MIRA
INFORM REPORT
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Report Date : |
25.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
Yingde Greatchem Chemicals Co., Ltd. |
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Registered Office : |
Hongfeng District, Shakou Town, Yingde, Guangdong Province, 513052 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
17.10.2003 |
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Com. Reg. No.: |
001599 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and
Selling Pesticide Chemical Materials, Pesticide Intermediates and Pesticide. |
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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
Yingde Greatchem Chemicals Co., Ltd.
hongfeng district,
shakou town, yingde,
guangdong PROVINCE,
513052 PR CHINA
TEL: 86 (0)
763-2551401 FAX: 86 (0) 763-2551846
EXECUTIVE SUMMARY
INCORPORATION DATE : october 17, 2003
REGISTRATION NO. : 001599
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH :
160
REGISTERED CAPITAL : CNY 40,000,000
BUSINESS LINE :
manufacturing
TURNOVER : CNY 103,320,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 40,440,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 500,000 (PERIODICAL REVIEW)
MARKET CONDITION : competitive
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.14 = 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: The given address (RM 303-308 Jinying Blk Jinying Road, Jianhe Dist., Guangzhou) belongs to SC’s Guangzhou Office.
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 October 17, 2003.
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 manufacturing and selling pesticide chemical materials,
pesticide intermediates and pesticide, research and development of new
pesticide.
SC is mainly engaged
in manufacturing and selling pesticide chemical materials, pesticide
intermediates and pesticide.
Mr. Cai Danqun has
been chairman of SC since 2003.
SC is known to
have approx. 160 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 Yingde. Our checks
reveal that SC owns the total premise about 20,000 square meters.
http://www.greatchem.com.cn
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: greatchem@greatchem.com.cn
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Cai Shaoxin 39.2
Du Ruifeng 25.0
Cai Danqun 10.8
Li Jianru (Hong Kong resident) 25.0
l
Chairman and General Manager:
Mr. Cai Danqun (蔡丹群), about 45 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 general manager.
SC is mainly engaged
in manufacturing and selling pesticide chemical materials, pesticide
intermediates and pesticide.
SC’s products
mainly include: pharmaceutical intermediates, fungicides, technical grade products,
herbicides, agrochemical intermediates, and formulations.
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 Customer:
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Shandong Dacheng Pesticide Co., Ltd.
*Major Supplier:
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Youth Chemical Co., Ltd.
Yingde
Greatchem Chemicals Co., Ltd. Guangzhou Office
Yingde
Greatchem Chemicals Co., Ltd. Hong Kong Office
Yingde
Greatchem Chemicals Co., Ltd. India Office
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.
Yingde Rural Credit Cooperative
AC#8860121501201000053617
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
260 |
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Inventory |
19,210 |
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Accounts
receivable |
6,060 |
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Other Accounts
receivable |
5,480 |
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To be
apportioned expense |
0 |
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Other current
assets |
6,950 |
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------------------ |
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Current assets |
37,960 |
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Fixed assets net
value |
18,890 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
10,090 |
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Total assets |
66,940 |
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Short loans |
0 |
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Accounts payable |
18,240 |
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Other Accounts
payable |
6,930 |
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Advances from
clients |
0 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
1,330 |
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Current
liabilities |
26,500 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
26,500 |
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Equities |
40,440 |
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Total
liabilities & equities |
66,940 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
103,320 |
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Cost of goods
sold |
95,780 |
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Sales expense |
2,990 |
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Management expense |
4,160 |
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Finance expense |
400 |
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Profit before
tax |
70 |
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Less: profit tax |
0 |
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Profits |
70 |
Important Ratios (as of Dec. 31, 2007)
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*Current ratio 1.43
*Quick ratio 0.71
*Liabilities to
assets 0.40
*Net profit
margin (%) 0.07
*Return on total
assets (%) 0.10
*Inventory
/Turnover ×365 68 days
*Accounts
receivable/Turnover ×365 21 days
*Turnover/Total
assets 1.54
* 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.
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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 has no short-term loan in 2007.
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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.
Credit Amount: USD 500,000.00
SC is considered medium-sized in its line with stable financial conditions.
The given credit line 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%)