MIRA
INFORM REPORT
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Report Date : |
13.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
NANJING CHROMA CHEMICAL CO LTD |
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Registered Office : |
No. 138 Xiongzhou East Road, Xiongzhou Town, Liuhe District, Nanjing, Jiangsu Province, 211500 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
25.09.1991 |
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Com. Reg. No.: |
000186 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing and Selling Various Dyes and Dye Intermediates |
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 900,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
Nanjing Chroma Chemical Co., Ltd.
NO. 138 XIONGZHOU EAST ROAD, XIONGZHOU TOWN,
LIUHE DISTRICT,
NANJING, JIANGSU PROVINCE, 211500 PR CHINA.
138
TEL: 86 (0) 25-57512623 FAX: 86 (0) 25-57102193
EXECUTIVE SUMMARY
INCORPORATION DATE : SEPTEMBER 25, 1991
REGISTRATION NO. : 000186
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
enterprise
STAFF STRENGTH :
95
REGISTERED CAPITAL : USD 7,500,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 142,440,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 73,100,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 900,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.9049 = 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 wholly foreign-owned enterprise at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing business
license) on September 25, 1991.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered
business scope includes manufacturing various dyes and dye intermediates; selling
self-made products.
SC is mainly
engaged in manufacturing and selling various dyes and dye intermediates.
Mr. Zhang Shijin
has been legal representative and chairman of SC since September 1991.
SC is known to have approx. 95 employees 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 Nanjing. Our checks
reveal that SC owns the total premise, but SC’s accountant refused to release
the gross area.
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
B.V.I. Wanbao Group Corporation (in Chinese
Pinyin) 100
l
Legal representative and chairman:
Mr. Zhang Shijin, about 78 years old. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 1991 to present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Cai Wanfa, Taiwanese, about 58 years old. He is currently
responsible for the daily management of SC.
Working Experience(s):
Present Working
in SC as general manager.
SC is mainly
engaged in manufacturing and selling various dyes and dye intermediates.
Main Products: dye
and dye intermediates
SC sources its materials 80% from domestic
market, and 20% from overseas market, mainly India and Hong Kong. SC sells 50%
of its products in domestic market, and 50% to overseas market, mainly Hong
Kong, Europe and USA.
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 Supplier:
=============
Zhejiang Mingsheng Group 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.
China Construction Bank Nanjing Liuhe Sub-branch
AC#32001596236050003524
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 |
3,370 |
5,080 |
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Notes receivable |
900 |
1,660 |
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Inventory |
53,140 |
56,550 |
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Accounts
receivable |
12,620 |
14,740 |
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Advances to
supplies |
620 |
430 |
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Other
receivables |
1,540 |
30 |
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Prepaid expenses |
30 |
0 |
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Other current
assets |
0 |
20 |
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------------------ |
------------------ |
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Current assets |
72,220 |
78,510 |
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Fixed assets |
53,050 |
56,380 |
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Fixed assets net
value |
41,520 |
40,610 |
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Projects under
construction |
3,020 |
280 |
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Long-term
investments |
0 |
0 |
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Intangible
assets |
2,650 |
2,570 |
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Long-term
deferred expenses |
220 |
230 |
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Other assets |
10 |
10 |
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------------------ |
------------------ |
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Total assets |
119,640 |
122,210 |
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============= |
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Short loans |
0 |
0 |
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Accounts payable |
4,810 |
8,510 |
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Advances from
customers |
0 |
0 |
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Accrued payroll |
330 |
350 |
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Welfares payable |
0 |
0 |
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Taxes payable |
970 |
470 |
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Accrued expenses |
0 |
0 |
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Other Accounts
payable |
8,020 |
19,240 |
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Other current
liabilities |
0 |
0 |
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----------------- |
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Current
liabilities |
14,130 |
28,570 |
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Long term
liabilities |
20,540 |
20,540 |
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------------------ |
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Total
liabilities |
34,670 |
49,110 |
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Shareholders
equities |
84,970 |
73,100 |
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Total
liabilities & equities |
119,640 |
122,210 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Turnover |
122,610 |
142,440 |
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Cost of goods
sold |
99,460 |
117,940 |
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Sales expense |
2,730 |
2,870 |
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Management expense |
3,900 |
5,350 |
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Finance expense |
1,330 |
1,800 |
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Non-operating
income |
0 |
40 |
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Non-operating expense |
100 |
200 |
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Operation Profit |
15,070 |
14,300 |
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Less: profit tax |
4,100 |
3,900 |
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Net profit |
10,970 |
10,400 |
Important Ratios
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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*Current ratio |
5.11 |
2.75 |
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*Quick ratio |
1.35 |
0.77 |
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*Liabilities
to assets |
0.29 |
0.40 |
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*Net profit
margin (%) |
8.95 |
7.30 |
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*Return on
total assets (%) |
9.17 |
8.51 |
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*Inventory
/Turnover ×365 |
159 days |
145 days |
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*Accounts
receivable/Turnover ×365 |
38 days |
38 days |
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*Turnover/Total
assets |
1.02 |
1.17 |
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* Cost of
goods sold/Turnover |
0.81 |
0.83 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line, and it was rising in
2007.
l
SC’s net profit margin is fairly good, but it was declining in 2007.
l
SC’s return on total assets is fairly good, but it was declining in
2007.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly good level.
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SC’s quick ratio is maintained in a normal level in 2006 but fair in
2007.
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The inventory of SC appears fairly 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 both 2006 and 2007.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly good.
SC is considered small-sized in its line with fairly good financial
conditions. The large amount of inventory could be a threat to SC’s financial
condition. A credit line up to USD 900,000 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%)