MIRA INFORM REPORT
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Report Date : |
06.01.2011 |
IDENTIFICATION DETAILS
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Name : |
LONGKOU LONGPAI FINE CHEMICAL INDUSTRY CO.,
LTD. |
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Registered Office : |
South Of |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
30.05.1996 |
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Com. Reg. No.: |
370681228010547 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
processing and
Selling Emulsion, Papermaking & Chemical Accessory Ingredient. |
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 40,000 |
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Status : |
Small Company |
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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 – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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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 & address
longkou longpai fine
chemical industry Co., Ltd.
south of
TEL: 86 (0) 535-8661308/8619328 FAX: 86 (0) 535-8618908
EXECUTIVE SUMMARY
INCORPORATION DATE : may 30, 1996
REGISTRATION NO. : 370681228010547
REGISTERED
LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF
STRENGTH : 70
REGISTERED
CAPITAL :
CNY 1,000,000
BUSINESS
LINE : PROCESSING
& trading
TURNOVER : CNY 18,130,000 (AS OF DEC. 31,
2009)
EQUITIES : CNY 7,830,000 (AS OF DEC. 31,
2009)
PAYMENT
: AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.6225 = USD 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: The given fax no. (86-535-8618963) does not belong to SC.
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
May 30, 1996.
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
processing and selling AKD emulsion, latex, papermaking & chemical
accessory ingredient.
SC is mainly engaged in processing and
selling emulsion, papermaking & chemical accessory ingredient.
Mr. Wang Guangsheng is legal representative,
chairman and general manager of SC at present.
SC is known to have approx. 70 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 Longkou. Our checks reveal that SC owns the
total premise about 10,000 square meters.
http://www.china-longpai.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: wgs@china-longpai.com
No significant
events or changes were found during our checks with local AIC.
Qualifications:
Longkou Longpai is
the first manufacturer in
MAIN SHAREHOLDERS:
Name % of Shareholding
Wang Guangsheng 81.5
Zhao Dehong 18.5
l
Legal
Representative, Chairman and General Manager:
Mr. Wang Guangsheng,
in his
Working Experience(s):
At present Working in SC as legal representative, chairman and general manager
SC is mainly engaged in processing and
selling emulsion, papermaking & chemical accessory ingredient.
SC’s products mainly include LP-AKD wax powder,
LP-AKD neutral papermaking sizing agent, PAE wet strength agent and LP
emulsifying agent, Surface sizing agent, Rosin Cation emulsion etc.
SC sources its
materials 100% from domestic market. SC sells 10% of its products in domestic
market, and 90% to overseas market, mainly
The buying terms of
SC include Check, 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.
Dongjiang Rural
Credit Cooperatives
AC#: N/A
Relationship:
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2009 |
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Cash & bank |
1,330 |
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Inventory |
-2,110 |
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Accounts receivable |
4,750 |
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Notes receivable |
90 |
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Advances to supplies |
0 |
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Other receivables |
50 |
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To be apportioned expense |
0 |
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Other current assets |
0 |
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------------------ |
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Current assets |
4,110 |
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Fixed assets net value |
2,780 |
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Projects under construction |
0 |
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Long-term investments |
0 |
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Intangible assets |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
6,890 |
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============= |
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Short loans |
1,000 |
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Accounts payable |
-2,310 |
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Other Accounts payable |
520 |
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Advances from clients |
0 |
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Taxes payable |
-150 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
0 |
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----------------- |
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Current liabilities |
-940 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
-940 |
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Shareholders equities |
7,830 |
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------------------ |
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Total liabilities & equities |
6,890 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2009 |
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Turnover |
18,130 |
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Cost of goods sold |
16,490 |
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Taxes and additional of main operation |
100 |
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Sales expense |
830 |
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Management expense |
550 |
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Finance expense |
70 |
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Profit before tax |
90 |
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Less: profit tax |
0 |
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Net profit |
90 |
Important Ratios
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as of Dec. 31, 2009 |
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*Current ratio |
/ |
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*Quick ratio |
/ |
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*Liabilities to assets |
/ |
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*Net profit margin (%) |
0.50 |
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*Return on total assets (%) |
1.31 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
96 days |
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*Turnover/Total assets |
2.63 |
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* Cost of goods sold/Turnover |
0.91 |
PROFITABILITY: AVERAGE
l
The
turnover of SC appears average 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: AVERAGE
l
The
accounts receivable of SC appears large in 2009.
l
SC’s
short-term loan is in an average level in 2009.
l
SC’s
turnover is in a fairly good level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
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 large
amount of accounts receivable could be a threat to SC’s financial condition. A
credit line up to USD 40,000 appears 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.45.20 |
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1 |
Rs.70.27 |
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Euro |
1 |
Rs.59.99 |
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 |
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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.