MIRA INFORM REPORT
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Report Date : |
19.11.2008 |
IDENTIFICATION DETAILS
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Name : |
CHANGZHOU HENGLONG CHEMICAL CO LTD |
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Registered Office : |
E 27f, |
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Country : |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
13.04.2001 |
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Com. Reg. No.: |
320404000012416 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Trading pesticide and other chemicals. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 80,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
changzhou henglong chemical Co., Ltd.
E
99 27 E
TEL: 86 (0) 519-86885258 FAX: 86 (0) 519-86882968
EXECUTIVE SUMMARY
INCORPORATION DATE : APRIL 13, 2001
REGISTRATION NO. : 320404000012416
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
13
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 80,476,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 6,033,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.82665 = US$ 1
Adopted
abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: The given address is SC’s registered address, while SC is operating in heading.
The given telephone number belongs to
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on April 13, 2001.
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 selling chemicals (excluding hazardous chemicals), hardware, building materials, general merchandise, textiles; manufacturing
and processing pesticide intermediates (triazone), amine (limited to branches);
importing and exporting commodities and
technologies (with permits if needed).
SC is mainly
engaged in trading pesticide and other chemical products.
Mr. Liu Hequn has
been legal representative and chairman of SC since April 2001.
SC is known to have approx. 13 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and head office in the commercial zone of Changzhou. Our
checks reveal that SC rents the total premise, but SC’s accountant refused to
release the gross area.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Liu Hequn 52.0
Zhang Xinya 47.5
Avenue Assets Management Corporation of
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Legal representative, chairman and general
manager:
Mr.
Working Experience(s):
From 2001 to present Working
in SC as chairman, legal representative and general manager.
At present Also working in Changzhou
Wujin Henglong Pesticide Co., Ltd and Changzhou MeiRui Exactitude Machine Co.,
Ltd. as legal representative.
SC is mainly
engaged in trading pesticide and other chemicals.
Main Products:
pesticide, etc.
SC sources its materials 95% from domestic
market, and 5% from overseas market. SC sells 10% of its products in domestic
market, and 90% to overseas market, mainly
The buying terms of SC include Check, 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 Supplier:
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Rudong Guangrong Synthetic Chemical Factory
SC is known to invest in the following company:
Changzhou
MeiRui Exactitude Machine 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.
Bank of
AC#81702010177345
Relationship:
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
10,455 |
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Inventory |
2,974 |
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Accounts
receivable |
-1,880 |
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Advances to
suppliers |
0 |
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Other
receivables |
-1,338 |
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Other current
assets |
1 |
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Current assets |
10,212 |
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Fixed assets net
value |
166 |
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Projects under
construction |
0 |
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Long term
investment |
1,613 |
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Other assets |
0 |
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Total assets |
11,991 |
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============= |
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Short loans |
0 |
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Notes payable |
5,190 |
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Accounts payable |
2,503 |
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Advances from
customers |
0 |
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Accrued payroll |
0 |
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Welfare expenses
payable |
-133 |
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Taxes payable |
-1,772 |
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Surcharge
payable |
25 |
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Other payable |
145 |
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Other current
liabilities |
0 |
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Current
liabilities |
5,958 |
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Long term
liabilities |
0 |
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Total
liabilities |
5,958 |
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Equities |
6,033 |
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Total
liabilities & equities |
11,991 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
80,476 |
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Cost of goods sold |
72,214 |
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Sales expense |
0 |
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Management expense |
3,676 |
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Finance expense |
4,361 |
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Non-operating expense |
98 |
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Profit before
tax |
126 |
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Less: profit tax |
41 |
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Profits |
85 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
1.71 |
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*Quick ratio |
1.21 |
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*Liabilities
to assets |
0.50 |
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*Net profit
margin (%) |
0.11 |
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*Return on
total assets (%) |
0.71 |
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*Inventory
/Turnover ×365 |
14 days |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
6.71 |
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* Cost of
goods sold/Turnover |
0.90 |
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 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 inventory of SC is maintained in an average
level.
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The accounts payable 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 average.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered small-sized in its line with stable financial
conditions. A credit line up to USD 80,000 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.50.52 |
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1 |
Rs.75.54 |
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Euro |
1 |
Rs.63.12 |
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%)