MIRA
INFORM REPORT
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Report Date : |
18.09.2007 |
IDENTIFICATION DETAILS
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Name : |
HEXION UV COATING ( |
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Registered Office : |
Mansion 1, No.1
East Kangqiao Road, Kangqiao High Tech Zone, Nanhui District, Shanghai, 201315
Pr |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
March 18, 2004 |
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Com. Reg. No.: |
035432 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Engaged in manufacturing and selling kinds of fiber coating; color
ink, and resin |
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 : |
Up To USD 600,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
HEXION UV COATING (
mansion 1, no.1
nanhui district,
TEL: 86 (0) 21-58139935/58139890/58139703
FAX: 86 (0) 21-58139702
EXECUTIVE SUMMARY
INCORPORATION DATE : MARCH 18, 2004
REGISTRATION NO. : 035432
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
STAFF STRENGTH :
45
REGISTERED CAPITAL : USD 500,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 125,710,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 64,550,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly GOOD
OPERATIONAL TREND : UPWARD
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 former name was BORDEN UV COATING (SHANGHAI) CO., LTD. and it adopted its present name in Jul., 2007.
SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Mar. 18, 2004.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered
business scope includes manufacturing kinds of UV curable coating and providing
related technical consultation, selling its products. (In accordance with the
license)
SC is mainly
engaged in manufacturing and selling kinds of fiber coating; color ink, and
resin with the brand of “Borden”.
Mr. Elliot K.
Fullen has been chairman of SC since 2004.
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 high tech zone of Shanghai. Our checks
reveal that SC rents the total premise about 1,800 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our
checks with the local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
HK Hexion UV Coatings Holdings (
B.V.I. Prime Union Ltd. 50
Note: HK Borden UV Coatings Holdings (
l
Legal representative and chairman:
Mr. Elliot K. Fullen, American, in his
Working Experience(s):
From 2004 to present Working in SC as chairman and legal representative.
l
Sales manager:
Mr. Li Xiaofei, in his
Working Experience(s):
From 2004 to present Working in SC as sales manager.
*Officials:
=======
Name Title
Joseph bevilaqua Director
Kyle lorezen Director
Robin F. Viogt Director
Zhu Yongping Director
SC is mainly
engaged in manufacturing and selling kinds of fiber coating; color ink, and
resin with the brand of “Borden”.
SC’s products mainly including: optical
fiber be paint printing ink, optical fiber cobweb coating, optical fiber resin
and cover fiber coating, etc.
SC sources its materials 20% from domestic
market, and 80% from overseas market. SC sells 50% of its products in domestic
market, and 50% to overseas market, mainly Southeast Asian market.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Client:
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Corning Shanghai Fiber
Optics Co., Ltd.
*Major Supplier:
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Sartomer 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#：12015108092014
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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Cash & bank |
1,141 |
17,483 |
31,380 |
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Bills receivable |
0 |
6,367 |
0 |
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Accounts
receivable |
3,891 |
23,561 |
36,640 |
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Other
receivables |
4 |
442 |
210 |
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Advances to
suppliers |
808 |
191 |
20 |
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Inventory |
3,294 |
5,453 |
7,330 |
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Other current
assets |
66 |
40 |
15,000 |
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------------------ |
------------------ |
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Current assets |
9,204 |
53,537 |
90,580 |
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Fixed assets net
value |
1,832 |
4,247 |
4,370 |
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Projects under
construction |
0 |
0 |
0 |
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Long term
investment |
0 |
0 |
0 |
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Other assets |
295 |
264 |
130 |
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Total assets |
11,331 |
58,048 |
95,080 |
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Short loans |
0 |
0 |
0 |
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Accounts payable |
6,304 |
26,160 |
23,500 |
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Advances from
clients |
126 |
0 |
0 |
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Salaries payable |
45 |
453 |
0 |
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Taxes payable |
106 |
1,954 |
820 |
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Other payable |
0 |
5,979 |
5,950 |
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Other current
liabilities |
0 |
0 |
260 |
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Current
liabilities |
6,581 |
34,546 |
30,530 |
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Long term
liabilities |
0 |
0 |
0 |
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Total
liabilities |
6,581 |
34,546 |
30,530 |
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Equities |
4,750 |
23,502 |
64,550 |
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Total
liabilities & equities |
11,331 |
58,048 |
95,080 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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Turnover |
4,346 |
68,140 |
125,710 |
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Cost of goods
sold |
2,692 |
38,364 |
75,910 |
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Sales expense |
205 |
7,481 |
4,070 |
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Management expense |
690 |
3,349 |
3,790 |
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Finance expense |
8 |
194 |
860 |
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Profit before
tax |
751 |
18,752 |
41,040 |
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Less: profit tax |
140 |
0 |
0 |
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Profits |
611 |
18,752 |
41,040 |
Important Ratios
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2004 |
2005 |
2006 |
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*Current ratio |
1.40 |
1.55 |
2.97 |
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*Quick ratio |
0.90 |
1.39 |
2.73 |
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*Liabilities
to assets |
0.58 |
0.60 |
0.32 |
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*Net profit
margin (%) |
14.06 |
27.52 |
32.65 |
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*Return on
total assets (%) |
5.39 |
32.30 |
43.16 |
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*Fixed
assets/Total assets |
0.17 |
0.08 |
0.05 |
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*Inventory
/Turnover ×365 |
277days |
29days |
21days |
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*Accounts
receivable/Turnover ×365 |
327days |
126days |
106days |
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*Turnover/Total
assets |
0.38 |
1.17 |
1.32 |
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* Cost of
goods sold/Turnover |
0.62 |
0.56 |
0.60 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line
in 2006, and it increased in the last 3 years.
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SC’s net profit margin is fairly good in 2005 and
2006.
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SC’s return on total assets is fairly good in 2005
and 2006.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal
level in 2004 and 2005, and fairly good in 2006.
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SC’s quick ratio of SC is maintained in a normal
level in 2004 and 2005, and fairly good in 2006.
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The inventory of SC is maintained in an average
level.
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The accounts receivable of SC is maintained in a
fairly large level.
l
SC’s turnover is in an average level in 2006,
comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low in 2006.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly good.
SC is considered small-sized in its line with fairly good financial conditions.
A credit line up to USD 600,000 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%)