MIRA
INFORM REPORT
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Report Date : |
03.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
NANJING LCE CHEM Co., Ltd. |
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Registered Office : |
2701 Fenghui Mansion,
No. 1 Wutaishan, Gulou District, Nanjing, Jiangsu Province, 210000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
23.10.2003 |
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Com. Reg. No.: |
320100000107479 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Trading Chemical
Products, etc. |
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 : |
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
NANJING LCE CHEM Co., Ltd.
2701 FENGHUI
MANSION, NO. 1 WUTAISHAN, GULOU DISTRICT,
NANJING, JIANGSU
PROVINCE, 210000 PR CHINA.
TEL: 86 (0)
25-83206770 FAX: 86 (0) 25-83206722
EXECUTIVE SUMMARY
INCORPORATION DATE : OCTOBER 23, 2003
REGISTRATION NO. : 320100000107479
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
4
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 13,800,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 2,020,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 20,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.927 = 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 Renminbi
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 October 23, 2003.
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 wholesaling hazardous
chemicals (in accordance with approval scope); selling machines, hardware;
technology developing, transferring and consulting; selling electronic
products, electric automation products, general merchandise, automobile parts, building materials, garments,
textile, arts & crafts, packing materials; importing and exporting commodities and technologies (excluding the
items prohibited by the state).
SC is mainly
engaged in trading chemical products, etc.
Ms. Mao Xingxing
has been legal representative and chairman of SC since October 2003.
SC is known to have approx. 4 employees at present.
SC is
currently operating at the above stated address, and this address houses its operating
office and head office in the commercial zone of Nanjing. Our checks reveal
that SC rents the total premise about 100 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Mao Xingxing 50
Wang Jun 50
l
Legal representative, chairman and
general manager:
Ms. Mao Xingxing, born in 1977 with university education. She is
currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman, legal representative and general manager.
SC is mainly
engaged in trading chemical products, etc.
Main Products: Chemical products, etc.
SC sources its materials 100% from domestic
market. SC sells 100% of its products to overseas market, mainly European and
American market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
=============
Zhejiang Mingsheng Holding Group
Co., Ltd
*Major Customers:
==============
PID (Indian)
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.
China Minsheng Bank Nanjing Branch Shanghai Road Sub-branch
AC#0990300142100001183
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Cash & bank |
-340 |
2,730 |
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Inventory |
0 |
0 |
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Accounts
receivable |
2,920 |
-150 |
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Advances to
supplies |
50 |
0 |
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Other
receivables |
0 |
0 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
2,630 |
2,580 |
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Fixed assets |
30 |
30 |
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Fixed assets net
value |
20 |
10 |
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Projects under
construction |
0 |
0 |
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Long-term
investments |
0 |
0 |
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Intangible and
other assets |
0 |
0 |
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------------------ |
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Total assets |
2,650 |
2,590 |
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Short loans |
0 |
0 |
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Accounts payable |
630 |
560 |
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Advances from
customers |
0 |
0 |
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Accrued payroll |
0 |
0 |
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Welfares payable |
10 |
10 |
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Other current
liabilities |
0 |
0 |
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----------------- |
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Current
liabilities |
640 |
570 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
640 |
570 |
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Shareholders
equities |
2,010 |
2,020 |
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Total
liabilities & equities |
2,650 |
2,590 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
13,800 |
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Cost of goods
sold |
13,320 |
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Sales expense |
240 |
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Management expense |
220 |
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Profit before
tax |
20 |
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Less: profit tax |
10 |
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Profits |
10 |
Important Ratios
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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*Current ratio |
4.11 |
4.53 |
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*Quick ratio |
4.11 |
4.53 |
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*Liabilities
to assets |
0.24 |
0.22 |
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*Net profit
margin (%) |
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0.07 |
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*Return on
total assets (%) |
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0.39 |
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*Inventory
/Turnover ×365 |
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/ |
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*Accounts
receivable/Turnover ×365 |
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/ |
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*Turnover/Total
assets |
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5.33 |
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* Cost of
goods sold/Turnover |
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0.97 |
PROFITABILITY:
AVERAGE
l
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 high, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a fairly good level.
l
SC’s quick ratio is maintained in a fairly good level.
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SC has no inventory in both 2006 and 2007.
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The accounts receivable of SC appears large in 2006.
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SC has no short-term loan in both 2006 and 2007.
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SC’s turnover is in a fairly good level in 2007, comparing with the size
of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is low.
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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 conditions.
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%)