MIRA
INFORM REPORT
|
Report Date : |
30.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
hc agrochemicals
co., ltd. |
|
|
|
|
Registered Office : |
Room 1601, No.885
Renmin Road, Shanghai, 200010 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
May 25, 2006 |
|
|
|
|
Com. Reg. No.: |
3101032004841 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Selling chemical products. |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
|
Maximum Credit Limit : |
Up To usd 30,000 |
|
|
|
|
Status : |
Small Company |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name & address
hc agrochemicals
co., ltd.
room 1601, no.885 renmin road,
shanghai, 200010 PR CHINA
TEL :
86 (0) 21-63745802
FAX :
86 (0) 21-63745808
EXECUTIVE SUMMARY
INCORPORATION DATE : May 25, 2006
REGISTRATION NO. : 3101032004841
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 19,070,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 2,210,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 30,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : AVERAGE
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.72 = US$1 AS OF 2007-4-29
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 May 25, 2006.
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 selling rubber raw materials and products, chemical raw
materials, building materials, metal products, furniture, tyre, textile raw
materials, and general merchandise, in accordance with the license.
SC is mainly
engaged in selling chemical products.
Mr. Wu Wei has
been chairman of SC since 2006.
SC owns about 10
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shanghai. Our checks reveal that SC
rents the total premise about 200 square meters.
http://hcchemical.com The design is
professional and the content is well organized. At present the web site is only
in English version.
E-mail: info@hcchemical.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wu Wei 78
Zheng Xi 22
l
Chairman and
General Manager:
Mr. Wu Wei, about 35 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in selling chemical products.
SC’s products
mainly include: insecticides, fungicides, herbicides, plant growth regulators,
chemical intermediate.
SC sources its materials 100% from domestic
market, mainly Jiangsu. SC sells 100% of its products to overseas market,
mainly Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30 days. The
payment terms of SC include T/T, L/C and Credit of 30 days.
*Major Supplier:
==============
Jiangyin Hucheng Chemical Reagent 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, 2006)
Unit: CNY’000
|
Cash & bank |
3,990 |
|
Inventory |
1,440 |
|
Accounts
receivable |
990 |
|
Other Accounts
receivable |
40 |
|
To be
apportioned expense |
0 |
|
Other current
assets |
390 |
|
|
------------------ |
|
Current assets |
6,850 |
|
Fixed assets net
value |
10 |
|
Projects under
construction |
0 |
|
Long term
investment |
0 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
6,860 |
|
|
============= |
|
Short loans |
0 |
|
Accounts payable |
3,160 |
|
Other Accounts
payable |
40 |
|
Withdraw the
expenses in advance |
0 |
|
Other current
liabilities |
1,450 |
|
|
------------------ |
|
Current
liabilities |
4,650 |
|
Long term
liabilities |
0 |
|
Other
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
4,650 |
|
Equities |
2,210 |
|
|
------------------ |
|
Total
liabilities & equities |
6,860 |
|
|
============= |
Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
|
Turnover |
19,070 |
|
Cost of goods
sold |
18,500 |
|
Sales expense |
330 |
|
Management expense |
400 |
|
Finance expense |
220 |
|
Profit before
tax |
210 |
|
Less: profit tax |
0 |
|
Profits |
210 |
Important Ratios (as of Dec. 31, 2006)
=============================
*Current ratio 1.47
*Quick ratio 1.16
*Liabilities to
assets 0.68
*Net profit
margin (%) 1.10
*Return on total
assets (%) 3.06
*Inventory
/Turnover ×365 28 days
*Accounts
receivable/Turnover ×365 19 days
*Turnover/Total
assets 2.78
* Cost of goods
sold/Turnover 0.97
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
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 an average level.
l
The accounts receivable of SC is maintained in an acceptable level.
l
SC has no short-term loan in 2006.
l
SC’s turnover is in a fairly good 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 average.
Overall financial
condition of the SC: Stable.
Established in 2006, SC has made a stable growth with satisfactory
profit. A credit line up to USD 30,000
would appear to be within SC’s capacities.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)