MIRA
INFORM REPORT
|
Report Date : |
23.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
DYSTAR WUXI
COLOURS CO., LTD. |
|
|
|
|
Registered Office : |
Section 32-A, Zhujiang Raod, National Hi New Tech Development Zone,
Wuxi, Jiangsu Province, 214028 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
09.03.1995 |
|
|
|
|
Com. Reg. No.: |
320200400004689 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
|
|
Line of Business : |
Producing Dye. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1,000,000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
DYSTAR WUXI
COLOURS CO., LTD.
SECTION 32-A, ZHUJIANG RAOD, NATIONAL HI NEW
TECH DEVELOPMENT ZONE, WUXI, JIANGSU PROVINCE, 214028 PR CHINA
TEL: 0086-510-85218557 FAX:
0086-510-85213696
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 9, 1995
REGISTRATION NO. :
320200400004689
REGISTERED LEGAL FORM :
WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. IAN DOWNIE (CHAIRMAN)
STAFF STRENGTH :
178
REGISTERED CAPITAL : US$ 11,754,400
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 358,960,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 111,150,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 1,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.82209 = 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
wholly foreign-owned enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Mar. 9, 1995.
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 producing dye.
SC is mainly
engaged in producing dye.
Mr.
IAN DOWNIE is legal representative and chairman of SC at present.
SC is known to have approx. 178 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
Wuxi. Our checks reveal that SC owns the total premise, but SC’s accountant
refused to release the gross area of the premise.
SC is not known to host website of its own at present.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
DyStar Textilfarben GmbH
(Germany) 100
l
Legal representative and
chairman:
Mr. IAN DOWNIE (American), in his 40’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Talhoff (German), in his 40’s with university education.
He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
SC is
mainly engaged in producing dye.
SC’s products mainly include: disperse dye and reactive dye.
SC sources its materials 50% from domestic market and 50%
from the overseas market. SC sells 50% of its products to overseas market, mainly in Germany and
America, and 50% in domestic market.
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.
*Major Supplier*
=============
Zhejiang Wanfeng Dye Co., Ltd.
*Major Customer*
==============
Dystar Nanjing Colours 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’s suppliers
declined to make any comments.
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 Communications Wuxi Sub-branch
AC#322000600010123055648
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
|
Cash
& bank |
12,430 |
35,950 |
|
Bills
receivable |
0 |
0 |
|
Accounts
receivable |
57,490 |
97,430 |
|
Other
receivables |
550 |
2,330 |
|
Advances to
suppliers |
910 |
|
|
Inventory |
104,700 |
99,850 |
|
Prepaid expenses |
120 |
780 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
176,200 |
236,340 |
|
Fixed assets |
59,920 |
48,810 |
|
Fixed
assets net value |
44,410 |
42,120 |
|
Projects
under construction |
15,510 |
6,690 |
|
Long
term investment |
|
|
|
Other
assets |
23,780 |
21,470 |
|
|
------------------ |
------------------ |
|
Total
assets |
259,900 |
306,620 |
|
|
============= |
============= |
|
Short
loans |
61,100 |
76,100 |
|
Bills
payable |
0 |
0 |
|
Accounts
payable |
78,420 |
113,400 |
|
Welfare
payable |
280 |
0 |
|
Advances from
clients |
0 |
0 |
|
Accrued
payroll |
1,110 |
1,430 |
|
Tax
payable |
-3,400 |
1,690 |
|
Other
payable |
13,250 |
860 |
|
Accrued expenses |
1,900 |
1,990 |
|
Other
current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
152,660 |
195,470 |
|
Long
term liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
152,660 |
195,470 |
|
Equities |
107,240 |
111,150 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
259,900 |
306,620 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2007 |
|
Turnover |
358,960 |
|
Cost of goods
sold |
343,210 |
|
Sales expense |
4,060 |
|
Management expense |
1,650 |
|
Finance expense |
7,000 |
|
Profit before
tax |
3,920 |
|
Less: profit tax |
0 |
|
Profits |
3,920 |
Important Ratios
=============
|
|
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
|
*Current ratio |
1.15 |
1.21 |
|
*Quick ratio |
0.47 |
0.70 |
|
*Liabilities
to assets |
0.59 |
0.64 |
|
*Net profit margin
(%) |
/ |
1.09 |
|
*Return on
total assets (%) |
/ |
1.28 |
|
*Inventory
/Turnover ×365 |
/ |
102 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
100 days |
|
*Turnover/Total
assets |
/ |
1.17 |
|
* Cost of
goods sold/Turnover |
/ |
0.96 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
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, comparing with its turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory conversion period of SC appears long.
l
The accounts receivable of SC appears fairly large.
l
SC’s short-term loan is in an average level.
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: Fairly Stable.
SC is considered medium-sized in its line with fairly stable
financial conditions. The large amount of inventory and accounts receivable
could be a threat to SC’s financial condition. A credit line up to USD 1,000,000
would appear to be within SC’s capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.72 |
|
UK Pound |
1 |
Rs.84.81 |
|
Euro |
1 |
Rs.67.60 |
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)