MIRA
INFORM REPORT
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Report Date : |
24.05.2007 |
IDENTIFICATION DETAILS
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Name : |
HENGSHUI JINGHUA
CHEMICAL PLANT |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
dec. 12, 2000 |
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Com. Reg. No.: |
1311021000008 |
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Legal Form : |
Collective-Owned |
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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 : |
Unknown |
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Litigation : |
Clear |
name & address
hengshui jinghua
chemical plant
TEL :
86 (0) 318-2150958
FAX :
86 (0) 318-2159918
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 12, 2000
REGISTRATION NO. : 1311021000008
REGISTERED LEGAL FORM : collective-owned
STAFF STRENGTH :
250
REGISTERED CAPITAL : cny 30,000,000
BUSINESS LINE :
manufacturing
TURNOVER : cny 192,126,000 (AS OF DEC. 31, 2005)
EQUITIES : CNY 16,066,000
(AS OF DEC. 31, 2005)
PAYMENT :
average
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.74 = US$1 AS OF 2007-03-27
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a collective-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Dec. 12, 2000.
Company Status: Collective-owned enterprise This form of business in PR
China is defined as a legal person. It is a private held entity owned by a
set number of private individuals (usually employees of the co., residents
of a village or town ), domestic business organizations or domestic
institutions. The co. is managed by the general manager who was appointed
by the employees representative meeting.
SC’s registered
business scope includes exporting its homegrown chemical products; and
importing raw materials, accessories, machinery, apparatus and instruments,
components, and related technologies.
SC is
mainly engaged in manufacturing and selling chemical products.
Mr. Wu Guoqing 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 Hengshui. Our checks
reveal that SC rents the total premise about 105,000 square meters.
http://www.jinghuachem.net The
design is professional and the content is well organized. At present the web site
is both in Chinese and English versions.
E-mail: info@jinghuachem.net
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Hezhuang Economic Committee
100
l
Factory Director:
Mr. Wu Guoqing, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working in SC as
factory director.
l
Assistant
Director:
Mr. Jia Yuxuan, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working in SC as
assistant director.
SC is mainly
engaged in manufacturing and selling chemical
products.
SC’s products mainly include: sebacic acid, sec-octyl Alcothol, glycerin, and fatty
acid.
SC's annual output is approx. 15,000 tons of
sebacic acid (including 10,000
tons of granular sebacic acid and 5,000 tons of powder sebacic acid.)
SC’s brand is “Jinghua”
SC sources its materials 80% from domestic
market, mainly
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.
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
principals declined to release any bank information.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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Accounts
receivable |
18,740 |
18,087 |
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Current assets |
74,054 |
85,290 |
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Fixed assets |
30,015 |
35,343 |
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Total assets |
105,740 |
127,721 |
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Total
liabilities |
97,225 |
111,655 |
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Equities |
8,515 |
16,066 |
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Total
liabilities & equities |
105,740 |
127,721 |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2004 |
As of Dec. 31,
2005 |
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Turnover |
106,263 |
192,126 |
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Cost of goods
sold |
99,287 |
177,336 |
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Sales expense |
2,213 |
3,103 |
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Management expense |
4,075 |
4,027 |
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Finance expense |
5,145 |
6,448 |
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Profit before
tax |
-5,095 |
5,765 |
Important
Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
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*Quick ratio |
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*Liabilities
to assets |
0.92 |
0.87 |
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*Net profit
margin (%) |
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*Return on
total assets (%) |
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*Inventory
/Turnover ×365 |
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*Accounts
receivable/Turnover ×365 |
64 days |
34 days |
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*Turnover/Total
assets |
1.00 |
1.50 |
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* Cost of
goods sold/Turnover |
0.93 |
0.92 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good
in its line.
l
SC’s cost of goods sold is high,
comparing with its turnover.
LIQUIDITY:
AVERAGE
l
The accounts receivable of SC is maintained in a normal level.
l
SC’s turnover is in a fairly good
level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high.
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 fair 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%)