MIRA
INFORM REPORT
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Report Date : |
04.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
Guangzhou huichung
chemical co., ltd. |
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Registered Office : |
Room 1605 Yanqiao
Building, No. 89 Yanling Road, Guangzhou, Guangdong Province, 510507 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
January 29, 2002 |
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Com. Reg. No.: |
4401062011977 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in
selling chemical products. |
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 : |
Up To usd 5,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
Guangzhou huichung
chemical co., ltd.
room 1605 yanqiao building, no. 89 yanling
road, guangzhou,
guangdong PROVINCE, 510507 PR CHINA
TEL :
86 (0) 20-87732265
FAX :
86 (0) 20-87634433
EXECUTIVE SUMMARY
INCORPORATION DATE : JANUARY 29, 2002
REGISTRATION NO. : 4401062011977
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 1,010,000
BUSINESS LINE :
trading
TURNOVER :
CNY 8,360,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 860,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 5,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.27 = US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Ren Min Bi Yuan
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (The official body of issuing and renewing business license) on January 29, 2002.
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
scopes include selling chemical products and building materials.
SC is mainly
engaged in selling chemical products.
Mr. Kang Kaide has
been general manager of SC since 2002.
SC is known to
have approx. 10 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Guangzhou. Our checks reveal that SC
owns the total premise about 100 square meters.
SC is not known to host web site of its own at present.
E-mail: hechung＠china.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Kang Kaide 50.5
Gou Bo 49.5
l
Chairman and
General Manager:
Mr. Kang Kaide, 33 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in selling chemical products.
SC’s products
mainly include: leather dyestuff.
SC sources its
materials 50% from domestic market, mainly Guangzhou, and 50% from overseas
market, mainly Italy. SC sells 100% of its products in domestic market, mainly
Guangdong.
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The
payment terms of SC include T/T and Credit of 30-60 days.
*Major Customers:
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Guangdong Top Tannery Leather Co., Ltd.
*Major Suppliers:
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Guangzhou Haizhu District Foreign Economic Trade Co., Ltd.
ITALY VECO CO.
Switzerland HAIN CO.
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.
Guangzhou City Commercial Bank
AC#：8059399-59
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
950 |
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Inventory |
1,770 |
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Accounts
receivable |
130 |
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Other Accounts
receivable |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
-440 |
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Current assets |
2,410 |
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Fixed assets net
value |
260 |
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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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Total assets |
2,670 |
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Short loans |
0 |
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Accounts payable |
1,170 |
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Other Accounts
payable |
490 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
150 |
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Current
liabilities |
1,810 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
1,810 |
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Equities |
860 |
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Total
liabilities & equities |
2,670 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
8,360 |
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Cost of goods
sold |
7,480 |
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Sales expense |
420 |
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Management expense |
360 |
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Finance expense |
0 |
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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, 2006)
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*Current ratio 1.33
*Quick ratio 0.35
*Liabilities to
assets 0.68
*Net profit
margin (%) 0.84
*Return on total
assets (%) 2.62
*Inventory
/Turnover ×365 77 days
*Accounts
receivable/Turnover ×365 6 days
*Turnover/Total
assets 3.13
* Cost of goods
sold/Turnover 0.89
PROFITABILITY:
AVERAGE
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The turnover of SC appears average 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: 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 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 2006.
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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 fairly 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 small-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
condition. A credit line up to USD 5,000
would appear to be within SC’s capacities.
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%)