MIRA
INFORM REPORT
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Report Date : |
13th March, 2007 |
IDENTIFICATION
DETAILS
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Name : |
shandong
huayang technology co., ltd. |
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Registered Office : |
Ciyao Town, Ningyang, Tai’an City Shandong Province 271411
Pr China |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
30.12.1999 |
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Com. Reg. No.: |
3700001804867 |
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Legal Form : |
Shares Limited Co |
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Line of Business : |
Engaged in manufacturing and selling pesticide and its
intermediate. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company name & Address
shandong huayang technology co., ltd.
ciyao
town, ningyang, tai’an city shandong province 271411 PR CHINA
TEL : 86 (0) 538-5826208
FAX : 86 (0) 538-5826269
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 30, 1999
REGISTRATION NO. : 3700001804867
REGISTERED LEGAL FORM : shares limited co.
STAFF STRENGTH :
1,856
REGISTERED CAPITAL : CNY 117,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 455,817,726.62 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 387,278,484.56 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 1,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : average
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.75 = US$1 AS OF 2007-03-12
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a shares limited co. at local Administration
for Industry & Commerce (AIC-The official body of issuing and renewing
business license) on Dec. 30, 1999.
Company Status: Shares limited co. This form of business in PR China
is defined as a legal person. Its registered capital is divided into shares
of equal par value and the co. raises capital by issuing share certificates
by promotion or by public offer. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to the
extent of its total assets. The characteristics of the shares limited co.
are as follows: The establishment of the co.
requires at least five promoters and at least three of them must be PR-
China controlled legal persons. Natural person can not be allowed to serve
as promoters. The minimum registered capital
of a co. is CNY 10M. while that of the co. with foreign investment is CNY
30M. The total capital of a co. which propose to apply for publicly listed
must not less than CNY 50M. The board of directors must
consist of an odd number of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within three
years of the offer. Directors can not transfer the shares they hold in the
co. during their terms of office. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered
business scope includes research, development,
popularization, manufacture and sales of pesticide and intermediate.
SC is mainly engaged
in manufacturing and selling pesticide and intermediate.
Mr. Feng
Zhaobo has been chairman of SC since
2003.
SC owns about
1,856 staff 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
Ningyang. Our checks reveal that SC rents the total premise about 56,381 square
meters.
SC is not known to host web site of its own at present.
SC was established
in 1999 with Shandong Huayang Pesticide Chemical Industry Group Co., Ltd. as
the main sponsor. It listed in A Share Market in October, 2002 (stock name:
Huayang Technology, stock code: 600532). It is a state Key New and High-tech
enterprise, appointed by National science and Technology Department. It owns a
Technological Development Center at the provincial level and Postdoctoral
Research workstation. SC is mainly specialized in the research, development,
popularization, production, and sale of pesticides and pesticide intermediates.
It is the largest production base of carbamate and methomyl within China and
the production base of seed coating appointed by National Economy and Trade
Committee.
MAIN SHAREHOLDERS: (As of Jun, 30, 2006)
Name % of Shareholding
Shandong Huayang Pesticide Chemical Industry Group Co., Ltd. 38.31
Zhang Qi 1.01
Zhang Liansuo 0.76
Xiao Peng 0.64
Tai’an Feida Addition Agent Co., Ltd. 0.63
Xie Yulin 0.37
Chen Zhaoming 0.34
Shandong Province Pesticide Research
Institute 0.33
Other individuals 57.61
1) Shandong Huayang Pesticide Group Co., Ltd. is a
large-scale state-owned enterprise with a focus on chemical pesticides. It has
23 subsidiaries, including an overseas company and an R&D center. The main
products are in six categories: pesticides, chemical intermediates, inorganic
chemicals, chemical fertilizers, machinery for chemical industry, and printed
packing boxes. The Methyl Parathion production line is the largest in the
nation, and the Aldicab granule production line is the only one in Asia. It is
the nation's largest production base of carbamate class pesticides, and a
designated production base for seed coating by National Committee on Economics.
It ranks first in the capacity of producing methyl parathion 1605 in China and
is the sole producer of aldicarb in Asia. It passed the quality attestation of
iso9002 in 1998.
Address :
Ciyao, Ningyang, Shandong Province
Tel :
0538-5826155
Fax :
0538-5826258
Website :
http://www.huayang.com
E-mail :
cnhy@huayang.com
2) Shandong Province Pesticide Research
Institute
Address :
No. 234, Beiyuan Street, Jinan City, Shandong Province
Tel :
0531-88631889
Fax :
0531-88631803
Website :
http://www.pesticide-sd.com.cn
E-mail :
sdnyy@beelink.com
l
Chairman:
Mr. Feng Zhaobo , born in 1972, 35 years old with university education.
He is currently responsible for the overall management of SC.
Working
Experience(s):
From 1998 to 2001
Worked in Qilu Chemical Fiber Group Thermoelectricity Factory as factory
assistant manager;
From 2001 to present
Working in Shandong Huayang Pesticide Chemical Industry Group Co., Ltd.
as assistant manager;
At present
Working in SC as chairman, and in Shandong Huayang Pesticide Chemical
Industry Group Co., Ltd. as board member.
l
General Manager:
Mr. Yan Xinhua, born in 1963, 44 years old with university education. He
is currently responsible for the daily management of SC.
Working
Experience(s):
Before 2004
Worked in Ningyang Pesticide Factory as assistant director, technician,
and section chief, director assistant, factory assistant manager, and in
Shandong Huayang Pesticide Chemical Industry Group Co., Ltd. as board member;
From 2004 to present
Working in SC as general manager and board member.
SC is
mainly engaged in manufacturing and selling pesticide and its intermediate.
SC’s products mainly include: insect
repellent, bactericide, herbicide, etc.
SC’s brand is “Huayang” .
SC’s key
product, aldicarb, has occupied 98% shares of the domestic Market. As for
methyl parathion and pendimethalin, they respectively occupy 90% of the
provincial market and 70% of the domestic market.
SC
sources its materials 90% from domestic market, mainly Shandong province, and
10% from overseas market. SC sells 83% of its products in domestic market,
mainly Shandong province, and 17% to overseas market, mainly Europe, America,
South Africa and Southeast Asia.
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 Customers:
==============
Ø Tai’an
Huayang Packing & Printing Co., Ltd.
Ø Shandong
Ningyang Huayang Chemical Co., Ltd.
Ø Ningyang
Huayang Chemical Machine Co., Ltd.
Ø Shandong
Huayang Di’er Chemical Co., Ltd.
SC is known to have 2 subsidiaries at present, as follows:
Shandong Huayang Hele Pesticide Co.,
Ltd.
Address : East Section, Tieyingxiang, Laoling City, Shandong Province
Tel :
0534-6621555
Fax :
0534-6621888
Xi’an Huayang Chemical &
Technology Co., Ltd.
Address : No. 45, Xiying Road, Xi’an City, Shanxi
Province
Tel : 029-85518286
Fax : 029-85518286
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.
Construction
Bank of China Ningyang Sub-branch Ciyao Office
AC#：697036019030101255
Relationship:
Normal.
Consolidated Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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Cash & bank |
184,667 |
249,484 |
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Inventory |
99,774 |
92,134 |
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Accounts
receivable |
59,264 |
45,525 |
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Other Accounts
receivable |
13,993 |
21,266 |
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Accounts payable
in advance |
43,161 |
77,035 |
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To be
apportioned expense |
250 |
395 |
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Bills receivable
|
7,581 |
5,553 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
408,690 |
491,392 |
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Fixed assets |
285,577 |
434,376 |
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Fixed assets net
value |
178,538 |
294,780 |
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Projects
material |
16,878 |
16,650 |
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Projects under
construction |
90,161 |
122,946 |
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Long term
investment |
2,550 |
0 |
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Other assets |
16,409 |
15,610 |
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Total assets |
713,226 |
941,378 |
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============= |
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Short loans |
99,200 |
154,100 |
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Bills payable |
0 |
54,500 |
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Accounts payable |
59,473 |
123,868 |
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Salaries payable |
1,608 |
2,197 |
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Welfares payable |
3,566 |
4,800 |
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Shares payable |
0 |
0 |
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Taxes payable |
-2,419 |
3,804 |
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Other Accounts
payable |
2,744 |
8,251 |
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Withdraw the
expenses in advance |
5,946 |
5,650 |
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Other current
liabilities |
53,594 |
137,659 |
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------------------ |
------------------ |
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Current
liabilities |
223,712 |
494,829 |
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Long term
liabilities |
98,000 |
43,280 |
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Other
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
321,712 |
538,109 |
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Minority
Interests |
13,708 |
15,991 |
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Equities |
377,806 |
387,278 |
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Total
liabilities & equities |
713,226 |
941,378 |
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Consolidated Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
469,008 |
455,818 |
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Cost of goods
sold |
397,284 |
383,167 |
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Sales expense |
23,315 |
22,770 |
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Management expense |
16,072 |
20,879 |
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Finance expense |
9,905 |
15,253 |
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Investment
profits |
0 |
0 |
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Non-operating
income |
1,487 |
1,468 |
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Non-operating
expense |
210 |
35 |
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Profit before
tax |
23,709 |
15,182 |
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Less: profit tax |
5,392 |
5,899 |
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Minority
Interests |
-129 |
-177 |
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Profits |
18,446 |
9,460 |
Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
1.83 |
0.99 |
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*Quick ratio |
1.38 |
0.81 |
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*Liabilities to
assets |
0.45 |
0.57 |
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*Net profit
margin (%) |
3.93 |
2.08 |
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*Return on
total assets (%) |
2.59 |
1.00 |
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*Inventory
/Turnover ×365 |
78 days |
74 days |
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*Accounts
receivable/Turnover ×365 |
46 days |
36 days |
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*Turnover/Total
assets |
0.66 |
0.48 |
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* Cost of
goods sold/Turnover |
0.85 |
0.84 |
PROFITABILITY: AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is fairly high, comparing with its
turnover.
LIQUIDITY:
AVERAGE
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The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a normal level.
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The inventory of SC is maintained in a slightly large level.
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The accounts receivable of SC is maintained in a normal
level.
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The short-term loan of SC appears fairly large.
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SC’s turnover is in an average level, comparing with the
size of its total assets.
LEVERAGE:
FAIRLY GOOD
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is low.
Overall
financial condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)