MIRA
INFORM REPORT
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Report Date : |
30.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
nantong acetic acid chemical co., ltd. |
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Registered Office : |
No.101 Nanshi Street, Tangzha, Nantong, Jiangsu Province, 226002 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
01.06. 1959 |
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Com. Reg. No.: |
320000000016099 |
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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 : |
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 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
nantong acetic acid chemical co., ltd.
no.101 nanshi
street, tangzha, nantong,
jiangsu PROVINCE,
226002 PR CHINA
TEL: 86 (0)
513-85559188 FAX: 86 (0)
513-85544224
EXECUTIVE SUMMARY
INCORPORATION DATE : june 1, 1959
REGISTRATION NO. : 320000000016099
REGISTERED LEGAL FORM : Shares limited company
STAFF STRENGTH :
870
REGISTERED CAPITAL : CNY 66,680,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 600,870,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 221,120,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 1,500,000 (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 shares limited company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on June 1, 1959.
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 food additives, basic organic
chemicals, pharmaceutical intermediates, dyes and dye intermediates, veterinary
drug and feed additives, exporting its products and technology; importing
materials, instruments, machinery equipment, parts and technology needed for
its production, processing with imported materials, processing with imported
samples, assembling with imported parts, and compensation trade in agreement.
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Gu
Qingquan has been chairman of SC since
1997.
SC is known to
have approx. 870 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 Nantong. Our checks
reveal that SC owns the total premise about 50,000 square meters.
http://www.ntacf.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: dcf@ntacf.com
SC has got the certificate ISO9001.
Honor:
May of 1995 awarded the title of no chemical leaking factory by
Provincial Petro-Chemical Department
April of 1996 awarded the title of the quality of products being tested
and supervised by Petro-Chemical Department
December of 1996 won the certificate of design for pressure container by
Provincial Petro-Chemical Department
August of 1997 the company became a member of the National Union of
Chemical Industries for Food
April of 1998 awarded the excellent collective for chean manufacturing
by Environmental Protection Bureau
November of 1999 won the title of up -to-standard enterprise of
qualified purification for liquid waste in the Provincial Yangtze River Valley
by Environmental Protection Administrative
February of 2001 honored by science and technology Bureau as key
high-tech company in nation's torch plan
September of 2001 awarded the title of Valuing Contracts and creditable
enterprise by municipal government.
January of 2002 won the title of excellent quality management enterprise
by Provincial Quality and Technique Supervision Bureau, Economy and Trade
Committee
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Fei 0.57
Ding Caifeng 0.45
Gu Qingquan 0.51
Jiangsu Energy Materials Corporation 4.50
Nantong Dalun Chemical Industry Co., Ltd. 1.50
Nantong Jinaghua Group Co., Ltd. 67.85
Nantong Fuel Co., Ltd. 1.50
Nantong Tianshenggang Power Investment
Service Co., Ltd. 15.00
Qian Jin 1.29
Qing Jiu 0.45
Xu Xianghuan 4.98
Zhang Lihua 0.45
Zhou Ping 0.45
Zhu Yonghua 0.50
Nantong Dalun Chemical Industry Co., Ltd.:
================================
Nantong Da Lun Chemical Industry Co., Ltd.
was founded in 1962. It is a medium-scaled chemical manufacturing enterprise. Its
main products and production capacity are: Industrial Sulphuric Acid 150,000
tons/year, Calcium Superphosphate 200,000 tons/year, Amino C Acid 2000
tons/year, Dimethyl Sulfate 10000 tons/year, and other products like
Trisulfonic Acid, Ammonium Hydrogen Sulfite, Sodium Fluorosilicate and Oleum,
etc.
Address: No.66 Chuanzha West Road, Nantong,
Jiangsu Province
Web: www.ntdcic.cn
Tel: 86 0513-85405301
Fax: 86 0513-85608162
l
Chairman:
Mr. Gu Qingquan , 57 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working
in SC as chairman.
l
General Manager:
Mr. Ding Caifeng, 45 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 1997 to present
Working in SC as general
manager.
l
Vice General Manager:
Mr. Qing Jiu, 39 years old with university education. He is currently responsible
for the daily management of SC.
Working Experience(s):
From 2000 to present
Working in SC as vice general
manager.
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products
mainly include:
SORBIC ACID
NAPHTHOL AS-G
ETHYL ACETOACETATE
POTASSIUM SORBATE
ACETOACETANILIDE
METHYL-ACETOACETATE
ACETOACET-P-TOLUIDIDE
α-ACETYL-γ-BUTYROLACTONE
DIACETOACETYL-P-PHENYLENE
DIAMINE
1-PHENYL-3-METHYL-5-PYRAZOLONE
DIKETENE
DEHYDROACETIC ACID
ACETOACET-O-TOLUIDIDE
ACETOACETYL
METHYLAMINE
ACETALDEHYDE
SODIUM
DEHYDROACETATE
ACETOACET-P-ANISIDEIDE
ACETIC ANHYDRIDE
OLAQUINDOCIS
HYDROXY PYRIMIDINE
SC sources its materials 100% from domestic
market, mainly Jiangsu. 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 Supplier:
==============
Sinopec Yangzi Petrochemical Company Ltd.
Nantong
Acetic Acid Chemical Import & Export Co., Ltd.
Address:
No.101 Nanshi Street, Nantong, Jiangsu Province
Sales
Dept.: Gord Chu 0086-513-85545538 gord@ntacf.com
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.
Industrial and Commercial Bank of China Nantong Branch
AC#1111823109000000178
Relationship:
Normal.
Balance Sheet
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Unit: CNY’000 |
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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Cash & bank |
63,340 |
97,830 |
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Inventory |
44,710 |
52,890 |
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Accounts
receivable |
110,070 |
89,720 |
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Other Accounts
receivable |
2,360 |
63,110 |
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To be
apportioned expense |
0 |
0 |
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Other current
assets |
17,900 |
-16,540 |
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------------------ |
------------------ |
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Current assets |
238,380 |
287,010 |
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Fixed assets net
value |
129,070 |
116,620 |
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Projects under
construction |
1,710 |
16,990 |
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Long term
investment |
76,360 |
108,060 |
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Other assets |
67,700 |
47,450 |
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Total assets |
513,220 |
576,130 |
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Short loans |
187,800 |
214,800 |
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Accounts payable |
75,230 |
89,720 |
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Other Accounts
payable |
10,660 |
10,130 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current liabilities |
47,900 |
37,720 |
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Current
liabilities |
321,590 |
352,370 |
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Long term
liabilities |
700 |
700 |
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Other
liabilities |
1,570 |
1,940 |
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Total liabilities |
323,860 |
355,010 |
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Equities |
189,360 |
221,120 |
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------------------ |
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Total
liabilities & equities |
513,220 |
576,130 |
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Income Statement
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Unit: CNY’000 |
as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Turnover |
583,840 |
600,870 |
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Cost of goods
sold |
517,190 |
562,790 |
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Sales expense |
11,090 |
11,010 |
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Management expense |
29,970 |
20,150 |
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Finance expense |
11,820 |
11,190 |
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Profit before
tax |
53,990 |
45,670 |
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Less: profit tax |
750 |
6,000 |
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Profits |
53,240 |
39,670 |
Important
Ratios
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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*Current ratio |
0.74 |
0.81 |
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*Quick ratio |
0.60 |
0.66 |
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*Liabilities
to assets |
0.63 |
0.62 |
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*Net profit
margin (%) |
9.12 |
6.60 |
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*Return on
total assets (%) |
10.37 |
6.89 |
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*Inventory
/Turnover ×365 |
28 days |
32 days |
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*Accounts
receivable/Turnover ×365 |
69 days |
55 days |
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*Turnover/Total
assets |
1.14 |
1.04 |
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* Cost of
goods sold/Turnover |
0.89 |
0.94 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fairly good, but it was declining in 2007.
l
SC’s return on total assets is fairly good, but it was declining in
2007.
l
SC’s cost of goods sold is fairly high in 2007, comparing with its
turnover.
LIQUIDITY: FAIR
l
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 appears LARGE in both 2 years.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
Over the past 49 years, SC has made a stable growth with fairly stable
financial conditions. The large amount of short loan could be a threat to SC’s
financial condition. A credit line up to USD 1,500,000
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%)