MIRA
INFORM REPORT
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Report Date : |
21.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
zouping county
tianxing chemical industry co., ltd. |
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Registered Office : |
Handian Industrial
Zone, Zouping County, Binzhou, Shandong Province, 256200 Pr |
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Country : |
China |
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Date of Incorporation : |
September 14, 2000 |
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Com. Reg. No.: |
3716262800187 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling chemical products. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 100,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
zouping county tianxing
chemical industry co., ltd.
handian industrial zone, zouping county,
binzhou,
shandong PROVINCE, 256200 PR CHINA
TEL : 86 (0) 543-4867099
FAX : 86 (0) 543-4867071
EXECUTIVE SUMMARY
INCORPORATION DATE : September 14, 2000
REGISTRATION NO. : 3716262800187
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
250
REGISTERED CAPITAL : CNY 38,680,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 96,370,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 57,020,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 100,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.74 = US$1 AS OF 2007-3-21
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on September 14, 2000.
Company Status: 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
scope includes manufacturing and selling decanedioic acid and esters, glycerin,
fatty acid, secondary octyl alcohol, castor oil, castor cake, nylon-11resin and byproduct, nylon
tabulation, organic stibium, ordinary superphosphate, sulfur ammonium,
exporting its products and technology; importing materials, instruments,
machinery and equipments, parts and technology needed for its production.
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Huai Jinbu has
been chairman of SC since 2000.
SC owns about 250
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 Zouping county. Our
checks reveal that SC owns the total premise about 177,540 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Huai Jinbu 89.78
Liu Wei 0.47
Huai Yumei 2.58
Binzhou Economic Development &
Investment Corporation 7.17
Chairman and
General Manager:
Mr. Huai Jinbu, 36 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
Before 2000 Worked in Zouping County 3rd Textile Factory;
From 2000 to present Working in SC as chairman and
general manager.
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products
mainly include: decanedioic acid and esters, glycerin, fatty acid, secondary octyl
alcohol, castor oil, castor cake, nylon-11resin and byproduct, nylon
tabulation, organic stibium, ordinary superphosphate, sulfur ammonium.
SC sources its materials 100% from domestic
market, mainly Shandong. SC sells 70% of its products in domestic market, and
30% to overseas market, mainly Korea, Australia and Germany.
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:
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Nanjing Hongbaoli Co., Ltd.
*Major Supplier:
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Zibo Huanhai Petrochemical Co., Ltd.
SC is
not known to have any subsidiary at present.
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.
SC’s management
declined to release its bank details.
Balance Sheet (as
of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
35,690 |
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Inventory |
33,110 |
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Accounts
receivable |
4,630 |
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Other Accounts
receivable |
10,910 |
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To be
apportioned expense |
0 |
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Other current
assets |
5,670 |
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Current assets |
90,010 |
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Fixed assets net
value |
44,060 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
9,470 |
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Total assets |
143,540 |
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Short loans |
38,970 |
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Accounts payable |
-890 |
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Other Accounts
payable |
7,380 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
2,180 |
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Current
liabilities |
47,640 |
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Long term liabilities |
35,000 |
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Other
liabilities |
3,880 |
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Total
liabilities |
86,520 |
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Equities |
57,020 |
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Total
liabilities & equities |
143,540 |
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Income Statement (as
of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
96,370 |
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Cost of goods
sold |
91,430 |
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Sales expense |
270 |
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Management expense |
1,820 |
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Finance expense |
3,310 |
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Profit before
tax |
-410 |
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Less: profit tax |
0 |
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Profits |
-410 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 1.89
*Quick ratio 1.19
*Liabilities to
assets 0.60
*Net profit
margin (%) -0.43
*Return on total
assets (%) -0.29
*Inventory
/Turnover ×365 125 days
*Accounts
receivable/Turnover ×365 18 days
*Turnover/Total
assets 0.67
* Cost of goods
sold/Turnover 0.95
PROFITABILITY:
FAIR
l
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 fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
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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.
l
The inventory of SC appears fairly large.
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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 LARGE.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. 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%)