MIRA
INFORM REPORT
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Report Date : |
26.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
WUHAN BRIGHT
CHEMICAL Co., Ltd. |
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Registered Office : |
Rm 1203,
Shangheju, No. 34, Northern Jianghan Road, Hankou District, Wuhan, Hubei Province,
430014 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
January 17, 2006 |
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Com. Reg. No.: |
420102000006822 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling various kinds of 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 4,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
WUHAN BRIGHT
CHEMICAL Co., Ltd.
RM 1203, SHANGHEJU, NO. 34, NORTHERN JIANGHAN
ROAD,
HANKOU DISTRICT, WUHAN, HUBEI PROVINCE, 430014
PR CHINA.
TEL: 86 (0) 27-85803473
FAX: 86 (0) 27-85804899
EXECUTIVE SUMMARY
INCORPORATION DATE : JANUARY 17, 2006
REGISTRATION NO. : 420102000006822
REGISTERED LEGAL FORM :
LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 15
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE : TRADING
TURNOVER : CNY 1,280,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 303,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 4,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.40 = 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
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 January 17, 2006.
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 chemicals (excluding hazardous products),
mechanical equipment, office supplies, garments, cosmetics and jewellery;
importing and exporting goods and technology.
SC is mainly
engaged in selling various kinds of chemicals.
Mr. Xu Julin has been legal representative and chairman of SC since
2006.
SC is
known to have approx. 15 staff members at present.
SC is
currently operating at the above stated address, and this
address houses its operating office in the commercial zone of Wuhan. Our checks
reveal that SC rents the total premise about 90 square meters.
http://www.whbright.net The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
Email: wuhanbright@yahoo.com.cn
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xu Julin 32.5
Zhu Chuanbin 32.5
Zhang Aiying 25
Li Ji 10
l
Legal representative and chairman:
Mr. Xu Julin, in his 60’s with high school
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working in SC as chairman and legal representative.
l
Vice-general manager:
Ms. Zhang Aiying, 35 years old with university
education. She is currently responsible for the daily management of SC.
Working Experience(s):
From 2006 to present Working in SC as vice-general manager.
SC is mainly engaged in selling various kinds of chemicals.
SC’s products
mainly include organic fluoro-containing chemicals, inorganic fluoro-containing
chemicals, electroplating additives, chemical intermediates for Ni plating,
chemical intermediates for Zn plating, and cryogen, etc.
SC sources its materials 100%
from domestic market. SC sells 5% of its products in domestic market, and 95%
to overseas market, mainly Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
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.
China
Construction Bank Wuhan Branch Jinmao Office
AC#：42001865408059000043
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
159 |
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Inventory |
20 |
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Accounts
receivable |
23 |
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Advances to
suppliers |
0 |
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Other
receivables |
143 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
345 |
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Fixed assets |
20 |
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Fixed assets net
value |
20 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
365 |
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Short loans |
0 |
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Accounts payable |
60 |
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Other payable |
0 |
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Other current
liabilities |
2 |
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Current
liabilities |
62 |
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Long term
liabilities |
0 |
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Total
liabilities |
62 |
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Equities |
303 |
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Total
liabilities & equities |
365 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
1,280 |
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Cost of goods
sold |
1,010 |
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Sales expense |
210 |
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Management expense |
39 |
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Finance expense |
17 |
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Profit before tax |
4 |
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Less: profit tax |
1 |
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Profits |
3 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
5.56 |
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*Quick ratio |
5.24 |
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*Liabilities
to assets |
0.17 |
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*Net profit
margin (%) |
0.23 |
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*Return on total
assets (%) |
0.82 |
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*Inventory
/Turnover ×365 |
6 days |
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*Accounts
receivable/Turnover ×365 |
7 days |
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*Turnover/Total
assets |
3.51 |
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* Cost of
goods sold/Turnover |
0.79 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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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 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 low.
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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 a short history. A credit
line up to USD 4,000 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. |
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%)