MIRA
INFORM REPORT
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Report Date : |
12.05.2011 |
IDENTIFICATION DETAILS
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Name : |
DALIAN BIO-CHEM CO., LTD. |
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Registered Office : |
Room 1103/1115, 11/F |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
22.09.2003 |
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Com. Reg. No.: |
016555 |
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Legal Form : |
Chinese Foreign Equity Joint Venture |
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Line of Business : |
Manufacturing and selling chemical products |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 500,000 |
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Status : |
Satisfactory |
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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 |
Name and address
DALIAN BIO-CHEM CO., LTD.
ROOM 1103/1115,
11/F
ZHONGSHAN district,
TEL: 86 (0)
411-86229985 FAX: 86 (0)
411-86229985-848
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 22, 2003
REGISTRATION NO. : 016555
REGISTERED LEGAL FORM : CHINESE FOREIGN EQUITY JOINT VENTURE
STAFF STRENGTH :
198
REGISTERED CAPITAL : USD 8,027,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 129,780,000 (UNaudited, AS
OF DEC. 31, 2010)
EQUITIES :
CNY 104,860,000 (UNauditED, AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.50 = 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 Chinese foreign equity joint venture
enterprise at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on Sep. 22, 2003.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR China is defined as a legal person.
It is a limited co. jointly invested by one or more foreign companies and
one or more PR China controlled companies within the territories of PR
China according to a certain proportion of capital investment. The
investing parties exercise business management, share profits and bear all
risks and liabilities of the co. together. The equity joint venture law
requires that foreign party contribute not less than 25% of the registered
capital, with no maximum. The investing parties are free to agree on method
of profit distribution and liabilities bearing according to the proportion
of capital investment. Each investing parties contributes funds, tangible
assets, technology & etc. The board of directors excises the high
authority. The joint venture usually has a limited duration of 10 to 50
years. Enterprise with large investment, long construction periods, low
investment returns, introducing of advanced technology & advanced
technology products that have good competition position in international market
may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing chemical products; selling its products.
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Liu
Xianwu is now acting as legal
representative and chairman of SC.
SC is known
to have approx. 198 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Dalian. Our checks reveal that SC
rents the total premise about 300 square meters.
SC’s
factory is located in
http://www.biofc.com The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: sales@biofc.com
SC has got the
hours and certificate as below:
Top Ten Fastest-growing Industrial Enterprises
Top Ten Foreign Exchange-earning Industrial Enterprises
Top Ten Energy Conservation and Consume Reduction Industrial Enterprises
ISO 9001:2008
MAIN SHAREHOLDERS:
Name %
of Shareholding
Dalian Yuntong Investment Co., Ltd. (In
translation) 50
Join Venture International Limited-
Dalian Sanxin Investment Co., Ltd. (In
translation) 25
Dalian Yuntong Investment Co., Ltd.
==========================
Legal rep.: Liu Xianwu
Legal form: Limited Liabilities Company
Incorporated date:
Registered capital: CNY 20,000,000
Join Venture International Limited-
==============================
Registered number: 0770465
Incorporated date: Sep. 17, 2001
Legal from: Private
Dalian Sanxin Investment Co., Ltd.
=======================
Registered number: 210200000076606
Legal rep.: Wang Wenfeng
Legal from: Limited Liabilities Company
Incorporated date:
Registered capital: CNY 31,578,400
Tel: 86 0411-82733127/82722699
l
Legal representative and Chairman:
Mr. Liu Xianwu , in his
Working Experience(s):
Now Working in SC as chairman and legal
representative.
Also working in Dalian Yuntong Investment Co., Ltd.,
as legal rep. and chairman.
l
General Manager:
Mr. Liu Hailong , in his
Working Experience(s):
Now Working in SC as general manager.
SC is mainly engaged
in manufacturing and selling chemical products.
SC’s products
mainly include cit/mit series, oit series, dcoit series, bit series and
formulation series.
SC sources its materials 95% from domestic
market and 5% form the 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.
Note: SC’s management declined to release its main clients and
suppliers.
Shenyang
Bio-Chem Co., Ltd.
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.
Huaxia Bank
AC#：N/A
Relationship:
Balance Sheet
Unit: CNY’000
|
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as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
Cash & bank |
23,810 |
42,820 |
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Inventory |
15,400 |
19,250 |
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Accounts
receivable |
17,400 |
16,630 |
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Advances to
suppliers |
1,750 |
26,170 |
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Other
receivables |
82,800 |
11,580 |
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Other current
assets |
1,250 |
650 |
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------------------ |
------------------ |
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Current assets |
142,410 |
117,100 |
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Fixed assets net
value |
34,400 |
33,900 |
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Long term
investment |
0 |
0 |
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Project under
construction |
1,600 |
43,300 |
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Other assets |
24,580 |
34,260 |
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------------------ |
------------------ |
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Total assets |
202,990 |
228,560 |
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============= |
============= |
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Short loans |
95,000 |
115,440 |
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Accounts payable |
3,010 |
3,090 |
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Taxes payable |
360 |
1,840 |
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Advances from
clients |
70 |
-70 |
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Other payable |
2,770 |
470 |
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Other current
liabilities |
14,260 |
2,930 |
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------------------ |
------------------ |
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Current
liabilities |
115,470 |
123,700 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
115,470 |
123,700 |
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Equities |
87,520 |
104,860 |
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------------------ |
------------------ |
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Total
liabilities & equities |
202,990 |
228,560 |
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============= |
============= |
Income Statement
Unit: CNY’000
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as of Dec. 31,
2010 |
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Turnover |
129,780 |
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Cost of goods
sold |
69,870 |
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Sales expense |
5,610 |
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Management expense |
7,310 |
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Finance expense |
5,380 |
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Profit before
tax |
41,820 |
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Less: profit tax |
5,230 |
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Profits |
36,590 |
Note: The above
financial records for Yr2010 have not been audited.
Important Ratios
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as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
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*Current ratio |
1.23 |
0.95 |
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*Quick ratio |
1.10 |
0.79 |
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*Liabilities
to assets |
0.57 |
0.54 |
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*Net profit
margin (%) |
/ |
28.19 |
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*Return on
total assets (%) |
/ |
16.01 |
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*Inventory
/Turnover ×365 |
/ |
54 days |
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*Accounts
receivable/Turnover ×365 |
/ |
47 days |
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*Turnover/Total
assets |
/ |
0.57 |
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* Cost of
goods sold/Turnover |
/ |
0.54 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in 2010.
l
SC’s net profit margin is good in 2010.
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SC’s return on total assets is good in 2010.
l
SC’s cost of goods sold is low in 2010, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in 2009 but fair in 2010.
l
SC’s quick ratio is maintained in a normal level in
2009 but fair in 2010.
l
The inventory of SC appears average in both years.
l
The account receivable of SC appears average in
both years.
l
The short-term loan of SC is large in both years.
l
SC’s turnover is in a fair level in 2010, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition. A credit line up to USD 500,000 appears acceptable upon a periodical
review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.69 |
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|
1 |
Rs.73.12 |
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Euro |
1 |
Rs.64.39 |
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.