MIRA
INFORM REPORT
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Report Date : |
17.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
CHANGZHOU UNITED CHEMICAL CO., LTD. |
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Registered Office : |
5/f, Bldg. B, No.
391, Tongjiang Avenue, Xinbei District, Changzhou, Jiangsu Province, 213022 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
17.02.1993 |
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Com. Reg. No.: |
320407000010482 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Pharmaceutical 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 80,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
Changzhou United Chemical Co., Ltd.
5/f,
bldg. b, no. 391, tongjiang avenue, xinbei district,
changzhou,
jiangsu PROVINCE, 213022 PR CHINA.
391
B
TEL:
86 (0) 519-85193310 FAX: 86 (0)
519-85193313
EXECUTIVE SUMMARY
INCORPORATION
DATE : february 17, 1993
REGISTRATION
NO. : 320407000010482
REGISTERED
LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF
STRENGTH : 27
REGISTERED
CAPITAL :
CNY 1,000,000
BUSINESS
LINE : TRADING
TURNOVER : CNY 57,180,000 (AS OF DEC. 31,
2007)
EQUITIES : CNY 5,660,000
(AS OF DEC. 31, 2007)
PAYMENT
: AVERAGE
RECOMM.
CREDIT RANGE : UP TO USD 80,000
MARKET
CONDITION : AVERAGE
FINANCIAL
CONDITION : 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 company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Feb. 17, 1993.
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
import and export of various goods and technologies, excluding the goods
prohibited or limited by the country.
SC is mainly engaged in selling
pharmaceutical chemicals.
Mr. Zhang Sanda has been legal representative
and chairman of SC since 1993.
SC is known to have approx. 27
employees at present.
SC is currently operating
at the above stated address, and this address houses its operating office in the
commercial zone of Changzhou. Our checks reveal that SC rents the total premise
about 557 square meters.
http://www.cuchem.com/ The web belongs to both SC & Changzhou
Lianxin Chemical Co., Ltd. The design is professional and the content is well
organized. At present it is in English version.
Email: manager@cuchem.com
SC’s quality system meets
the international standards of ISO9001:2000.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Huo Caiyun 7.5
Wang Wei 7.5
Zhang Sanda 85
l
Chairman
& General Manager:
Mr. Zhang Sanda, ID # 320402570114141, 51 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1993 to present Working in SC as chairman and general manager.
SC is mainly engaged in selling
pharmaceutical chemicals.
SC’s products mainly
include: pharmaceutical intermediates, intermediates, synthetic
pharmaceuticals, organic chemicals materials, inorganic chemical materials, and
so on.
SC sources its materials 100% from domestic market, mainly Jiangsu. SC
sells 100% of its products to overseas market, mainly Europe, U.S.A. and
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.
Changzhou Lianxin Chemical
Co., Ltd. is jointly occupying the heading premise with SC.
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.
Bank of China
Changzhou Branch
AC#401071830111906808091001
Relationship: Normal.
Balance Sheet (as
of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
4,380 |
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Inventory |
4,930 |
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Accounts receivable |
3,200 |
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Advances to suppliers |
1,050 |
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Other receivables |
190 |
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A receivable tax rebate of export |
1,160 |
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Other current assets |
120 |
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Current assets |
15,030 |
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Fixed assets net value |
670 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
15,700 |
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============= |
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Short loans |
0 |
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Accounts payable |
2,330 |
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Other payable |
1,890 |
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Notes payable |
5,270 |
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Advances from clients |
210 |
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Taxes unpaid |
130 |
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Other current liabilities |
210 |
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Current liabilities |
10,040 |
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Long term liabilities |
0 |
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Total liabilities |
10,040 |
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Equities |
5,660 |
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Total liabilities & equities |
15,700 |
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Income Statement (as
of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
57,180 |
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Cost of goods sold |
52,960 |
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Sales expense |
1,020 |
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Management expense |
2,070 |
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Finance expense |
210 |
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Profit before tax |
770 |
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Less: profit tax |
280 |
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Profits |
490 |
Important Ratios
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as of Dec. 31, 2007 |
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*Current ratio |
1.50 |
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*Quick ratio |
1.01 |
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*Liabilities to assets |
0.64 |
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*Net profit margin (%) |
0.86 |
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*Return on total assets (%) |
3.12 |
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*Inventory /Turnover ×365 |
31 days |
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*Accounts receivable/Turnover ×365 |
20 days |
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*Turnover/Total assets |
3.64 |
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* Cost of goods sold/Turnover |
0.93 |
PROFITABILITY: AVERAGE
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The turnover of
SC appears fairly good in its line.
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SC’s net profit
margin is average.
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SC’s return on
total assets is average.
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SC’s cost of
goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current
ratio of SC is maintained in a normal level.
l
SC’s quick
ratio is maintained in a normal level.
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The inventory
of SC appears average.
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The accounts
receivable of SC is maintained in an average level.
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SC has no
short-term loan in 2007.
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SC’s turnover
is in a fairly good level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
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:
Stable.
SC is considered
small-sized in its line with stable financial conditions. A credit line up to
USD 80,000 appears to be within SC’s capacities.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.47.33 |
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UK Pound |
1 |
Rs.73.92 |
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Euro |
1 |
Rs.66.69 |
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%)