MIRA
INFORM REPORT
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Report Date : |
24.10.2007 |
IDENTIFICATION DETAILS
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Name : |
NANYANG START
FINE CHEMICAL CO., LTD. |
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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 : |
May 4,
1999. |
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Com. Reg. No.: |
4113001000422 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in manufacturing chemical 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/normal. |
Small |
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Status : |
Moderate
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
Name & address
NANYANG
START FINE CHEMICAL CO., LTD.
TEL: 86
(0) 377-63918025
FAX: 86
(0) 377-63915653
EXECUTIVE SUMMARY
INCORPORATION DATE :
may 4, 1999.
REGISTRATION NO. :
4113001000422
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
60
REGISTERED CAPITAL :
CNY5,000,000
BUSINESS LINE :
manufacuring
TURNOVER :
CNY 3,470,000 (AS OF DEC. 31,
2005)
EQUITIES :
CNY 3,810,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
fair
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.93 = US$1 AS OF 2006-09-21
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (The official body of issuing and
renewing business license) on May 4, 1999.
Company Status: Limited liabilities co. This form of
business in PR China is defined as a legal person. At least two shareholders
and no more than fifty 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 listed as follows: -Manufacturing
co. : CNY 500,000.00 -Trading
&wholesaling co. : CNY 500,000.00 -Retailing co. : CNY 300,000.00 -Consultancy &
service co. : CNY 100,000.00 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 50% of the registered capital
while contribution by intangible assets must not exceed 20% 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 various kinds of chemical materials.
SC is mainly engaged in
manufacturing chemical materials.
Mr. Lv Huaiyuan has been chairman
of SC since 1999.
SC owns about 60 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 Nanyang. Our checks
reveal that SC owns the total premise about 3,000 square meters.
http://www.startchem.com The design is
professional and the content is well organized. At present it is both in
Chinese and English versions.
E-mail: nystart@public.nyptt.ha.cn
No
significant events or changes were found during our checks with the local
Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Nanyang Nitrogenous
Fertilizer Factory
73
Lv Huaiyuan
2
Other individuals
25
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Nanyang Nitrogenous
Fertilizer Factory
Address:
Tel: 0377-3915210
Fax: 0377-3915655
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Chairman:
Mr. Lv
Huaiyuan (吕怀远), in his 40’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1999 to present Working in SC as chairman.
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General Manager:
Mr. Hu
Xinhong, in his 40’s with university education. He is currently responsible for
the daily management of SC.
Working Experience(s):
From 1999 to present
Working in SC as general
manager.
SC is mainly engaged in
manufacturing chemical materials
SC’s products mainly include: Dimethyl
Disulfide, Methanesulfonyl Chloride, Methanesulfonic acid, Sodium
methanesulfonate, etc.
SC sources its materials 100%
from domestic market, mainly from
The buying terms of SC include
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 Supplier:
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Nanyang Xinwang Chlorine
Chemical Co., Ltd.
Address:
Tel: 0337-63050708
*Major Customer:
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Zhejiang
Chemicals Import & Export Co., Ltd.
Address: No.37,
Tel:
0571-87048515
Fax:
0571-87046240
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.
Industrial and
Commercial Bank Youtian Branch
AC#1714028509021002873
Relationship:
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
50 |
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Inventory |
4,620 |
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Accounts receivable |
360 |
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Other Accounts receivable |
2,560 |
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Accounts payable in advance |
70 |
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To be apportioned expense |
300 |
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Other current assets |
290 |
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Current assets |
8,250 |
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Fixed assets |
3,410 |
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Long term investment |
0 |
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Other assets |
210 |
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Total assets |
11,870 |
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Short loans |
2,500 |
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Accounts payable |
830 |
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Accounts receivable in advance |
3,620 |
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Other Accounts payable |
520 |
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Salaries payable |
0 |
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Welfares payable |
170 |
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Taxes payable |
18 |
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Withdraw the expenses in
advance |
370 |
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Other current liabilities |
32 |
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Current liabilities |
8,060 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
8,060 |
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Equities |
3,810 |
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Total liabilities &
equities |
11,870 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
3,470 |
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Cost of goods sold |
3,410 |
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Sales expense |
200 |
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Management expense |
190 |
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Finance expense |
0 |
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Profit before tax |
-330 |
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Less: profit tax |
0 |
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Profits |
-330 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 1.02
*Quick ratio 0.45
*Liabilities to
assets 0.68
*Net profit
margin (%) -9.51%
*Return on total
assets (%) -2.78%
*Inventory
/Turnover ×365 486 days
*Accounts
receivable/Turnover ×365 38 days
*Turnover/Total
assets 0.29
* Cost of goods
sold/Turnover 0.98
PROFITABILITY: FAIR
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The turnover of SC appears fair in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: FAIR
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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 poor level.
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The inventory of SC appears TOO LARGE.
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The accounts receivable of SC is maintained in an acceptable level.
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The short-term loan of SC appears LARGE.
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SC’s turnover is in a fair level, comparing with the size of
its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is normal.
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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 amounts of inventory and short-term loan could be threats 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/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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