MIRA INFORM REPORT
|
Report Date : |
18.08.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SHANDONG BINNONG TECHNOLOGY CO LTD |
|
|
|
|
Registered Office : |
No. 518, Yongshen Road, Economic & Development Zone, Binzhou, Shandong Province, 256651 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
28.10.2003 |
|
|
|
|
Com. Reg. No.: |
371602228008647 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Manufacturing
and Selling Pesticide Chemicals. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 400,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
Name & address
Shandong Binnong Technology Co., Ltd.
NO. 518, YONGSHEN ROAD, ECONOMIC & DEVELOPMENT
ZONE,
BINZHOU, SHANDONG PROVINCE, 256651 PR CHINA.
518
TEL: 86 (0) 543-3557722 FAX: 86 (0) 543-3557711
EXECUTIVE SUMMARY
INCORPORATION DATE :
october 28, 2003
REGISTRATION NO. : 371602228008647
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
800
REGISTERED CAPITAL : CNY 100,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 591,730,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 100,800,000 (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
6.87 = 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
Note: Instead of the given address – North end of the
bohai 5th Road, Binzhou, SC’s correct address should be the heading
one.
SC was registered as a limited liabilities company at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on October 28, 2003.
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 developing, researching, manufacturing and selling
precision chemicals and pesticide chemicals, exporting self-made products and technology,
importing machinery, parts, materials and technology needed for its produce,
excluding the items limited or prohibited.
SC is mainly
engaged in manufacturing and selling pesticide chemicals.
Mr. Huang Yanchang
has been legal representative and chairman of SC since 2003.
SC is known
to have approx. 800 staff members 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 Binzhou. Our checks
reveal that SC owns the total premise about 150,000 square meters.
http://www.binnong.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: binnong@binnong.com
SC’s former registered capital was CNY 60,000,000; in December 2007, it
was increased to CNY 100,000,000.
SC has passed ISO14001 Environment Management System, ISO9001 Quality
System Certification, OHSAS18002 Metier Safety management system successively.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Huang Yanchang 51.40
Wang Yongqiang 20.5
Ye Aimin 20.5
Yin Kejing 6
Zhang Yuduan 1.60
l
Legal representative and chairman:
Mr. Huang Yanchang, ID # 370303196710265414,
41 years old with university education. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Ren Liming, in his 50’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working
in SC as general manager.
SC is mainly
engaged in manufacturing and selling pesticide chemicals.
SC’s products mainly include herbicide, herbicide preparation, pesticide
and fungicide, etc.
SC sources its materials 95% from domestic
market, and 5% from overseas market, mainly Europe. SC sells 60% of its
products in domestic market, and 40% 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.
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 Binzhou Branch Bincheng District Sub-branch.
AC# 37001836808050002934
Relationship:
Normal.
Balance
Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
|
Cash & bank |
119,080 |
199,930 |
|
Inventory |
41,880 |
126,740 |
|
Accounts
receivable |
39,630 |
70,490 |
|
Notes receivable |
2,590 |
—— |
|
Subsidies
receivable |
3,380 |
—— |
|
Other
receivables |
3,880 |
156,630 |
|
Other current
assets |
1,480 |
3,660 |
|
|
------------------ |
------------------ |
|
Current assets |
211,920 |
557,450 |
|
Fixed assets net
value |
29,660 |
41,990 |
|
Projects under
construction |
26,890 |
29,130 |
|
Long term
investment |
0 |
0 |
|
Other assets |
0 |
60 |
|
|
------------------ |
------------------ |
|
Total assets |
268,470 |
628,630 |
|
|
============= |
============= |
|
Short loans |
62,720 |
148,080 |
|
Accounts payable |
-8,450 |
68,550 |
|
Other payable |
-13,330 |
1,490 |
|
Notes payable |
156,870 |
261,970 |
|
Taxes unpaid |
-7,190 |
-190 |
|
Welfare expenses
payable |
2,150 |
3,590 |
|
Advances from clients |
16,040 |
42,840 |
|
Accrued expenses |
5,140 |
0 |
|
Other current
liabilities |
20 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
213,970 |
526,330 |
|
Long term
liabilities |
0 |
1,500 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
213,970 |
527,830 |
|
Equities |
54,500 |
100,800 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
268,470 |
628,630 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
|
Turnover |
342,270 |
591,730 |
|
Cost of goods
sold |
313,780 |
538,220 |
|
Add: Income from
other operations |
—— |
-1,110 |
|
Sales expense |
9,850 |
20,930 |
|
Management expense |
9,650 |
14,670 |
|
Finance expense |
5,580 |
10,140 |
|
Non-operating
expense |
9,310 |
50 |
|
Profit before
tax |
-6,160 |
6,760 |
|
Less: profit tax |
0 |
350 |
|
Profits |
-6,160 |
6,410 |
Important Ratios
=============
|
|
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
|
*Current ratio |
0.99 |
1.06 |
|
*Quick ratio |
0.79 |
0.82 |
|
*Liabilities
to assets |
0.80 |
0.84 |
|
*Net profit
margin (%) |
-1.80 |
1.08 |
|
*Return on
total assets (%) |
-2.29 |
1.02 |
|
*Inventory
/Turnover ×365 |
45 days |
79 days |
|
*Accounts
receivable/Turnover ×365 |
42 days |
44 days |
|
*Turnover/Total
assets |
1.27 |
0.94 |
|
* Cost of
goods sold/Turnover |
0.92 |
0.91 |
PROFITABILITY: AVERAGE
l
The turnover of SC appears fairly good in its line, and it increased in
2007.
l
SC’s net profit margin was increased; but it still remains at an average
level in 2007.
l
SC’s return on total assets was increased; but it still remains at an
average level in 2007.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in an average level in both 2
years.
l
SC’s quick ratio is maintained in an average 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 fairly large in 2007.
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 medium-sized in its line with favorable market conditions.
The large amount of short loans could be a threat to SC’s financial condition.
A credit line up to USD 400,000 would appear to be within SC’s capacities upon
a periodical review basis.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.23 |
|
UK Pound |
1 |
Rs.80.89 |
|
Euro |
1 |
Rs.63.80 |
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%)