MIRA
INFORM REPORT
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Report Date : |
25.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
Dragonfarm co., ltd. |
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Registered Office : |
Room 1001-1002, 1# Building of Huahong Mansion, No.238 Tianmushan Road,
Hangzhou, Zhejiang Province, 310012 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
30.04.2002 |
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Com. Reg. No.: |
330100000038004 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
International Trader |
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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
Dragonfarm co., ltd.
room 1001-1002, 1#
building of huahong mansion, no.238 tianmushan road, hangzhou, zhejiang
PROVINCE, 310012 PR CHINA
TEL: 86 (0)
571-85899500 FAX: 86 (0)
571-85899589
EXECUTIVE SUMMARY
INCORPORATION DATE : april 30, 2002
REGISTRATION NO. : 330100000038004
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
30
REGISTERED CAPITAL : CNY 8,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 155,370,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 9,990,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 100,000
MARKET CONDITION : average
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.83 = 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 limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on April 30, 2002.
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 wholesale and retail of chemical raw materials and products,
chemical intermediates, plastic raw materials and products, rubber raw
materials and products; import and export.
SC is mainly
engaged in international trade.
Ms. Yao Hong has
been chairman of SC since 2002.
SC is known to
have approx. 30 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Hangzhou. Our checks reveal that SC
rents the total premise about 300 square meters.
www.dragonpharm.com.cn
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: service@apichina.cn
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yao Hong 63
Yu Jun 10
Wang Hong 27
l
Chairman and General Manager:
Ms. Yao Hong, about 40 years old with university education. She is
currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working
in SC as chairman and general manager.
l
Director:
Yu Jun
Wang Hong
SC is mainly
engaged in international trade.
SC’s products
mainly include: chemical intermediates, pharmaceutical machines & equipment
and laboratory instruments.
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 100% of its products to overseas market, mainly
Europe, India, and Korea.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include L/C and Credit of 30-60 days.
Advan
Pharmachem Co., Ltd.
Add.:
Room 1418 Yu'an Mansion 738N Dongfeng Road Pudong,Shanghai ,China
P.C.:
200122
TEL:
+86-21-50581635, 68753906
FAX:
+86-21-58318593
E-mail: Huanghong22cn@yahoo.com.cn
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.
SC declined to
release its bank details.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
28,500 |
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Inventory |
4,740 |
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Accounts
receivable |
17,810 |
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Other Accounts
receivable |
190 |
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Advances to suppliers |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
6,170 |
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------------------ |
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Current assets |
57,410 |
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Fixed assets net
value |
7,920 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
65,330 |
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Short loans |
28,320 |
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Accounts payable |
15,050 |
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Other Accounts
payable |
-2,410 |
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Advances from
clients |
0 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
13,220 |
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------------------ |
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Current
liabilities |
54,180 |
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Long term
liabilities |
1,120 |
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Other
liabilities |
40 |
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Total
liabilities |
55,340 |
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Equities |
9,990 |
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------------------ |
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Total
liabilities & equities |
65,330 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
155,370 |
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Cost of goods
sold |
134,170 |
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Sales expense |
16,590 |
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Management expense |
5,470 |
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Finance expense |
3,130 |
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Profit before
tax |
2,050 |
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Less: profit tax |
1,010 |
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Profits |
1,040 |
Important Ratios (as of Dec. 31, 2007)
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*Current ratio 1.06
*Quick ratio 0.97
*Liabilities to assets 0.85
*Net profit
margin (%) 0.67
*Return on total
assets (%) 1.59
*Inventory
/Turnover ×365 11 days
*Accounts
receivable/Turnover ×365 42 days
*Turnover/Total
assets 2.38
* Cost of goods
sold/Turnover 0.86
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 receivable of SC is maintained in an average level.
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The short-term loan of SC appears fairly large.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is high.
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The risk for SC to go bankrupt is average.
Overall financial condition
of the SC: Fairly Stable.
Over the past 6 years, SC has made a stable growth with fairly stable
financial conditions. The large amount of short loans could be a threat to SC’s
financial condition. A credit line up to USD 100,000
would appear to be within SC’s capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.85 |
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UK Pound |
1 |
Rs.76.60 |
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Euro |
1 |
Rs.64.68 |
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%)