MIRA INFORM REPORT
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Report Date : |
13.07.2011 |
IDENTIFICATION DETAILS
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Name : |
WUZHI COUNTY ZHIHUI CHEMICAL CO., LTD. |
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Registered Office : |
West Of Beijia Bridge,
Zhansi Road, East Wuzhi County, Jiaozuo City, Henan Province 454950 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
06.09.2004 |
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Com. Reg. No.: |
410823000007187 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
processing and selling chemical products for paper making, and
paint additives |
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
20,000 |
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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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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China |
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
WUZHI COUNTY ZHIHUI CHEMICAL CO., LTD.
WEST OF BEIJIA
BRIDGE, ZHANSI ROAD, EAST WUZHI COUNTY
JIAOZUO CITY, HENAN
PROVINCE 454950 PR CHINA
TEL:
86 (0) 391-7268190/7268192
FAX: 86 (0) 391-7268193
EXECUTIVE SUMMARY
Date
of Registration : SEPTEMBER 6,
2004
REGISTRATION
NO. : 410823000007187
LEGAL
FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 5,000,000
staff :
80
BUSINESS CATEGORY : processing & TRADING
Revenue :
CNY 50,270,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 4,830,000 (AS OF DEC. 31, 2010)
WEBSITE : www.zhihuichem.com
E-MAIL : zhihuichem@163.com
MSN : frankzgang67@hotmail.com
PAYMENT :
AVERAGE
RECOMMENDED
CREDIT LIMIT: UP TO USD 20,000
MARKET CONDITION :
average
FINANCIAL CONDITION :
fair
OPERATIONAL TREND : ORDINARY
GENERAL
REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.46 = 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’s complete address should be the heading
one, instead of the given address (North part of Zhaisi Rd., East Wuzhi County,
Jiaozuo City, Henan, China)
SC was established as a limited
liabilities company of PRC with State Administration of Industry & Commerce
(SAIC) under registration No.: 410823000007187 on September
6, 2004.
SC’s Organization Code Certificate No.: 767801161
SC’s registered capital: CNY 5,000,000
SC’s paid-in capital: CNY 5,000,000
Registration
Change Record:
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2010 |
Registered Capital |
CNY
500,000 |
CNY
5,000,000 |
Current
Co search indicates SC’s shareholders & chief executives are as follows:-
|
Name
of Shareholder (s) |
%
of Shareholding |
|
Lin Yanhui |
82 |
|
Wang Wenhui |
18 |
SC’s
Chief Executives:-
Legal Representative, Chairman, and General Manager: Lin
Yanhui
Supervisor:
Wang Wenhui
RECENT DEVELOPMENT
No recent
development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name % of Shareholding
Lin Yanhui 82
Wang Wenhui 18
MANAGEMENT
Lin Yanhui, Legal
Representative, Chairman, and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age:
Ø
Qualification:
University
Ø
Working
experience (s):
From 2004 to present, working in SC as legal representative,
chairman and general manager
Wang
Wenhui, Supervisor
----------------------------------------------
Ø
Gender: M
Ø
Age: N/a
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes processing and selling chemical products for paper making, and paper
products; selling chemical equipment; importing and exporting commodities.
SC is mainly engaged in
processing and selling chemical
products for paper making, and paint additives.
SC’s products mainly include:
Anti-agent, Emulsifier, Dispersant, Non-carbon copy paper dedicated chromogenic
agent, Micro-capsules, Etc.
An annual output is more than 10,000
tons of various chemicals.
SC sources its materials 95% from domestic market, mainly Henan,
Liaoning, etc., and 5% from overseas market. SC sells 40% of its products in
domestic market, mainly Henan, and 60% to overseas market, mainly Europe, Taiwan,
etc.
The buying terms of SC include
T/T, L/C and Credit of 30-60 days. The payment terms of SC include T/T, L/C and
Credit of 30-60 days.
Major Supplier:
===========
Dalian Jinzhu Chemical Co., Ltd.
Major Customer:
===========
Henan Jianghe Paper Co., Ltd.
Staff & Office:
--------------------------
SC is known to
have approx. 80 staff at
present.
SC owns an area as its operating office of
approx. 9,000 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: A
trade enquiry currently conducted with SC's supplier(s) reveal the following:
Supplier
A
Products sold: Chemical Materials
Date account opened: 2010
Line of credit: N/A
Terms: 30-60
days
Average monthly sales: N/A
Current balance: N/A
Rating Key : 3
Any Special Comments: N/a
Payment record keys:
1 = Prompt: Payment made before the credit period expires
2 = As agreed terms: Payment made upon due date
3 = Slightly slow but acceptable: Payment made 5 to 20 days beyond
agreed terms
4 = Slow: Payment made 16 to 45 days beyond agreed terms
5 = Poor: Payment made over 45 days beyond agreed terms
6 = No comment: Account
is newly opened & record is not yet established
Note: In some instances, payment beyond terms can
be the result of disputes over merchandise, lost invoices, disputed accounts
& etc.
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
Basic Bank:
China Construction Bank
AC#：N/A
FINANCIALS
Balance
Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
660 |
920 |
|
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Accounts receivable |
3,100 |
9,640 |
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Advances to suppliers |
0 |
0 |
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Other receivable |
0 |
-10 |
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Inventory |
1,660 |
990 |
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Non-current assets within one
year |
0 |
0 |
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Other current assets |
-290 |
800 |
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------------------ |
------------------ |
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Current assets |
5,130 |
12,340 |
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Fixed assets |
1,460 |
1,970 |
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Construction in progress |
1,000 |
630 |
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Intangible assets |
0 |
0 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
0 |
10 |
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------------------ |
------------------ |
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Total assets |
7,590 |
14,950 |
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============= |
============= |
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Short-term loans |
1,000 |
1,000 |
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Notes payable |
0 |
0 |
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Accounts payable |
3,370 |
6,640 |
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Payroll payable |
70 |
120 |
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Advances from clients |
60 |
-480 |
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Other payable |
520 |
1,240 |
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Other current liabilities |
150 |
1,600 |
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------------------ |
------------------ |
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Current liabilities |
5,170 |
10,120 |
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Non-current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
5,170 |
10,120 |
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Equities |
2,420 |
4,830 |
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------------------ |
------------------ |
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Total liabilities & equities |
7,590 |
14,950 |
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============= |
============= |
Income
Statement
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Unit: CNY’000 |
As of Dec. 31, 2010 |
|
Revenue |
50,270 |
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Cost of sales |
45,190 |
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Sales
expense |
1,540 |
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Management expense |
860 |
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Finance expense |
80 |
|
Profit before tax |
-1,560 |
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Less: profit tax |
530 |
|
-2,090 |
Important Ratios
=============
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|
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
*Current ratio |
0.99 |
1.22 |
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*Quick ratio |
0.67 |
1.12 |
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*Liabilities to assets |
0.68 |
0.68 |
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*Net profit margin (%) |
-- |
-4.16 |
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*Return on total assets (%) |
-- |
-13.98 |
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*Inventory / Revenue ×365 |
-- |
8 days |
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*Accounts receivable/ Revenue ×365 |
-- |
70 days |
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* Revenue/Total assets |
-- |
3.36 |
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* Cost of sales / Revenue |
-- |
0.90 |
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 poor in 2010.
l
SC’s
cost of goods sold is average, comparing with its revenue.
LIQUIDITY: AVERAGE
l
The
current ratio of SC is maintained in a fair level in 2009, normal in 2010.
l
SC’s quick
ratio is maintained in a fair level in 2009, normal in 2010.
l
The
inventory of SC is maintained in an average level in both years.
l
The
accounts receivable of SC appears large in 2010.
l
The
short-term loan of SC appears average in both years.
l
SC’s revenue is in a fairly good level, comparing with the size of its
total assets in 2010.
LEVERAGE: AVERAGE
l
The debt
ratio of SC is average in both years.
l
The risk
for SC to go bankrupt is above average.
Overall financial condition of the SC: Fair.
CONCLUSIONS
SC is considered
small-sized in its line with fair financial conditions.
The large amount of accounts receivable could be a
threat to SC’s financial condition, a credit line up to USD 20,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.69 |
|
UK Pound |
1 |
Rs.70.87 |
|
Euro |
1 |
Rs.62.26 |
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 |
|
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.