MIRA
INFORM REPORT
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Report Date : |
17.09.2007 |
IDENTIFICATION DETAILS
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Name : |
CHONGQING NANSONG CHEMI-TECH LTD. |
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Registered Office : |
No. 58, Naxigou, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
26.09.1997 |
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Com. Reg. No.: |
5001081840371 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing of Medical Intermediates |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 300,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME & ADDRESS
CHONGQING NANSONG CHEMI-TECH LTD.
No. 58, Naxigou,
TEL: 86 (0) 23-63884994
FAX: 86 (0) 23-63884993
EXECUTIVE SUMMARY
INCORPORATION DATE : sep. 26, 1997
REGISTRATION NO. :
5001081840371
REGISTERED LEGAL FORM : LIMITED
LIABILITIES CO.
CHIEF EXECUTIVE :
MR. HE XIANDUI (CHAIRMAN)
STAFF STRENGTH :
240
REGISTERED CAPITAL : CNY 5,040,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 50,970,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 22,210,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 7.52 =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 address should be the above stated one, while the
given one is the address of SC’s sales department.
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 Sep. 26, 1997
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 medical intermediates; technical consulting services of drugs production; exporting its products and relevant technology; importing raw materials, machinery, apparatus and instruments, components, and relevant technology; processing with imported materials, processing with imported samples, assemblying with imported parts, and compensation trade in agreement.
SC is mainly engaged in manufacturing medical intermediates.
Mr. He Xiandui has been chairman of SC since 1997.
SC is known to have approx. 240 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 Chongqing. Our checks reveal that SC rents the total premise about 12,000 square meters.
http://www.chemi-tech.com The design is professional and the content is well
organized. At present it is in both Chinese and English versions.
E-mail: hohome@chemi-tech.com
No significant events or changes were found during our checks with the local AIC.
MAIN SHAREHOLDERS:
Name Investment (’000) % of Shareholding
He Xiandui 930 18.45
He Weiguo 850 16.87
He Jianguo 790 15.67
Collective shares 740 14.68
Other Shareholders 1,730 34.33
Chairman:
Mr. He Xiandui , in his
Working Experience(s):
From 1997 to present Working in SC as chairman.
General Manager:
Mr. He Weiguo , in his
Working Experience(s):
From 1997 to present Working in SC as general manager.
SC is mainly engaged in manufacturing medical intermediates.
SC’s products mainly include: Novoldiamine, 2-(4-aminopentyl(ethyl)amino)ethanol, 5-Chloro-2-pentanone, Cyclopropyl methyl ketone, and 2-(Ethylamino) ethanol, etc.
SC sources its materials 80% from domestic market, mainly
The buying terms of SC include Check, T/T, L/C, 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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*Major Supplier:
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Chongqing Pulefei Import & Export 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: 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.
Bank of
AC#：837901524908091001
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
950 |
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Inventory |
7,180 |
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Accounts receivable |
6,200 |
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Other Accounts receivable |
3,130 |
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Advances to suppliers |
800 |
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To be apportioned expense |
0 |
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Other current assets |
970 |
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Current assets |
19,230 |
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Fixed assets |
4,820 |
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Long term investment |
0 |
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Other assets |
2,240 |
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Total assets |
26,290 |
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Short loans |
0 |
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Accounts payable |
920 |
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Advances from clients |
0 |
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Salaries payable |
0 |
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Welfares payable |
2,170 |
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Taxes payable |
800 |
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Other Accounts payable |
170 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
20 |
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Current liabilities |
4,080 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
4,080 |
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Equities |
22,210 |
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Total liabilities & equities |
26,290 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
50,970 |
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Cost of goods sold |
37,640 |
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Sales expense |
1,270 |
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Management expense |
6,380 |
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Finance expense |
480 |
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Profit before tax |
4,860 |
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Less: profit tax |
590 |
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Profits |
4,270 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 4.71
*Quick ratio 2.95
*Liabilities to assets 0.16
*Net profit margin (%) 8.38
*Return on total assets (%) 16.24
*Inventory /Turnover ×365 51 days
*Accounts receivable/Turnover ×365 44 days
*Turnover/Total assets 1.94
* Cost of goods sold/Turnover 0.74
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIRLY GOOD
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC is maintained in a normal level.
The accounts receivable of SC is maintained in a normal level.
SC has no short-term loan in 2006.
SC’s turnover is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is low.
Overall financial condition of the SC: Fairly good.
SC is considered medium-sized in its line with fairly good financial conditions. A credit line up to USD 300,000 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%)