MIRA
INFORM REPORT
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Report Date : |
27.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
chongqing fuyuan chemical co., ltd. |
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Registered Office : |
Yantai Town, Dianjiang County, Chongqing, 408324 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2007 |
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Date of Incorporation : |
16.06. 1982 |
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Com. Reg. No.: |
5000001805868 |
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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 : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
usd 800,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
chongqing fuyuan chemical co., ltd.
yantai town,
dianjiang county,
chongqing, 408324
PR CHINA
TEL: 86 (0)
23-74588700 FAX: 86 (0) 23-74588707
EXECUTIVE SUMMARY
INCORPORATION DATE : june 16, 1982
REGISTRATION NO. : 5000001805868
REGISTERED LEGAL FORM : Shares limited company
STAFF STRENGTH :
807
REGISTERED CAPITAL : CNY 70,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 129,885,000 (january 31 to june 30, 2007)
EQUITIES :
CNY 108,535,000 (AS OF June 30, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 800,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY6.95 = USD1
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 June 16, 1982, and has
been under present ownership since December 29 of 2005.
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 and selling chemical products, (including
manufacture of liquid ammonia, ammonium nitrate, sodium nitrate, sodium
nitrite, morpholine, carbon dioxide, nitric acid, potassium nitrate, selling
sodium nitrate, sodium nitrite, liquid carbon dioxide, morpholine, potassium
nitrate, ammonium chloride, liquid ammonia, oxidants.) general cargo
transportation, importing and exporting goods and technology.
SC is mainly engaged
in manufacturing and selling chemical products.
Mr. Liu Deren has
been chairman of SC since 2001.
SC is known to
have approx. 807 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 Chongqing. Our checks
reveal that SC owns the total premise about 50,000 square meters.
http://www.fuyuanchem.com
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: xzb@fuyuanchem.com
SC has got the certificate ISO9001.
Changes of its registered information are as follows:
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Date of change |
Item |
Before the
change |
After the change |
|
2005-12-29 |
Registered legal form |
Limited
liabilities company |
Shares limited
company |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chongqing Yudian State-Owned Assets
Management Co., Ltd. 56.41
Zhejiang Dehua Venture Capital Co., Ltd. 40.00
Zhang Keming 1.86
Xiang Weiping 1.14
Xie Xin 0.59
Chongqing Yudian State-Owned Assets
Management Co., Ltd.
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Chongqing Yudian State-Owned Assets
Management Co., Ltd. was established in December 8 of 2003, its registered
capital was CNY 80,000,000.
l
Chairman:
Mr. Liu Deren , 40 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
Before 2001 Worked in
Chongqing Saide Chemical Co., Ltd. as chairman and general manager;
From 2001 to present Working
in SC as chairman.
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Vice Chairman:
Mr. Cheng Shuwei (程树伟), 40 years old with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2005
to present Working in SC as
vice chairman, and also working in Dehua TB New Decoration Material Co., Ltd.
as chairman.
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General Manager:
Mr. Yu Dewen , 43 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2001 to present
Working in SC as general
manager.
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products
mainly include: ammonium nitrate, sodium nitrate, sodium nitrite, morpholine,
liquid carbon dioxide, ammonium bicarbonate, liquid ammonia, dilute nitric
acid.
SC sources its materials 100% from domestic
market, mainly Zhejiang and Chongqing. SC sells 70% of its products in domestic
market, and 30% to overseas market, mainly Southeast Asian market.
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 Customer:
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Dianjiang County Agricultural Means of Production Co., Ltd.
*Major Suppliers:
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Chongqing Dingfa Industry Co., Ltd.
Ningbo Tianqin Chemical Products Co., Ltd.
Chongqing Yangpu Materials Co., Ltd.
SC is
known to have 2 subsidiaries at present:
Chongqing
Sanling Chemical Fertilizer Co., Ltd.
Chongqing
Dingfa Industry 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’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.
Bank of China Chongqing Branch
AC#01786608094014
Relationship:
Normal.
Balance Sheet
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Unit: CNY’000 |
as
of Dec. 31, 2006 |
as
of Jun. 30, 2007 |
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Cash & bank |
41,175 |
17,540 |
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Inventory |
14,923 |
18,213 |
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Accounts
receivable |
409 |
1,249 |
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Other Accounts
receivable |
3,140 |
2,961 |
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Advances to
suppliers |
11,927 |
17,841 |
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To be
apportioned expense |
0 |
0 |
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Other current
assets |
8,836 |
15,263 |
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------------------ |
------------------ |
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Current assets |
80,410 |
73,067 |
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Fixed assets net
value |
126,405 |
129,129 |
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Projects under
construction |
5,723 |
1,552 |
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Long term
investment |
3,000 |
3,000 |
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Other assets |
7,578 |
10,330 |
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Total assets |
223,116 |
217,078 |
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============= |
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Short loans |
45,000 |
35,000 |
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Accounts payable |
22,405 |
19,593 |
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Other Accounts
payable |
9,746 |
6,292 |
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Advances from
clients |
3,880 |
6,828 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current
liabilities |
8,480 |
29,128 |
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------------------ |
------------------ |
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Current
liabilities |
89,511 |
96,841 |
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Long term
liabilities |
11,716 |
11,702 |
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Other
liabilities |
1 |
0 |
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Total
liabilities |
101,228 |
108,543 |
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Equities |
121,888 |
108,535 |
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Total
liabilities & equities |
223,116 |
217,078 |
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Income Statement
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Unit: CNY’000 |
as
of Dec. 31, 2006 |
Jan.
31 to Jun. 30, 2007 |
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Turnover |
274,678 |
129,885 |
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Cost of goods
sold |
192,001 |
93,498 |
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Sales expense |
16,989 |
6,199 |
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Management expense |
18,137 |
9,413 |
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Finance expense |
2,084 |
1,508 |
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Profit before
tax |
47,243 |
19,618 |
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Less: profit tax |
6,851 |
2,972 |
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Profits |
40,392 |
16,646 |
Important
Ratios
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as of Dec. 31, 2006 |
as of Jun. 30, 2007 |
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*Current ratio |
0.90 |
0.75 |
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*Quick ratio |
0.73 |
0.57 |
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*Liabilities
to assets |
0.45 |
0.50 |
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*Net profit
margin (%) |
14.71 |
12.82 |
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*Return on
total assets (%) |
18.10 |
7.67 |
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*Inventory
/Turnover ×365 |
20 days |
51 days |
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*Accounts receivable/Turnover
×365 |
1 day |
4 days |
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*Turnover/Total
assets |
1.23 |
0.60 |
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* Cost of
goods sold/Turnover |
0.70 |
0.72 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC is maintained in an average level.
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SC’s short-term loan is in appears 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: Fairly Stable.
Over the past 26 years, SC has made a stable growth with fairly stable
financial conditions. A credit line up to USD 800,000
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%)