MIRA INFORM REPORT
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Report Date : |
06.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
JIANGSU LANFENG BIO-CHEMICAL CO LTD |
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Registered Office : |
No. 120, Xin’an Road, Xinyi, Jiangsu Province, 221400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
11.10.1990 |
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Com. Reg. No.: |
320300000017224 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing
and Selling Pesticide and Chemicals. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 400,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
JIANGSU LANFENG BIO-CHEMICAL Co., Ltd.
NO. 120, XIN’AN ROAD, XINYI, JIANGSU PROVINCE,
221400 PR CHINA
120
TEL: 86 (0) 516-88921225 FAX: 86 (0) 516-88921021
EXECUTIVE SUMMARY
INCORPORATION DATE :
OCTOBER 11, 1990
REGISTRATION NO. : 320300000017224
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
1,300
REGISTERED CAPITAL : CNY 55,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 550,589,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 69,742,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 400,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.85 = 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 co. at
local Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Oct. 11, 1990 and has been under present
ownership since 2007.
Company
Status: Shares limited co. This form of business in PR China is defined as a legal
person. Its registered capital is divided into shares of equal par value
and the co. raises capital by issuing share certificates by promotion or by
public offer. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to the extent of its
total assets. The co has independent property of legal person and enjoys
property rights of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co. requires at least two
promoters and no more than 200, half
of whom shall be domiciled in China.. Natural person are allowed to
serve as promoters. The minimum registered capital of a co. is CNY 5M. while
that of the co. with foreign investment is CNY 5M. The total capital of a
co. which propose to apply for publicly listed must be no less than CNY
30M. The board of directors must consist of five to nineteen
directors. If the co. raises capital by public offer, the promoters
must not subscribe less than 35% of the total shares. the promoters’ shares
are restricted to transfer- within one year of the offer. A state-owned enterprise that is restructured into a
shares limited co. must comply with the conditions & requirements
specified under the law & administrative rule.
SC’s registered business
scope includes manufacturing, selling and exporting raw materials and
preparation formulation of pesticide, herbicide, and chemicals; importing raw materials, mechanical equipment, meters
and components for its production and research; selling agricultural plastic
film; production technology transfer of pesticide and chemicals; selling
oxygen.
SC is mainly
engaged in manufacturing and selling pesticide and chemicals.
Mr. Yang Zhenhua
has been legal representative and chairman of SC since 2004.
SC is known
to have approx. 1,300 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 Xinyi. Our checks reveal
that SC owns the total premise about 150,000 square meters.
http://www.xinyipesticide.com/ The design is professional and the content
is well organized. At present it is both in English and Chinese versions.
Email: xyny@xinyipesticide.com
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
|
2004-7-4 |
Company name |
Jiangsu Xinyi Pesticide Co., Ltd. |
Jiangsu Suzhou Chemical Group Xinyi Agrochemical Co., Ltd. |
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Legal representative |
Liang Huazhong |
Yang Zhenhua |
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Registered capital |
CNY 5,032,600 |
CNY 15,000,000 |
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|
2007-6-22 |
Registered capital |
CNY 15,000,000 |
CNY 18,383,471.81 |
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Shareholders |
Jiangsu Chemical Pesticide Group Co., Ltd. Xinyi Huayi Investment Management Co., Ltd. |
The present ones |
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|
2007-8-25 |
Registered capital |
CNY 18,383,471.81 |
CNY 55,000,000 |
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Company name |
Jiangsu Suzhou Chemical Group Xinyi Agrochemical Co., Ltd. |
Jiangsu Lanfeng Bio-Chemical Co., Ltd. |
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Legal form |
Limited liabilities co. |
Shares limited co. |
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Jiangsu Chemical Pesticide Group Co., Ltd. 41.61
Suzhou Gelin Investment Management Co., Ltd. 18.41
Xinyi Huayi Investment Management Co., Ltd. 39.98
============
Jiangsu Chemical Pesticide Group Co., Ltd.
As one of the large scale comprehensive
chemical enterprises in China encompassing technology, industry, trade and
logistics, Jiangsu Chemical Pesticide Group Co., Ltd. deals mainly in
pesticides and pesticide intermediates, chloral-kali products, synthetic heat
carrier, food additives, rubber auxiliaries and PVC profiles, being one of
major enterprises of manufacturing pesticide and 520 key-pointed national
enterprises.
As one of major enterprises of manufacturing
pesticide, the company has entered the lines of “Best Economic Benefit of Top
100 Chemical Plants in China” and “Strongest Chemical 100 Enterprises of
China”, received a lot of awards of “National Advance Management In-the-field”,
“National Advance Collective”, “New-&-Hi Technology Enterprise of Jiangsu
Province”, and “Advanced Enterprise in Exporting of Jiangsu Province” and
gained the top award – “Consumer Preserver Cup”, which was set by China
Consumer Preservation Fund.
l
Legal representative and chairman:
Mr. Yang Zhenhua, ID # 320502490302001, 59
years old with junior college education. He is currently responsible for the
overall management of SC.
Working Experience(s):
1990-1992
Worked
in Jiangsu Chemical Pesticide Group Co., Ltd. as general manager;
1992-1996
Worked
in Suzhou Chemical Bureau as vice director;
1996-2004 Worked in
Jiangsu Chemical Pesticide Group Co., Ltd. as chairman and general manager;
From 2004 to present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Liang Huazhong, ID # 320326561118001, 52
years old with university education. He is currently responsible for the daily
management of SC.
Working Experience(s):
From 1990 to present Working
in SC as general manager.
SC is mainly
engaged in manufacturing and selling pesticide and chemicals.
SC’s products
mainly include phosgene intermediate, fungicide, herbicide, and insecticide,
etc.
The production capacity of intermediate products related to phosgene is up
to 30 thousand tons per annum. All products have passed ISO9001, ISO14001,
OHSMS18001.
SC sources its materials 80% from domestic
market, and 20% from overseas market, mainly U.S.A. and Europe. SC sells 70% of
its products in domestic market, and 30% 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 Suppliers:
=============
Wuxi Huaji Chemical Materials Co., Ltd.
Yixing Liao Yuan Chemical Co., Ltd.
*Major Customers:
==============
Sinon Corporation.
Pilarquim (Shanghai) 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.
China
Construction Bank.
AC#
1106026109200118851
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 |
45,886 |
24,570 |
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Inventory |
45,028 |
54,581 |
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Accounts
receivable |
41,352 |
72,779 |
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Advances to
supplies |
18,413 |
17,086 |
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Other
receivables |
11,838 |
12,405 |
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Other current
assets |
5,568 |
369 |
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------------------ |
------------------ |
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Current assets |
168,085 |
181,790 |
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Fixed assets |
182,129 |
274,314 |
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Fixed assets net
value |
93,193 |
172,531 |
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Projects under
construction |
35,727 |
582 |
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Long-term
investments |
400 |
0 |
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Intangible and
other assets |
28,326 |
27,925 |
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------------------ |
------------------ |
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Total assets |
325,731 |
382,828 |
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============= |
============= |
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Short loans |
81,950 |
113,450 |
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Accounts payable |
44,373 |
51,232 |
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Other Accounts payable |
11,561 |
29,829 |
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Notes payable |
31,555 |
0 |
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Advances from
clients |
11,138 |
44,774 |
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Taxes payable |
540 |
2,869 |
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Dividends
payable |
2,900 |
0 |
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Accrued payroll |
7,334 |
7,334 |
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Other current
liabilities |
11,115 |
7,596 |
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----------------- |
----------------- |
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Current
liabilities |
202,466 |
257,084 |
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Long term
liabilities |
57,679 |
56,002 |
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------------------ |
------------------ |
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Total
liabilities |
260,145 |
313,086 |
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Shareholders
equities |
65,586 |
69,742 |
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------------------ |
------------------ |
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Total
liabilities & equities |
325,731 |
382,828 |
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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 |
362,369 |
550,589 |
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Cost of goods
sold |
298,651 |
452,201 |
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Taxes and
additional of main operation |
1,121 |
492 |
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Sales expense |
14,258 |
20,184 |
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Management expense |
16,655 |
27,086 |
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Finance expense |
7,092 |
12,966 |
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Non-operating
income |
143 |
2,078 |
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Operation Profit |
24,382 |
39,261 |
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Less: profit tax |
8,046 |
13,485 |
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Net profit |
16,336 |
25,776 |
Important Ratios
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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*Current ratio |
0.83 |
0.71 |
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*Quick ratio |
0.61 |
0.49 |
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*Liabilities
to assets |
0.80 |
0.82 |
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*Net profit
margin (%) |
4.51 |
4.68 |
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*Return on
total assets (%) |
5.02 |
6.73 |
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*Inventory
/Turnover ×365 |
46 days |
37 days |
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*Accounts
receivable/Turnover ×365 |
42 days |
49 days |
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*Turnover/Total
assets |
1.11 |
1.44 |
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* Cost of
goods sold/Turnover |
0.82 |
0.82 |
PROFITABILITY: FAIRLY GOOD
l The turnover of SC appears fairly good in its line, and it increased in
2007.
l SC’s net profit margin is average in both 2 years.
l SC’s return on total assets appears fairly good in its line, and it
increased in 2007.
l SC’s cost of goods sold is average, comparing with its turnover in 2007.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair level in both 2 years.
l
SC’s quick ratio is maintained in a fair level in both 2 years.
l
The inventory of SC appears average in both 2 years.
l
The accounts receivable of SC appears average.
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 large-sized in its line with fairly stable financial conditions.
The large amount of short loans could be a threat to SC’s financial condition.
A credit line up to USD 400,000 appears to be within SC’s capacities upon a
periodical review basis.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 42.00 |
|
UK Pound |
1 |
Rs.82.14 |
|
Euro |
1 |
Rs.65.09 |
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 |
|
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%)