MIRA
INFORM REPORT
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Report Date : |
10.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
HANGZHOU DAKANG
CHEMICALS CO., LTD. |
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Registered Office : |
No. 53 3rd Road, Economic And Technological Development Zone,
Hangzhou, Zhejiang Province, 310018 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
14.03.1995 |
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Com. Reg. No.: |
002166 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Producing and Selling Pharmaceutical Intermediates and Fine Chemicals |
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 40,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
HANGZHOU DAKANG
CHEMICALS CO., LTD.
NO. 53 3RD ROAD, ECONOMIC AND
TECHNOLOGICAL DEVELOPMENT ZONE, HANGZHOU, ZHEJIANG PROVINCE, 310018 PR CHINA
TEL: 0086-571-86831444 FAX:
0086-571-86910637
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAR. 14, 1995
REGISTRATION NO. :
002166
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. WANG DAHUI (CHAIRMAN)
STAFF STRENGTH :
43
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 29,630,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 6,020,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 40,000 (PERIODICAL REVIEW)
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.87314 = 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 name, SC’s complete name should
be the heading one.
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
Mar. 14, 1995.
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 producing pharmaceutical
intermediates and fine chemicals; selling its products.
SC is mainly engaged
in producing and selling pharmaceutical intermediates and fine chemicals.
Mr. Wang Dahui is
legal representative and chairman of SC at present.
SC is known to have approx. 43 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 Hangzhou. Our checks
reveal that SC owns the total premise about 6,000 square meters.
http://www.dakangchem.com
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
E-Mail: expo@dakangchem.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hangzhou MDK Chem Co., Ltd. 75
Tan Xiaoye (Singaporean) 25
l
Legal representative, chairman and
general manager:
Mr. Wang Dahui, in his 60’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman, legal representative and general manager.
l
Vice-General manager:
Mr. Liu Xiande, in his 30’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as vice-general manager.
SC is mainly
engaged in producing and selling pharmaceutical intermediates and fine
chemicals.
SC’s products mainly include: Methyl sulfonyl methane, Hexythiazox,
S-Methylisothiourea
sulfate, L-Glutamine, D-ribose,
2-Chloro-6-methylaniline
and Zaleplon.
SC sources its materials 100% from domestic market. SC sells 50% of its
products to overseas market, mainly in
America, Japan and Europe, and 50% in domestic 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 Supplier*
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Hubei Xingfa Chemicals Group Co., Ltd.
*Major Customer*
==============
DMP Ltd. (USA)
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.
Shanghai Pudong
Development Bank Hangzhou Sub-branch
AC#95170155300000177
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2007 |
as
of Dec. 31, 2006 |
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Cash & bank |
7,730 |
5,920 |
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Bills receivable |
0 |
0 |
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Accounts
receivable |
2,920 |
4,210 |
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Other
receivables |
7,750 |
6,400 |
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Advances to
suppliers |
650 |
110 |
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Inventory |
3,150 |
3,430 |
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Prepaid expenses |
0 |
0 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
22,200 |
20,070 |
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Fixed assets net
value |
6,300 |
6,790 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
2,740 |
2,850 |
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------------------ |
------------------ |
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Total assets |
31,240 |
29,710 |
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============= |
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Short loans |
14,610 |
12,010 |
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Bills payable |
6,390 |
4,980 |
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Accounts payable |
3,500 |
2,590 |
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Welfare payable |
130 |
130 |
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Advances from
clients |
150 |
1,950 |
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Accrued payroll |
0 |
0 |
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Tax payable |
30 |
-210 |
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Other payable |
120 |
670 |
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Surcharge
payable |
0 |
0 |
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Other current
liabilities |
290 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
25,220 |
22,120 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
25,220 |
22,120 |
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Equities |
6,020 |
7,590 |
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------------------ |
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Total
liabilities & equities |
31,240 |
29,710 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2007 |
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Turnover |
29,630 |
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Cost of goods
sold |
27,990 |
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Sales expense |
760 |
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Management expense |
1,480 |
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Finance expense |
930 |
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Profit before
tax |
-1,520 |
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Less: profit tax |
0 |
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Profits |
-1,520 |
Important Ratios
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as
of Dec. 31, 2007 |
as
of Dec. 31, 2006 |
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*Current ratio |
0.88 |
0.91 |
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*Quick ratio |
0.76 |
0.75 |
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*Liabilities
to assets |
0.81 |
0.74 |
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*Net profit
margin (%) |
-5.13 |
/ |
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*Return on
total assets (%) |
-4.87 |
/ |
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*Inventory
/Turnover ×365 |
39 days |
/ |
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*Accounts
receivable/Turnover ×365 |
36 days |
/ |
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*Turnover/Total
assets |
0.95 |
/ |
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* Cost of
goods sold/Turnover |
0.94 |
/ |
PROFITABILITY:
FAIR
l
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 fairly high, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level.
l
SC’s quick ratio is maintained in a fair level.
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The inventory conversion period of SC appears average.
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The accounts receivable of SC appears average.
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SC’s short-term loan appears large.
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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: FAIR.
SC is considered small-sized in its line with fair financial conditions.
The large amount of short loans could be a threat to SC’s financial condition.
A credit line up to USD 40,000 would appear 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.49.12 |
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UK Pound |
1 |
Rs.72.59 |
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Euro |
1 |
Rs.63.52 |
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%)