MIRA
INFORM REPORT
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Report Date : |
26.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHANDONG QIAOCHANG CHEMICAL CO., LTD. |
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Registered Office : |
No. 1181, Huanghe 12 Road, Binzhou, Shandong Province, 256603 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
29.05. 1993 |
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Com. Reg. No.: |
3716022800865 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and
Selling Pesticide Chemicals. |
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 800,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
SHANDONG QIAOCHANG CHEMICAL CO., LTD.
NO. 1181, HUANGHE
12 ROAD, BINZHOU, SHANDONG PROVINCE, 256603 PR CHINA
1181
TEL: 86 (0)
543-2226173 FAX: 86 (0) 543-2226171
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 29, 1993
REGISTRATION NO. : 3716022800865
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
500
REGISTERED CAPITAL : CNY 100,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 473,150,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 143,850,000 (AS OF DEC. 31, 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 :
CNY
6.94 = 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 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 May 29, 1993.
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 self-made fine chemicals, pesticide chemistry and
related technology; materials, mechanical equipment, meters, components and
technology needed for its production; manufacturing ammonium sulphate and monoammonium
phosphate.
SC is mainly
engaged in manufacturing and selling pesticide chemicals.
Mr. Wang
Chunyuan has been legal representative
and chairman of SC since 1993.
SC is known
to have approx. 500 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 Binzhou. Our checks
reveal that SC owns the total premise about 2,000 square meters.
http://www.sdqc.com.cn/ The design is professional and the content
is well organized. At present it is in French, Chinese and English versions.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wang Chunyuan 52
Ren Lisheng 48
l
Legal representative and chairman:
Mr. Wang Chunyuan, in his 60’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1993 to present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Ren Lisheng , in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working
in SC as general manager.
SC is mainly
engaged in manufacturing and selling pesticide chemicals.
SC’s products
mainly include weed killer, bactericide, and etc.
SC sources its materials 100% from domestic
market, mainly Shandong. SC sells 80% of its products in domestic market, and
20% 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 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.
China
Construction Bank Binzhou Branch Bincheng Sub-branch
AC#37001836808050004550
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
397,960 |
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Inventory |
178,950 |
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Accounts
receivable |
16,850 |
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Short-term
investment |
330 |
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Subsidies
receivable |
850 |
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Other
receivables |
75,030 |
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Prepaid expenses |
210 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
670,180 |
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Fixed assets |
198,480 |
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Fixed assets net
value |
150,710 |
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Projects under
construction |
48,200 |
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Long term investment |
76,990 |
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Other assets |
27,530 |
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Total assets |
973,610 |
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============= |
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Short loans |
379,490 |
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Accounts payable |
-28,690 |
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Other payable |
63,420 |
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Notes payable |
402,700 |
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Welfare expenses
payable |
8,520 |
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Taxes unpaid |
780 |
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Accrued payroll |
1,740 |
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Other current
liabilities |
1,800 |
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Current
liabilities |
829,760 |
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Long term
liabilities |
0 |
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Total
liabilities |
829,760 |
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Equities |
143,850 |
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Total
liabilities & equities |
973,610 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
473,150 |
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Cost of goods
sold |
419,670 |
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Sales expense |
18,740 |
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Management expense |
13,010 |
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Finance expense |
17,200 |
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Profit before
tax |
4,670 |
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Less: profit tax |
1,540 |
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Profits |
3,130 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
0.81 |
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*Quick ratio |
0.59 |
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*Liabilities
to assets |
0.85 |
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*Net profit
margin (%) |
0.66 |
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*Return on
total assets (%) |
0.32 |
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*Inventory
/Turnover ×365 |
138 days |
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*Accounts
receivable/Turnover ×365 |
13 days |
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*Turnover/Total
assets |
0.49 |
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* Cost of
goods sold/Turnover |
0.89 |
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 average.
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SC’s return on total assets is average.
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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 appears fairly large.
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The accounts receivable of SC is maintained in an average level.
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SC’s short-term loan appears LARGE.
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SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
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The debt ratio of SC is 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 medium-sized in its line with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition. A credit line up to USD 800,000 appears 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%)