MIRA
INFORM REPORT
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Report Date : |
04.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
YUNCHEM CORPORATION |
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Registered Office : |
No. 118, Dongfeng East Road, Kunming, Yunnan Province, 650041 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
10.05.1995 |
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Com. Reg. No.: |
5300001006915 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and Exporting Phosphor Chemical Products, Fertilizer,
Packaging Materials, Domestic Trade, Importing and Exporting Technology and
Equipment. |
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 30,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
clear |
name & address
YUNCHEM CORPORATION
NO. 118, DONGFENG
EAST ROAD, KUNMING,
YUNNAN PROVINCE,
650041 PR CHINA.
118
TEL: 86 (0)
871-3392251 FAX: 86 (0) 871-3376019
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 10, 1995
REGISTRATION NO. : 5300001006915
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
30
REGISTERED CAPITAL : CNY 5,880,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 174,986,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 3,009,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 30,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.1082 = 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 provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 10, 1995.
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 the items prohibited by the state; wholesaling, retailing,
purchasing, selling, and processing fertilizer, chemical raw materials and
products (excluding controlled commodities), mineral products, rubber and
products, plastic and products (excluding agricultural film), machinery &
electrical products (including domestic-made automobiles and cars), hardware (excluding imported video camera), modern office equipment, general merchandise, textiles, arts
and crafts (excluding gold silver jewelry), sugar and tea; supplying economic
information and intermediary services (excluding finance, futures and real
estate); coal products, yellow phosphorus, corrosive, inflammable solid,
spontaneous combustion materials, inflammable materials, inflammable liquid,
agricultural by-products and packaging barrels (with permit if needed).
SC is mainly
engaged in importing and exporting phosphor chemical products, fertilizer,
packaging materials, domestic trade, importing and exporting technology and
equipment.
Mr. Zhao Mengyun
is legal representative and chairman of SC at present.
SC is known to have approx. 30 staff members 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 Kunming. SC’s accountant
refused to release detailed information of the premise.
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
Yunnan Zhili Technology Consulting Co., Ltd 14.966
*YunNan Coal Chemical Industry Group Co.,
Ltd
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l
Legal representative and chairman:
Mr. Zhao Mengyun He is currently responsible for the overall management
of SC.
Working Experience(s):
Present Working
in SC as chairman and legal representative.
SC is mainly engaged
in importing and exporting phosphor chemical products, fertilizer, packaging
materials, domestic trade, importing and exporting technology and equipment.
Main Products:
yellow phosphorus, phosphate, fertilizer, other phosphorus chemical products,
phosphate rock, coal, etc.
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 30% of its products in domestic
market, and 70% to overseas market.
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.
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.
SC’s management
declined to release its bank details.
Financial
Information
Unit: CNY’000
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as of Dec. 31, 2006 |
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Total
liabilities |
77,115 |
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Shareholders
equities |
3,009 |
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Total Assets |
80,124 |
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Turnover |
174,986 |
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Net profit |
556 |
Important Ratios
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as of Dec. 31, 2006 |
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*Liabilities
to assets |
0.96 |
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*Net profit
margin (%) |
0.32 |
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*Return on
total assets (%) |
0.69 |
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*Turnover/Total
assets |
2.18 |
Overall financial
condition of the SC: Fairly Stable.
SC is considered small-sized in its line with fairly stable financial
conditions. A credit line up to USD
30,000 would appear to be within SC’s capacities upon a periodical review
basis.
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%)