MIRA
INFORM REPORT
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Report Date : |
31.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
SICHUAN KAIYUAN GROUP CO LTD |
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Registered Office : |
Kaiyuan Group Building, No. 47, Section 3, Yihuan Road, Wuhou District, Chengdu, Sichuan Province,
610041 |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
08.07.2004 |
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Com. Reg. No.: |
510000000054154 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Chemical Raw Materials and Fertilizer; Investing in
Subsidiaries |
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 2,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NAme & address
SICHUAN KAIYUAN GROUP Co., Ltd.
kaiyuan group building, NO. 47, section 3,
yihuan road,
wuhou district, chengdu, sichuan PROVINCE,
610041 PR CHINA
47
TEL: 86 (0) 28-85592037 FAX: 86 (0) 28-85592244
EXECUTIVE SUMMARY
INCORPORATION DATE : july 8, 2004
REGISTRATION NO. : 510000000054154
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
70
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 526,360,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 320,630,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 2,000,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.83 = 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 limited liabilities company at
Sichuan Provincial Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on July 8, 2004.
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 wholesaling and retailing commodities; import &
export business; commercial services.
SC is mainly engaged
in selling chemical raw materials and fertilizer; investing in subsidiaries.
Mr. Zhao Sijian
has been legal representative and chairman of SC since 2004.
SC is known
to have approx. 70 employees at present.
SC is
currently operating at the above stated address, and this address houses its
head office in the commercial zone of Chengdu. Our checks reveal that SC owns
the total premise about 8,356 square meters.
http://www.sckyjt.com/ The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
Email: im-ex@sckygroup.com
SC’s former registered capital was CNY 30,000,000; in May, 2008, it was
changed to CNY 50,000,000.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Chongqing Hefeng Chemical Industry Co., Ltd. 5
Zhao Sijian 83
Xia Gang 9
Tan Changmin
3
l
Legal representative and chairman:
Mr. Zhao Sijian, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working
in SC as chairman and legal representative.
l
Vice General Manager:
Mr. Tan Changmin, in his 30’s with
university education. He is currently responsible for the daily management of
SC.
Working Experience(s):
From 2004 to present Working
in SC as vice general manager.
SC is mainly
engaged in selling chemical raw materials and fertilizer; investing in
subsidiaries.
SC’s products
mainly include fertilizer and chemical raw materials.
SC sources its materials 100% from domestic
market. SC sells 80% of its products in domestic market, and 20% to overseas
market, mainly Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
=============
Wuxi Baoli Fertilizer Co., Ltd.
SC is known to have the following subsidiaries:
Sichuan
Kaiyuan Technology Co., Ltd.
Sichuan
Kaiyuan Agriculture Materials Chain Co., Ltd.
Sichuan
Kaiyuan Real Estate Appraisal Co., Ltd.
Etc.
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.
Shanghai Pudong Development Bank Chengdu Sub-branch
AC#
73010154500000892
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
72,800 |
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Inventory |
6,420 |
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Accounts
receivable |
16,660 |
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Advances to
suppliers |
28,190 |
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Dividends
receivable |
55,800 |
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Other
receivables |
8,950 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
188,820 |
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Fixed assets net
value |
53,450 |
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Projects under
construction |
0 |
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Long term
investment |
397,400 |
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Other assets |
2,400 |
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------------------ |
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Total assets |
642,070 |
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============= |
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Short loans |
22,890 |
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Accounts payable |
2,590 |
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Other payable |
189,530 |
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Notes payable |
80,440 |
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Welfare expenses
payable |
630 |
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Advances from
clients |
25,290 |
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Other current
liabilities |
70 |
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------------------ |
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Current
liabilities |
321,440 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
321,440 |
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Equities |
320,630 |
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------------------ |
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Total
liabilities & equities |
642,070 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
526,360 |
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Cost of goods
sold |
535,160 |
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Taxes and
additional of main operation |
22,270 |
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Sales expense |
4,750 |
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Management expense |
11,430 |
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Finance expense |
5,060 |
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Investment
income |
136,590 |
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Subsidy income |
50,430 |
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Profit before
tax |
137,290 |
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Less: profit tax |
230 |
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Profits |
137,060 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
0.59 |
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*Quick ratio |
0.57 |
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*Liabilities
to assets |
0.50 |
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*Net profit
margin (%) |
26 |
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*Return on
total assets (%) |
21.3 |
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*Inventory
/Turnover ×365 |
5 days |
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*Accounts
receivable/Turnover ×365 |
12 days |
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*Turnover/Total
assets |
0.82 |
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* Cost of
goods sold/Turnover |
1.02 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
The investment income of SC appears fairly good.
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SC’s net profit margin is good.
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SC’s return on total assets is good.
l
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a poor level.
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SC’s quick ratio is maintained in a fair level.
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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 an average level.
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SC’s short-term loan is in an average level.
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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.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. A credit line up to USD 2,000,000 appears to be within SC’s
capacities upon a periodical review basis.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 42.49 |
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UK Pound |
1 |
Rs.84.21 |
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Euro |
1 |
Rs.66.33 |
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%)