MIRA
INFORM REPORT
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Report Date : |
30.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
Suzhou Lintong Chemical Science Corporation |
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Registered Office : |
east Ramp of Yinshan Bridge, Suzhou, Jiangsu
Province, 215124 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
17.12. 1998 |
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Com. Reg. No.: |
320500400005730 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling Basic Dyes. |
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 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
Suzhou Lintong Chemical Science Corporation
east ramp of
yinshan bridge, suzhou, jiangsu PROVINCE, 215124 PR CHINA
TEL: 86 (0)
512-65252072 FAX: 86 (0)
512-65252487
EXECUTIVE SUMMARY
INCORPORATION DATE : december 17, 1998
REGISTRATION NO. : 320500400005730
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
550
REGISTERED CAPITAL : CNY 88,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 341,160,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 110,090,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 1,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : 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 co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on December 17, 1998.
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 estricted 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 refined naphthalene, 2,3-acid
color, 2,3-basic dye, oil soluble dyes, azoic dyes, intermediates and related
products.
SC is mainly engaged
in manufacturing and selling basic dyes.
Mr. Xu Aofeng has
been legal representative and chairman of SC since 2005.
SC is known
to have approx. 550 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 Suzhou. Our checks
reveal that SC owns the total premise about 20,000 square meters.
http://www.lintong.com/ The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
Email: szlt@public1.sz.js.cn
SC’s former registered capital was CNY 51,660,000, and in January, 2008,
it was increased to 88,000,000.
In 1996, SC passed GB/T19001-2000/ISO9001: 2000 international Quality
Management System authentication. In 1998, they passed GB/T24001-2004/ISO14001:
2004 international Environment Management System authentication. And in 2001,
SC succeeds in get through Occupational Health and Safety Management System
(OHSMS) authentication.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Dainippon Ink and Chemicals Incorporated
(Japan)
13.86
DIC (China) Co., Ltd.
9
Guangyin International Group Co., Ltd. (BVI)
9
Richen Trading Incorporated (Japan)
4.5
Suzhou Kaitong Trading Co., Ltd.
10
Suqian Shuntong Investment Co., Ltd.
53.64
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Dainippon Ink and Chemicals Incorporated
(DIC) is one of Japan's most diversified chemical companies and the core of the
DIC Group, which comprises approximately 300 subsidiaries and affiliates,
including Sun Chemical Corp. and Reichhold, Inc. in more than 60 countries
worldwide. The operations of the DIC Group are divided into five segments:
graphic arts materials; packaging materials; electronics & information
materials; industrial materials; and performance chemicals.
DIC Building, 7-20, Nihonbashi 3-chome,
Chuo-ku, Tokyo 103-8233, Japan
Tel: +81 3 32724511
Fax: +81 3 32788558
l
Legal representative and chairman:
Mr. Xu Aofeng , ID # 320504197112220032, 37 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 chairman and legal representative.
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Vice-general manager:
Mr. Kong Xincun, ID # 320705194608253536, 62 years old with high school
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 1998 to present Working
in SC as vice-general manager.
*Officials:
=======
Name Title
Qiao Benfeng Director
Qi Yunhua Director
Yu Yinliang Supervisor
Lu Jiandong Supervisor
SC is mainly engaged
in manufacturing and selling basic dyes.
SC’s products
mainly include Beta-Naphthol, Bon Acid, EAB, MAB, N-Ethyl-1-Naphthylamine, HNA,
4B Acid, Leuco Violet, and so on.
SC sources its materials 90% from domestic
market, and 10% from overseas market, mainly Japan. SC sells 30% of its
products in domestic market, and 70% to overseas market, mainly Japan and
U.S.A.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
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Anhui HuaHeng Chemical Co., Ltd.
*Major Customers:
==============
Qingdao Qiba
Pigment Co., Ltd.
SC is
known to invest in Suzhou Chuangtong Dyestuffs & Chemicals 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 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.
Bank of China Suzhou Branch Wuzhong Sub-branch
AC#09001408091001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
95,740 |
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Inventory |
28,080 |
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Accounts
receivable |
40,860 |
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Advances to
suppliers |
1,970 |
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Notes receivable |
2,760 |
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Other
receivables |
3,430 |
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Other current
assets |
1,740 |
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Current assets |
174,580 |
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Fixed assets net
value |
67,970 |
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Projects under
construction |
970 |
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Long term
investment |
11,150 |
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Other assets |
2,840 |
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Total assets |
257,510 |
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Short loans |
25,570 |
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Accounts payable |
21,100 |
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Other payable |
1,000 |
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Taxes payable |
3,710 |
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Dividends
payable |
32,960 |
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Notes payable |
41,150 |
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Accrued payroll |
18,840 |
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Advances from
clients |
90 |
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Other current
liabilities |
1,810 |
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------------------ |
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Current
liabilities |
146,230 |
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Long term
liabilities |
1,190 |
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------------------ |
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Total
liabilities |
147,420 |
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Equities |
110,090 |
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Total
liabilities & equities |
257,510 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
341,160 |
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Cost of goods
sold |
266,780 |
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Sales expense |
8,220 |
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Management expense |
10,890 |
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Finance expense |
1,770 |
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Investment
income |
4,450 |
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Profit before
tax |
61,080 |
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Less: profit tax |
7,270 |
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Profits |
53,810 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
1.19 |
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*Quick ratio |
1.00 |
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*Liabilities
to assets |
0.57 |
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*Net profit
margin (%) |
15.8 |
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*Return on
total assets (%) |
20.9 |
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*Inventory
/Turnover ×365 |
30 days |
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*Accounts
receivable/Turnover ×365 |
44 days |
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*Turnover/Total
assets |
1.32 |
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* Cost of
goods sold/Turnover |
0.78 |
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: AVERAGE
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The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a normal 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 an average level.
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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 low.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions. A credit line up to USD 1,000,000 appears to be within SC’s
capacities.
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%)