76,261 |
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Fixed assets |
16,933 |
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Fixed assets net
value |
11,408 |
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Projects under
construction |
137 |
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Long term
investment |
0 |
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Other assets |
17,228 |
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Total assets |
105,034 |
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Short loans |
0 |
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Notes payable |
17,548 |
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Accounts payable |
27,299 |
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Advances from
customers |
2,798 |
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Other payable |
-24 |
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Taxes unpaid |
886 |
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Welfares payable |
592 |
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Other current
liabilities |
35 |
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Current liabilities |
49,134 |
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Long term
liabilities |
23,574 |
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Total
liabilities |
72,708 |
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Equities |
32,326 |
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Total
liabilities & equities |
105,034 |
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Income Statement (as
of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
108,574 |
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Cost of goods
sold |
95,811 |
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Sales expense |
3,518 |
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Management expense |
5,209 |
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Finance expense |
840 |
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Profit before
tax |
2,316 |
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Less: profit tax |
835 |
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Profits |
1,481 |
Important Ratios
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as
of Dec. 31, 2005 |
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*Current ratio |
1.55 |
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*Quick ratio |
1.18 |
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*Liabilities
to assets |
0.69 |
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*Net profit
margin (%) |
1.36 |
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*Return on
total assets (%) |
1.41 |
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*Fixed assets/Total
assets |
0.11 |
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*Inventory
/Turnover ×365 |
17days |
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*Accounts
receivable/Turnover ×365 |
14days |
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*Turnover/Total
assets |
1.03 |
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* Cost of
goods sold/Turnover |
0.88 |
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 average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is average, 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 normal
level.
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The accounts receivable of SC is maintained in an
acceptable level.
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SC has no short loans, but its long-term loan
appears fairly 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 average.
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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 100,000 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%)