MIRA
INFORM REPORT
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Report Date : |
20.10.2008 |
IDENTIFICATION DETAILS
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Name : |
YINGKOU ASTRON CHEMICALS CO., LTD. |
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Registered Office : |
Wanghai Industrial Zone, Bayuquan
District, |
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Country : |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
05.11.1998 |
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Com. Reg. No.: |
000925 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Manufacturing and Selling Zirconium and Titanium 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 : |
No Complaints |
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Litigation : |
Clear |
name & address
YINGKOU ASTRON CHEMICALS CO., LTD.
WANGHAI INDUSTRIAL
ZONE, BAYUQUAN DISTRICT, YINGKOU,
TEL: 86 (0)
417-6191943 FAX: 86 (0) 417-6192170
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 5, 1998
REGISTRATION NO. : 000925
REGISTERED LEGAL FORM : Wholly foreign-owned
STAFF STRENGTH :
460
REGISTERED CAPITAL : USD 13,558,900
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 915,280,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 361,200,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
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 -
Note: The given telephone number and fax number 86
24-22950411 and 22950883 can’t be connected at present.
SC was registered as a wholly foreign-owned enterprise at
local Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Nov. 5, 1998.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered
business scope includes processing zirconium mineral powder; manufacturing
zirconium ceramics optical filming materials, crystal lattice materials,
precious metals automotive off gas cleaners, and titanium mineral powder.
SC is mainly
engaged in manufacturing and selling zirconium and titanium series products.
Mr. Alexander.
Brown has been chairman of SC since 1998.
SC is known
to have approx. 460 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 Yingkou. Our checks reveal
that SC owns the total premise about 60,000 square meters.
http://www.astron.com.cn.
The design is professional and the content is well organized. At present it is in
Chinese and English versions.
E-Mail: hr@astron.com.cn
SC’s former registered capital was USD 12,825,800; at the end of 2006,
it was added up to the present amount.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Astron Resources Co., Ltd. (
l
Chairman:
Mr. Alexander. Brown, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working
in SC as chairman.
l
General Manager:
Ms. Kang Rong, in her
Working Experience(s):
From 2003 to present
Working in SC as general
manager.
SC is mainly
engaged in manufacturing and selling zirconium and titanium products.
SC’s products
mainly include: fused zirconia silicon micro mist, zirconium chemical products, zircon sand coating material and
titanium products.
SC sources its
materials 20% from domestic market and 80% from the overseas market, mainly
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major client:
==========
Astron Resources Co., Ltd. (
SC is
known to have branches and offices in
Address:
Tel: 86
0371-3752775
Quanzhou
Branch
Address:
Tal: 86
0595 22535825
Shanghai
Branch
Address;
F 20/F,
Tel: 86
021-68862585
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 China Development Zone Sub-Branch
AC#04755008091001
Relationship:
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2006 |
As of Dec. 31, 2007 |
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Cash & bank |
32,820 |
51,190 |
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Advances to
suppliers |
0 |
15,470 |
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Accounts
receivable |
135,470 |
188,560 |
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Inventory |
235,930 |
255,460 |
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Other
receivables |
53,500 |
62,660 |
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Other current
assets |
67,350 |
82,930 |
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Current assets |
525,070 |
656,270 |
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Fixed assets net
value |
100,790 |
112,320 |
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Long term
investment |
0 |
0 |
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Projects under
construction |
2,480 |
0 |
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Other assets |
13,130 |
26,510 |
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-------------- |
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Total assets |
641,470 |
795,100 |
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============ |
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Short loans |
19,690 |
45,800 |
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Accounts payable |
186,040 |
175,620 |
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Salary payable |
1,530 |
1,200 |
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Tax payable |
15,060 |
11,210 |
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Advances from
clients |
5,790 |
9,650 |
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Other payable |
113,270 |
143,120 |
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Other current
liabilities |
8,930 |
47,300 |
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------------------ |
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Current
liabilities |
350,310 |
433,900 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
350,310 |
433,900 |
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Equities |
291,160 |
361,200 |
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Total
liabilities & equities |
641,470 |
795,100 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
As of Dec. 31,
2007 |
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Turnover |
949,730 |
915,280 |
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Cost of goods
sold |
804,180 |
765,850 |
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Sales expense |
37,600 |
39,550 |
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Management expense |
33,610 |
32,320 |
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Finance expense |
2,560 |
3,320 |
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Profit before
tax |
85,020 |
78,590 |
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Less: profit tax |
10,610 |
8,560 |
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Profits |
74,410 |
70,030 |
Important Ratios
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2006 |
2007 |
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*Current ratio |
1.50 |
1.52 |
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*Quick ratio |
0.83 |
0.93 |
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*Liabilities
to assets |
0.55 |
0.54 |
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*Net profit
margin (%) |
7.80 |
7.65 |
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*Return on
total assets (%) |
11.54 |
8.81 |
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*Inventory
/Turnover ×365 |
90days |
102days |
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*Accounts
receivable/Turnover ×365 |
48days |
75days |
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*Turnover/Total
assets |
1.48 |
1.15 |
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*Cost of goods
sold/Turnover |
0.85 |
0.84 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good.
l
SC’s net profit margin is maintained in a fairly good
level.
l
SC’s return on total assets is maintained in a
fairly good level.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
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 of SC is fairly large.
l
The accounts receivable of SC is average.
l
The short loans of SC are average in 2006 and 2007.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable 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.48.83 |
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|
1 |
Rs.85.12 |
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Euro |
1 |
Rs.65.86 |
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%)