MIRA
INFORM REPORT
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Report Date : |
14.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
QINGYANG CHEMICAL INDUSTRY IMPORT & EXPORT COMPANY |
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Registered Office : |
no.10 Worker Road,
Dongjingling, Liaoyang, Liaoning
Province, 111001 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
18.05.2006 |
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Com. Reg. No.: |
2110001300122 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Selling Chemical 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 : |
usd 50,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
name & address
QINGYANG CHEMICAL INDUSTRY IMPORT & EXPORT COMPANY
no.10 worker road,
dongjingling, liaoyang,
liaoning PROVINCE,
111001 PR CHINA
TEL: 86 (0)
419-3164643 FAX: 86 (0)
419-3166888
EXECUTIVE SUMMARY
INCORPORATION DATE : may 18, 2006
REGISTRATION NO. : 2110001300122
REGISTERED LEGAL FORM : One-person Limited
Liability Company
STAFF STRENGTH :
24
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 28,060,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 4,400,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 50,000
MARKET CONDITION : average
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.00 = USD 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 one-person limited liability company
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on May 18, 2006.
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered
business scope includes importing and exporting various kinds of commodities
and technology, excluding the goods forbidden by the government.
SC is mainly
engaged in selling chemical products.
Mr. Zhang
Tingji has been chairman of SC since
2006.
SC is known to
have approx. 24 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Liaoyang. Our checks reveal that SC
rents the total premise about 200 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Qingyang Chemical Industry Corporation 100
Qingyang Chemical Industry Corporation is a
large chemical enterprise lies in the central Liaoning province, the city of
Liaoyang. Sub-companies and plants build a complex and centralized set-up of
the Corporation. There are perfect quality control program as well as a
physicochemical analyzing and testing center. Most products match up with
ISO9001 international standard. DPA, PNT, BLE, PNBA.
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Chairman and General Manager:
Mr. Zhang Tingji , about 45 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman and general manager.
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Vice General Manager:
Mr. Yang Yongjin, about 40 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2006 to present
Working in SC as vice general
manager.
SC is mainly
engaged in selling chemical products.
SC’s products
mainly include: p-nitrotoluene, DNT80/20, TNT, PETN, PETN.
SC sources its materials 100% from domestic
market, mainly Liaoning. SC sells 100% of its products to overseas market,
mainly Southeast Asian market.
The buying terms of SC include T/T and Credit of 30-60 days. The payment
terms of SC include L/C and Credit of 30-60 days.
*Major Supplier:
==============
Qingyang Chemical Industry Corporation
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:
Major
Supplier A
Products sold: Hazardous
chemicals
Date account opened: 2006
Line of credit: N/A
Terms: T/T
and Credit of 30 days
Average monthly sales: N/A
Current balance: N/A
Rating Key : 3
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.
Industrial and Commercial Bank of China Liaoyang Branch
AC#：706000120109021945
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
1,310 |
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Inventory |
0 |
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Accounts
receivable |
4,610 |
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Other Accounts
receivable |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
2,050 |
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Current assets |
7,970 |
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Fixed assets net
value |
0 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
7,970 |
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Short loans |
0 |
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Accounts payable |
3,590 |
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Other Accounts
payable |
0 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-20 |
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Current
liabilities |
3,570 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
3,570 |
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Equities |
4,400 |
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Total
liabilities & equities |
7,970 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
28,060 |
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Cost of goods
sold |
25,150 |
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Sales expense |
2,460 |
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Management expense |
910 |
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Finance expense |
250 |
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Profit before
tax |
-230 |
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Less: profit tax |
0 |
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Profits |
-230 |
Important Ratios (as of Dec. 31, 2007)
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*Current ratio 2.23
*Quick ratio 2.23
*Liabilities to
assets 0.45
*Net profit
margin (%) -0.82
*Return on total
assets (%) -2.89
*Inventory
/Turnover ×365 / days
*Accounts
receivable/Turnover ×365 60 days
*Turnover/Total
assets 3.52
* Cost of goods
sold/Turnover 0.90
PROFITABILITY:
FAIR
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The turnover of SC appears average in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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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.
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SC’s quick ratio is maintained in a fairly good level.
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SC has no inventory in 2007.
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The accounts receivable of SC appears fairly large.
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SC has no short-term loan in 2007.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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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 fairly stable financial
conditions. A credit line up to USD 50,000
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%)