MIRA
INFORM REPORT
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Report Date : |
13.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHANGHAI
RUNCHENG CHEMICALS CO., LTD. |
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Registered Office : |
Room 911 No. 228 Zhangyang Road, Shanghai, 200122 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
18.02., 2003 |
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Com. Reg. No.: |
3101152010883 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Chemical Materials. |
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 8,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
SHANGHAI RUNCHENG
CHEMICALS CO., LTD.
ROOM 911 NO. 228 ZHANGYANG ROAD,
SHANGHAI, 200122 PR CHINA
228911
TEL: 86 (0) 21-58794260 FAX: 86 (0) 21-58794260
EXECUTIVE SUMMARY
INCORPORATION DATE : FEB. 18, 2003
REGISTRATION NO. : 3101152010883
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
7
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
TRADING
TURNOVER :
cny 17,170,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 1,050,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 8,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.00= USD 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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Feb. 18, 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 selling chemical materials and
products, oil products, rubber & plastic products, metal materials,
building materials, textiles, stone materials, hardware, and automotive parts;
importing and exporting various goods and technology.
SC is mainly
engaged in selling chemical materials.
Mr. Qin Yong has been chairman of SC since 2003.
SC is known
to have approx. 7 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shanghai. Our checks reveal that SC
rents the total premise about 35 square meters.
SC is not known to host website of its own at present.
SC’s former name was Shanghai Aimei Chemicals Co., Ltd., and in 2005 SC
changed its name to the present one.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Siming 12.50
Zheng Mingxiang 12.50
Qin Yong 30.00
Qu Dajun 22.50
Lu Jianchun 22.50
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Chairman and General Manager:
Mr. Qin Yong , in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in selling chemical materials.
SC’s products
mainly include: chemical materials.
SC sources its
materials 100% from domestic market. SC sells 30% of its products in domestic
market, and 70% to the overseas market, mainly India, American and European
countries.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Client:
==========
Shanghai Jiancheng Chemical 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 refused to release any information of its
domestic 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.
Bank of Communications Shanghai Branch
AC#310066580-018002849572
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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Cash & bank |
170 |
50 |
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Inventory |
190 |
340 |
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Accounts
receivable |
3,510 |
4,520 |
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Advances to
suppliers |
240 |
0 |
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Other
receivables |
20 |
160 |
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Other current
assets |
30 |
0 |
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------------------ |
------------------ |
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Current assets |
4,160 |
5,070 |
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Fixed assets net
value |
10 |
10 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
30 |
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------------------ |
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Total assets |
4,170 |
5,110 |
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============ |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
2,820 |
3,460 |
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Advances from
clients |
0 |
0 |
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Taxes payable |
10 |
20 |
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Salaries payable |
10 |
10 |
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Other payable |
350 |
560 |
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Other current
liabilities |
20 |
10 |
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------------------ |
------------------ |
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Current
liabilities |
3,210 |
4,060 |
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Long term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
3,210 |
4,060 |
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Equities |
960 |
1,050 |
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Total
liabilities & equities |
4,170 |
5,110 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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Turnover |
19,140 |
17,170 |
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Cost of goods
sold |
18,280 |
16,050 |
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Sales expense |
480 |
1,020 |
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Management expense |
230 |
0 |
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Finance expense |
0 |
40 |
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Profit before
tax |
130 |
50 |
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Less: profit tax |
0 |
20 |
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Profits |
130 |
30 |
Important Ratios
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2005 |
2006 |
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*Current ratio |
1.30 |
1.25 |
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*Quick ratio |
1.24 |
1.17 |
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*Liabilities
to assets |
0.77 |
0.79 |
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*Net profit
margin (%) |
0.68 |
0.17 |
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*Return on
total assets (%) |
3.12 |
0.59 |
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*Inventory
/Turnover ×365 |
4days |
7days |
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*Accounts
receivable/Turnover ×365 |
67days |
96days |
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*Turnover/Total
assets |
4.59 |
3.36 |
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* Cost of
goods sold/Turnover |
0.96 |
0.93 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in 2005 and 2006.
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SC’s net profit margin is average in 2005 and 2006.
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SC’s return on total assets is fairly good in 2005 but average in 2006.
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SC’s cost of goods sold is fairly high in 2005 and 2006, comparing with
its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal level in 2005 and
2006.
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SC’s quick ratio is maintained in a normal level in 2005 and 2006.
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The accounts receivable of SC appears fairly large.
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The inventory of SC is average in 2005 and 2006.
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SC has no short loan in both 2 years.
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SC’s turnover is in a fairly good level in 2005 and 2006, comparing with
the size of its total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
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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 financial conditions.
Credit dealings of small amount can be considered for it at present.
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%)