MIRA
INFORM REPORT
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Report Date : |
16.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
JIANGSU BAOLING CHEMICAL CO., LTD. |
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Registered Office : |
NO. 41 Yaogang Road, Nantong, Jiangsu Province, 226601 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
16.05.1997 |
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Com. Reg. No.: |
3200001103603 |
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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 : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name and address of the company
JIANGSU BAOLING CHEMICAL CO., LTD.
NO. 41 YAOGANG ROAD, NANTONG,
JIANGSU PROVINCE, 226601 PR CHINA
41
TEL: 86 (0) 513-85056008 FAX: 86 (0) 513-85056096
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 16, 1997
REGISTRATION NO. : 3200001103603
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
650
REGISTERED CAPITAL : CNY 34,908,400
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 302,150,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 85,410,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 1,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE :
CNY 7.25= 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 Ren Min Bi
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 May 16, 1997.
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 manufacturing, selling and
technology developing of pesticide, dye and chemical products; manufacturing
and selling common machinery and instruments; exporting its products and
technology; importing materials, machinery, instruments, parts and technology
needed for it production; 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 chemical products.
Mr. Zhu Wenxin has
been chairman of SC since 1997.
SC is known
to have approx. 650 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 Nantong. Our checks reveal that SC
owns the total premise about 60,000 square meters.
http://www.baolingchem.com
. The design is professional and the content is well organized. At present it
is in both Chinese and English versions.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Nantong Jinghua Group Co., Ltd. 78.52
Nantong Chongchuan District Guangming
Industry Corp. 1.70
Shenyang Research Institute of Chemical
Industry 3.44
Other 11 individuals 16.34
11
Nantong Jinghua Group Co., Ltd.
Add: 12/F Xinhaitong, No. 15 Qingnian Road,
Nantong
15 12
Tel: 86 0513-3553076
Fax: 86 0513-3503835
Shenyang Research Institute of Chemical
Industry
Address: 8 Shenyliao Dong Road, Shenyang,
China
8
Tel: (024) 25853917
Fax: (024) 25862427
Email: xsgs03@mail.syrici.com.cn
l
Chairman:
Mr. Zhu Wenxin, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working
in SC as chairman.
l
General Manager:
Mr. Gu Shuji, in his 50’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 1997 to present
Working in SC as general
manager.
SC is mainly engaged
in manufacturing and selling chemical products.
SC’s products
mainly include:
Fungicide
Insecticide
Herbicide
Intermediate
SC sources its
materials 80% from domestic market, and 20% from the overseas market, mainly
European countries. SC sells 70% of its products in domestic market, and 30% to
the overseas market, mainly American and European countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Client:
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Nantong Jiangshan Agrochemical &
Chemical Co., Ltd.
SC is
known to have 4 subsidiaries as following,
Nantong
DAS Chemicals Co., Ltd
Nantong
Rotam Chemicals Co., Ltd
Nantong Baosheng
Chemicals Co., Ltd.
Nantong
Baoye Chemicals Co., Ltd.
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 refused to release any information of its
suppliers and the trade reference was not available.
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 Nantong Branch
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
27,780 |
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Inventory |
52,580 |
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Accounts
receivable |
38,840 |
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Advances to
suppliers |
3,200 |
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Other
receivables |
32,600 |
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Other current
assets |
30 |
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Current assets |
155,030 |
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Fixed assets net
value |
35,000 |
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Projects under
construction |
26,610 |
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Long term
investment |
29,150 |
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Other assets |
7,420 |
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Total assets |
253,210 |
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Short loans |
68,700 |
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Accounts payable |
13,940 |
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Advances from
clients |
3,040 |
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Taxes payable |
0 |
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Salaries payable |
0 |
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Other payable |
24,270 |
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Other current
liabilities |
27,180 |
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Current
liabilities |
137,130 |
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Long term
liabilities |
30,670 |
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Total
liabilities |
167,800 |
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Equities |
85,410 |
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Total
liabilities & equities |
253,210 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
302,150 |
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Cost of goods
sold |
235,410 |
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Sales expense |
11,940 |
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Management expense |
28,120 |
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Finance expense |
6,220 |
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Profit before
tax |
25,700 |
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Less: profit tax |
6,210 |
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Profits |
19,490 |
Important Ratios
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2006 |
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*Current ratio |
1.13 |
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*Quick ratio |
0.75 |
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*Liabilities
to assets |
0.66 |
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*Net profit
margin (%) |
6.45 |
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*Return on
total assets (%) |
7.70 |
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*Inventory
/Turnover ×365 |
63days |
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*Accounts
receivable/Turnover ×365 |
46days |
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*Turnover/Total
assets |
1.19 |
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* Cost of
goods sold/Turnover |
0.78 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in 2006.
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SC’s net profit margin is fairly good in 2006.
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SC’s return on total assets is fairly good 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 in 2006.
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SC’s quick ratio is maintained in a fair level in 2006.
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The accounts receivable of SC is average.
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The inventory of SC is average.
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The short loans are 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 well-known in its industry with stable financial conditions. Over the
past 11 years, SC has made a stable growth with fairly good profit. A credit
line up to USD 1,000,000 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%)