MIRA
INFORM REPORT
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Report Date : |
24.11.2008 |
IDENTIFICATION DETAILS
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Name : |
CHANGZHOU
KANGMEI CHEMICAL INDUSTRY CO., LTD. |
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Registered Office : |
4/F |
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Country : |
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Financials (as on) : |
30.06.2008 |
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Date of Incorporation : |
12.05.1995 |
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Com. Reg. No.: |
320400400002329 |
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Legal Form : |
Chinese Foreign Equity Joint Venture |
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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 2,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
CHANGZHOU KANGMEI
CHEMICAL INDUSTRY CO., LTD.
4/F
TEL: 86 (0) 519-82888015 FAX: 86 (0) 519-82888005
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAY 12, 1995
REGISTRATION NO. : 320400400002329
REGISTERED LEGAL FORM : CHINESE FOREIGN EQUITY
JOINT VENTURE
STAFF STRENGTH :
450
REGISTERED CAPITAL : CNY 56,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
cny 910,040,000 (JAN. 1 TO jUN.
30, 2008)
EQUITIES :
cny 392,460,000 (AS OF JUN. 30, 2008)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly
good
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL
KNOWN
EXCHANGE RATE :
CNY 6.84= USD1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a Chinese foreign equity joint venture
enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on May 12, 1995.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing chemical products (allethrin,
tetramethrin and phenothrin; selling its products.
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Zhang Yunfu
has been chairman of SC since 1995.
SC is known
to have approx. 450 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Jintan. Our checks reveal that SC
rents the total premise about 500 square meters. SC’s factory is known to be
located in
http://www.kangmei.com
. The design is professional and the content is well organized. At present it
is in both Chinese and English versions.
E-Mail: kmci@china.com
SC has passed the ISO9002 Quality Assurance System in 2000.
MAIN SHAREHOLDERS:
Name % of Shareholding
Maya Manufacturing & Trading Pte., Ltd. (
Jiangsu Kangtai Chemical Industry Group Co.,
Ltd. 49
=====================================
Tel: 86 519-82888028
Fax: 86 519-82888019
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Chairman:
Mr.
Working Experience(s):
From 1995 to present Working
in SC as chairman.
Also working in Singapore Maya Group and Singapore Pacific
International Lines (PIL) as chairman.
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Vice Chairman and General Manager:
Mr. Zhang Weihua, 320422611117289, in his
Working Experience(s):
From 1995 to present
Working in SC as vice chairman
and general manager.
Also working in Jiangsu Kangtai Chemical Industry Group Co.,
Ltd. as CEO.
l
Directors:
Zhang Yunfeng ID: S0135524D
Zhang Kengsheng ID: S1641781E
Yang Zehua ID: 530102671109151
Hu Weizhong ID: 320422631014283
Zhang Yonghua ID: 320422196405110171
Zhu Guomin ID: 320422196408242815
SC is mainly engaged
in manufacturing and selling chemical products.
SC’s products
mainly include:
Pyrethriods:
D-trans-allethrin
(Bioallethrin), D-allethrin, Esbiothrin, S-bioallethrin, Tetramethrin,
D-tetramethrin, Prallethrin, S-prallethrin, D-phenothrin, D-cyphenothrin,
Permethrin, Cypermethrin, Bifenthrin, Deltamethrin, Clocythrin, Transfluthrin,
Tefluthrin, Cyfluthrin;
Chemical
Intermediate:
Cyhalothric Acid,
Chrysanthemic Acid, Chrysanthemic Chloride, Allethrone.
SC’s annual output
can reach 2,000 tons.
SC sources its
materials 90% from domestic market, and 10% from the overseas market, mainly
European countries. SC sells 80% of its products in domestic market, and 20% to
the overseas market, mainly
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 Client:
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Shanghai Contake Chemicals Co., Ltd.
SC is not
known to have any subsidiary at present.
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
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.
Bank of
AC#N/A
Relationship:
Balance Sheet
Unit: CNY’000
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As of Jun. 30, 2008 |
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Cash & bank |
165,530 |
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Inventory |
199,840 |
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Accounts receivable |
169,100 |
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Advances to
suppliers |
143,180 |
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Other
receivables |
203,390 |
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Other current
assets |
43,130 |
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Current assets |
924,170 |
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Fixed assets net
value |
152,440 |
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Projects under
construction |
46,330 |
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Long term
investment |
0 |
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Other assets |
80,470 |
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Total assets |
1,203,410 |
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Short loans |
75,000 |
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Accounts payable |
124,170 |
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Advances from
clients |
155,320 |
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Bills payable |
131,400 |
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Taxes payable |
-610 |
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Salaries payable |
0 |
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Other payable |
198,410 |
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Other current
liabilities |
127,260 |
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Current
liabilities |
810,950 |
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Long term
liabilities |
0 |
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Total
liabilities |
810,950 |
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Equities |
392,460 |
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Total
liabilities & equities |
1,203,410 |
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Income Statement
Unit: CNY’000
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Jan.
1 to Jun. 30, 2008 |
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Turnover |
910,040 |
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Cost of goods
sold |
784,330 |
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Sales expense |
25,140 |
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Management expense |
18,400 |
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Finance expense |
2,570 |
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Profit before
tax |
78,500 |
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Less: profit tax |
11,800 |
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Profits |
66,700 |
Important Ratios
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As
of Jun. 30, 2008 |
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*Current ratio |
1.14 |
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*Quick ratio |
0.90 |
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*Liabilities
to assets |
0.67 |
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*Net profit
margin (%) |
7.33 |
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*Return on
total assets (%) |
5.54 |
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*Inventory
/Turnover ×365 |
80days |
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*Accounts
receivable/Turnover ×365 |
68days |
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*Turnover/Total
assets |
0.76 |
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* Cost of
goods sold/Turnover |
0.86 |
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 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 accounts receivable of SC is average.
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The inventory of SC is average.
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The short loans of SC are average.
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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 average.
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 2,500,000 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.50.03 |
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1 |
Rs.74.42 |
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Euro |
1 |
Rs.62.71 |
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%)