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MIRA
INFORM REPORT
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Report Date : |
18.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
CHINA HAOHUA CHEMICAL (GROUP) CORPORATION |
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Registered Office : |
BLDG A, No.19, Xiaoying ROAD, Chaoyang District, Beijing 100101 |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
06.12.1993 |
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Com. Reg. No.: |
1000001001290 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Company is Engaged in Managing Its Subsidiaries and Selling Various
Chemical Materials and 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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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
CHINA HAOHUA CHEMICAL (GROUP) CORPORATION
BLDG A, No.19, Xiaoying ROAD, Chaoyang District, Beijing 100101 PR
CHINA.
TEL: 86 (0) 10-58650625
FAX: 86 (0) 10-58650681
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 6, 1993
REGISTRATION NO. : 1000001001290
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. WANG YINHAI (LEGAL
REPRESENTATIVE)
STAFF STRENGTH :
67
REGISTERED CAPITAL : CNY
2,696,970,000
BUSINESS LINE :
TRADE
& INVESTMENT
TURNOVER :
CNY 23,195,530,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 8,949,090,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 20,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.811 = US$ 1
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SC was registered as a state-owned
enterprise at state Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on December 6, 1993.
Company Status: State-owned enterprise This form of business in PR China is defined as a commodity
production or operational units of a socialist character which in accordance
with the law, has autonomy in management, takes full responsibility for its
profits and losses and practices independent business accounting. It is a
legal person established directly by central / local government or
enterprise owned by central or local government. In theory, the liabilities
of this form of enterprise are ultimately borne by the government, since
the adoption of company law in mid-1994, the Chinese government has planned
to separate the ownership from management and liabilities bearing.
SC’s registered business scope includes manufacturing, storing and
selling chemical raw materials, chemical products, chemical minerals,
petrochemicals, chemical equipment, machines, electronic products, instruments,
building materials, textiles, light industrial products, forest products,
forest chemical products; selling automobiles and parts, house appliances,
steel materials, steel billets, iron, copper, aluminum, lead, zinc, stannum,
nickel, magnesium, copper materials, aluminum materials, platinum group metals;
contracting approved domestic petrochemical engineering; importing and
exporting; technology consulting, technology services, information services;
leasing equipment.
SC is mainly engaged in managing its subsidiaries and selling various
chemical materials and products.
Mr. Wang Yinhai has been legal representative and general manager of SC
since 2001.
SC is known to have approx. 67 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and head office in the commercial zone of Beijing.
Our checks reveal that SC owns the premise, but SC’s accountant refused to
release the gross area.
%20CORPORATION%2018-Jul-2008_files/image004.gif){kind=small}
http://www.chinahaohua.com.cn/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: haohuaqihua@chinahaohua.com.cn
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Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registered capital |
CNY 1,890,790,000 |
CNY 2,696,970,000 |
|
Unknown |
Shareholder |
The State Council |
China National Chemical Corporation |
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Unknown |
Company Chinese Name |
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According to internal sources, SC’s legal representative and general
manager has been replaced by Fu Xiangsheng, but data in the state AIC shows that
SC’s legal representative is still Wang Yinhai .
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MAIN SHAREHOLDERS:
Name
%
of Shareholding
China National Chemical Corporation 100
*China National Chemical Corporation
===========================================
China National Chemical Corporation (ChemChina) is a large-scaled
state-owned company approved by the State Council on the basis of China
National Bluestar (Group) Corporation (Bluestar), China National Haohua Chemical
(Group) Corporation (Haohua or CHC) and other companies affiliated with the
former Ministry of Chemical Industry. Headquartered in Beijing, ChemChina was
formally inaugurated on May 9th, 2004, and administrated by the State-owned
Assets Supervision and Administration Commission of the State Council of China.
Address: No.62 Beisihuan West Road, Haidian District, Beijing 100080,
China
Zip code: 100080
Tel: +86-010-8267 6988
Fax: +86-010-8267 7088
%20CORPORATION%2018-Jul-2008_files/image007.gif){kind=small}
%20CORPORATION%2018-Jul-2008_files/image009.jpg)
Legal representative and general manager:
Mr. Wang Yinhai , born in 1945, with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working in SC as general manager and legal
representative.
Also working in China National Chemical Corporation as vice general
manager.
*Officials:
=======
Name Title
Chen Baotong Executive
Vice Manager, Finance
Wang Shugang Executive
Vice Manager
Su Wei Vice
Manager
Hu Dongchen Vice
Manager
Chen Mouqiao Vice
Manager
He Xiaoqin Vice
Manager
Yin Desheng General
Engineer
Li Haiting General
Economist
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SC is mainly engaged in managing its subsidiaries and selling various
chemical materials and products.
Product & Service:
Inorganics, Tyre, Agriculture chemicals, Trading service, Enginecring
service
Products by segments:
Chemicals, Agriculture chemicals products, Refinery chemicals, and
Others
SC sources its materials 80% from domestic market, and 20% from overseas
market. SC sells 70% of its products in domestic market, and 30% to overseas
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 Suppliers:
=============
Haohua Haitong Investment Management Co., Ltd
*Major Customers:
==============
China National Chemical Corporation
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SC is known to have more than 30 subsidiaries
or branches, and the following are the major ones:
Haohua Astronavigation Chemical Co., Ltd
Zhonghao SODA ASH Industry Co., Ltd.
Haohua Northchem Corporation
Haohua Finechem Corporation
Haohua Engineering Co., Ltd
Haohua Haitong Investment Management Co., Ltd
Siping Haohua Chemical Co., Ltd
The Southwest Research & Design Institute of Chemical Industry
Liming Research Institute of Chemical Industry
Guangming Research & Design Institute of Chemical Industry
Marine Research Institute of Chemical Industry
Haohua Zhongyi Gfrp Co., Ltd
China Haohua International Trading Co., Ltd
Oriental Chemical Industrial Corp.,Ltd
Etc.
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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.
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Construction Bank of China Beijing Branch Haidian Sub-branch.
AC#: 11001007300056013501.
Relation: Normal
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Consolidated Balance
Sheet (as of Dec. 31, 2007)
Unit: CNY’000
|
Cash & bank |
3,213,880 |
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Short-term investments |
24,460 |
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Notes receivable |
566,930 |
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Inventory |
3,291,190 |
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Accounts receivable |
1,979,930 |
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Advances to suppliers |
2,196,160 |
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Dividends receivable |
9,930 |
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Other receivables |
2,696,640 |
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Other current assets |
22,720 |
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|
------------------ |
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Current assets |
14,001,840 |
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Fixed assets |
14,899,310 |
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Fixed assets net value |
9,959,700 |
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Projects under construction |
1,924,820 |
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Long-term investment on stocks |
2,667,410 |
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Long-term debt investments |
10,400 |
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Right of equity Separation and Circulation |
23,800 |
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Deferred income tax assets |
24,860 |
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Long-term deferred expenses |
117,000 |
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Consolidated price difference |
162,090 |
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Project materials |
67,780 |
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Disposal of fixed assets |
5,610 |
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Intangible assets |
713,480 |
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Other assets |
90 |
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------------------ |
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Total assets |
29,678,880 |
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============= |
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Short loans |
6,117,670 |
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Notes payable |
948,280 |
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Accounts payable |
3,019,230 |
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Advances from customers |
1,358,290 |
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Employee pay payable |
243,290 |
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Dividends payable |
11,970 |
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Taxes payable |
280,170 |
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Other payable |
2,259,330 |
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Long-term liabilities due with in one year |
356,400 |
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Other current liabilities |
1,514,000 |
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------------------ |
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Current liabilities |
16,108,630 |
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Long term liabilities |
4,621,160 |
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------------------ |
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Total liabilities |
20,729,790 |
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Equities |
8,949,090 |
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|
------------------ |
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Total liabilities & equities |
29,678,880 |
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|
============= |
Consolidated Income
Statement (as of Dec. 31, 2007)
Unit: CNY’000
|
Turnover |
23,195,530 |
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Cost of goods sold |
19,689,880 |
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Taxes and additional of main operation |
173,660 |
|
Income from other operations |
134,190 |
|
Sales expense |
742,240 |
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Management expense |
1,488,560 |
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Finance expense |
480,270 |
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Asset impairment loss |
24,140 |
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Investment income |
66,960 |
|
Non-operating income |
231,410 |
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Non-operating expense |
110,990 |
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Profit before tax |
918,330 |
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Less: profit tax |
208,260 |
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Not recognized investment losses |
35,040 |
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Minority interest income |
284,160 |
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Profits |
390,860 |
Important Ratios
=============
|
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as
of Dec. 31, 2007 |
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*Current ratio |
0.87 |
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*Quick ratio |
0.66 |
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*Liabilities to assets |
0.70 |
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*Net profit margin (%) |
1.69 |
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*Return on total assets (%) |
1.32 |
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*Inventory /Turnover ×365 |
52 days |
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*Accounts receivable/Turnover ×365 |
32 days |
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*Turnover/Total assets |
0.78 |
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* Cost of goods sold/Turnover |
0.85 |
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PROFITABILITY: AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loan is in a fairly large level.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Fairly good.
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SC is considered medium-sized in its line with fairly good financial
conditions and favorable background. Credit dealings with SC in favorable terms
can be considered.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.78 |
|
UK Pound |
1 |
Rs.85.51 |
|
Euro |
1 |
Rs.67.90 |
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 |
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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%)