MIRA
INFORM REPORT
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Report Date : |
12.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
QINGHAI GELATIN
CO., LTD. |
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Registered Office : |
No. 18 Weiyi Road, Chengbei District,
Xining, Qinghai Province, 810003 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2008 |
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Date of Incorporation : |
24.09.1996 |
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Com. Reg. No.: |
6300001200698 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling Gelatin Series 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 3,000,000 |
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Status : |
Very Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
QINGHAI GELATIN
CO., LTD.
NO. 18 WEIYI ROAD, CHENGBEI DISTRICT,
XINING,
QINGHAI PROVINCE, 810003 PR CHINA
TEL: 86 (0) 971-8013495 FAX: 86 (0) 971-8012106
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 24, 1996
REGISTRATION NO. : 6300001200698
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
1,226
REGISTERED CAPITAL : CNY 224,042,400
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 259,661,000 (FROM JAN. TO JUN., 2008)
EQUITIES :
cny 476,699,000 (as Of JUN., 2008)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 3,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE :
CNY 6.84= 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 Ren Min Bi
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 Sep. 24, 1996.
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
gelatin series products, hard capsule system products, high-phosphor bone meal,
oils, powdered meat, bone glue, bone meal, protein fire foam, fluoro-protein foamite;
developing tourist resources; retailing textile products, garments, shoes,
hats, hardware and chemical products; purchasing bone; leasing plants;
exporting its products and technology; importing materials, instruments,
machinery, parts and technology; 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 gelatin series products.
Mr. Zhao Hua has
been chairman of SC since 2006.
SC is known
to have approx. 1,226 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 Xining. Our checks
reveal that SC owns the total premise about 110,000 square meters.
http://www.my0606.com.cn
. The design is professional and the content is well organized. At present it
is in Chinese version.
E-mailmaster@my0606.com.cn
SC listed in Shenzhen Stock Exchange in Oct. 1996 with the stock number
of 000606.
MAIN SHAREHOLDERS: （as of Jun. 30, 2008
Name %
of Shareholding
Teda Venture Capital Corporation Limited 19.57
Xi’an Siyuan Machinery Technology Co., Ltd. 7.66
Tianjin Teda Investment Holding Co., Ltd. 3.24
Xining Zhengrun City Development Co., Ltd. 2.17
Tianjin Trust Investment Co., Ltd. 1.61
Li Rong 0.74
Bairui Trust Investment Co., Ltd. 0.43
Tianjin Steel Factory 0.42
Wang Xinnong 0.36
Communication Bank of China-Guomao
Shenggan-Security Investment Trust 0.32
Other shareholders 63.48
l
Chairman:
Mr. Zhao Hua, in his 30’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman.
Also working in Teda Venture Capital Corporation Limited, as
general manager.
l
Vice Chairman and CEO:
Mr. Yang Gong, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2006 to present
Working in SC as vice chairman
and CEO.
SC is mainly
engaged in manufacturing and selling gelatin series products.
SC’s products
mainly include: gelatin series products, hard series system products, soft
capsule series products, traditional Chinese medicine and bone grain.
SC sources its
materials 70% from domestic market, and 30% from the overseas market, mainly
European countries. SC sells 60% of its products in domestic market, and 40% to
the overseas market, mainly American and Europe.
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 Clients:
============
Xi’an Tiantuo Health-care Products Co., Ltd.
Qinghai Teda Pharmaceutical Co., Ltd.
SC is
known to have the following subsidiaries,
Qinghai
Gelatin Co., Ltd.
Tel: 86
0971-8013496
Fax：86 0971-5318619
Qinghai
Mingnuo Capsule Co., Ltd.
Tel: 86
0971-8016677
Fax：86 0971-8016847
Qinghai
Mingxing Biology Engineering Co., Ltd.
Tel: 86
0971-8018861
Fax: 86
0971-8018735
Sichuan
Hezheng Pharmaceutical Co., Ltd.
Tel：86 028-87510133
Fax：86 028-87510133
Guanghan
Minghao Bone Products Co., Ltd.
Tel: 86 0838-5280210
Fax: 86
0838-5914194
Henna
Jiaozuo Jinjian Gelatin Co., Ltd.
Tel：86 0391-3555627
Fax：86 0391-3555625
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 refused to release any information of its
domestic suppliers and the trade reference was not available.
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.
SC refused to
release any information about its bank.
Consolidated
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2007 |
As of Jun. 30, 2008 |
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Cash & bank |
53,231 |
72,337 |
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Short term
investment |
0 |
42 |
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Accounts
receivable |
99,654 |
143,092 |
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Accounts payable
advance |
55,085 |
76,732 |
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Bills receivable
|
15,959 |
7,115 |
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Other
receivables |
15,602 |
17,231 |
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Inventory |
72,318 |
118,076 |
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Other current
assets |
3 |
3 |
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------------------ |
------------------ |
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Current assets |
311,852 |
434,628 |
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Fixed assets net
value |
324,463 |
363,229 |
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Projects under construction |
35,427 |
51,264 |
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Long term
investment |
27,001 |
0 |
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Real estate
investment |
99,226 |
0 |
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Other assets |
32,582 |
140,506 |
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------------------ |
------------------ |
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Total assets |
830,551 |
989,627 |
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============= |
============= |
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Short loans |
20,000 |
41,200 |
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Accounts payable |
71,811 |
109,066 |
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Accounts
receivable advance |
3,758 |
74,764 |
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Bills payable |
14,400 |
12,000 |
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Taxes payable |
13,567 |
2,852 |
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Salaries payable |
3,709 |
4,769 |
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Other payable |
53,509 |
66,857 |
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Long term
liabilities due within one year |
50,500 |
36,000 |
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Other current
liabilities |
3,412 |
2,584 |
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------------------ |
------------------ |
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Current
liabilities |
234,666 |
350,092 |
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Long term
liabilities |
116,384 |
140,244 |
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------------------ |
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Total
liabilities |
351,050 |
490,336 |
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Minority
Interests |
/ |
22,592 |
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Equities |
479,501 |
476,699 |
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------------------ |
------------------ |
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Total
liabilities & equities |
830,551 |
989,627 |
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============= |
Consolidated
Income Statement
Unit: CNY’000
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As of Dec. 31,
2007 |
Jan. 1 to Jun.
30, 2008 |
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Turnover |
289,241 |
259,661 |
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Cost of goods
sold |
190,911 |
160,242 |
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Sales expense |
48,732 |
75,295 |
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Management expense |
17,731 |
9,975 |
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Finance expense |
5,926 |
5,483 |
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Profit before
tax |
26,657 |
13,970 |
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Minority
Interests |
/ |
-505 |
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Less: profit tax |
3,054 |
738 |
|
Profits |
23,603 |
13,737 |
Important Ratios
=============
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as
of Dec. 31, 2007 |
as
of Jun. 30, 2008 |
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*Current ratio |
1.32 |
1.24 |
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*Quick ratio |
1.02 |
0.90 |
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*Liabilities
to assets |
0.42 |
0.50 |
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*Net profit
margin (%) |
7.96 |
5.29 |
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*Return on
total assets (%) |
2.77 |
1.39 |
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*Inventory
/Turnover ×365 |
91days |
166days |
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*Accounts
receivable/Turnover ×365 |
125days |
201days |
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*Turnover/Total
assets |
0.35 |
0.26 |
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* Cost of
goods sold/Turnover |
0.66 |
0.62 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good.
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SC’s net profit margin is fairly good.
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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: 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 accounts receivable of SC is fairly large.
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The inventory of SC is fairly large.
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The short term loan of SC appears average.
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SC’s turnover is in a fair 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: Fairly good.
SC is well-known in its industry with fairly good financial conditions.
A credit line up to USD 3,000,000 would appear to be within SC’s capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.79 |
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UK Pound |
1 |
Rs.75.41 |
|
Euro |
1 |
Rs.61.48 |
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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%)