MIRA
INFORM REPORT
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Report Date : |
30.10.2007 |
IDENTIFICATION
DETAILS
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Name : |
NANYANG START FINE CHEMICAL CO., LTD. |
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Registered Office : |
Guanzhuang Town, Wancheng District, Nanyang, Henan
Province, 473131 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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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 and operating methanol, fluoride and
methane sulfonic acid series 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 20,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
NANYANG START FINE CHEMICAL CO., LTD.
GUANZHUANG TOWN, WANCHENG DISTRICT, NANYANG,
HENAN PROVINCE, 473131 PR CHINA
TEL : 0086-377-63918025
FAX :
0086-377-63915653
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAY 4, 1999
REGISTRATION NO. :
4113001000422
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. LV HUAIYUAN (CHAIRMAN)
STAFF STRENGTH :
45
REGISTERED CAPITAL :
CNY 5,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 2,250,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 3,710,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 20,000 (PERIODICAL REVIEW)
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.47480=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 co. at local Administration for Industry
& Commerce (AIC - 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. 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 chemical
products (excluding flammable, explosive, precursor chemicals and other dangerous
articles), importing and exporting commodities and technology,
excluding the items limited or forbidden by the state
SC is
mainly engaged in manufacturing and operating methanol, fluoride and methane sulfonic acid series products.
Mr. Lv
Huaiyuan has been legal representative and chairman of SC since 1999.
SC is known to have approx. 45 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
Nanyang. Our checks reveal that SC rents the total premise about 5,000 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 and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Nanyang Nitrogenous Fertilizer
Factory 73
11 Staff members
27
(Li Yunheng, Bai Lanchao, Niu
Ziduan, Wang Chonglan, Hu Guoyin, Shi Jianqiang, Chang Le, Lv Huaiyuan, Chen
Baodong, Zhang Zongzhang, Zhang Mingjiu)
l
Legal representative and chairman:
Mr. Lv Huaiyuan, born in 1957, 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 and legal representative.
l
General manager:
Mr. Hu Hongxin, in his 38 years old, 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 and operating methanol, fluoride and methane sulfonic acid series products.
SC’s products mainly include: dimethyl disulfide, methanesulfonyl chloride, methanesulfonic acid, sodium methanesulfonate, lead methanesulfonate, tin methanesulfonate and dimethyl sulfide.
SC sources its materials 100% from domestic market. SC sells 40% of its products to overseas market, mainly in Europe and America, and 60% in domestic market.
The buying terms of SC include Check, L/C, T/T and Credit of
15-30 days. The payment terms of SC include Check, T/T, and Credit of 15-30
days.
*Major Suppliers*
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Hejian Sanxin Chemicals Co., Ltd.
*Major Customers*
==============
Varsal Chemical (Tangshan) 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: dimethyl disulfide
Date account opened: 2005
Line of credit: N/A
Terms: T/T,
Credit of 15-30 days
Average monthly sales: CNY 500,000 – CNY 600,000
Current balance: No comments
Rating Key: 2
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.
Agriculture Bank of China Wancheng District Sub-branch
AC#：16-704501040001550
Relationship:
Normal.
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 |
50 |
100 |
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Bills
receivable |
0 |
0 |
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Accounts
receivable |
360 |
480 |
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Other
receivables |
2,560 |
1,460 |
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Advances to
suppliers |
360 |
380 |
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Inventory |
4,620 |
4,990 |
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Prepaid expenses |
300 |
300 |
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Other
current assets |
0 |
0 |
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------------------ |
------------------ |
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Current
assets |
8,250 |
7,710 |
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Fixed assets |
3,410 |
3,410 |
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Fixed
assets net value |
3,410 |
3,410 |
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Projects
under construction |
0 |
0 |
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Long
term investment |
0 |
0 |
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Other
assets |
210 |
210 |
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------------------ |
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Total
assets |
11,870 |
11,330 |
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============= |
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Short
loans |
2,510 |
2,510 |
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Bills
payable |
20 |
0 |
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Accounts
payable |
830 |
490 |
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Welfare
payable |
160 |
160 |
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Advances from
clients |
3,630 |
3,650 |
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Accrued
payroll |
0 |
0 |
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Tax
payable |
20 |
-90 |
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Other
payable |
530 |
540 |
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Accrued expenses |
360 |
360 |
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Other
current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
8,060 |
7,620 |
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Long
term liabilities |
0 |
0 |
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Total
liabilities |
8,060 |
7,620 |
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Equities |
3,810 |
3,710 |
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Total
liabilities & equities |
11,870 |
11,330 |
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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 |
3,470 |
2,250 |
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Cost of goods
sold |
3,400 |
2,200 |
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Sales expense |
200 |
60 |
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Management expense |
190 |
100 |
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Finance expense |
0 |
0 |
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Profit before
tax |
-330 |
-110 |
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Less: profit tax |
0 |
0 |
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Profits |
-330 |
-110 |
Important Ratios
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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*Current ratio |
1.02 |
1.01 |
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*Quick ratio |
0.45 |
0.36 |
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*Liabilities
to assets |
0.68 |
0.67 |
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*Net profit
margin (%) |
-9.51 |
-4.89 |
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*Return on
total assets (%) |
-2.78 |
-0.97 |
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*Fixed
assets/Total assets |
0.29 |
0.30 |
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*Inventory
/Turnover ×365 |
486 days |
810 days |
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*Accounts
receivable/Turnover ×365 |
38 days |
78 days |
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*Turnover/Total
assets |
0.29 |
0.20 |
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* Cost of
goods sold/Turnover |
0.98 |
0.98 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line, and it
decreased in 2006.
l
SC’s net profit margin is fair, and it increased in 2006.
l
SC’s return on total assets is fair, and it increased in
2006.
l
SC’s cost of goods sold is high, comparing with its turnover,
which makes the net profit negative.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a fair level in 2005 and
in a poor level in 2006.
l
The inventory conversion period of SC appears too long.
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The accounts receivable of SC appears average.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in a fair level, comparing with the size of
its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall
financial condition of the SC: Fair.
SC is considered small-sized in its line with fair financial
conditions. The large amount of inventory could be a threat to SC’s financial condition.
A credit line up to USD 20,000 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%)