MIRA
INFORM REPORT
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Report Date : |
21.06.2007 |
IDENTIFICATION DETAILS
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Name : |
tianjin great wall
chemicals Co., ltd |
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Registered Office : |
East Side Of
Xiliucheng, Zhang Jia Wo Town, Xiqing District |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
Feb. 8, 1990 |
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Com. Reg. No.: |
1201112005453 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and
selling all kinds of chemical materials. |
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 : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
tianjin great wall
chemicals Co., ltd
EAST side of xiliucheng, zhang jia wo town,
xiqing district
TEL: 86 (0) 22-87985971
FAX: 86 (0) 22-87983835
EXECUTIVE
SUMMARY
INCORPORATION DATE : feb. 8, 1990.
REGISTRATION NO. : 1201112005453
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
156
REGISTERED CAPITAL : rmb 8,000,000
BUSINESS LINE :
manufacturing
TURNOVER : RMB 86,677,000 (AS OF DEC. 31, 2005)
EQUITIES : RMB 33,976,000 (AS OF DEC. 31, 2005)
PAYMENT : average
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : RMB 7.6199= US$1 AS OF
2007-06-21
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
RMB -
SC was registered as a limited liabilities company at local Administration for Industry
& Commerce (The official body of issuing and renewing business license) on Feb. 8, 1990.
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 scopes include and manufacturing and managing
dyestuff, dye intermediate, Tobias acid, J acid, 2-Naphthol, Scarlet acid, and
Sulpho Tobias Acid; freight (operation with transportation management permit);
importing and exporting commodities and technologies.
SC is
mainly engaged in manufacturing and selling all kinds of chemical materials.
Mr.
Zhang Fuqiang has been chairman of SC since 2005.
SC owns about 156
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 Tianjin. Our checks
reveal that SC rents the total premise about 200,000 square
meters.
SC is
not known to host web site of its own at present.
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2005-04 |
Legal Form |
Collective-Owned |
Limited Liabilities Company |
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2005-04 |
Company Name |
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2005-04 |
Registration Number |
1201111005359 |
1201112005453 |
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2005-04 |
Main Shareholders |
Tianjin Xiqing Zhangjiawo Industrial Company |
Wang Yongguo Zhan Xiuchen Zhang Fugui Zhang Fuqiang Zhang Caiyun |
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Unspecified |
Legal representative |
Mr. Zhang Fugui |
Mr. Zhang Fugui |
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Unspecified |
registered capital |
CNY 1,000,000 |
CNY 8,000,000 |
MAIN SHAREHOLDERS:
Name
% of Shareholding
Wang Yongguo 1.5
Zhan Xiuchen 12.35
Zhang Fugui 60
Zhang Fuqiang 15.65
Zhang Caiyun 10.5
l
Chairman
and General Manager
Mr. Zhang Fugui, in his 30’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working in SC as chairman and general manager.
SC is mainly
engaged in manufacturing and selling all kinds of chemical materials.
SC’s products
mainly include: Tobias
Acid, and 2-Hydroxynaphthalene, etc.
SC’s
brand is “Lantun”.
SC
manufactures about 14,400 tons of Tobias Acid, and 31,200 tons of
2-Hydroxynaphthalene per year.
SC sources its
materials 95% from domestic market, mainly in
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 15-30 days.
*Major supplier:
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Fengyi Tianjin Chemical Co., Ltd.
*Major customer:
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SC is
known to have 2 subsidiaries, as follows:
Tel:022-87985971
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 declined to
release any information of its suppliers and the trade reference is 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.
Agricultural
Bank
AC#：020601040001886
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 |
3,722 |
3,458 |
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Inventory |
5,266 |
6,800 |
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Accounts
receivable |
37,282 |
52,727 |
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Notes receivable |
3,937 |
9,848 |
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Advances to
supplies |
0 |
0 |
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Other
receivables |
5,956 |
1,461 |
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Prepaid expenses |
208 |
0 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
56,371 |
74,294 |
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Fixed assets |
58,886 |
58,289 |
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Fixed assets net
value |
16,879 |
12,602 |
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Projects under
construction |
0 |
48 |
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Disposal of
fixed assets |
0 |
16 |
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Long-term
investments |
15,000 |
17,000 |
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Intangible and
other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
88,250 |
103,960 |
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============= |
============= |
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Short loans |
64,580 |
48,147 |
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Accounts payable |
5,910 |
16,095 |
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Other Accounts
payable |
0 |
4,422 |
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Accrued payroll |
683 |
842 |
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Taxes payable |
-2,515 |
-316 |
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Welfares payable |
648 |
794 |
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Accrued expenses |
662 |
0 |
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Advances from
customers |
0 |
0 |
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Other
current liabilities |
0 |
0 |
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----------------- |
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Current
liabilities |
69,968 |
69,984 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
69,968 |
69,984 |
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Shareholders
equities |
18,282 |
33,976 |
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------------------ |
------------------ |
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Total
liabilities & equities |
88,250 |
103,960 |
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============= |
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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 |
93,582 |
86,677 |
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Cost of goods
sold |
90,932 |
79,589 |
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Sales expense |
0 |
100 |
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Management expense |
2,588 |
6,168 |
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Finance expense |
13 |
0 |
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Operation Profit |
-13 |
932 |
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Less: profit tax |
171 |
292 |
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Net profit |
-184 |
640 |
Important Ratios
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as of Dec. 31,
2004 |
as of Dec. 31,
2005 |
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*Current ratio |
0.81 |
1.06 |
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*Quick ratio |
0.73 |
0.96 |
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*Liabilities
to assets |
0.79 |
0.67 |
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*Net profit
margin (%) |
-0.2 |
0.74 |
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*Return on
total assets (%) |
-0.21 |
0.62 |
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*Inventory
/Turnover ×365 |
21 days |
29 days |
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*Accounts
receivable/Turnover ×365 |
145 days |
222 days |
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*Turnover/Total
assets |
1.06 |
0.83 |
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* Cost of
goods sold/Turnover |
0.97 |
0.92 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in
its line.
l
SC’s net profit margin is acceptable, and there was
an improvement in 2005.
l
SC’s return on total assets is acceptable, and there
was an improvement in 2005.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in a normal
level.
l
The accounts receivable of SC appears TOO LARGE.
l
The short-term loan of SC appears TOO
LARGE.
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SC’s turnover is in an average level,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fairly stable.
SC is
considered small-sized in its line with fairly stable financial conditions. The
large amount of accounts receivable and short loans could be a threat to SC’s
financial condition. A credit line up to USD 100,000 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%)