MIRA
INFORM REPORT
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Report Date : |
11.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
longkou union chemical co., ltd. |
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Registered Office : |
zhuyouguan Town, Longkou City Shandong Province 265400 PR |
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Country : |
China |
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Date of Incorporation : |
12.03.2007 |
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Com. Reg. No.: |
370681400000038 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing and Selling Organic Pigment. |
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 10,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
longkou union chemical co., ltd.
zhuyouguan town,
longkou city
shandong province
265400 PR CHINA
TEL: 86 (0)
535-8561902 FAX: 86 (0) 535-8561140
EXECUTIVE SUMMARY
INCORPORATION DATE : mar.
12, 2007
REGISTRATION NO. :
370681400000038
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF STRENGTH :
50
REGISTERED CAPITAL : usd 400,000
BUSINESS LINE : manufacturing
TURNOVER :
N/A (AS OF DEC. 31, 2007)
EQUITIES :
N/A (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 10,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : UNDETERMINED
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
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 Renminbi
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 Mar.
12, 2007.
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 and processing
organic pigment, printing ink, color sizing, accessory ingredients, connecting
materials, and relevant intermediate products; and selling its products.
SC is mainly
engaged in manufacturing and selling organic pigment
Ms.
Zhang Guihua has been chairman of SC since 2007.
SC is known
to have approx. 50 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 Longkou. Our checks reveal that SC
rents the total premise about 2,000 square meters.
SC is not known to host web site of its own at present.
According to SC’s accountant, SC started its normal business in October
of 2007.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Longkou Yangguang Chemical Co., Ltd. (in
Chinese Pinyin) 75
Zhou Qingjiang 25
(American)
l
Chairman and General Manager:
Ms. Zhang Guihua, with university education. She is currently
responsible for the overall management of SC.
Working Experience(s):
From 2007 to present Working in SC as chairman and
general manager.
Supervisor:
Zhou Qingjiang
SC is mainly
engaged in manufacturing and selling organic pigment.
SC’s products mainly include: printing ink (such as: hansa yellow,
permanent yellow, permanent orange, everbright bronze red, etc.)
SC sources its
materials 100% from domestic market, mainly Shandong province. SC sells 80% in
domestic market, and 20% to overseas market, mainly European and American
countries.
The buying terms of SC include Check, T/T, and Credit of 30-60 days. The
payment terms of SC include T/T, Check, L/C, and Credit of 30-60 days.
SC’ products are mainly providing to printing and packaging companies.
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 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’s management
declined to release its bank information.
SC started its normal
business in Oct. of 2007, so the financial records are not available.
SC is considered small-sized in its line with a short history, and its
credit has not been established yet. A credit line at the above amount appears to
be beyond SC’s capacities, while a credit line up to USD 10,000 is recommended.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.77 |
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UK Pound |
1 |
Rs.80.67 |
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Euro |
1 |
Rs.64.20 |
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%)