MIRA INFORM REPORT
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Report Date : |
17.08.2011 |
IDENTIFICATION DETAILS
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Name : |
YANCHENG LONGSHENG
CHEMICAL CO., LTD. |
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Registered Office : |
No. 13 Weiyi Road,
Aoyang Industrial Park, Funing County, Yancheng City, Jiangsu Province 224011
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
11.10.2006 |
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Com. Reg. No.: |
320923000019540 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing
and Selling Dangerous Chemicals |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 & address
yancheng longsheng chemical co., ltd.
no. 13 weiyi road,
aoyang industrial park
funing county,
yancheng city, jiangsu province 224011 PR CHINA
TEL: 86 (0)
515-88710281/88701529
FAX: 86 (0)
515-88701529
EXECUTIVE SUMMARY
Date of Registration : october 11, 2006
REGISTRATION NO. : 320923000019540
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
cny 18,500,000
staff : 240
BUSINESS CATEGORY :
manufacturing
Revenue : CNY 31,950,000 (AS OF
DEC. 31, 2010)
EQUITIES : CNY 17,890,000 (AS OF DEC. 31, 2010)
WEBSITE : www.longshenchem.com
E-MAIL :
sales@longshenchem.com
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD
100,000
MARKET CONDITION : average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : Ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.39 = USD 1
Adopted abbreviations
(as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 320923000019540 on October
11, 2006.
SC’s Organization Code Certificate
No.: 792347458
SC’s registered capital: cny 18,500,000
SC’s paid-in capital: cny 18,500,000
SC’s Tax No. 320923792347458
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wang Guicai |
10.81 |
|
Gao Jingding |
51.62 |
|
Gao Jun |
37.57 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
General Manager |
Wang Guicai |
|
Chairman |
Gao
Jingding |
|
Supervisor |
Gao
Jun |
RECENT DEVELOPMENT
SC has passed ISO9001:2000 quality management system authentication and
ISO14001:2004 environmental management system authentication.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Wang Guicai 10.81
Gao Jingding 51.62
Gao Jun 37.57
MANAGEMENT
Wang Guicai, Legal Representative and General Manager
---------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age:
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and
general manager
Gao Jingding,
Chairman
--------------------------------------------
Ø
Gender: M
Ø
Age:
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as chairman
Supervisor
---------------
Gao Jun
Sales Manager
------------------
You Yongqun
Tel: 86 (0) 515-88706880
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and
selling dangerous chemicals, operating and acting as an agent of importing and
exporting various kinds of commodities and technology, excluding the goods
forbidden by the government.
SC is
mainly engaged in manufacturing and selling dangerous chemicals.
SC’s
products mainly include:
Bromoform
Bromoethane
1,2-Dibromoethane
1-Bromo-2-chloroethane
Propyl bromide
2-Bromopropane(iso-propyl bromide)
1,3-Dibromopropane
1,2-dibromo-3-chloropropane
Allyl bromide
p-Bromo-anisole
SC sources its materials 100% from domestic
market, mainly Jiangsu. SC sells 30% of its products in domestic market, and 70%
to overseas market, mainly North America, Europe, India, and Southeast Asia
The
buying terms of SC include T/T and Credit of 30-60 days. The payment terms of
SC include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 240
staff at present.
SC rents an area
as its operating office & factory of approx. 35,000 sq. meters at the
heading address.
RELATED
COMPANY
SC is
not known to have any subsidiary at present.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
China
Construction Bank Longgang Branch
AC#3201735040050295380
Yancheng District
Credit Union Longgang Credit Cooperatives
AC#3209021301201000149916
***Note:
SC’s management declined to release whether it has account in
Agricultural Bank of China.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
0 |
910 |
|
|
Accounts
receivable |
0 |
-70 |
|
Advances to
suppliers |
2,680 |
2,830 |
|
Other receivable |
-80 |
10 |
|
Inventory |
140 |
3,300 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
390 |
|
|
------------------ |
------------------ |
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Current assets |
2,740 |
7,370 |
|
Fixed assets |
7,140 |
9,700 |
|
Construction in
progress |
0 |
0 |
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Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
2,320 |
2,430 |
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|
------------------ |
------------------ |
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Total assets |
12,200 |
19,500 |
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|
============= |
============= |
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Short-term loans |
0 |
1,560 |
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Notes payable |
0 |
0 |
|
Accounts payable |
-890 |
-740 |
|
Taxes payable |
-520 |
-1,120 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
-4,870 |
340 |
|
Other current
liabilities |
0 |
1,190 |
|
|
------------------ |
------------------ |
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Current
liabilities |
-6,280 |
1,230 |
|
Non-current
liabilities |
-20 |
380 |
|
|
------------------ |
------------------ |
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Total
liabilities |
-6,300 |
1,610 |
|
Equities |
18,500 |
17,890 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
12,200 |
19,500 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
|
Revenue |
31,950 |
|
Cost of sales |
29,140 |
|
Sales expense |
1,060 |
|
Management expense |
2,390 |
|
Finance expense |
30 |
|
Profit before
tax |
-610 |
|
Less: profit tax |
0 |
|
-610 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
-0.44 |
5.99 |
|
*Quick ratio |
-0.41 |
3.31 |
|
*Liabilities
to assets |
-0.52 |
0.08 |
|
*Net profit margin
(%) |
-- |
-1.91 |
|
*Return on
total assets (%) |
-- |
-3.13 |
|
*Inventory /
Revenue ×365 |
-- |
38 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
-- |
|
*
Revenue/Total assets |
-- |
1.64 |
|
* Cost of
sales / Revenue |
-- |
0.91 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
average in its line in 2010.
l
SC’s net profit margin is fair in 2010.
l
SC’s return on total assets is fair in 2010.
l
SC’s cost of goods sold is fairly high, comparing
with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fairly
good level in 2010.
l
SC’s quick ratio is maintained in a fairly good
level in 2010.
l
The inventory of SC is maintained in an average
level.
l
SC’s short-term loan is in an average level in 2010.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is low in 2010.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with
fair financial conditions. A credit line up to USD 100,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.25 |
|
UK Pound |
1 |
Rs.73.88 |
|
Euro |
1 |
Rs.65.06 |
RATING EXPLANATIONS
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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 |
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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 |
|
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 |
|
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.