MIRA
INFORM REPORT
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Report Date : |
04.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
HUBEI XINGFA
CHEMICALS GROUP CO., LTD. |
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Registered Office : |
Room A809 Sanxia Shangcheng, 52-1 Jiefang
Road, Yichang, Hubei Province
443000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
17.08.1994 |
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Com. Reg. No.: |
4200001000061 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling Fine Chemical Products. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 6,000,000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
HUBEI XINGFA
CHEMICALS GROUP CO., LTD.
ROOM a809 SANXIA
SHANGCHENG, 52-1 JIEFANG ROAD, YICHANG,
HUBEI PROVINCE
443000 PR CHINA
TEL: 86 (0)
717-6760850 FAX: 86 (0) 717- 6760850
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 17, 1994
REGISTRATION NO. : 4200001000061
STAFF STRENGTH :
3,633
REGISTERED CAPITAL : CNY 252,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,711,236,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 889,112,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 6,000,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well known
EXCHANGE RATE :
CNY
6.85 = 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 shares limited co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Aug. 17, 1994.
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 China.. Natural person are allowed to
serve as promoters. The minimum registered capital
of a co. is CNY 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. 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 phosphorus chemistry products and fine chemical products;
manufacturing and selling dimethyl sulfoxide (DMSO), processing fodder; manufacturing
foods and fodder additives; transporting and selling automotive parts;
installing electromechanical equipment; hydropower, power supply; phosphorus
ore exploitation and selling; exporting its products and importing the
materials, machinery, instruments and technology needed for its products.
SC is mainly
engaged in manufacturing and selling fine chemical products.
Mr. Li Guozhang
has been chairman of SC since 2006.
SC is known
to have approx. 3,633 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Yichang. Our checks reveal that SC
rents the total premise about 600 square meters. SC’s factory is known to be
located in Junshao Road, Gufu Town, Xingshan County, Yichang, Hubei Province
http://www.xingfagroup.com. It can’t be landed for technical reasons.
Email: sunwd@xingfagroup.com
SC listed in Shanghai Stock Exchange in Jun. 1999 with the code of
600141.
MAIN SHAREHOLDERS: (As of Jun. 30, 2008)
Name % of Shareholding
Yichang Xingfa Group Co., Ltd. 18.64
Xingshan County Water and Power Corp. 12.31
Yichang Yiling State-owned Assets Operation
Co., Ltd. 4.76
Yichang Taixing Chemicals Co., Ltd. 4.28
Communication Bank of China-Haifutong
Security Investment Fund 3.16
Industrial and Commercial Bank of
China-Huitianfu Security Investment Fund 2.59
Huaxia Chengzhang Security Investment Fund 2.44
Industrial and Commercial Bank of China
-Yifangda Jiazhi Jingxuan Security
Investment Fund 2.35
Industrial and Commercial Bank of China
-Yifangda Jiazhi Chengzhang Security
Investment Fund 2.11
Bank of China-Yifangda Jiji Chengzhang
Security Investment Fund 1.98
Other shareholders 45.38
Yichang Xingfa Group Co., Ltd.
=======================
Legal Rep: Li Guozhang
Registered Capital: CNY 300,500,000
Incorporated date: Dec. 29, 1999
Add: Xingshan County, Yichang, Hubei
Province
E-mail：inform@xingfagroup.com
Tel: 86 0717－2582606
Fax: 86 0717－2581719
Xingshan County Water and Power Corp.
=============================
Add: Gufu Town, Xingshan County, Yichang,
Hubei Province
Tel: 86 0717- 2585798
Yichang Taixing Chemicals Co., Ltd.
==========================
Add: No. 3 Xiangxi Street, Gufu Town,
Xingshan County Hubei Province
Tel: 86 0717-2588200
Yichang Yiling State-owned Assets Operation
Co., Ltd.
========================================
Qinye Commercial Building, No. 7 Xilingyi
Road, Yichang, Hubei Province
Tel：86 0717-6748089
Fax:
86 0717-6748001
Web: http://ylgzgs.com
l
Chairman:
Mr. Li Guozhang, 43 years old, with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman.
Also working in Yichang Xingfa Group Co., Ltd. as chairman.
l
General Manager:
Mr. Shu Long, 45 years old, with university education. He is currently responsible
for the daily management of SC.
Working Experience(s):
Before 2006 Worked in SC as vice general
manager.
From 2006 to present Working
in SC as general manager.
SC is mainly
engaged in manufacturing and selling fine chemical products.
SC’s products mainly include trimeric sodium phosphate, sodium
hexametahposphate, dimethyl sulfoxide (DMSO), calcium phosphate secondary,
sodium phosphate, and phosphorus ore.
SC’s annual output of trimeric sodium
phosphate can reach 80,000 tons, industrial sodium hexametahposphate 12,000
tons, food grade sodium hexametahposphate 5,000 tons, yellow phosphorus 30,000
tons, and phosphoric acid 35,000 tons.
SC sources its materials 70% from domestic
market, and 30% from overseas market, mainly USA and Europe. SC sells 60% of
its products in domestic market, and 40% to overseas market, mainly Japan,
Korea and Southeast Asian market.
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.
*Major Clients:
============
Unilever Inc
Procter & Gamble
Cheminova A/S
Nafine Chemical Industry Group Co., Ltd.
Xingshan County Xinxing Chemical Co., Ltd.
Dalian Ftz Wenda International Trade Co.,
Ltd.
SC is known to have the following subsidiaries:
Hubei Xingfa Chemical Imp. & Exp. Co.,
Ltd.
Yichang
Chulin Chemical Co., Ltd.
Xingshan
County Xingsheng Minerals Co., Ltd.
Baokang
Chufeng Chemical Co., Ltd.
Xingshan
County Gengjiahe Coal Co., Ltd.
Xingshan
County Xinxing Chemical Co., Ltd.
Xingshan
County Xingying Mineral Co., Ltd.
Shennongjia
Wushan Mineral Industry Co., Ltd.
Xingshan
County Xiakou Port Co., Ltd.
Anning
Shengshida Chemical Co., Ltd.
Xingshan
County Juan Blasting Engineering Co., Ltd.
Chongqing
Xingfa Jinguan Chemical Co., Ltd.
Hubei
Taisheng Chemical 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.
China Construction Bank Xingshan Sub-branch
AC#71122100566
Relationship: Normal.
Consolidated
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
As of Dec. 31, 2007 |
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Cash & bank |
206,431 |
361,352 |
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Accounts
receivable |
153,859 |
129,514 |
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Accounts payable
advance |
30,901 |
25,138 |
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Bills receivable
|
4,842 |
4,714 |
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Other
receivables |
26,247 |
15,240 |
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Inventory |
143,812 |
205,038 |
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Other current
assets |
1,262 |
0 |
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------------------ |
------------------ |
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Current assets |
567,354 |
740,996 |
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Fixed assets net
value |
1,554,516 |
1,653,682 |
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Projects under
construction |
164,125 |
140,777 |
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Long term
investment |
36,000 |
107,185 |
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Other assets |
185,956 |
178,004 |
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------------------ |
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Total assets |
2,507,951 |
2,820,644 |
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============= |
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Short loans |
320,000 |
504,190 |
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Accounts payable |
82,894 |
66,403 |
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Accounts
receivable advance |
14,952 |
40,367 |
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Bills payable |
241,000 |
398,000 |
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Taxes payable |
15,404 |
32,194 |
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Salaries payable |
15,313 |
8,001 |
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Other payable |
72,735 |
29,325 |
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Other current
liabilities |
3,169 |
41,904 |
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------------------ |
------------------ |
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Current
liabilities |
765,467 |
1,120,384 |
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Long term
liabilities |
1,105,629 |
811,148 |
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------------------ |
------------------ |
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Total
liabilities |
1,871,096 |
1,931,532 |
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Equities |
636,855 |
889,112 |
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Total
liabilities & equities |
2,507,951 |
2,820,644 |
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Consolidated
Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
As of Dec. 31,
2007 |
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Turnover |
1,591,502 |
1,711,236 |
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Cost of goods
sold |
1,522,531 |
1,623,553 |
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Sales expense |
90,182 |
97,588 |
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Management expense |
72,089 |
41,642 |
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Finance expense |
81,245 |
105,564 |
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Profit before
tax |
69,164 |
113,353 |
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Less: profit tax |
23,264 |
30,937 |
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Profits |
45,900 |
82,416 |
Important Ratios
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as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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*Current ratio |
0.74 |
0.66 |
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*Quick ratio |
0.49 |
0.48 |
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*Liabilities
to assets |
0.75 |
0.68 |
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*Net profit
margin (%) |
2.83 |
4.79 |
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*Return on
total assets (%) |
1.79 |
2.91 |
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*Inventory
/Turnover ×365 |
33days |
44days |
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*Accounts
receivable/Turnover ×365 |
35days |
28days |
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*Turnover/Total
assets |
0.63 |
0.61 |
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* Cost of
goods sold/Turnover |
0.96 |
0.95 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in 2006 and 2007.
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SC’s net profit margin is fairly good, and it was rising in 2007.
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SC’s return on total assets is fairly good in 2006 and 2007.
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SC’s cost of goods sold is fairly high in 2006 and 2007, comparing with
its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level in 2006 and 2007.
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SC’s quick ratio is maintained in a fair level in 2006 and 2007.
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The accounts receivable of SC is average in 2006 and 2007.
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The inventory of SC is average in 2006 and 2007.
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The short term loans of SC are fairly large in 2006 and 2007.
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SC’s turnover is in an average level in 2006 and 2007, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average 2006 and 2007.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
SC is considered large-sized in its line with fairly stable conditions. Over
the past 14 years, SC has made a stable growth with fairly good profit. A
credit line up to USD 6,000,000 would appear to be within SC’s capacities upon
a periodical review basis.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.40 |
|
UK Pound |
1 |
Rs.83.57 |
|
Euro |
1 |
Rs.66.02 |
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 |
|
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 |
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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%)