MIRA
INFORM REPORT
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Report Date : |
10.07.2012 |
IDENTIFICATION DETAILS
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Name : |
ROYO CHEMICALS LTD. |
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Registered Office : |
Langbian Village Industry Zone, |
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Country : |
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Date of Incorporation : |
02.08.2007 |
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Com. Reg. No.: |
440126000096257 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacture and sales of leather chemicals. |
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No. of Employees : |
40 |
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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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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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
|
Guangzhou Royo Chemicals Limited |
Currency in this report is Chinese Yuan unless otherwise stated.
Exchange Rate: 1 USD=6.37 Chinese Yuan
"--"in this report indicates "unavailable" due to insufficient information or "no comments"
ORDER
INFORMATION
|
name |
Royo Chemicals Ltd. |
|
address |
No. 2, Jiahong Road, Shiji Town,
Langbiancun Industry Zone, 511464 Panyu District, Guangzhou |
Notes:
1.
The English
name provided in the order isn’t complete. SC’s complete English name is as
listed in the report.
2.
Due to
recent intervention of government in the AIC systems, reports of companies in
some regions could be impacted for a certain period. For companies registered
in Guangdong, financial information couldn’t be obtained.
EXECUTIVE
SUMMARY
|
DATE OF
establishment |
Aug 2nd,
2007 |
|
Aic Registration
No. |
440126000096257 |
|
REGISTERED LEGAL
FORM |
limited liabilities company |
|
REGISTERED
CAPITAL |
5,500,000.00 |
|
main BUSINESS |
Manufacture and sales of leather
chemicals. |
|
tax no. |
440100665904792 |
|
import and export
permits |
yes |
|
EXCHANGE RATE |
1 Usd=6.37 CNY
(JULy 9th, 2012) |
|
Registered
Address |
Langbian Village Industry Zone, Shiji
Town, Panyu Dist, Guangzhou City |
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Zip Code |
511464 |
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|
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Business Address |
No.2, Jiahong Rd, Langbian Village
Industry Zone, Shiji Town, Panyu Dist, Guangzhou City |
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Zip Code |
511464 |
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Telephone |
86 20 28649828 |
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Fax |
86 20 28649818 |
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Mobile |
86 13533986256 |
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SIC Code (China) |
2662 Manufacture of special chemical
products. |
REGISTRATION
|
Name
(English) |
Guangzhou Royo Chemicals Limited |
|
Date
of Establishment |
Aug 2nd,
2007 |
|
Registry |
Administration
Bureau of Industry and Commerce – Panyu (Guangzhou) |
|
Legal
Representative |
Han Rui-jun |
|
AIC
Registration Number |
440126000096257 |
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Registered
Legal Form |
limited liabilities company |
|
Registered
Capital |
5,500,000.00 |
|
Operating
Duration |
Aug 2nd,
2007 to Aug 2nd, 2027 |
|
Business
Scope |
Manufacture,
processing and sales of leather fatliquor, leather retanning agent, leather
finishing agent, leather feeling agent, leather coloring agent, lecithin,
etc; Import
and export of goods and technologies. (excluding
those forbidden by law and with license for those needed.) |
Limited
liabilities co.
This
form of business in PR China is defined as a legal person. Its registered capital
is contributed jointly by at least two shareholders and no more than fifty.
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 listed as follows:
-manufacturing
co. : RMB 500,000.00
-trading
&wholesaling co. : RMB 500,000.00
-retailing
co. : RMB 300,000.00
-consultancy
& service co. : RMB 100,000.00
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 50% of the registered
capital while contribution by intangible assets must not exceed 20% 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.
REGISTRATION
INFO: AVAILABLE
FINANCIAL
REPORTS: AVAILABLE
FIELD
INVESTIGATION
1. SC’s business income comes mainly from leather
chemicals including leather fatiliquor, leather retanning agent, leather
finishing agent, etc. Its products are sold both domestically and
internationally. SC’s sales business is developed both directly and indirectly
to its end customers. Its clients are mainly domestic and international
traders, leather factories, chemical enterprises, etc. The industry of leather
chemicals is an industry with fierce competition. There are a lot of similar
enterprises in the local place as SC’s competitors. SC’s competitiveness is
below average in the local industry.
2. Guangzhou City, SC’s location is one of the 5 biggest
national cities in China and the capital city of Guangdong Province. It is the
economic, financial, trading, cultural, technological traffic and educational
center of Southern China. With rich industrial foundation, well developed third
industry and harmonized economy, the industrial and agricultural production
value of Guangzhou City has been growing continuously and the foreign trade has
been developing quickly. The overall economic strength of Guangzhou City ranks
No.3 among the Chinese big cities. As an individual invested enterprise dealing
with manufacture and sales of leather chemicals, SC shares no favorable
policies provided by the local government.
SHAREHOLDERS
AND SHARES
As indicated in the following table:
|
Shareholder |
Capital
Subscribed |
Percentage |
|
Zhang
Hai-ying |
5,000,000.00 |
90.9% |
|
Han
Rui-jun |
500,000.00 |
9.1% |
|
Total |
5,500,000.00 |
100% |
|
Shareholder |
Way
of Investment |
Paid-up
Percentage |
|
Zhang
Hai-ying |
Capital |
100% |
|
Han
Rui-jun |
Capital |
100% |
Background of major shareholder
|
Name |
Zhang Hai-ying |
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Gender |
Female |
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Date of birth |
Jan 29th, 1977 |
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Name |
Han Rui-jun |
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Gender |
Male |
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Date of birth |
July 25th, 1968 |
AFFILIATE(S)
No affiliates of subject company is found after checking.
MANAGEMENT
|
Name |
Han Rui-jun |
|
Gender |
Male |
|
Title |
Legal
Representative |
|
Date of birth |
July 25th,
1968 |
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Education |
-- |
|
Working experience |
Over 5 years’ working experience
and over 5 years’ management experience. |
NUMBER OF EMPLOYEES
Employees:
40
Management
Staff: 8
Recent
recruitment: Yes
BANKERS INFORMATION
|
Bank name |
Industrial and Commercial
Bank of China – Shiji (Guangzhou) Sub-branch |
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Account No. (CNY) |
-- |
|
Tel. |
86 20 84855738 |
|
Comment |
The bank staff confirmed
SC opened an account in the bank, but refused to disclose any account
information due to bank secrecy. |
OFFICE FACILITIES
|
Geographic Location |
No.2, Jiahong Rd, Langbian
Village Industry Zone, Shiji Town, Panyu Dist, Guangzhou City |
|
Area |
5,000 square meters |
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Environment |
Industrial Zone. |
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Traffic condition |
Acceptable (closed to Shilian
Rd, Jinlong Rd, Jiahong Rd, etc.) |
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Purpose |
Office/Warehousing/Factory. |
|
Property Ownership |
Rented |
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Other address |
-- |
WEBSITE
N/A
TRADEMARKS/PATENTS
After
checking with the Trademark Office of Chinese Administration Bureau of Industry
and Commerce and the State Intellectual Office, no trademarks or patents of SC
were found.
MAIN
PRODUCTS & SERVICES
|
Main
business |
Manufacture
and sales of leather chemicals. |
|
Products
and services |
SC
mainly deals with manufacture and sales of leather chemicals. Its products
include leather accessory ingredient, leather fatliquor, leather retanning
agent, leather finishing agent, leather handle agent, leather coloring agent,
lecithin, dicyandiamide, etc. |
|
Picture
of specific products |
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Annual
production capacity |
-- |
|
Plants
and equipments |
-- |
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Awards
& Honors |
-- |
|
Certificates
/ licenses |
-- |
SALES
INFORMATION
|
Domestic sales |
50% |
|
Regions |
All over China |
|
Major domestic clients |
Leather
companies, etc. |
|
Competitors |
Guangzhou Xuanning Chemical Technology Co. Ltd; Dezhou Yunhe Economy
Development Zone Hongsheng Leather Auxiliaries Factory; Weifang Ruiguang
Chemical Co. Ltd; Liaoning Hengxing Fine Chemicals Co. Ltd, etc. |
|
Payment terms |
Prompt payment; on credit |
|
Export |
50% |
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Regions |
Asia, Southeast Asia, etc. |
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Major overseas clients |
International leather factories, etc. |
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Payment terms |
L/C, T/T |
|
SC’s products are mainly sold to domestic and international leather companies,
etc. Some of them are sold to traders, etc. With certain years’ history, its
sales network needs to be further developed. |
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|
The above information was confirmed by SC’s employee on July 9th,
2012. |
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PURCHASE
INFORMATION
|
Main
Commodities Purchased |
Neutral
oil, emulsifier, chemical raw materials, production equipments, etc. |
|
Number
of Major Suppliers |
About
5 |
|
Region |
Domestic:40 % Import: 60% |
|
Major
suppliers |
Guangzhou Xundu Network
Technology Co. Ltd, etc. |
|
Main
Terms of Payment |
Local: Prompt payment; on credit Import: L/C, T/T |
|
SC’s
key raw materials are mainly imported from overseas countries. Some of SC’s
foundational chemical raw materials are purchased from domestic factories.
Names of the suppliers were refused to disclose by SC’s staff. |
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|
The
above information was confirmed by SC’s employee on July. 9th,
2012. |
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CREDIT
|
Name
of supplier |
Guangzhou Xundu Network
Technology Co. Ltd |
|
Main
commodities and service supplied |
Website
construction service, etc. |
|
Interviewee |
Mr.
Long of Business Department. |
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Telephone
of Interviewee |
86
20 82300101 |
|
Payment
comment |
The
investigated person confirmed SC once used their website construction service,
etc. SC’s payment has been fully paid. However, SC’s website can not be used
at present. |
LITIGATION
RECORDS
After checking with China Court organization, the
local court website and other major searching websites, no litigation record related
to SC in the latest three years is found.
OTHER
ADVERSE MEDIA INFORMATION
N/A
FINANCE
SC’s financial information can’t be obtained after searching through all
available channels. According to SC’s staff Mr. Zhang, its products are sold
both domestically and internationally and SC’s business scale is average.
Important Ratios:
|
|
2010
Industry Financial Indices (562*) |
|
Return on net assets (%) |
10.98 |
|
Return on total assets (%) |
4.51 |
|
Net profit margin (%) |
4.63 |
|
Turnover of total assets |
0.96 |
|
Turnover of current assets |
1.59 |
|
Turnover days of account receivable |
59.22 |
|
Inventory turnover days |
61.28 |
|
Asset liability ratio (%) |
57.01 |
|
Current ratio |
1.21 |
|
Quick ratio |
0.93 |
Analysis of financial indicator
SC mainly deals with manufacture and sales of
leather chemicals and belongs to special chemical products industry. Products
of special chemical products industry are widely used in industries of medicine,
farm chemicals, paper making, leather, etc. Development of new industries will
bring great market space to special chemical products industry. The prospect of
special chemical products industry is bright. With certain years’ history, SC
has accumulated abundant sales experience and it has certain industry
competitiveness. SC’s location Guangzhou City is a highly developed city with
stable foreign trade platform. SC’s overall economy environment is
satisfactory. With individual shareholders, SC has certain financing capacity
risk and debt paying risk.
INDUSTRY
PROFILE
Industry
SIC Code (China): 2662 Manufacture of special
chemical products.
Description:
Manufacture of water treatment chemical products, paper making chemical
products, leather chemical products, oleochemical products, oil field chemical
products, daily necessity chemical products and other unlisted special chemical
products.
Status Quo & Trend
Development of emerging industry
provides large market space to special chemical products industry. High
performance, customization and high added value are the development trend of
special chemical products industry. However, small and medium sized enterprises
will face many restraining factors including marketing expanding capacity,
technology reserve, environment protection, etc.
The features of the special
chemical products industry include low output, various types, high quality,
advanced technology and high added value. Enterprises of the special chemical products
industry are mainly of small and medium size and the production concentration
is low. Until the end of 2011, there were 2,131 large-sized enterprises in the
special chemical products industry with total asset of 327.1 billion CNY,
increasing 21.61% year/year; the total turnover was 593.8 billion CNY,
increasing 37.89% year/year; the total profit was 47 billion CNY, increasing
56.44% year/year.
Industry Associations
|
Name
of association |
Membership
of subject (Yes/No) |
|
China
National Light Industry Association |
No |
|
China
Chemical Safety Association |
No |
|
China
Monitoring Chemicals Association |
No |
|
China
Paper Making Chemicals Industry Association |
No |
GENERAL
COMMENTS
Established in August, 2007, SC is
engaged in manufacture and sales of leather fatliquor, leather retanning agent,
leather finishing agent, etc. Its products are mainly sold to domestic and
international leather manufacture factories, traders, etc. With certain years’
history, it has accumulated abundant industry and manufacture experience.
However, with individual shareholders, SC’s financing capacity and risk
resisting capacity are relatively weak.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.02 |
|
|
1 |
Rs.86.77 |
|
Euro |
1 |
Rs.68.82 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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 |
|
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 |
|
-- |
NB |
New Business |
-- |
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.