MIRA
INFORM REPORT
|
Report Date : |
01.04.2008 |
IDENTIFICATION
DETAILS
|
Name : |
XINYU CHEMICAL PLANT ZHANGJIAGANG CITY |
|
|
|
|
Registered Office : |
Communication New Village, Leyu Town,
Zhangjiagang, Jiangsu Province, 215623 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
28.12.1988 |
|
|
|
|
Com. Reg. No.: |
3205821100457 |
|
|
|
|
Legal Form : |
Shares Jointly Owned Enterprise |
|
|
|
|
Line of Business : |
Manufacturing and Selling Pharmaceutical Intermediates |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
Maximum Credit Limit : |
USD 7,000 |
|
|
|
|
Status : |
Small Company |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
XINYU CHEMICAL PLANT ZHANGJIAGANG CITY
COMMUNICATION NEW
VILLAGE, LEYU TOWN,
ZHANGJIAGANG,
JIANGSU PROVINCE, 215623 PR CHINA.
TEL: 86 (0) 512-58646118 FAX: 86 (0) 512- 58644181
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 28, 1988
REGISTRATION NO. : 3205821100457
REGISTERED LEGAL FORM : SHARES
JOINTLY OWNED ENTERPRISE
STAFF STRENGTH : 50
REGISTERED CAPITAL : CNY 280,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 21,826,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 1,035,000 (AS OF DEC. 31,
2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 7,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.0124 = US$ 1
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 shares jointly owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on December 28, 1988.
Company Status: Shares
jointly owned enterprise This form of business in PR
China is defined as a legal person whose registered capital is mostly or
wholly raised by the staff members of the enterprise. Its shareholders
consist of at least 8 staff members, and the staff members that are not
shareholders should be less than 10% of the total staff members.
It operates as a cooperative, under democratic management, paying
salaries according to the achievements of staff members and distributing
its profit according the shares owned.
SC’s
registered business scope includes manufacturing and selling dye stuff, paint,
pharmaceutical intermediates (carnitine series); importing and exporting commodities and technologies (excluding
the items prohibited by the state).
SC is mainly
engaged in manufacturing and selling pharmaceutical intermediates.
Mr.
Shi Zhenxiang has been legal
representative and chairman of SC since 2002.
SC is known to have approx. 50 employees 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
Zhangjiagnag. SC’s accountant refused to release detailed information of the
premise.
http://www.xinyuchemical.com/
The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shi Zhenxiang 51.8
Yin Xiaolong 24.1
Zhu Jianhua 9.92
Fan Lijuan 2.47
Zhu Jianrong 1.79
Shi Lijun 3.57
Gu Zhenyu 2.83
Zhu Jianhua 3.52
l
Legal representative and chairman:
Mr. Shi Zhenxiang , ID # 320521550308641. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 2002 to present Working
in SC as chairman and legal representative.
SC is mainly
engaged in manufacturing and selling pharmaceutical intermediates.
Main Products:
Intermediates of Clopidogrel: DL-(2-Chlorophenyl)glycine,
S(+)-2-Chlorophenlyglycine
Methyl-(+)-(2-Chlorophenyl)glycinate HCl, DL-2-Chloromandelic
Acid, R-2-Chloromandelic Acid, etc.
Atorvastatin calcium and Intermediates:
DL-Ethyl-4-chloro-3-hydroxybutanoate, S-(-)-Ethyl-4-chloro-3-hydroxybutanoate,
R(+)-Ethyl-4-chloro-3-hydroxybutanoate, etc.
Dapoxetine and Intermediates: S-3-amino-3-phenylpropanoic
acid ethyl ester, (R)-3-Amino-3-phenylpropionic acid,
(S)-3-Amino-3-phenylpropionic acid, etc.
Intermediates of Rosuvastatin: S-(-)-4-chloro-3-hydorxy
butyronitrile, S-(-)-Ethyl-4-chloro-3-hydroxybutanoate, etc.
Intermediates of Aprepitant: L-(4-Fluorophenyl)glycine
Pharmaceutical Intermediates: DL-(4-chlorophenyl)glycine,
2-Chloropropenenitrle, Cyanopinacolone,
etc.
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 80% of its
products in domestic market, and 20% to overseas 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.
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.
China Construction Bank Zhangjiagang Zhaofeng Banking Office.
AC#32201986276059568688
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
|
Cash & bank |
322 |
|
Notes receivable |
20 |
|
Inventory |
1,311 |
|
Accounts
receivable |
1,067 |
|
Advances to
suppliers |
0 |
|
Other
receivables |
300 |
|
Prepaid expenses |
89 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
3,109 |
|
Fixed assets |
3,669 |
|
Fixed assets net
value |
2,782 |
|
Projects under
construction |
648 |
|
Long term
investment |
0 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
6,539 |
|
|
============= |
|
Short loans |
2,144 |
|
Accounts payable |
2,680 |
|
Advances from
customers |
0 |
|
Accrued payroll |
0 |
|
Welfare expenses
payable |
476 |
|
Taxes payable |
-67 |
|
Other payable |
271 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
5,504 |
|
Long term liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
5,504 |
|
Equities |
1,035 |
|
|
------------------ |
|
Total
liabilities & equities |
6,539 |
|
|
============= |
Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
|
Turnover |
21,826 |
|
Cost of goods
sold |
20,202 |
|
Taxes
and additional of main operation |
72 |
|
Income
from other operations |
272 |
|
Sales expense |
392 |
|
Management expense |
904 |
|
Finance expense |
123 |
|
Profit before
tax |
404 |
|
Less: profit tax |
133 |
|
Profits |
271 |
Important Ratios
=============
|
|
as
of Dec. 31, 2006 |
|
*Current ratio |
0.56 |
|
*Quick ratio |
0.33 |
|
*Liabilities
to assets |
0.84 |
|
*Net profit
margin (%) |
1.24 |
|
*Return on
total assets (%) |
4.14 |
|
*Inventory
/Turnover ×365 |
22 days |
|
*Accounts
receivable/Turnover ×365 |
18 days |
|
*Turnover/Total
assets |
3.34 |
|
* Cost of
goods sold/Turnover |
0.93 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is maintained in an average level.
l
The accounts receivable of SC is maintained in an average level.
l
SC’s short-term loan appears large.
l
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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: Fairly stable.
SC is considered small-sized in its line with a long history. The large
amount of short loans could be a threat to SC’s financial condition. A credit
line up to USD 7,000 would appear to be within SC’s capacities upon a
periodical review basis.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)