MIRA
INFORM REPORT
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Report Date : |
12.06.2007 |
IDENTIFICATION DETAILS
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Name : |
shandong shida
shenghua 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 : |
December 31, 2002 |
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Com. Reg. No.: |
3700001807825 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
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 1,500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
shandong shida
shenghua chemical co., ltd.
no.1
TEL :
86 (0) 546-8395037
FAX :
86 (0) 546-8395371
EXECUTIVE SUMMARY
INCORPORATION DATE : december 31, 2002
REGISTRATION NO. : 3700001807825
REGISTERED LEGAL FORM : Shares limited company
STAFF STRENGTH :
470
REGISTERED CAPITAL : CNY 100,480,104
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 1,062,580,000 (AS OF DEC.
31, 2006)
EQUITIES :
CNY 233,260,000
(AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
CNY7.65= US$1 AS OF 2007-6-12
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
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 manufacturing and selling methyl carbonate, propylene glycol,
solvent oil, researching and developing petroleum chemical industry new
technology, material and products, technical service, manufacturing and selling
epoxypropane.
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Du Shoukao has
been chairman of SC since 2002.
SC owns about 470
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 Dongying. Our checks
reveal that SC owns the total premise about 330,000 square meters.
http://www.sinodmc.com The design is
professional and the content is well organized. At present the web site is both
in Chinese and English versions.
E-mail: ceo@sinodmc.com
SC has got the certificate of ISO9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shandong Shida Technology Group Co., Ltd. 24.85
Yingda International Trust & Investment
Co., Ltd. 68.97
Dongying Ruifeng Petroleum Technology
Development Co., Ltd. 1.00
Ye Zhigang 0.50
Guo Tianming 0.95
Du Shoukao 0.95
Huang Luwei 0.62
Yu Haiming 0.63
Li Taojiang 0.65
Hu Baozhi 0.50
Hu Chengyang 0.38
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Chairman:
Mr. Du Shoukao, 55 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working
in SC as chairman.
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General Manager:
Mr. Guo Tianming, 43 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2002 to present Working in SC as general manager.
SC is mainly engaged
in manufacturing and selling chemical products.
SC’s products
mainly include: Propylene oxide, Propylene dichloride, Solvent oil products,
Liquefied gas, MTBE, Propylene, Dimethyl Carbonate, Diethyl carbonate, Ethyl
methyl carbonate, Propylene Carbonate, Ethylene carbonate, Propylene glycol.
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 Customer:
==============
Shandong Shida Technology Group Co., Ltd.
SC is
known to have a branch at present:
Shandong
Shida Shenghua Chemical Co., Ltd. Kenli Branch
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.
Dongying City Commercial Bank
AC#：4003300001956
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
65,010 |
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Inventory |
71,360 |
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Accounts
receivable |
51,420 |
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Other Accounts
receivable |
146,460 |
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To be
apportioned expense |
70 |
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Other current
assets |
38,820 |
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Current assets |
373,140 |
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Fixed assets net
value |
118,920 |
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Projects under construction |
0 |
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Long term
investment |
0 |
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Other assets |
44,010 |
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Total assets |
536,070 |
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Short loans |
121,000 |
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Accounts payable |
51,160 |
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Other Accounts
payable |
31,720 |
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Advances from
customers |
110 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
98,820 |
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Current
liabilities |
302,810 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
302,810 |
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Equities |
233,260 |
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Total
liabilities & equities |
536,070 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
1,062,580 |
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Cost of goods
sold |
956,110 |
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Sales expense |
17,820 |
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Management expense |
1,500 |
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Finance expense |
3,720 |
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Profit before
tax |
78,590 |
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Less: profit tax |
12,970 |
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Profits |
65,620 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.23
*Quick ratio 1.00
*Liabilities to
assets 0.56
*Net profit
margin (%) 6.18
*Return on total
assets (%) 12.24
*Inventory
/Turnover ×365 25 days
*Accounts
receivable/Turnover ×365 18 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 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 good.
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SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIRLY
GOOD
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The current ratio of SC is maintained in a fairly
good 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 an average level.
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The accounts receivable of SC is maintained in an
acceptable level.
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The short-term loan of SC appears fairly large.
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SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is fairly low.
Overall financial
condition of the SC: Fairly good
SC is considered medium-sized in its line with fairly good financial
conditions. A credit line up to USD 1,500,000
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%)