MIRA
INFORM REPORT
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Report Date : |
29.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
DALIAN CHEM
IMPORT AND EXPORT GROUP CO., LTD. |
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Formerly Known as : |
DALIAN CHEMICAL INDUSTRY IMPORT AND EXPORT CORP. |
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Registered Office : |
Chem Building, No. 61 Renmin Road, Dalian, Liaoning Province, 116001
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
17.01. 1985 |
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Com. Reg. No.: |
2102002125823 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
International
Trade. |
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 160,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
DALIAN CHEM IMPORT
AND EXPORT GROUP CO., LTD.
CHEM BUILDING, NO. 61 RENMIN ROAD, DALIAN,
LIAONING PROVINCE, 116001 PR CHINA
TEL: 86 (0) 411-82807789/82592709 FAX:
86 (0) 411-82630088/82640610
EXECUTIVE SUMMARY
INCORPORATION DATE :
JANUARY 17, 1985
REGISTRATION NO. :
2102002125823
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
200 (INCLUDING SUBSIDIARIES)
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 629,790,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 21,830,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 160,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.94= US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
RMB - China Ren Min Bi Yuan
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (The official body of issuing and renewing business license) on January 17, 1985.
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 business of importing and exporting various goods and
technology, excluding the goods prohibited and limited by the country;
agriculture products purchasing and leasing houses.
SC is mainly
engaged in international trade.
Mr. Chen
Wenxin has been chairman of SC since
2002.
SC is known to
have approx. 200 employees at present, including the ones in its subsidiaries.
SC is currently
operating at the above stated address, and this address houses its operating
office in the commercial zone of Dalian. Our checks reveal that SC owns the
total premise about 1,500 square meters.
http://www.dlchem.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: chemgroup@dlchem.com
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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1999-11-22 |
Company name |
Dalian Chemical Industry Import and Export Corp. |
Dalian Chem Imp. & Exp. Group Co., Ltd. |
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Registered capital |
CNY 10,000,000 |
CNY 40,000,000 |
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2002-11-20 |
Legal representative |
Wu Zhong |
Chen Wenxin |
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2004-5-25 |
Registered Number |
2102001101171 |
2102002125823 |
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Registered capital |
CNY 40,000,000 |
CNY 6,000,000 |
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2005-5-25 |
Registered capital |
CNY 6,000,000 |
CNY 7,000,000 |
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2006-2-27 |
Registered capital |
CNY 7,000,000 |
CNY 10,000,000 |
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2006-9-11 |
Registered capital |
CNY 10,000,000 |
CNY 20,000,000 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Wenxin 20.00
Yin Lijun 7.25
Cui Jianghong 5.00
Jiang Fuhou 5.00
Gao Qiyong 5.00
Zhang Yudong 5.00
Other 22 individuals 52.75
l
Chairman and General Manager:
Mr. Chen Wenxin in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as chairman and general
manager.
l
Vice General Manager:
Mr. Jiang Fuhou , in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2002 to present
Working in SC as vice general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: Organic and inorganic chemicals, Oil products, dyestuffs,
pharmaceuticals, foodstuffs, native products, light industrial products,
garments, machinery etc.
SC sources its
materials 80% from domestic market, and 20% from overseas market, mainly USA
and Europe. SC sells 30% of its products in domestic market and 70% to overseas
market, mainly Hong Kong, Taiwan, Japan and Middle East.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
Major Supplier
============
Liaoning Yingkou Dashiqiao Huaxin Chemical
Co., Ltd.
*Major Customer
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Jaykara (H.K.) Ltd.
SC is
known to have 4 subsidiaries at present:
Dalian Kaishun International Forwarding Co., Ltd.
Dalian Kaizida Car Rental Co., Ltd.
Dalian Kaixing International Trade Company
Dalian Chem Taxi 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.
Shenzhen Development Bank Dalian Branch
AC#110001441190063
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
19,530 |
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Inventory |
31,290 |
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Accounts
receivable |
7,310 |
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Other Accounts
receivable |
1,130 |
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Advances to
suppliers |
18,760 |
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To be apportioned
expense |
0 |
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Other current
assets |
2,680 |
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------------------ |
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Current assets |
80,700 |
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Fixed assets net
value |
19,500 |
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Projects under
construction |
0 |
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Long term
investment |
8,410 |
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Other assets |
40 |
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Total assets |
108,650 |
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============= |
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Short loans |
0 |
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Accounts payable |
60,980 |
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Other Accounts
payable |
790 |
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Advances from
clients |
25,300 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-260 |
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------------------ |
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Current
liabilities |
86,810 |
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Long term
liabilities |
0 |
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Other
liabilities |
10 |
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------------------ |
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Total
liabilities |
86,820 |
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Equities |
21,830 |
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Total
liabilities & equities |
108,650 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
629,790 |
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Cost of goods
sold |
603,940 |
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Sales expense |
18,820 |
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Management expense |
7,300 |
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Finance expense |
670 |
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Profit before
tax |
5,170 |
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Less: profit tax |
1,240 |
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Profits |
3,930 |
Important Ratios (as of Dec. 31, 2007)
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*Current ratio 0.93
*Quick ratio 0.57
*Liabilities to
assets 0.80
*Net profit
margin (%) 0.62
*Return on total
assets (%) 3.62
*Inventory
/Turnover ×365 18 days
*Accounts
receivable/Turnover ×365 4 days
*Turnover/Total
assets 5.80
* Cost of goods
sold/Turnover 0.96
PROFITABILITY:
AVERAGE
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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 fairly good.
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SC’s cost of goods sold is fairly high, 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 has no short-term loan in 2007.
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SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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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.
Over the past 23 years, SC has made a stable growth with fairly stable
financial conditions. A credit line up to USD 160,000
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%)