MIRA
INFORM REPORT
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Report Date : |
22.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
CHANGSHA LANTIAN
CHEMICAL CO., LTD. |
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Registered Office : |
Room 2507, Danguiyayuan, No. 171 Guihua
Road, Changsha, Hunan Province, Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
22.09.1999 |
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Com. Reg. No.: |
430100000048224 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Chemical Products and Materials. |
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 50,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
CHANGSHA LANTIAN
CHEMICAL CO., LTD.
ROOM 2507, DANGUIYAYUAN, NO. 171 GUIHUA
ROAD, CHANGSHA,
HUNAN PROVINCE, PR CHINA
TEL: 0086-731-5467270 FAX:
0086-731-5468325
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 22, 1999
REGISTRATION NO. :
430100000048224
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MS. LI HUI (CHAIRMAN)
STAFF STRENGTH :
20
REGISTERED CAPITAL : CNY 3,000,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 36,091,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 3,088,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 50,000
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.82590 = 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 co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Sep. 22, 1999.
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 chemical products and materials,
building materials, hardware, plumbing equipment, textiles, labor protection
articles, office supplies, rubber and plastic products, minerals, packaging
materials, components of machines and motor vehicles, farm and sideline
products; importing and exporting commodities and technologies, excluding export commodities limited or prohibited by the state (with permit if
needed).
SC is mainly
engaged in selling chemical products and materials.
Ms. Li Hui has
been legal representative and chairman of SC since 1999.
SC is known to have approx. 20 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Changsha. Our checks
reveal that SC rents the total premise, but SC’s accountant refused to release
the gross area of the premise.
http://www.lantianchem.com/ The design is professional and the content
is well organized. At present it is both in Chinese and English versions.
E-Mail: marketing@lantianchem.com
SC’s former registered no.
was 4301002017817.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Li Ling 18.5
Wang Jian 18.5
Li Hui 26
Yang Weisheng 18.5
Huang Zunlie 18.5
l
Legal representative and chairman:
Ms. Li Hui, in her 30’s with university education. She is currently responsible
for the overall management of SC.
Working Experience(s):
From 1999 to present Working
in SC as chairman and legal representative.
SC is mainly
engaged in selling chemical products and materials.
SC’s products mainly include: Manganese Sulphate, Zinc sulphate
Monohydrate, Sodium metabisulphite, Zinc sulphate Heptahydrate, Manganese
Carbonate, Manganese Dioxide, Ferrous sulfate and Manganous Oxide.
SC sources its merchandises 10% from the overseas market and 90% from
domestic market. SC sells 30% of its merchandises in domestic market, and 70%
to overseas market, mainly in USA, Europe, East-south
Asia, Australia etc.
The buying terms of SC include Check, L/C, 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.
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 declined to
release its banking details.
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 |
869 |
1,244 |
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Bills receivable |
0 |
0 |
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Accounts
receivable |
409 |
699 |
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Other
receivables |
0 |
0 |
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Advances to
suppliers |
1,708 |
1,931 |
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Subsidies
receivable |
482 |
0 |
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Inventory |
3,395 |
1,906 |
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Prepaid expenses |
0 |
0 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
6,863 |
5,780 |
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Fixed assets |
167 |
1,393 |
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Fixed assets net
value |
167 |
1,393 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
5 |
5 |
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------------------ |
------------------ |
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Total assets |
7,035 |
7,178 |
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============= |
============= |
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Short loans |
0 |
0 |
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Bills payable |
0 |
0 |
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Accounts payable |
341 |
36 |
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Welfare payable |
19 |
6 |
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Advances from
clients |
4,155 |
4,246 |
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Accrued payroll |
0 |
0 |
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Tax payable |
-549 |
-200 |
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Other payable |
2 |
2 |
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Surcharge
payable |
1 |
0 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
3,969 |
4,090 |
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Long term liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
3,969 |
4,090 |
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Equities |
3,066 |
3,088 |
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Total
liabilities & equities |
7,035 |
7,178 |
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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 |
22,596 |
36,091 |
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Cost of goods
sold |
/ |
34,572 |
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Sales expense |
/ |
1,151 |
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Management expense |
/ |
328 |
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Finance expense |
/ |
9 |
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Profit before
tax |
15 |
26 |
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Less: profit tax |
3 |
5 |
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Profits |
12 |
21 |
Important Ratios
=============
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as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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*Current ratio |
1.73 |
1.41 |
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*Quick ratio |
0.87 |
0.95 |
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*Liabilities
to assets |
0.56 |
0.57 |
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*Net profit
margin (%) |
0.05 |
0.06 |
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*Return on
total assets (%) |
0.17 |
0.29 |
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*Inventory
/Turnover ×365 |
55 days |
20 days |
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*Accounts
receivable/Turnover ×365 |
7 days |
8 days |
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*Turnover/Total
assets |
3.21 |
5.03 |
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* Cost of
goods sold/Turnover |
/ |
0.96 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line, and it increased in
2007.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high in 2007, 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 appears fairly large.
l
The accounts receivable of SC appears average.
l
There’s no short-term loan of SC in both 2 years.
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 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 50,000 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.45.40 |
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UK Pound |
1 |
Rs.83.15 |
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Euro |
1 |
Rs.65.74 |
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%)