MIRA
INFORM REPORT
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Report Date : |
02.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
ZHEJIANG YONGNONG CHEM. IND. CO., LTD. |
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Registered Office : |
Lantian,
Yongqiang, Wenzhou City, Zhejiang Province, 325024 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
August 8, 1988 |
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Com. Reg. No.: |
3303032001782 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing
and selling pesticide and related 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 : |
Up To usd 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
ZHEJIANG YONGNONG CHEM. IND. CO., LTD.
LANTIAN, YONGQIANG, WENZHOU city,
ZHEJIANG PROVINCE, 325024 PR CHINA
TEL :
86 (0) 577-86874218
FAX :
86 (0) 577- 86379678
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUGUST 8, 1988
REGISTRATION NO. :
3303032001782
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 300
REGISTERED CAPITAL :
CNY 10,180,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 243,200,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 26,790,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 300,000 (periodical reviw)
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.30=US1$
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: SC’s correct
name should be the above stated one, instead of the given name – Zhejiang
Yomgmong Chem Ind. Co., Ltd.
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 August 8, 1988.
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 manufacturing and processing pesticide, exporting its
products and technology; importing materials, instruments, machinery and equipment,
parts and technology needed for its production, excluding the items limited or
forbidden by the government, processing with imported materials, processing
with imported samples, assembling with imported parts, and compensation trade
in agreement.
SC is mainly
engaged in manufacturing and selling pesticide and related products.
Mr. Wu
Kemeng has been chairman of SC since 1998.
SC is known to
have approx. 300 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
Wenzhou. Our checks reveal that SC owns the total premise about 50,000 square
meters.
http://www.yongnongchem.com The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
Email: zjynhg@mail.wzptt.zj.cn
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wu Kemeng 27.4
Wu Kemeng 16.52
Zhang Yu’e 11.44
Zhang Chongnian 10.43
Wu Kesi 13.81
Jiang Fangjie 4.81
Jiang Fangzhong 4.26
Lin Xin 2.51
Lin Hu 1.26
Jiang Guiyuan 1.26
Jiang Fangwu 1.26
Wu Ren 1.26
Wu Kepu 1.26
Wu Baochun 1.26
Sun Baofa 1.26
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Chairman and
General Manager:
Mr. Wu Kemeng, born in 1965 with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1984 to 1988 Worked in Haibin Chemical Factory;
From 1988 to 1998 Worked in Wenzhou Agricultural Chemical Factory;
From 1998 to present Working in SC as chairman and general manager.
SC is mainly
engaged in manufacturing and selling pesticide and related products.
SC’s products
mainly include:
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Paraquat |
42% Tech, 20% SL |
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Diquat |
40% Tech, 20%
SL, 15% SL |
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Glufosinate-Ammonium |
95% Tech, 50%
Tech, 18.5% SL |
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Phenmedipham |
95% Tech, 16% EC |
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Desmedipham |
95% Tech, 16% EC |
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Ethofumesate |
97%Tech |
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Picloram |
95%Tech. |
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Clopyralid |
95%Tech,30%SL. |
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Fluroxypyr |
95%Tech,20%EC(w/v). |
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Fluazifop-p-butyl |
90%Tech,15%EC. |
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Haloxyfop-R-methyl |
94%Tech,10.8%EC(w/v),24%EC(w/v). |
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Triclopyr |
95%Tech, 48%EC
(w/v). |
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Chlorpyrifos |
97% Tech, 95%
Tech, 40% EC |
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Methidathion |
95% Tech, 40% EC |
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Diazinon |
95% Tech, 60% EC |
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Profenofos |
90% Tech, 50%
EC, 40% EC |
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Pirimiphos-Methyl |
90% Tech, 50% EC |
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Triazophos |
80% Tech, 40% EC |
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Propargite |
90% Tech, 73%
EC, 57% EC |
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O,O-DETC |
99%, 98.5% |
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Phenyl Hydroxy
Triazol |
97% |
SC sources its materials 70% from
domestic market, and 30% from overseas market, mainly Europe. SC sells 80% of
its products in domestic market, and 20% 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.
*Major Customers:
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Sinochem Tianjin Corporation
*Major Suppliers:
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Ningbo Free Trade Zone Zhongtai Development 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 & Commercial Bank of China Wenzhou Branch
Longwan Sub-branch
AC#：1203227309045546777
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
22,140 |
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Inventory |
39,300 |
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Accounts
receivable |
56,310 |
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Other Accounts
receivable |
34,060 |
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To be
apportioned expense |
0 |
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Other current
assets |
1,240 |
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Current assets |
153,050 |
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Fixed assets net
value |
29,200 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
32,520 |
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Total assets |
214,770 |
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Short loans |
96,680 |
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Accounts payable |
51,550 |
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Other Accounts
payable |
-30 |
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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 |
39,780 |
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Current
liabilities |
187,980 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total liabilities |
187,980 |
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Equities |
26,790 |
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Total
liabilities & equities |
214,770 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
243,200 |
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Cost of goods sold |
220,220 |
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Sales expense |
4,370 |
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Management expense |
8,860 |
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Finance expense |
3,800 |
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Profit before
tax |
6,740 |
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Less: profit tax |
2,230 |
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Profits |
4,510 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.81
*Quick ratio 0.61
*Liabilities to
assets 0.88
*Net profit
margin (%) 1.85
*Return on total
assets (%) 2.10
*Inventory
/Turnover ×365 59 days
*Accounts receivable/Turnover
×365 85 days
*Turnover/Total
assets 1.13
* Cost of goods
sold/Turnover 0.91
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 average, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan appears LARGE.
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SC’s turnover is in an acceptable level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is high.
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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 fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition. A credit line up to USD 300,000
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%)