MIRA
INFORM REPORT
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Report Date : |
19.10.2007 |
IDENTIFICATION DETAILS
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Name : |
SHANXI LINYI XIANGYU CHEMICAL INDUSTRIAL CO., LTD. |
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Registered Office : |
Fengxi Industry Zone, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
24.10.2002 |
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Com. Reg. No.: |
1427241000365 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Engaged in Manufacturing various Chemical Raw Materials. |
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 : |
USD 50,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No complaints |
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Litigation : |
Clear |
NAME & ADDRESS
SHANXI LINYI XIANGYU
CHEMICAL INDUSTRIAL CO., LTD.
Fengxi industry zone, linyi county, yuncheng city
TEL: 86 (0) 359-4062361
FAX: 86 (0) 359-4062750
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT. 24, 2002
REGISTRATION NO. :
1427241000365
REGISTERED LEGAL FORM : LIMITED
LIABILITIES CO.
CHIEF EXECUTIVE :
MR. CHEN YONGGANG (CHAIRMAN)
STAFF STRENGTH :
350
REGISTERED CAPITAL : CNY 46,800,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 76,580,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 25,590,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 7.51 =US1$
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s concrete name should be the above stated one, instead of given one Shanxi Xiangyu Chemical Industrial Co., Ltd.
SC was registered as a limited liabilities co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Oct.
24, 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 manufacturing and selling DSD acid and other chemical raw materials
SC is mainly engaged in manufacturing various chemical raw materials.
Mr. Chen Yonggang has been chairman of SC since 2002.
SC is known to have approx. 350 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 Linyi county. Our checks reveal that SC owns the total premise about 42,000 square meters.
http://www.xiangyuchem.com The design is professional and the content is well organized. At present it is both in Chinese and English versions.
E-mail: xiangyu@xiangyuchem.com
SC was approved as a "hi-tech chemical enterprise of
MAIN SHAREHOLDERS:
Name Investment (’000) % of Shareholding
Chen Yonggang 44,000 94.02
Ning Xiao 2,800 5.98
Chairman:
Mr. Chen Yonggang in his
Working Experience(s):
From 2002 to present Working in SC as chairman.
General Manager:
Mr. Wang Xukui ,in his
Working Experience(s):
From 2002 to present Working in SC as general manager.
SC is mainly engaged in manufacturing various chemical raw
materials.
SC’s products mainly include: DSD acid (4,4'-Diamino-stilbene-2,2'-disulphonic acid), p-Nitrotoluene-2-sulfonic acid, 4,4'-Dinitro-stilbene-2,2'-disulphonic acid, Tobias acid (2-Aminonaphthalene-1-Sulfonic acid ), 2-Aminonaphthalene-1,5-disulfonic acid, Antioxidant 4020(6PPD), and N-Phenyl-P-Phenylenediamine (RT Base), etc.
The annual output of DSD acid, Tobias acid, and MPD have reached to 5,000 tons, 5,000 tons, and 3,000 tons respectively.
SC sources its materials 100% from domestic market, mainly
The buying terms of SC include T/T, Check and Credit of 30-60 days. The payment terms of SC include T/T, L/C, Check and Credit of 30-60 days.
*Major Supplier:
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Tianjin Wanfa 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: A trade enquiry currently conducted with SC's supplier(s) reveal the following:
Supplier A
Products sold: dye intermediates
Date account opened: 2006
Line of credit: No comment
Terms: T/T,
credit of 15-30 days
Average monthly sales: No comment
Current balance: zero
Rating Key: 3
Any Special Comments: _______________________________________
Payment record keys :
1 = Prompt : Payment made before the credit period expires
2 = As agreed terms : Payment made upon due date
3 = Slightly slow but acceptable : Payment made 5 to 20 days beyond agreed terms
4 = Slow : Payment made 16 to 45 days beyond agreed terms
5 = Poor : Payment made over 45 days beyond agreed terms
6 = No comment : Account is newly opened & record is not yet established
Note : In some instances, payment beyond terms can be the result of disputes over merchandise, lost invoices, disputed accounts & etc.
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
AC#：14001727708050500552
Relationship:
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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Cash & bank |
8,100 |
9,980 |
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Inventory |
5,080 |
14,110 |
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Accounts receivable |
12,280 |
12,780 |
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Other Accounts receivable |
17,830 |
40,660 |
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Advances to suppliers |
0 |
0 |
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To be apportioned expense |
0 |
0 |
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Other current assets |
2,830 |
340 |
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Current assets |
46,120 |
77,870 |
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Fixed assets |
72,920 |
104,740 |
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Fixed assets net value |
51,700 |
49,600 |
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Projects under construction |
21,220 |
55,140 |
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Long term investment |
0 |
820 |
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Other assets |
0 |
50 |
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Total assets |
119,040 |
183,480 |
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Short loans |
57,760 |
77,220 |
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Accounts payable |
0 |
1,760 |
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Advance from clients |
14,960 |
0 |
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Taxes payable |
-890 |
0 |
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Other Accounts payable |
14,960 |
24,400 |
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Withdraw the expenses in advance |
0 |
0 |
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Other current liabilities |
-1,930 |
9,510 |
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Current liabilities |
84,860 |
112,890 |
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Long term liabilities |
0 |
45,000 |
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Other liabilities |
0 |
0 |
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Total liabilities |
84,860 |
157,890 |
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Equities |
34,180 |
25,590 |
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Total liabilities & equities |
119,040 |
183,480 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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Turnover |
67,480 |
76,580 |
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Cost of goods sold |
61,920 |
72,500 |
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Sales expense |
1,780 |
1,870 |
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Management expense |
2,300 |
2,890 |
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Finance expense |
5,820 |
7,320 |
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Profit before tax |
-4,790 |
-8,360 |
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Less: profit tax |
0 |
0 |
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Profits |
-4,790 |
-8,360 |
Important Ratios
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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*Current ratio |
0.54 |
0.69 |
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*Quick ratio |
0.48 |
0.56 |
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*Liabilities to assets |
0.71 |
0.86 |
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*Net profit margin (%) |
-7.10 |
-10.92 |
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*Return on total assets (%) |
-4.02 |
-4.56 |
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*Inventory /Turnover ×365 |
27 days |
67 days |
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*Accounts receivable/Turnover ×365 |
66 days |
61 days |
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*Turnover/Total assets |
0.57 |
0.42 |
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* Cost of goods sold/Turnover |
0.92 |
0.95 |
PROFITABILITY: FAIR
The turnover of SC appears average in its line, and it increased in 2006.
SC’s net profit margin is poor in 2005 and 2006.
SC’s return on total assets is poor in 2005 and 2006.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level in both years.
SC’s quick ratio is maintained in a fair level in both years.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
The short-term loans of SC appears LARGE in 2005 and 2006.
SC’s turnover is in a fair level, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial conditions. The large amount of short-term loan could be a threat to SC’s financial condition. A credit line up to USD 50,000 appears 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%)