MIRA
INFORM REPORT
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Report Date : |
13.09.2007 |
IDENTIFICATION DETAILS
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Name : |
CHENGDU HUARONG CHEMICAL 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 : |
Sep. 8, 2000 |
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Com. Reg. No.: |
002573 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Engaged
in manufacturing high-quality potassium hydroxide. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
CHENGDU HUARONG CHEMICAL CO., LTD.
611933PR
TEL : 0086- 28-83800329
FAX : 0086-
28-83802951
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEP. 8, 2000
REGISTRATION NO. :
002573
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE
CHIEF EXECUTIVE :
MR. HUANG DAIYUN (CHAIRMAN)
STAFF STRENGTH :
1,000
REGISTERED CAPITAL :
US$ 12,800,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 634,994,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 225,680,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.52350=US1$
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 Sep.8, 2000.
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 producing and selling KOH and
other chemicals domestically and overseas, researching, developing, producing
and selling new products relevant to KOH, providing technical advisory and
after-sale services for its products, developing other business operations
including transporting, storing and producing raw materials, importing and
exporting equipment and accessories.
SC is
mainly engaged in manufacturing high-quality potassium hydroxide.
Mr.
Huang Daiyun has been legal representative and chairman of SC since 2007.
SC is known to have approx. 1,000 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
Pengzhou. Our checks reveal that SC owns the total premise about 55,000 square
meters.
http://www.cnchccl.com
The design is professional and the content is
well organized. At present it is both in Chinese and English versions.
E-Mail: sales@cnchccl.com
Changes of SC’s registration information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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Shareholders |
Sichuan South Hope Co., Ltd, Chengdu Chemicals Co., Ltd,
IFC, Sichuan New Hope Agriculture Co., Ltd |
IFC, Sichuan South Hope Co., Ltd, Sichuan New Hope Agriculture
Co., Ltd, New Hope Group Co., Ltd |
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Shareholders |
IFC, Sichuan South Hope Co., Ltd, Sichuan New Hope
Agriculture Co., Ltd, New Hope Group Co., Ltd |
IFC, Sichuan South Hope Co., Ltd, New Hope Group Co., Ltd |
MAIN SHAREHOLDERS:
Name %
of Shareholding
IFC
25
l
Legal
representative and
chairman:
Mr. Huang Daiyun, in his
overall management of SC.
Working Experience(s):
From Apr.20, 2007 to present Working in SC as chairman and legal representative.
l
General manager:
Mr. Shen Ming, born in 1958, with university education. He
is currently responsible for the daily management of SC.
Working Experience(s):
From Mar.5, 2007 to present Working in SC as general manager.
SC is
mainly engaged in manufacturing high-quality potassium hydroxide.
SC’s products mainly include: potassium hydroxide, PVC,
sodium hydroxide, TSP, sodium formate and diammonium phosphate.
SC sources its materials 80% from domestic market and 20%
from the overseas market. SC sells 60% of its products to overseas market, mainly
The buying terms of SC include Check, L/C, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, and Credit of 30-60
days.
Brand: Huarong
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 & Commercial Bank of
AC#：4402223009024201008
Relationship:
Financial Summary
Unit: CNY’000
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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Total
assets |
531,872 |
555,574 |
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Current
liabilities |
213,997 |
152,312 |
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Long
term liabilities |
127,724 |
177,582 |
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Total
liabilities |
341,721 |
329,894 |
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Equities |
190,151 |
225,680 |
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Total
liabilities & equities |
531,872 |
555,574 |
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Turnover |
517,124 |
634,994 |
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Profit tax |
21,880 |
30,840 |
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Profits |
31,776 |
36,597 |
Important Ratios
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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*Liabilities
to assets |
0.64 |
0.59 |
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*Net
profit margin (%) |
6.14 |
5.76 |
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*Return
on total assets (%) |
5.97 |
6.59 |
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*Turnover/Total
assets |
0.97 |
1.14 |
Overall financial
condition of the SC: Stable.
SC is considered a medium-sized company in its line with stable financial
conditions. A credit line up to USD1,500,000 would appear to be within SC’s
capacities
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%)