MIRA
INFORM REPORT
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Report Date : |
15.10.2007 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU SUNSHINE CHEMICALS CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
May 13, 1993 |
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Com. Reg. No.: |
000996 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Engaged in 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. |
Small |
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Maximum Credit Limit : |
Up To usd 10,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
HANGZHOU SUNSHINE CHEMICALS CO., LTD.
TEL : 86 (0)
571-88524388
FAX : 86 (0) 571-88524618
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 13, 1993
REGISTRATION NO. : 000996
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE
STAFF STRENGTH :
70
REGISTERED CAPITAL : USD 800,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 4,010,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 2,240,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : fair
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.50= US$1
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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 13, 1993.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of capital
investment. The investing parties exercise business management, share
profits and bear all risks and liabilities of the co. together. The equity
joint venture law requires that foreign party contribute not less than 25%
of the registered capital, with no maximum. The investing parties are free
to agree on method of profit distribution and liabilities bearing according
to the proportion of capital investment. Each investing parties contributes
funds, tangible assets, technology & etc. The board of directors
excises the high authority. The joint venture usually has a limited
duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing dye and chemical
accessory ingredients.
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Xu Xiaohong
has been chairman of SC since 1993.
SC is known
to have approx. 70 staff members 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 Hangzhou Our checks
reveal that SC owns the total premise about 8,500 square meters.
http://www.aciddyes.com The design
is professional and the content is well organized. At present it is in both
Chinese and English versions.
Email: lvgy@aciddyes.com
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xu Xiaohong 40
l
Chairman and
General Manager:
Mr. Xu Xiaohong, in his
Working Experience(s):
From 1993 to present Working
in SC as chairman and general manager.
l
Sales Manager:
Mr. Ji Ping, in his
Working Experience(s):
From 2005 to present Working in SC as sales manager.
SC is mainly engaged
in manufacturing and selling chemical products.
SC’s products
mainly include: acid dye, pigment dispersions and special chemicals
Other Acid
Dyestuffs
Levat® range
Levat® PA
range
Intermedicate
Pigment
dispersions
SC sources its
materials 80% from domestic market, and 20% from the overseas market, mainly
European countries. SC sells 30% of its products in domestic market, and 70% to
the overseas market, mainly American and European countries.
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 Client:
===========
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 refused to release any information of its suppliers
and the trade reference was not available.
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.
Bank of
AC#：710308009301308091001
Relationship:
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2006 |
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Cash & bank |
60 |
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Advances to suppliers |
0 |
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Accounts receivable |
240 |
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Inventory |
1,000 |
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Other receivables |
0 |
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Other current assets |
600 |
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Current assets |
1,900 |
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Fixed assets net value |
5,280 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
400 |
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Total assets |
7,580 |
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Short loans |
4,900 |
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Accounts payable |
330 |
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Advances from clients |
0 |
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Taxes payable |
0 |
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Salaries payable |
0 |
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Other payable |
0 |
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Other current liabilities |
110 |
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Current liabilities |
5,340 |
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Long term liabilities |
0 |
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Total liabilities |
5,340 |
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Equities |
2,240 |
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Total liabilities & equities |
7,580 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
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Turnover |
4,010 |
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Cost of goods
sold |
3,250 |
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Sales expense |
680 |
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Management expense |
140 |
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Finance expense |
60 |
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Profit before
tax |
-120 |
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Less: profit tax |
0 |
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Profits |
-120 |
Important Ratios
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2006 |
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*Current ratio |
0.36 |
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*Quick ratio |
0.17 |
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*Liabilities
to assets |
0.70 |
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*Net profit
margin (%) |
-2.99 |
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*Return on
total assets (%) |
-1.58 |
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*Fixed
assets/Total assets |
0.70 |
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*Inventory
/Turnover ×365 |
91days |
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*Accounts
receivable/Turnover ×365 |
22days |
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*Turnover/Total
assets |
0.53 |
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* Cost of
goods sold/Turnover |
0.81 |
PROFITABILITY:
FAIR
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The turnover of SC appears fair in 2006.
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SC’s net profit margin is fair in 2006.
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SC’s return on total assets is fair in 2006.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a poor
level in 2006.
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SC’s quick ratio is maintained in a poor level in
2006.
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The accounts receivable of SC is average.
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The inventory of SC is fairly large.
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The short loans are LARGE.
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SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: Fair
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
The large amount of short loans could be a threat to SC’s financial condition.
A credit line up to USD 10,000 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%)