MIRA INFORM REPORT
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Report Date : |
08.04.2011 |
IDENTIFICATION DETAILS
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Name : |
FUZHOU KUNCAI FINE CHEMICALS CO LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
25.11.2005 |
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Com. Reg. No.: |
350181100005884 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling pearl pigment, mica, etc. |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 100,000 |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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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.
ECGC Country Risk Classification List – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
company
Name and address
FUZHOU KUNCAI FINE CHEMICALS CO., LTD.
FUQING,
TEL: 86
(0) 591-85588338/85588012 FAX: 86
(0) 591-85572333/85588189
EXECUTIVE
SUMMARY
INCORPORATION DATE : NOVEMBER 25, 2005
REGISTRATION NO. : 350181100005884
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 339
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 53,980,000 (AS OF DEC. 31, 2009)
EQUITIES : CNY 25,210,000 (AS OF DEC. 31,
2009)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : Fairly STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.8283 = USD 1
Adopted
abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a
limited liabilities company at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on November
25, 2005.
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 manufacturing and selling pearl pigment,
mica; importing and exporting enterprises products, excluding the items
prohibited by the state (operating the limited items after obtaining the
permits.
SC is mainly
engaged in manufacturing and selling pearl pigment, mica, etc.
Mr. Xie Bingkun has
been legal representative and chairman of SC since 2005.
SC is known to have approx. 339 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the investment zone of
Fuqing. Our checks reveal that SC owns the total premise, but SC’s accountant
refused to release the gross area.
http://fzkuncai.com/ The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
Email: deng@fzkuncai.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
Note: According to SC’s accountant Mr. Wang, SC was established
in 2005, but it started its normal business and production since about June
2009.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Xie Bingkun 80
Xie Chao 13.5
Mei Jianhao 6.5
l
Legal representative, chairman and general
manager:
Mr. Xie Bingkun , born in 1966. He is currently responsible for the overall management
of SC.
Working Experience(s):
From 2005 to present Working in SC as chairman, legal representative and general
manager;
At present Also
working in Wenzhou Kuncai Pearlescent Pigment Co., Ltd. as legal representative.
According to SC’s accountant Mr. Wang, SC was established in
2005, but it started its normal business and production since about June 2009.
SC is mainly
engaged in manufacturing and selling pearl pigment, mica, etc.
Main Products:
pearl pigment, mica, etc.
SC sources its materials 20%
from domestic market, and 80% from overseas market, mainly
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
According to SC’s website, it has
the following related companies:
Etc.
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.
China Construction Bank Fuqing Sub-branch.
AC#: 35001618107059006166
Relationship:
Balance Sheet (as of Dec. 31, 2009)
Unit: CNY’000
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Cash & bank |
640 |
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Notes receivable |
520 |
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Inventory |
1,910 |
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Accounts
receivable |
17,830 |
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Advances to
suppliers |
4,350 |
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Other
receivables |
1,460 |
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Other current
assets |
20 |
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------------------ |
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Current assets |
26,730 |
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Fixed assets net
value |
46,990 |
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Projects under
construction |
21,650 |
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Long term
investment |
0 |
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Long-term
deferred expenses |
1,140 |
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Other assets |
10 |
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------------------ |
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Total assets |
96,520 |
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============= |
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Short loans |
6,100 |
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Accounts payable |
58,760 |
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Advances from
customers |
0 |
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Accrued payroll |
1,990 |
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Welfare expenses
payable |
0 |
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Taxes payable |
1,460 |
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Surcharge
payable |
20 |
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Other payable |
2,960 |
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Other current
liabilities |
20 |
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------------------ |
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Current
liabilities |
71,310 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
71,310 |
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Equities |
25,210 |
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------------------ |
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Total
liabilities & equities |
96,520 |
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Income Statement (as of Dec. 31, 2009)
Unit: CNY’000
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Turnover |
53,980 |
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Cost of goods sold |
41,040 |
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Taxes and additional of main
operation |
60 |
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Sales expense |
1,760 |
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Management expense |
4,250 |
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Finance expense |
3 |
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Non-operating expense |
65 |
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Profit before
tax |
6,790 |
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Less: profit tax |
1,700 |
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Profits |
5,090 |
Note: the above financial statements for Year 2009 have not been
audited.
Important Ratios
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as
of Dec. 31, 2009 |
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*Current ratio |
0.37 |
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*Quick ratio |
0.35 |
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*Liabilities
to assets |
0.74 |
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*Net profit
margin (%) |
9.43 |
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*Return on
total assets (%) |
5.27 |
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*Inventory
/Turnover ×365 |
13 days |
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*Accounts
receivable/Turnover ×365 |
121 days |
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*Turnover/Total
assets |
0.56 |
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* Cost of
goods sold/Turnover |
0.76 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears average in its line.
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SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a poor
level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears large.
l
SC’s short-term loan is in a fairly large 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 fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The given credit amount would appear to be beyond SC’s capacities,
while a credit line up to USD 100,000 would appear to be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.22 |
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1 |
Rs.71.97 |
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Euro |
1 |
Rs.63.23 |
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 |
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 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.