MIRA
INFORM REPORT
|
Report Date : |
14.09.2007 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG HUALU-HENGSHENG
CHEMICAL CO., LTD. |
|
|
|
|
Registered Office : |
No. 24, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
Apr. 26, 2000 |
|
|
|
|
Com. Reg. No.: |
3700001806025 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Engaged in manufacturing chemical fertilizer and chemical
products. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
Up To USD 5,000,000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name & address
SHANDONG HUALU-HENGSHENG
CHEMICAL CO., LTD.
NO. 24,
TEL: 86 (0) 534-2465426
FAX: 86 (0) 534-2465017
EXECUTIVE SUMMARY
INCORPORATION DATE : apr. 26, 2000
REGISTRATION NO. :
3700001806025
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 1,819
REGISTERED CAPITAL : CNY330,500,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,806,980,469.84 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 1,713,396,914.01 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : competitive
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY7.52=US1$
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 shares limited company at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Apr. 26, 2000.
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 co has independent property of legal person
and enjoys property rights of legal person. The characteristics of
the shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital of a co. is CNY The board of directors must
consist 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
one year of the offer. 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 manufacturing
and selling chemical fertilizer, alcohols, aldehydes, resin, amine, and
carbonyl compound; import & export business with license.
SC is mainly
engaged in manufacturing chemical fertilizer and chemical products.
Mr.
Cheng Guanghui has been chairman of SC since 2006.
SC is known to have approx. 1,819 staff members 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 Dezhou. Our checks
reveal that SC owns the total premise about 100,000
square meters.
SC is not known to host website of its own at present.
SC is one of the largest be-controlled stock subsidiaries,
and is the core of Shandong Hualu Hengsheng Group. The main products are urea,
methyl alcohol, formaldehyde, organic amine and DMF. And it passed firstly
ISO9002 Quality system certificate in Jan. of 2000, and ISO14001 Environment
system certificate in the same industry in Dec. of 2000. A stock
"Hualuhengsheng" (stock code: 600426) was listed successfully in
Shanghai stock exchange on 20 June of 2002, became the first marketed in exchange
in Dezhou city and 65th enterprise of Shandong.
In 2006, SC’s former legal representative Wang Chuntao was
replaced by the present one.
MAIN SHAREHOLDERS: (As of Jun.
30, 2007)
Name %
of shareholdings
Shandong Hualu Hengsheng Group
Co., Ltd. 38.98
Zhonghua Fertilizer Co., Ltd. 4.54
Security Investment Fund-Zhonghai Energy 3.65
Anshun Security Investment Fund 2.72
Security Investment Fund-Yifangda Jiazhi 2.55
Security Investment Fund-Huaan Hongli 2.20
Shanghai Security Co., Ltd. 2.12
Shenyin Wanguo-Huaqi-DEUTSCHE BANK 1.82
AKTIENGESELLSCHAFT
Shenzhen Haifengyuan Investment Co., Ltd. 1.82
Anxin Security Investment Fund 1.82
Other shareholders 37.78
Shandong Hualu Hengsheng Group Co., Ltd
is one of
Address:
Tel: 0534-2465013
Fax: 0534-2465015
Website: http://www.hl-hengsheng.com
E-mail: office@hl-hengsheng.com
l
Chairman:
Mr. Cheng Guanghui, born in 1956, 41 years old with master’s
degree. He is currently responsible for the overall management of SC.
Working Experience(s):
Worked in Longkou Foreign Economic Trade Committee, Yantai Erqing Bureau, Yantai Plastic Industry Corp., and Shandong Hualu Group Co., Ltd;
From 2006 to present Working in SC as chairman.
l
General
Manager:
Mr. Yang Zhenfeng, born in 1959, 48 years old with master’s
degree. He is currently responsible for the daily management of SC.
Working Experience(s):
Worked in Shandong Hualu Hengsheng Group Co., Ltd. as general manager;
From 2000 to present Working in SC as general manager;
Also working in Shandong Hualu Hengsheng Group Co., Ltd. and Hualu
Holding Group Co., Ltd. as shareholder.
SC is
mainly engaged in manufacturing chemical fertilizer and chemical products.
SC’s
main products include: ureophil, DMF, and trimethyl amine, etc.
SC
sources its materials 90% from domestic 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 T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
==============
Shandong Hualu Hengsheng Group Dezhou Thermoelectricity Co., Ltd.
Dezhou Dehua Equipment Engineering Co., Ltd.
*Major Customer:
==============
Shandong Hualu Hengsheng Group
Co., Ltd.
SC is not
known to have any subsidiary at present:
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
AC#：261107166
Relationship:
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
|
Cash & bank |
365,767 |
797,489 |
|
Bills receivable |
18,715 |
32,258 |
|
Advances to
suppliers |
51,274 |
40,796 |
|
Accounts
receivable |
0 |
0 |
|
Inventory |
144,084 |
167,617 |
|
Other accounts
receivable |
459 |
686 |
|
Expenses to be
apportioned |
0 |
1,203 |
|
Other current
assets |
1,102 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
581,401 |
1,040,049 |
|
Fixed assets |
2,182,396 |
3,004,033 |
|
Fixed assets net
value |
1,817,758 |
1,835,026 |
|
Project
materials |
224,144 |
116,772 |
|
Projects under
construction |
140,494 |
1,052,235 |
|
Long term
investment |
0 |
0 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
2,763,797 |
4,044,082 |
|
|
============= |
============= |
|
Short loans |
80,000 |
110,200 |
|
Bills payable |
27,260 |
40,000 |
|
Accounts payable |
137,853 |
266,608 |
|
Salaries payable |
0 |
3,397 |
|
Welfares payable |
15,750 |
18,414 |
|
Taxes payable |
-3,413 |
10,253 |
|
Advances from
clients |
98,588 |
93,682 |
|
Other accounts
payable |
6,009 |
6,808 |
|
Drawing-expense
in advance |
222 |
0 |
|
Other current
liabilities |
222 |
429 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
362,491 |
549,791 |
|
Long term
liabilities |
1,477,677 |
1,780,894 |
|
Other
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,840,168 |
2,330,685 |
|
Minority
Interests |
0 |
0 |
|
Equities |
923,629 |
1,713,397 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
2,763,797 |
4,044,082 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2005 |
As of Dec. 31,
2006 |
|
Turnover |
1,352,221 |
1,806,980 |
|
Cost of goods
sold |
1,091,619 |
1,425,518 |
|
Sales expense |
19,029 |
30,163 |
|
Management expense |
26,202 |
35,659 |
|
Finance expense |
6,338 |
14,001 |
|
Profit before
tax |
218,417 |
294,514 |
|
Less: profit tax |
42,870 |
60,864 |
|
Profits |
175,547 |
233,650 |
Important Ratios
=============
|
|
As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
|
*Current ratio |
1.60 |
1.89 |
|
*Quick ratio |
1.21 |
1.59 |
|
*Liabilities
to assets |
0.67 |
0.58 |
|
*Net profit
margin (%) |
12.98 |
12.93 |
|
*Return on
total assets (%) |
6.35 |
5.78 |
|
*Inventory
/Turnover ×365 |
39 days |
34 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
/ |
|
*Turnover/Total
assets |
0.49 |
0.45 |
|
* Cost of
goods sold/Turnover |
0.81 |
0.79 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line,
and it increased in 2006.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in an average
level in both years.
l
SC’s quick ratio is maintained in an average level
in both years.
l
The inventory of SC is maintained in a normal
level.
l
SC has no accounts receivable in both years.
l
The short-term loan of SC is maintained in a normal
level.
l
SC’s turnover is in an acceptable level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions. A credit line up to USD5,000,000 appears to be within SC’s
capacities.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)