MIRA INFORM REPORT
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Report Date : |
08.10.2011 |
IDENTIFICATION DETAILS
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Name : |
NANJING LEADER CHEMICAL CO., LTD. |
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Registered Office : |
21/F, Block A, Scientific & Technological Innovation Building, No. 5 New Mofan Road, Nanjing, Jiangsu Province, 210009 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
15.05.2000 |
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Com. Reg. No.: |
320107000033064 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Chemical Products |
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 50,000 |
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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) |
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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
nanjing leader chemical co., ltd.
21/f, block a, scientific & technological
innovation building, no. 5 new mofan road, nanjing, jiangsu PROVINCE, 210009 PR
CHINA
TEL: 86 (0) 25-85650182/85650915 FAX: 86 (0) 25-85650916
EXECUTIVE SUMMARY
INCORPORATION DATE : may 15, 2000
REGISTRATION NO. : 320107000033064
REGISTERED LEGAL FORM : Limited liabilities
company
CHIEF EXECUTIVE :
MR. chen zhongyi (CHAIRMAN)
STAFF STRENGTH :
28
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 102,160,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 9,640,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 50,000
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.38 = USD 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
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 15, 2000.
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 wholesale of hazardous chemicals, selling building
materials, hardware, mechanical and electrical products, metal materials, decorating
materials, rubber and plastic products, auto parts, toys, and household
articles, operating and acting as an agent of importing and exporting various
kinds of commodities and technology; biological, pharmaceutical, dye chemical
and related products R & D, technical consultation and technology transfer.
SC is mainly
engaged in selling chemical products.
Mr. Chen Zhongyi
has been the legal representative and chairman of SC since 2000.
SC is known to
have approx. 28 employees at present.
SC is currently
operating at the above stated address, and this address houses its operating
office in the commercial zone of Nanjing. Our checks reveal that SC rents the
total premise about 300 square meters.
http://www.leader-chem.com The
design is professional and the content is well organized. At present the web
site is both in Chinese and English versions.
E-mail: sales@leader-chem.com
Changes of its
registered information are as follows:
|
Date
of change |
Item |
Before
the change |
After
the change |
|
2008 |
Registered
capital |
CNY 2,000,000 |
CNY 5,000,000 |
|
2010 |
Shareholders |
Chen Zhongqin 3.2%;
Chen Zhongyi 53.4%; Jiangsu Wuzhou Investment & Development Co., Ltd. (in
Chinese Pinyin) 40%; Wang Zaochen 3.4% |
Present ones |
|
Registered capital |
CNY 5,000,000 |
Present amount |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Zhongyi (ID# 320830670924421) 78.3
Jiangsu Wuzhou Investment & Development
Co., Ltd. (in Chinese Pinyin) 20.0
Wang Zaochen (ID# 320830198107064235) 1.7
l
Legal Representative, Chairman and General Manager:
Mr. Chen Zhongyi, ID# 320830670924421, born in 1967 with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working
in SC as legal representative, chairman and general manager;
Also working in Jiangsu Leader Chemical Co., Ltd. and Shuyang Leader Fine Chemical Co., Ltd. as legal representative
SC is mainly engaged
in selling chemical products.
SC’s products
mainly include:
Pharmaceutical
intermediates
Dye intermediates
Pesticide
intermediates
Fluorescent
brighteners
APIs
SC sources its materials 100% from domestic market,
mainly Jiangsu. SC sells 70% of its products in domestic market, and 30% to
overseas market, mainly Southeast Asian market.
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.
*Major Customer:
=============
Minghui Chemical (Wuxi) Co., Ltd.
*Major Supplier:
=============
Jiangsu
Leader Chemical Co., Ltd.
Jiangsu
Leader Chemical Co., Ltd.
Shuyang Leader
Fine Chemical Co., Ltd.
Branch:
======
Nanjing Leader Chemical Co., Ltd. Gulou Branch
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’s suppliers
declined to make any comments.
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 Merchant Bank
AC# 077950782896832001
Relationship:
Normal.
Balance Sheet
|
Unit: CNY’000 |
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
Cash & bank |
980 |
1,300 |
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Inventory |
2,570 |
4,360 |
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Accounts
receivable |
20,230 |
40,870 |
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Other Accounts
receivable |
9,450 |
1,670 |
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Other current
assets |
260 |
1,070 |
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|
------------------ |
------------------ |
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Current assets |
33,490 |
49,270 |
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Fixed assets net
value |
170 |
320 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
10 |
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------------------ |
------------------ |
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Total assets |
33,660 |
49,600 |
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============= |
============= |
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Short loans |
7,000 |
29,600 |
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Accounts payable |
6,900 |
10,280 |
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Other Accounts
payable |
15,010 |
0 |
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Withdraw the
expenses in advance |
0 |
0 |
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Tax payable |
0 |
60 |
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Other current
liabilities |
0 |
20 |
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------------------ |
------------------ |
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Current
liabilities |
28,910 |
39,960 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
28,910 |
39,960 |
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Equities |
4,750 |
9,640 |
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------------------ |
------------------ |
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Total
liabilities & equities |
33,660 |
49,600 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
as of Dec. 31,
2010 |
|
Turnover |
102,160 |
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Cost of goods
sold |
97,120 |
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Taxes and additional of main
operation |
50 |
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Sales expense |
1,970 |
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Management expense |
1,910 |
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Finance expense |
1,160 |
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Profit before
tax |
-70 |
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Less: profit tax |
0 |
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Profits |
-70 |
Important
Ratios
=============
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
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*Current ratio |
1.16 |
1.23 |
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*Quick ratio |
1.07 |
1.12 |
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*Liabilities
to assets |
0.86 |
0.81 |
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*Net profit
margin (%) |
/ |
-0.07 |
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*Return on
total assets (%) |
/ |
-0.14 |
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*Inventory
/Turnover ×365 |
/ |
16 days |
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*Accounts
receivable/Turnover ×365 |
/ |
146 days |
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*Turnover/Total
assets |
/ |
2.06 |
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* Cost of
goods sold/Turnover |
/ |
0.95 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears large.
l
SC’s short-term loan is large in 2010.
l
SC’s turnover is in an average level in 2010,
comparing with the size of its total assets.
LEVERAGE: FAIR
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 medium-sized in its line with fairly stable financial conditions.
The large amount of accounts receivable and short-term loan could be a threat
to SC’s financial condition. A credit line up to USD 50,000 would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.14 |
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UK Pound |
1 |
Rs.75.97 |
|
Euro |
1 |
Rs.65.99 |
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 |
|
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.