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MIRA
INFORM REPORT
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Report Date : |
7th March, 2007 |
IDENTIFICATION
DETAILS
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Name : |
Ciba Specialty
Chemicals (China) Ltd. |
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Registered Office : |
No.281 Fasai Road, Waigaoqiao Free Trade Zone, Pudong District, Shanghai,
202131 Pr China. |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
26.10.1993 |
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Com. Reg. No.: |
036613 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in investment in the fields of chemistry, health care,
industry and agriculture; 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 : |
USD 1,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
Company Name & Address
Ciba Specialty Chemicals (China) Ltd.
no.281 fasai road,
waigaoqiao free trade zone, pudong district, shanghai, 202131 PR CHINA.
TEL : 86 (0) 21-24032193
FAX : 86 (0) 21-24032750
EXECUTIVE SUMMARY
INCORPORATION DATE : october 26, 1993
REGISTRATION NO. : 036613
REGISTERED LEGAL FORM : Wholly foreign-owned
enterprise
STAFF STRENGTH :
300
REGISTERED CAPITAL : usd 120,000,000
BUSINESS LINE :
trading and INVESTMENT
TURNOVER :
CNY 721,540,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 904,760,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 1,000,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
CNY7.75 = US$1 AS OF 2007-3-6
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
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Note: SC’s correct name should be the above stated one, instead of the given name – Ciba Specialty Chemicals (Shanghai) Ltd.
SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on October 26, 1993.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investors may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered
business scope includes investment in the fields of chemistry, health care, industry
and agriculture; also dealing with international trade.
SC is mainly
engaged in investment in the fields of chemistry, health care, industry and
agriculture; and selling chemical products.
Mr. KUNO KOHLER
has been chairman of SC since 1993.
SC owns about 300
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the free trade zone of Shanghai. Our checks reveal that SC
owns the total premise about 500 square meters.
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SC is not known to host web site of its own at present.
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No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
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MAIN SHAREHOLDERS:
Name %
of Shareholding
(Switzerland) Ciba Specialty Chemicals Ltd. 100
Website: http://www.cibasc.com
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Chairman and CEO:
Mr. KUNO KOHLER (Swiss), about 55 years old with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 1993 to present Working
in SC as chairman and CEO.
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SC is mainly
engaged in investment in the fields of chemistry, health care, industry and
agriculture; and selling chemical products.
SC’s products
mainly include: Fine Chemicals.
SC sources its materials 20% from domestic
market, and 80% from overseas market, mainly Europe. SC sells 100% of its
products in domestic market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T and Credit of 30-60 days.
*Major Supplier:
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(Switzerland) Ciba Specialty Chemicals Ltd.
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Ciba Specialty Chemicals (China) Ltd. Beijing
Branch
Ciba Specialty Chemicals (China) Ltd. Shanghai
Branch
Ciba Specialty Chemicals (China) Ltd. Kunming Branch
Ciba Specialty Chemicals (China) Ltd. Chengdu Branch
Ciba Specialty Chemicals (China) Ltd. Xiamen Branch
Ciba Specialty Chemicals (China) Ltd. Guangzhou
Branch
Ciba Specialty Chemicals (Suzhou) Co., Ltd.
Ciba Specialty Chemicals (Xiamen) Lanheng Environmental
Protection Co., Ltd.
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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.
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SC’s management
declined to release its bank details.
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Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
92,230 |
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Inventory |
18,250 |
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Accounts
receivable |
155,180 |
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Other Accounts
receivable |
61,470 |
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To be
apportioned expense |
0 |
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Other current
assets |
13,380 |
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------------------ |
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Current assets |
340,510 |
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Fixed assets net
value |
100,260 |
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Deferrable
assets |
45,070 |
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Long term
investment |
952,970 |
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Other assets |
980 |
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Total assets |
1,439,790 |
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Short loans |
0 |
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Accounts payable |
111,040 |
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Other Accounts
payable |
19,290 |
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Notes payable |
214,850 |
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Withdraw the
expenses in advance |
14,360 |
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Other current
liabilities |
6,510 |
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Current
liabilities |
366,050 |
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Long term
liabilities |
168,980 |
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Other
liabilities |
0 |
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Total
liabilities |
535,030 |
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Equities |
904,760 |
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Total
liabilities & equities |
1,439,790 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
721,540 |
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Cost of goods
sold |
566,880 |
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Sales expense |
37,910 |
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Management expense |
140,020 |
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Finance expense |
5,360 |
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Profit before
tax |
-23,460 |
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Less: profit tax |
5,240 |
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Profits |
-28,700 |
Important Ratios (as of Dec. 31, 2005)
*Current ratio 0.93
*Quick ratio 0.88
*Liabilities to
assets 0.37
*Net profit
margin (%) -3.98
*Return on total
assets (%) -1.99
*Inventory
/Turnover ×365 9 days
*Accounts
receivable/Turnover ×365 78 days
*Turnover/Total
assets 0.50
* Cost of goods
sold/Turnover 0.79
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PROFITABILITY:
FAIR
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The turnover of SC appears average 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 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 an average level.
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The accounts receivable of SC appears fairly large.
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SC has no short-term loan in 2005.
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SC’s turnover is in an acceptable level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY
GOOD
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The debt ratio of SC is fairly low.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
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SC is considered medium-sized in its line with fairly stable financial
conditions. 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%)