MIRA
INFORM REPORT
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Report Date : |
05.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
JIANGSU KUAIDA AGROCHEMICAL CO LTD |
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Registered Office : |
No. 2, Jianshe Road, Matang Town, Rudong County, Nantong, Jiangsu
Province 226401 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
29.06.1994 |
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Com. Reg. No.: |
320000000007519 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling chemical products. |
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 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name and
Address
Jiangsu kuaida agrochemical co., ltd.
no.2 jianshe road, matang town, rudong county, nantong,
jiangsu PROVINCE, 226401 PR CHINA
TEL: 86 (0) 513-84415599 FAX: 86 (0) 513-84542863
EXECUTIVE SUMMARY
INCORPORATION DATE : june 29, 1994
REGISTRATION NO. : 320000000007519
REGISTERED LEGAL FORM : Shares
limited company
STAFF STRENGTH :
1,200
REGISTERED CAPITAL : CNY 30,930,000
BUSINESS LINE :
manufacturing
TURNOVER : CNY 311,089,000 (AS OF
DEC. 31, 2006)
EQUITIES : CNY 108,487,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 1,000,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.19 = US$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 shares limited
company at local Administration for Industry & Commerce (AIC – The official
body of issuing and renewing business license) on June 29, 1994.
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 exporting its self-made weedicide, insecticide,
bactericide, chemical products, medicine dye intermediates, importing
materials, instruments, machinery and equipment, parts needed for its production,
manufacturing and selling carbaryl, napropamide, dicofol, chlorotoluron,
iprodione, endosulfan; manufacturing, processing and selling chlorine, hydrogen gas, oxygen, nitrogen, phosgene,
and naphthalene series products.
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Shi
Yongping has been chairman of SC since
1994.
SC is known to
have approx. 1,200 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 Rudong county. Our
checks reveal that SC owns the total premise about 200,000 square meters.
http://www.kuaida-agrochem.com
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: sales@kuaida.cn
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Nantong Sudong Industry Company 0.65
Rudong Pesticide Factory Labor Union 44.88
Rudong County State-Owned Property
Management Co., Ltd. 45.75
Rudong County Investment & Management
Office 5.50
Rudong County Yinhai Chemical Technology
Service Company 0.64
Taiwan Huakai Chemical Technology Counselor
Co., Ltd. 2.58
l
Chairman and General Manager:
Mr. Shi Yongping , 46 years old with university education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1994 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products
mainly include: Herbicide, Insecticide, Bactericide, Intermediates.
SC sources its materials 100% from domestic
market, mainly Jiangsu. 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 and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers:
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Shanghai Lizhi Shenghua Technology Co., Ltd.
Guangxi Letu Biotechnology Co., Ltd.
*Major Supplier:
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Zhenjiang Jingjing Chemical 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’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.
Industrial and Commercial Bank of China Matang Branch
AC#：111132330900000494
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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Cash & bank |
3,421 |
10,132 |
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Inventory |
79,831 |
86,528 |
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Accounts
receivable |
40,570 |
49,027 |
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Other Accounts
receivable |
12,858 |
29,616 |
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Advances to
suppliers |
6,531 |
537 |
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To be
apportioned expense |
277 |
216 |
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Other current
assets |
3,798 |
2,494 |
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Current assets |
147,286 |
178,550 |
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Fixed assets net
value |
63,132 |
80,313 |
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Projects under
construction |
15,572 |
370 |
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Long term
investment |
740 |
0 |
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Other assets |
19,889 |
19,158 |
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Total assets |
246,619 |
278,391 |
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Short loans |
12,700 |
72,700 |
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Accounts payable |
15,408 |
18,126 |
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Other Accounts
payable |
25,599 |
19,813 |
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Advances from
clients |
15,408 |
18,126 |
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Withdraw the
expenses in advance |
227 |
83 |
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Other current
liabilities |
47,847 |
12,317 |
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Current
liabilities |
117,189 |
141,165 |
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Long term liabilities |
39,320 |
18,320 |
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Other
liabilities |
1 |
10,419 |
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Total
liabilities |
156,510 |
169,904 |
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Equities |
90,109 |
108,487 |
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Total
liabilities & equities |
246,619 |
278,391 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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Turnover |
311,368 |
311,089 |
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Cost of goods
sold |
251,327 |
276,123 |
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Sales expense |
12,568 |
16,009 |
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Management expense |
18,901 |
18,091 |
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Finance expense |
3,750 |
1,098 |
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Profit before
tax |
24,998 |
32,145 |
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Less: profit tax |
8,279 |
6,690 |
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Profits |
16,719 |
25,455 |
Important Ratios
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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*Current ratio |
1.26 |
1.26 |
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*Quick ratio |
0.58 |
0.65 |
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*Liabilities
to assets |
0.63 |
0.61 |
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*Net profit
margin (%) |
5.37 |
8.18 |
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*Return on
total assets (%) |
6.78 |
9.14 |
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*Inventory /Turnover
×365 |
94 days |
102 days |
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*Accounts
receivable/Turnover ×365 |
48 days |
58 days |
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*Turnover/Total
assets |
1.26 |
1.12 |
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* Cost of
goods sold/Turnover |
0.81 |
0.89 |
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 fairly good, and it was rising in 2006.
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SC’s return on total assets is fairly good, and it was rising in 2006.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC is maintained in an average level.
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SC’s short-term loan appears fairly large.
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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.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered large-sized in its line with stable financial
conditions. A credit line up to USD 1,000,000
would appear to be within SC’s capacities upon a periodical review basis.
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%)