MIRA INFORM REPORT

 

 

Report Date :

06.04.2011

 

 

Name :	IMERYS AOSTRON ADVANCED MATERIALS (YING KOU) CO. LTD
Formerly Known As :	A SI ADVANCED MATERIALS ( YINGKOU) CO. LTD
Registered Office :	NO. 19-1-12, Wenyi Road, Shenhe District, Shenyang City, Liaoning Province 115007
Country :	China
Financials (as on) :	31.12.2009
Date of Incorporation :	27.12.2004
Com. Reg. No.:	210800400019325
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Manufacture and Sales of Zirconium Products.

 

 

 

MIRA’s Rating :

B

 

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

 

 

Maximum Credit Limit :	USD 2,000,000 Chinese Yuan
Status :	Moderate
Payment Behaviour :	Regular
Litigation :	Clear

 

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

 

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
China	A2	A2

 

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

 

Company name and address

   

IMERYS AOSTRON ADVANCED MATERIALS (YING KOU) CO. LTD

NO. 19-1-12, Wenyi Road, Shenhe District, Shenyang City, Liaoning Province 115007

Tel :                        86 24 83963392

Fax                        86 24 83963391

Website                 

Currency in this report is Chinese Yuan unless otherwise stated.

 

Exchange Rate: 1 USD=6.54 Chinese Yuan

 

"--"in this report indicates "unavailable" due to insufficient information or "no comments"

           

Note: Subject’s name and fax provided in the order are not correct. The correct ones are as what the report shows

 

The address provided in the order is the address of Subject’s factory. Subject’s operation address is as what the report shows.

 

 

EXECUTIVE SUMMARY

 

DATE OF Establishment                        : Dec 27^th, 2004

Aic Registration No.                   : 210800400019325

REGISTERED LEGAL FORM    : Wholly Foreign-Owned Enterprise

REGISTERED CAPITAL             : USD 6,000,000.00

Main BUSINESS                         : Manufacture And Sales Of Zirconium Products

TURNOVER                              : 43422000.00 (As Of 2009)

Net Profit                                   : 6135000.00 (As Of Dec.31th, 2009)

Total Assets                              : 66628000.00 (As Of Dec.31th, 2009)

Net Worth                                      : 37270000.00 (As Of Dec.31th, 2009)

Employees                                : 400

CHIEF EXECUTIVE                    : Alessandro Dazza

Import And Export Permits          : Yes

Base CREDIT Limit                      : 2,000,000 Chinese Yuan

EXCHANGE RATE                      : 1 Usd=6.55 CNY (APR 1ST, 2011)

           

       

Registered Address:                   Wanghai Industrial Park, Yingkou economic development zone

Zip Code                                   :115007

Telephone                                 : 86 24 22950453

 

Business Address:                       NO. 19-1-12, Wenyi Road, Shenhe District, Shenyang City, Liaoning Province 1

Telephone:                                86 24 83963392

Fax:                                             86 24 83963391

SIC Code (China):                       2669 manufacture of other special chemical products

 

 

 

 

   

REGISTRATION

 

Date of Establishment	Dec 27th, 2004
Registry	Administration Bureau of Industry and Commerce - Yingkou
Legal Representative	Alessandro Dazza
AIC Registration Number	210800400019325
Registered Legal Form	Wholly foreign-owned enterprise
Registered Capital	USD 6,000,000.00
Operating Period	From Dec 27th, 2004 to Dec 26th, 2054
Business Scope	Manufacture of titanium , zirconium, silicon products. Technology consulting ( with license for those needed)
Changes in Registration	1.       Dec 26th, 2007 Subject’s registered capital was changed from USD 1,930,000 to USD 6,000,000. 2.       Dec 26th, 2007 Subject’s registration No. was changed from 001427 to the present registration NO. 3.       Apr 14th, 2008 Subject’s name was changed from A SI ADVANCED MATERIALS ( YINGKOU) CO. LTD to the present name. 4.       Apr 14th, 2008 Subject’s legal representative was changed from Alex Brown to the present legal representative.

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.

 

REGISTRATION INFO: AVAILABLE

FINANCIAL REPORTS: AVAILABLE               

           

           

FIELD INVESTIGATION

 

1.       Subject’s income comes mainly from molten zirconia, sour zirconium products (50%), zircon sand, granule zircon (30%). Subject sells its products directly to the end users. The industry of zirconium products is an industry with fierce competition, and subject is facing many competitors. Generally speaking, with a long history and a certain scale, subject’s competitiveness is above average in the local place.

2.       Yingkou, where SC is located is a big city in China. The development of the city provides enterprises with wide room for development. However, this also brings great challenges to enterprises. As a foreign invested enterprise in zirconium products industry, subject shares some favorable policies provided by the local government.

           

 

SHAREHOLDERS AND SHARES

 

As indicated in the following table:

           

Shareholder	Capital Subscribed	Percentage
SINGAPORE YINGGECI YATAI CO. LTD	USD 6,000,000.00	100.00%
Total	USD 6,000,000.00	100.00%

              

Shareholder	Way of Investment	Paid-up Percentage
SINGAPORE YINGGECI YATAI CO. LTD	Capital	100%

 

    Background of major shareholder

  

Name	SINGAPORE YINGGECI YATAI CO. LTD
Nationality	Singapore

           

           

AFFILIATE(S)

 

Name	YINGGECI ASI ADVANCED MATERIALS (YING KOU)CO. LTD - TRADE UNION COMMITTE
Address	Wanghai Industrial Park, Yingkou economic development zone

           

           

MANAGEMENT

 

Name	Alessandro Dazza
Title	Chairman
Gender	Male
Certificate NO.	AA0560944

                    

Name	Han Wenxue
Title	Director and General Manager
Gender	Male
Certificate NO.	05RE17163

           

           

NUMBER OF EMPLOYEES

           

Employees: 400

Recent Recruitment：No

           

           

BANKERS INFORMATION

 

Bank Name	Bank of China – Yingkou economic development zone Branch
Telephone	0086 417 6241184
Comment	SC is confirmed to have opened an account in this bank, but the interviewee refused to disclose the related account information for the reason of keeping secret for the depositor.

           

        

OFFICE FACILITIES

 

Geographic Location      :SC is located in NO. 19-1-12, Wenyi Road, Shenhe District, Shenyang City, Liaoning Province. I The traffic condition and environment there are OK.

Factory Address            : Wanghai Industrial Park, Yingkou economic development zone

Property Ownership        : self-owned

        

TRADEMARKS & PATENTS

 

After checking with the Trademark Office of Chinese Administration Bureau of Industry and Commerce and the State Intellectual Office, no trademarks or patents of SC were found.

 

 

 MAIN PRODUCTS & SERVICES

 

Main business	Manufacture and sales of zirconium products
Products and services	SC’s products include molten zirconias, zirconium silicates, zircon sands, zircon powder, etc. Its products are widely used in some industries like papermaking, paint and coating, plastics, ceramics, abrasive material, construction material, etc.

        

        

SALES INFORMATION

                                      

Percentage of domestic sales	40%
Regions	All over China
Domestic clients	RHI REFRACTORIES (DALIAN) CO., LTD. etc.
Sales terms	Prompt payment, on credit
Percentage of international sales	60%
Regions	Europe and America
Major domestic clients	WEISUWEI INTERNATIONAL GROUP CO. LTD
Sales Terms:	L/C T/T
SC’s products are mainly sold to Europe and America, only a small part are sold domestically. Subject has many clients due to its shareholders’ background. It directly provide service to manufacturers without agents.
The above information was confirmed by SC’s employee

 

PURCHASE INFORMATION

 

Main Commodities Purchased	Zircons, logistics service, etc.
Number of Major Suppliers	About 10
Major suppliers	YINGKOU ZHENQI LOGISTICS CO. LTD, DALIAN CHANGBO LOGISTICS CO. LTD
Main Terms of Payment	Prompt payment, on credit (Domestic) T/T, L/C (Overseas)
SC’s raw materials are mainly purchased from South Africa and Australia, only a small part is purchased from Hainan of China. Some of its equipments are purchased domestically, some are purchased from overseas. Zirconium raw materials are relatively short and the price is not stable.
The above information was confirmed by SC’s employee.

  

           

CREDIT

 

Name of supplier	YINGKOU ZHENQI LOGISTICS CO. LTD
Main commodities or services supplied	Logistic service
Tel of interviewee	86-417-6235500
Remarks of interviewee	Subject is confirmed to have been this company’s client, sometimes SC’s payments can’t be made in time.

 

Name of supplier	DALIAN CHANGBO LOGISTICS CO. LTD
Main commodities or services supplied	Logistic service
Post of interviewee	Sales staff
Tel	86-411-39220007
Remarks of interviewee	The sales staff of this company confirmed the cooperation relationship with subject and they cooperate well. SC’s credit condition is good.

        

                       

LITIGATION RECORDS

 

   After checking with China court website, local court website and other major searching websites, no litigation records related to subject in the recent 3 years was found.

                       

 

FINANCE

           

Balance Sheet (Unit: 1,000 Chinese Yuan):

        

                    

Income Statement (Unit: 1,000):

      

Important Ratios:                                  

	2008	2009
Return on net assets (%)	-56.84	16.46
Return on total assets (%)	-17.71	9.21
Net profit margin (%)	-22.67	14.13
Turnover of total assets	0.78	0.65
Turnover of current assets	1.00	1.06
Turnover of account receivable	4.54	3.86
Inventory turnover	3.74	1.48
Asset liability ratio (%)	68.85	44.06
Current ratio	1.13	1.40
Quick ratio	0.81	0.56

        

        

Major Financial Information (Unit: 1,000)

	2008	2009
Main business income	78,072	43,422
Total profit	-17,698	6,135
Net profit	-17,698	6,135
Total assets	99,941	66,628
Total liabilities	68,806	29,358
Total owner’s interest	31,135	37,270
Source from	government	government
Whether audited or not	Yes	Yes

 

 

Analysis of Industry Indicators

 

We mainly analyze Subject’s financial indicators in 2009. All of subject’s profitability indicators in 2009 are high which indicates that Subject’s profitability is good. SC’s turnover of total assets and turnover of current assets show that its asset operation ability is poor. Subject’s turnover of account receivable is low which reflects that its debt recovery speed is slow. Also, subject’s asset liability ratio is reasonable which indicates that its long-term solvency is OK. Subject’s current ratio and quick ratio show that its short-term solvency is poor.

           

INDUSTRY PROFILE

           

Industry

SIC Code (China): 2669 Manufacture of other special chemical products

Description: Manufacture of synthetic adhesive, glues which are made of starch, dextrine or other modified starch and other special chemical products.

Status Quo & Trend

The products of this industry have the features of small output, big variety, high quality, advanced technology, high added value. The enterprises in this industry are mainly small and medium-size enterprises. There are many enterprises in this industry and the products and technology are developing in a fast speed. There were 2524 large-scale enterprises in this industry. From January to November in 2009, the main business income in this industry is 279,531,000,000 yuan, increasing 25.48% year/year.

This industry will keep a fast development trend thanks to the favorable policies of the government. But the market demands of special chemical products decrease because of the financial crisis.

 

 

GENERAL COMMENTS

 

Subject Company which was established in December, 2004 was a limited liability company. SC mainly deals with the manufacture and sales of zirconium products. With a long history but an average business scale, its fame in the industry still needs to be promoted.

SC’s existing financial data show that its main business income in 2009 decreased a lot compared with that of 2008. That indicates that SC’s business development shrinked a lot. However, SC controlled its costs well which made its final profit satisfactory. SC has many account receivables in 2009 which indicates that it occupied part of its clients’ capitals which is favorable to its marketing but adds bad-debt risk. SC has had many inventories in recent years which adds its capital turnover pressure and makes its capital operation ability poor. In addition, SC has many short-term loans which indicates that it maintain its daily operation relying on bank loans. Also, SC has many other accounts payable in 2009 which indicates that it has many business activities with its related company.

        

           

 

 

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.45
UK Pound	1	Rs.71.59
Euro	1	Rs.63.01

 

 

 

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	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
--	NB	New Business	--

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.