MIRA
INFORM REPORT
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Report Date : |
11.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
NINGBO LYN CHEMICAL CO., LTD. |
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Registered Office : |
Room 1308, Minghui Mansion, No.666 Jinyu Road, Yinzhou
District, Ningbo, Zhejiang Province, Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Feb. 28, 2006 |
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Com. Reg. No.: |
3302272020644 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in exporting 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 20,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
NINGBO LYN CHEMICAL CO., LTD.
ROOM 1308, MINGHUI MANSION, NO.666 JINYU ROAD, YINZHOU DISTRICT,
NINGBO, ZHEJIANG PROVINCE, PR CHINA
TEL : 0086-574-87310900
FAX :
0086-574-87314103
EXECUTIVE SUMMARY
INCORPORATION DATE :
FEB. 28, 2006
REGISTRATION NO. :
3302272020644
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MS. WANG LINGHONG (CHAIRMAN)
STAFF STRENGTH :
10
REGISTERED CAPITAL :
CNY 2,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 8,490,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 2,020,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 20,000
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.26550=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
SC was registered as a limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Feb. 28, 2006.
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 importing and exporting commodities and technologies, excluding export commodities limited or prohibited by the state;
wholesaling and retailing chemical products, machinery equipment, textiles,
garments, groceries, stationery and electronic products.
SC is
mainly engaged in exporting chemical products.
Ms.
Wang Linghong has been legal representative and chairman of SC since 2006.
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 Ningbo. Our
checks reveal that SC rents the total premise about 170 square meters.
http://www.lynchemical.com/
The design is professional and the content is
well organized. At present it is in English version.
E-Mail: sales@lynchemical.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Lin Ripeng 75
Wang Linghong 25
l
Legal representative and chairman:
Ms. Wang Linghong, 37 years old with university education.
She is currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working in SC as chairman and legal representative.
SC is
mainly engaged in exporting chemical products.
SC’s products mainly include: atorvastatin calcium, apis,
intermediates, adamantane, thiophene, tartaric acid and other special
chemicals.
SC sources its merchandises 100% from domestic market. SC
sells 100% of its merchandises to overseas market.
The buying terms of SC include Check, L/C, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, and Credit of 30-60
days.
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 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 Ningbo Sub-branch
AC#：810032012008091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2006 |
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Cash
& bank |
2,100 |
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Bills
receivable |
0 |
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Accounts
receivable |
290 |
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Other
receivables |
20 |
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Advances to
suppliers |
0 |
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Inventory |
80 |
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Prepaid expenses |
10 |
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A receivable tax
rebate of export |
710 |
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Other
current assets |
0 |
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------------------ |
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Current
assets |
3,210 |
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Fixed assets |
290 |
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Fixed
assets net value |
290 |
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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 |
3,500 |
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============= |
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Short
loans |
0 |
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Bills
payable |
0 |
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Accounts
payable |
1,420 |
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Welfare
payable |
0 |
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Advances from
clients |
0 |
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Accrued
payroll |
0 |
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Tax
payable |
40 |
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Other
payable |
10 |
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Accrued expenses |
10 |
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Other
current liabilities |
0 |
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------------------ |
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Current
liabilities |
1,480 |
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Long
term liabilities |
0 |
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Total
liabilities |
1,480 |
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Equities |
2,020 |
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Total
liabilities & equities |
3,500 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2006 |
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Turnover |
8,490 |
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Cost of goods
sold |
7,520 |
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Sales expense |
290 |
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Management expense |
610 |
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Finance expense |
-10 |
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Profit before
tax |
80 |
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Less: profit tax |
60 |
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Profits |
20 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
2.17 |
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*Quick ratio |
2.11 |
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*Liabilities
to assets |
0.42 |
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*Net profit
margin (%) |
0.24 |
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*Return on
total assets (%) |
0.57 |
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*Fixed
assets/Total assets |
0.08 |
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*Inventory
/Turnover ×365 |
4 days |
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*Accounts
receivable/Turnover ×365 |
13 days |
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*Turnover/Total
assets |
2.43 |
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* Cost of
goods sold/Turnover |
0.89 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is average.
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SC’s return on total assets is average.
l
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.
l
SC’s quick ratio is maintained in a fairly good level.
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The inventory conversion period of SC appears average.
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The accounts receivable of SC appears average.
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There’s no short-term loan of SC 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 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 a short
history. A credit line up to USD 20,000 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%)