MIRA
INFORM REPORT
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Report Date : |
13.06.2007 |
IDENTIFICATION DETAILS
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Name : |
CHANGSHU WANXING CHEMICAL CO., LTD |
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Registered Office : |
188, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
26.09.1994 |
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Com. Reg. No.: |
000232 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Manufacturing and
selling different sorts of pharmaceutical & 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 : |
US$ 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
CHANGSHU WANXING CHEMICAL Co., Ltd.
188,
TEL: 86 (0) 512-52300501
FAX: 86 (0) 512-52300500
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEPTEMBER 26, 1994
REGISTRATION NO. :
000232
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE
STAFF STRENGTH :
200
REGISTERED CAPITAL :
US$ 3,207,300
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 213,818,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 102,149,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM.
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : FAIRLY GOOD
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.63 = US1$ AS
OF 2007-6-13
SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on September 26, 1994.
Chinese-foreign equity joint venture enterprise this form
of business in PR China is defined as a legal person. It is a limited co.
jointly invested by one or more foreign companies and one or more PR China
controlled companies within the territories of PR China according to a
certain proportion of capital investment. The investing parties exercise
business management, share profits and bear all risks and liabilities of
the co. together. The equity joint venture law requires that foreign party
contribute not less than 25% of the registered capital, with no maximum.
The joint venture usually have a limited duration of 10 to 50 years.
Enterprise with large investment, long construction periods, low investment
returns, introducing of advanced technology & advanced technology
products which have good competition position in international market may
extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing iminodibenzyl, carbamazepine,
6.8-dichloro ethyl caprylate, alpha lipoic acid and so on medical raw materials
and intermediates, and selling its self-made products.
SC is mainly
engaged in manufacturing and selling different sorts of pharmaceutical & chemical products.
Mr. Zou Zhenrong has been legal representative and chairman of SC since
1994.
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 Changshu. Our checks reveal that
SC owns the total premise about 19,800 square meters.
http://www.wxchem.com/ The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
Email: wxinfo@wxchem.com
SC has past the certificates of ISO9001, ISO 14001 and ISO 18001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Man Hing
Trading & Investment Co. PTY
Technology
Sourcing International Company
Legal representative & General
manager:
Mr.
Working
Experience(s):
From 1994
to present Working in SC as general manager and legal representative.
President:
Mr. Jin Guansheng, ID # 320520195006291516, 57 years old with high school
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 1994 to present
Working in SC as president.
SC is mainly engaged
in manufacturing and selling different sorts of pharmaceutical & chemical
products.
SC’s products mainly
include Alpha Lipoic Acid (or Thioctic Acid), R (+) Alpha Lipoic Acid (d-Form),
Thioctamide, 6,8-Dichloro Ethyl Caprylate, Iminodibenzyl, Iminostilbene
Carbonyl Chloride, 3-Bromophthalide, etc.
SC sources its
materials 80% from domestic market, and 20% from overseas market. SC sells 10%
of its products in domestic market, and 90% to 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.
Major Suppliers
Zhangjiagang Free
Trade Zone Tohope Trade Co., Ltd.
Changshu Yamei
Chemical Co., Ltd.
Major Customers
Anhui
Fengyuan Import & Export Co.
SC has invested in the
following companies:
Registration No.: 3205812107309
Registration
No.: 007366
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#：320581608250796
Relationship:
Balance Sheet
Unit:
CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31,2005 |
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Cash & bank |
4,459 |
2,957 |
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Inventory |
16,005 |
7,288 |
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Accounts receivable |
25,722 |
47,122 |
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Advances to supplies |
5,870 |
16 |
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Prepaid expenses |
0 |
0 |
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Notes receivable |
0 |
0 |
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Other receivables |
24,877 |
60,750 |
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Other current assets |
0 |
0 |
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-------------- |
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Current assets |
76,933 |
118,133 |
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Fixed assets |
16,220 |
38,115 |
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Fixed assets net value |
13,211 |
33,402 |
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Projects under construction |
5,256 |
1,315 |
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Long-term investments |
14,730 |
7,730 |
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Intangible and other assets |
6,501 |
7,900 |
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Total assets |
116,631 |
168,480 |
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============= |
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Short loans |
5,000 |
0 |
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Accounts payable |
19,421 |
39,143 |
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Notes payable |
0 |
0 |
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Other Accounts payable |
459 |
506 |
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Taxes payable |
-1,079 |
-331 |
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Dividends receivable |
19,992 |
8,505 |
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Accrued payroll |
739 |
942 |
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Welfare expenses payable |
2,883 |
2,837 |
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Advances from customers |
285 |
4,885 |
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Accrued expenses |
4,907 |
9,844 |
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Other current liabilities |
0 |
0 |
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Current liabilities |
52,607 |
66,331 |
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Long term liabilities |
0 |
0 |
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Total liabilities |
52,607 |
66,331 |
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Equities |
64,024 |
102,149 |
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Total liabilities & equities |
116,631 |
168,480 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
80,603 |
213,818 |
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Cost of goods sold |
62,835 |
161,096 |
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Sales expense |
1,504 |
4,101 |
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Management expense |
1,440 |
4,267 |
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Finance expense |
131 |
2,356 |
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Profit before tax |
16,131 |
42,525 |
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Less: profit tax |
1,924 |
5,103 |
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Profits |
14,207 |
37,422 |
Important Ratios
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2004 |
2005 |
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*Current ratio |
1.46 |
1.78 |
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*Quick ratio |
1.16 |
1.67 |
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*Liabilities to assets |
0.45 |
0.39 |
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*Net profit margin (%) |
17.6 |
17.5 |
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*Return on total assets (%) |
12.2 |
22.2 |
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*Inventory /Turnover ×365 |
72 days |
12 days |
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*Accounts receivable/Turnover ×365 |
116 days |
80 days |
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*Turnover/Total assets |
0.69 |
1.27 |
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* Cost of goods sold/Turnover |
0.78 |
0.75 |
PROFITABILITY: FAIRLY GOOD
l
The
turnover of SC appears fairly good, and there was a great increase in 2005.
l
SC’s net
profit margin is good.
l
SC’s return
on total assets is good, and there was a great increase in 2005.
l
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIRLY GOOD
l
The
current ratio of SC is maintained in a normal level, and there was an increase
in 2005.
l
SC’s
quick ratio is maintained in a fairly good level, and there was an increase in
2005.
l
The
inventory of SC is maintained in an average level.
l
The
accounts receivable of SC appears acceptable.
l
SC’s
short-term loan is in an average level.
l
SC’s
turnover is in a fairly good level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY GOOD
l
The debt
ratio of SC is average.
l
The risk
for SC to go bankrupt is low.
Overall financial condition of the SC: Fairly
good.
Over the past 13
years, SC has made a stable growth with satisfactory profit. A credit line up
to US$ 1,000,000 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%)