MIRA
INFORM REPORT
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Report Date : |
02.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
Nanjing Chivalry
Chemical Co., Ltd. |
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Registered Office : |
A1, 21/F, Shangmao
Century Plaza, No. 49, Southern Zhongshan Road, Nanjing, Jiangsu Province, 210005
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
July 10, 2002 |
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Com. Reg. No.: |
3201062304103 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in
selling fined chemicals. |
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. |
Small |
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Maximum Credit Limit : |
Up To USD 30,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
Nanjing Chivalry
Chemical Co., Ltd.
A1, 21/F, Shangmao Century Plaza, NO. 49,
SOUTHERN ZHONGSHAN ROAD, NANJING, JIANGSU PROVINCE, 210005 PR CHINA.
TEL :
86 (0) 25-86890057
FAX :
86 (0) 25-86896135
EXECUTIVE SUMMARY
INCORPORATION DATE : july 10, 2002
REGISTRATION NO. : 3201062304103
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 20
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE : TRADING
TURNOVER : CNY 13,670,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 3,050,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 30,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.47 = US1$
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
Note: the given address (A2804, Qinghua Mansion, No. 120, Hanzhong Road, Nanjing) is SC’s former address, SC’s present address should be the above stated one.
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 July 10, 2002.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. 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 CNY 30,000. 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 30% 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, importing and exporting fined chemicals (excluding
hazardous chemicals), and related consulting services.
SC is mainly
engaged in selling fined chemicals.
Ms. Zhang Hengyuan
has been legal representative and chairman of SC
since 2002.
SC is
known to have approx. 20 staff members at present.
SC is currently operating at the above stated address, and this
address houses its operating office head office in the commercial zone of
Nanjing. Our checks reveal that SC rents the total premise about 200 square
meters.
http://www.chivalrychem.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: sales@chivalrychem.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Hengyuan 50
Zhang Ji 50
l
Legal representative and chairman:
Ms. Zhang Hengyuan, ID# 320106381222204, with
high school education. She is currently responsible for the overall management
of SC.
Working Experience(s):
From 2002 to present Working in SC as chairman and legal representative.
l
General manager:
Ms. Zhang Ji, ID # 320322780420002, 29 years
old with university education. She is currently responsible for the daily management of SC.
Working Experience(s):
From 2002 to present Working in SC as general manager.
SC is mainly
engaged in selling fined chemicals.
SC’s products
mainly include herbicide, fungicide, insecticide, and so on.
SC sources its materials 60% from
domestic market, and 40% from overseas market, mainly USA and Europe. SC sells
70% of its products in domestic market, and 30% to overseas market, mainly
Southeast Asian market.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Supplier:
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Lianyungang Langyi Chemical Co., Ltd.
*Major Customer:
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Jiangsu
Flag Chemical 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.
China Merchants
Bank Nanjing Branch.
AC#：07792250682514710001
Relationship:
Normal.
The given bank account
doesn’t belong to SC. SC’s accountant Ms. Chen released that SC has no bank
account in Standard Chartered Bank Nanjing Branch.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
1,320 |
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Inventory |
70 |
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Accounts
receivable |
440 |
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Other
receivables |
930 |
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Other current
assets |
40 |
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Current assets |
2,800 |
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Fixed assets |
240 |
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Fixed assets net
value |
130 |
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Projects under
construction |
0 |
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Long term investment |
3,800 |
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Other assets |
150 |
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Total assets |
6,880 |
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Short loans |
0 |
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Accounts payable |
820 |
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Other payable |
140 |
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Welfare expenses
payable |
50 |
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Taxes payable |
1,000 |
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Dividends
payable |
1,780 |
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Other current
liabilities |
40 |
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Current
liabilities |
3,830 |
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Long term
liabilities |
0 |
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Total
liabilities |
3,830 |
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Equities |
3,050 |
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Total
liabilities & equities |
6,880 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
13,670 |
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Cost of goods
sold |
11,440 |
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Add:
Income from other operations |
2,970 |
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Sales expense |
110 |
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Management expense |
2,010 |
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Finance expense |
340 |
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Profit before
tax |
3,390 |
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Less: profit tax |
1,120 |
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Profits |
2,270 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.73 |
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*Quick ratio |
0.71 |
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*Liabilities
to assets |
0.56 |
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*Net profit
margin (%) |
16.6 |
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*Return on
total assets (%) |
33 |
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*Inventory
/Turnover ×365 |
2days |
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*Accounts
receivable/Turnover ×365 |
12days |
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*Turnover/Total
assets |
1.99 |
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* Cost of
goods sold/Turnover |
0.84 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears average in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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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 fair level.
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SC’s quick ratio is maintained in an average level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC is maintained in an average level.
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SC has no short-term loan in 2006.
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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.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered small-sized in its line with stable financial
conditions. Over the past 5 years, SC has made a steady growth with fairly good
profit. A credit line up to USD 30,000 would appear to be within SC’s
capacities.
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. |
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%)