MIRA
INFORM REPORT
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Report Date : |
23.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
QIDONG QINGFENG
CHEMICAL CO., LTD. |
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Registered Office : |
Huifeng Town, Qidong, Jiangsu Province, 226264 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
06.07.2005 |
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Com. Reg. No.: |
000099 |
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Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and Selling Chemical Additives. |
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 30,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
QIDONG QINGFENG
CHEMICAL CO., LTD.
HUIFENG TOWN, QIDONG,
JIANGSU PROVINCE, 226264 PR CHINA
TEL: 86 (0) 513-83691040 FAX: 86 (0) 513-83692388
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 6, 2005
REGISTRATION NO. : 000099
REGISTERED LEGAL FORM : CHINESE FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
12
REGISTERED CAPITAL : USD 660,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 21,420,000 (AS OF DEC. 31, 2007)
EQUITIES :
cny 7,150,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 30,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : 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 Ren Min Bi
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 Jul. 6, 2005.
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 developing and manufacturing
chemical additives and providing after sale services.
SC is mainly
engaged in manufacturing and selling chemical additives.
Mr. Figari. Paul has been chairman of SC
since 2005.
SC is known
to have approx. 12 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 Qidong. Our checks
reveal that SC owns the total premise about 1,477 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 local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Qidong Qingyun Fine Chemical Co., Ltd. 50
Caffaro s.r.l (Italy) 50
Qidong Qingyun Fine Chemical Co., Ltd.
Tel: 86 0513-83694450
Add: Touxing Port Huifeng Town, Qidong
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Chairman:
Mr. Figari. Paul , Italian, in his 50’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman.
l
General Manager:
Mr. Cui jizhong (in cHINESE PINYIN), Korean, in his
50’s with university education. He is currently responsible for the daily
management of SC.
Working Experience(s):
From 2005 to present Working
in SC as general manager.
SC is mainly
engaged in manufacturing and selling chemical additives.
SC’s products
mainly include: chemical additives.
SC sources its
materials 70% from domestic market, and 30% from the overseas market, mainly
European countries. SC sells 10% of its products in domestic market, and 90% to
the overseas market, mainly American and European countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Client:
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Qidong Qingyun Fine Chemical Co., Ltd.
*Major Supplier:
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Nantong Tianshi Chemical 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’s suppliers
declined to make any comments.
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 China Qidong Branch
AC#36480808091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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Cash & bank |
80 |
610 |
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Inventory |
2,600 |
5,310 |
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Accounts
receivable |
0 |
0 |
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Advances to
suppliers |
0 |
420 |
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Other
receivables |
0 |
0 |
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Other current
assets |
40 |
50 |
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------------------ |
------------------ |
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Current assets |
2,720 |
6,390 |
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Fixed assets net
value |
5,010 |
4,600 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
1,300 |
990 |
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Total assets |
9,030 |
11,980 |
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============= |
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Short loans |
0 |
0 |
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Accounts payable |
220 |
2,430 |
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Advances from
clients |
1,940 |
2,500 |
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Taxes payable |
0 |
-280 |
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Salaries payable |
20 |
70 |
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Other payable |
180 |
20 |
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Other current
liabilities |
30 |
90 |
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Current
liabilities |
2,390 |
4,830 |
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Long term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
2,390 |
4,830 |
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Equities |
6,640 |
7,150 |
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------------------ |
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Total
liabilities & equities |
9,030 |
11,980 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
As of Dec. 31, 2007 |
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Turnover |
16,800 |
21,420 |
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Cost of goods
sold |
14,830 |
19,520 |
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Sales expense |
140 |
210 |
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Management expense |
550 |
1,100 |
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Finance expense |
-20 |
30 |
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Profit before
tax |
1,300 |
510 |
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Less: profit tax |
0 |
0 |
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Profits |
1,300 |
510 |
Important Ratios
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2006 |
2007 |
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*Current ratio |
1.14 |
1.32 |
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*Quick ratio |
0.05 |
0.22 |
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*Liabilities
to assets |
0.26 |
0.40 |
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*Net profit
margin (%) |
7.74 |
2.38 |
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*Return on
total assets (%) |
14.40 |
4.26 |
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*Inventory
/Turnover ×365 |
56days |
90days |
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*Accounts
receivable/Turnover ×365 |
0 |
0 |
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*Turnover/Total
assets |
1.86 |
1.79 |
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* Cost of
goods sold/Turnover |
0.88 |
0.91 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in 2006 and 2007.
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SC’s net profit margin is fairly good in 2006 and average in 2007.
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SC’s return on total assets is fairly good, but it was declining in
2007.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a normal level in 2006 and
2007.
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SC’s quick ratio is maintained in a poor level in 2006 and 2007.
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The inventory of SC is large in 2006 and 2007.
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SC has no short loan & accounts receivable in 2006 & 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. The large amount of inventory could be a threat to SC’s financial
condition. A credit line at the above amount appears beyond SC’s capacities,
while a credit line up to USD 30,000 appears to be within SC’s capacities upon
a periodical review basis.
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%)