MIRA
INFORM REPORT
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Report Date : |
31.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
XIAN MPC STOCK
CO., LTD. |
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Registered Office : |
Jingwei South Road, Jinghe Industry Park, Xian,
Shaanxi Province, 710000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
15.03.1998 |
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Com. Reg. No.: |
610000100129681 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Producing and Selling Farm Chemicals. |
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 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & ADDRESS
XIAN MPC STOCK
CO., LTD.
JINGWEI SOUTH ROAD, JINGHE INDUSTRY PARK,
XIAN,
SHAANXI PROVINCE, 710000 PR CHINA
TEL: 0086-29-86030233 FAX:
0086-29-86030232
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAR. 15, 1998
REGISTRATION NO. :
610000100129681
REGISTERED LEGAL FORM : SHARES LIMITED
CO.
CHIEF EXECUTIVE :
MR. QIN GUANGMING (CHAIRMAN)
STAFF STRENGTH :
100
REGISTERED CAPITAL : CNY 50,977,400
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 31,280,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 47,100,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 200,000
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.85081 = 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
Note: SC is operating in the heading address, while the given
one (No. 55 East Zhangba Road, Xian, Shaanxi Province) was SC’s former address.
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 Mar. 15, 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. f 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 researching, developing, producing,
wholesaling and retailing fine chemicals, biological chemicals, fungicides, insecticides,
and providing technical services; exporting its and its members’ products and
technology, importing raw materials, machinery equipment, instruments and
meters, parts and technology needed in the manufacture and research, excluding
the items limited or forbidden by the state; processing with imported
materials, processing with imported samples, assemblying with imported parts,
and compensation trade in agreement.
SC is mainly
engaged in producing and selling farm chemicals.
Mr. Qin Guangming
is legal representative and chairman of SC at present.
SC is known to have approx. 100 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 Xi’an. Our
checks reveal that SC owns the total premise, but SC’s accountant refused to
release the gross area of the premise.
http://www.xa-jindai.com/
The design is professional and the content is well organized. At present it is
in Chinese version.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xi'an Modern Chemistry Research Institute 52
Hebei Taihang Machinery Industries Co., Ltd. 18
North Economic Development Co., Ltd. 10
China North Vehicle Research Institute 16
Xi’an Electronic Engineering Research
Institute 4
Xi'an Modern
Chemistry Research Institute, as China's largest research center of chemical
energetic materials, is mainly engaged in the research and development of
organic chemistry, applied chemistry, polymer materials, fine chemicals,
electronic device and analysis & testing technology. It now has total
assets of 506 million RMB. The Institute has the right to offer master's or
doctor's degree, and is one of the earliest 100 research institutes to be
authorized import-export operations right, and has been approved by
ISO9001-2000.
l
Legal representative and chairman:
Mr. Qin Guangming, about 47 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Ma Yuanying, in his 50’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
SC is mainly
engaged in producing and selling farm chemicals.
SC’s products mainly include: fungicides and insecticides.
SC sources its materials 80% from domestic market and 20% from the
overseas market. SC sells 60% of its products to overseas market and 40% in domestic market.
The buying terms of SC include Check, L/C, 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.
*Major Suppliers*
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Nanjing Haichen Chemical Co., Ltd.
*Major Customers*
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Ningbo Generic Chemical Co., Ltd.
SC is known to invest in the following company:
Xian Jingwei Chemical Co., Ltd.
It is said that the above company is applying for cancelation of its
registration license.
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 &
Commercial Bank of China Xian Jinghe Industry Park Office
AC#3700024209004690340
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2007 |
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Cash & bank |
2,230 |
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Bills receivable |
850 |
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Accounts
receivable |
18,970 |
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Other
receivables |
8,700 |
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Advances to
suppliers |
3,400 |
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Inventory |
15,500 |
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Prepaid expenses |
0 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
49,650 |
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Fixed assets net
value |
18,330 |
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Projects under
construction |
5,830 |
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Project
materials |
360 |
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Long term investment |
9,470 |
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Other assets |
4,020 |
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------------------ |
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Total assets |
87,660 |
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============= |
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Short loans |
15,000 |
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Bills payable |
6,000 |
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Accounts payable |
4,690 |
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Welfare payable |
0 |
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Advances from
clients |
620 |
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Accrued payroll |
0 |
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Tax payable |
-100 |
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Dividends
payable |
1,180 |
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Other payable |
13,170 |
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Surcharge
payable |
0 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
40,560 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
40,560 |
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Equities |
47,100 |
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------------------ |
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Total
liabilities & equities |
87,660 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2007 |
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Turnover |
31,280 |
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Cost of goods
sold |
24,700 |
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Sales expense |
2,130 |
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Management expense |
3,190 |
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Finance expense |
1,430 |
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Investment
income |
890 |
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Profit before
tax |
440 |
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Less: profit tax |
0 |
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Profits |
440 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
1.22 |
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*Quick ratio |
0.84 |
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*Liabilities
to assets |
0.46 |
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*Net profit
margin (%) |
1.41 |
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*Return on
total assets (%) |
0.50 |
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*Inventory
/Turnover ×365 |
181 days |
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*Accounts
receivable/Turnover ×365 |
222 days |
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*Turnover/Total
assets |
0.36 |
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* Cost of
goods sold/Turnover |
0.79 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory conversion period appears long.
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The accounts receivable of SC appears fairly large.
l
SC’s short-term loan appears fairly large.
l
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
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 accounts receivable could be a threat to SC’s financial
condition. A credit line up to USD 200,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.25 |
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UK Pound |
1 |
Rs.80.36 |
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Euro |
1 |
Rs.62.84 |
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%)