MIRA
INFORM REPORT
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Report Date : |
05.06.2007 |
IDENTIFICATION DETAILS
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Name : |
CHINA CHEM CO., LTD. |
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Registered Office : |
Building 4 District 7, Hepingli, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jan. 4, 2001 |
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Com. Reg. No.: |
1000001003489 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
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 1,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
CHINA CHEM CO., LTD.
BUILDING 4 DISTRICT 7, HEPINGLI,
TEL : 86 (0) 10-84250926
FAX : 86 (0) 10-84250744
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 4, 2001
REGISTRATION NO. : 1000001003489
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
95
REGISTERED CAPITAL : CNY 188,998,669
BUSINESS LINE :
TRADING
TURNOVER :
cny 2,755,200,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 296,860,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.69= US$1 AS OF 2007-5-17
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 shares limited company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jan. 4, 2001.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The characteristics of the
shares limited co. are as follows: The establishment of the co.
requires at least five promoters and at least three of them must be PR-
China controlled legal persons. Natural person can not be allowed to serve
as promoters. The minimum registered capital
of a co. is CNY 10M. while that of the co. with foreign investment is CNY
30M. The total capital of a co. which propose to apply for publicly listed
must not less than CNY 50M. The board of directors must
consist of an odd number of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within three
years of the offer. Directors can not transfer the shares they hold in the
co. during their terms of office. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes sodium cyanide, potassuim
cyanide, methyl isocyanate, toluene-2,4-diisocyanate, 2-acrylonitrile, hexafluoroacetylacetone,
isobutyronitrile, compressed gas, liquid gas, oxidizer, organic peroxide,
inflammable solid, pyrophorus, flammable liquid, toxicant, violent in toxicity;
importing and exporting various goods; storage and transportation.
SC is mainly
engaged in selling chemical products.
Mr. Zhou Dechun
has been chairman of SC since 2001.
SC owns about 95
staff.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Beijing. Our checks reveal that SC
owns the total premise about 5,000 square meters.
http://www.chinachem.com.cn The design is professional and the content is
well organized. At present it is in both English and Chinese versions.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
China National Chemical Supply & Sales
North China Corp. 1.06
==========================================
BUILDING 4 DISTRICT 7, HEPINGLI,
TEL: 86 (0)
10-84250926
FAX: 86 (0) 10-84250744
China National Chemical Supply & Sales
North China Corp.
Tel: 86 22 23011031
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Chairman:
Mr. Zhou Dechun in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working
in SC as chairman.
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General Manager:
Mr. Liang Qingzhi in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2001 to present Working
in SC as general manager.
SC is mainly
engaged in selling chemical products.
SC’s Products mainly include:
Basic chemicals
Toluene, xlyene, styrene, pta, ox, benzene, solvent oil, pa,
Tetrahydro pa, pnitrotoluene, o-dichlorobenzene,
Alkylbenzene, naphthalene, phenol, o-cresol, m-cresol,
2,2-bis(4-hydroxyphenyl)-propane,methanol,
Tert-butyl alcohol, n-butyl alcohol, octanol,
N-propylalcohol, isopropyl alcohol, 1,4-butanediol,teg,
Ethylene glycol, diethylene glycol,
O-toluidine, diethylenetriamine and its derivatives,
Meaand its derivatives, dmf, ethylenediamine,
N-propionaldehyde, paraformaldehyde, glyoxal,
Cyclohexanone,mibk,acetone，mek
Lauric acid，pia，gaa，acetic anhydride,
Acrylic and its derivatives, dop, dbp,
Acetate and its derivatives, tdi
Fine chemicals
Benzofuranol, isomylen, ortho-secondary-butyphenol,
Ortho-iso-propylphenol, ethyl mercaptan,
Calcium dodecyl benzene sulfonate, becisthemic acid,
Textile processing agent, pigment, indigo powder,
Catalyst, ech, acrylonitrile, cyanuric chloride,
Methyl isopropyl ketone (mipk)
Inorganic chemicals
Titanium dioxide, silicon dioxide, sulphur ores,
Copper ores, nickel ores, cobalt ores, chromium ores,
Iron ores, sulfuric acid, sodium cyanide, potassium cyanide,
Sulfate, organic tin
Rubber
Sbr, br, iir, vp-latex, caprolactum, nr, latex, ciir, cr, nbr,
Hs, epdm, rubber additive
Plastics
Lldpe, ldpe, hdpe
Others
Steel, tapioca, wood and pulp, coconut oil,
Coconut shell fiber, furniture, sports goods
SC has the perfect logistics facilities in areas such as
There are four warehouses with 200,000m at
SC sources its
materials 80% from domestic market and 20% from the overseas markets mainly
from
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 Client:
============
SC is
known to have branches in
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 refused to release any information of its
suppliers and the trade reference was not available.
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.
Agriculture Bank of
AC#：23010140008086
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
84,430 |
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Accounts payable
advance |
100,160 |
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Accounts
receivable |
68,090 |
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Inventory |
29,250 |
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Other
receivables |
527,290 |
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Other current
assets |
327,190 |
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Current assets |
1,136,410 |
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Fixed assets net
value |
5,450 |
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Projects under
construction |
0 |
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Long term
investment |
14,750 |
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Other assets |
290 |
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Total assets |
1,156,900 |
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Short loans |
115,000 |
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Accounts payable |
405,020 |
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Accounts
receivable advance |
76,900 |
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Taxes payable |
-9,230 |
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Salaries payable |
0 |
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Other payable |
5,630 |
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Other current
liabilities |
266,720 |
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Current
liabilities |
860,040 |
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Long term
liabilities |
0 |
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Total
liabilities |
860,040 |
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Equities |
296,860 |
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Total
liabilities & equities |
1,156,900 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
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Turnover |
2,755,200 |
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Cost of goods
sold |
2,648,370 |
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Sales expense |
7,700 |
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Management expense |
44,180 |
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Finance expense |
3,870 |
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Profit before
tax |
1,280 |
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Less: profit tax |
0 |
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Profits |
1,280 |
Important Ratios
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2006 |
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*Current ratio |
1.32 |
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*Quick ratio |
1.29 |
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*Liabilities
to assets |
0.74 |
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*Net profit
margin (%) |
0.05 |
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*Return on
total assets (%) |
0.11 |
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*Fixed
assets/Total assets |
0.005 |
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*Inventory
/Turnover ×365 |
4days |
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*Accounts
receivable/Turnover ×365 |
9days |
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*Turnover/Total
assets |
2.38 |
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* Cost of
goods sold/Turnover |
0.96 |
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 fair.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: FAIRLY
GOOD
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The current ratio of SC is maintained in a fairly
good level in 2006.
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SC’s quick ratio is maintained in a fairly good
level in 2006.
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The accounts receivable of SC is average.
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The inventory of SC is average.
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The short loans of SC appear fairly large.
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SC’s turnover is in a fairly good 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 favorable market
conditions. Over the past 6 years, SC has made a stable growth with acceptable
profit. A credit line up to USD 1,000,000 would appear to be within SC’s
capacities upon a periodical review basis.
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%)