MIRA INFORM REPORT
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Report Date : |
28.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
ANHUI HUAXING CHEMICAL INDUSTRY CO LTD |
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Registered Office : |
Wujiang Town, Hexian, Chaohu City, Anhui Province 238251 Pr China |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
13.02.1998 |
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Com. Reg. No.: |
3400001300057 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling pesticide and chemical products. |
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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Maximum Credit Limit : |
USD 3,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
ANHUI HUAXING CHEMICAL INDUSTRY CO., LTD.
wujiang town, hexian, chaohu city
anhui province 238251 PR CHINA
TEL: 86 (0) 551-5393188
FAX: 86 (0) 551-5390578
EXECUTIVE SUMMARY
INCORPORATION DATE : february 13, 1998
REGISTRATION NO. : 3400001300057
REGISTERED LEGAL FORM : shares
limited company
STAFF STRENGTH :
1,166
REGISTERED CAPITAL : CNY 65,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 437,604,745.89 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 297,265,762.92 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 3,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY7.14 = US$1
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 company at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on February 13, 1998.
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 manufacturing and selling pesticide and chemical products;
exporting its homegrown product and relative technology, and importing raw
material, accessories, machinery, apparatus and instruments, components, and
technology needed by manufacture and scientific research.
SC is mainly
engaged in manufacturing and selling pesticide and chemical products.
Mr. Qing Zusen has
been chairman of SC since 2004.
SC owns about
1,166 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 Chaohu. Our checks
reveal that SC owns the total premise about 388,000 square meters.
http://www.huaxingchem.com The
design is professional and the content is well organized. At present the web
site is both in Chinese and English versions.
E-mail: hxinfo@huaxingchem.com
SC was listed at Shenzhen Stock Exchange on
July 13, 2004 (with the stock code 002018).
SC is a leading pesticide
manufacturer and exporter with ISO9001 and ISO14001 certification in China.
With annual turnover exceeding USD200 million, SC has been awarded the titles
of ‘Acreditable Enterprise’ by ten ministries and commissions and’ ’AAA’ Grade
Credit Enterprise’ by bankers for many years. SC boasts of 1 state grade
technology center, 1 postdoctoral workstation and 2 pesticide institutes.
MAIN SHAREHOLDERS: (As
of Dec. 31, 2006)
Name
% of Shareholding
Qing Zusen 16.63
Xie Ping 10.69
Anhui Scientific & Technical Industry
Investment Co., Ltd. 3.79
Wu Jiangying 3.77
Ji Zuhuan 3.16
Sheng Xuelong 3.01
Li Hui 2.67
Fang Shuming 2.57
Jiangsu Hi-tech Industry Investment Co.,
Ltd. 2.31
Construction Bank of China-Fund of Middle
& Small Enterprises 2.13
Other shareholders 49.27
l
Legal
Representative and Chairman:
Mr. Qing Zusen, born in 1949, 58 years old with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
Worked in Hexian Pesticide Plant as president;
From 2004 to present Working in SC as legal representative and
chairman;
At present Working in Anhui Pesticide Industry Institute as vice-chairman, and in Chaohu Academy as part-time professor.
l
General
Manager:
Mr. Xie Ping, born in 1968, 39 years old with master’s degree. He is currently
responsible for the daily management of SC.
Working Experience(s):
Worked in Hexian Pesticide Plant as manufacturing works superintendent, manufacturing section chief, and in SC as supply & marketing section chief, and assistant manager;
From 2004 to present Working in SC as general manager and board
member.
SC is mainly engaged in manufacturing and
selling pesticide and chemical products.
SC has
more than 40 technical products and over 100 formulated products in three major
series: insecticide, herbicide, and fungicide.
SC’s products mainly include: Monosultap(Monomehypo) 95%TC,
Dimehypo(Thiosultap-sodium)29%TC, Methomyl 98%TC, Cartap 98%TC, Fipronil 97%TC,
Acetamiprid 95%TC, Imidacloprid 95%TC, Chlorpyrifos 97%TC, Triazophos 85%TC,
Cypermethrin 95%TC, Beta-cypermethrin 95%TC, Beta-cyfluthrin 95%TC,
Lambda-cyhalothrin 95%TC, Etofenprox 95%TC, Cycloprothrin 95%TC, and Abamectin
95%TC, etc.
SC sources its
materials 80% from domestic market, mainly Anhui province, and 20% from
overseas market. SC sells 60% of its products in domestic market, mainly
Jiangsu, Anhui, Fujian province and Shanghai, and 40% to overseas market,
mainly Southeast Asia, European and American
countries.
The buying terms of SC include T/T, L/C and Credit of 30-90 days. The
payment terms of SC include T/T, L/C and Credit of 30-90 days.
*Major Customers:
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Shenzhen Grains & Oils and Foodstuffs Co., Ltd.
Anhui Huaxing Hengda Bio-Tech Co., Ltd.
SC is known to have the following subsidiaries:
Anhui
Xingnuo Chemical Co., Ltd.
Anhui
Huaxing Hengda Bio-Tech 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.
Merchants Bank
of China Hefei Wulidun Sub-branch
AC#
2880130110001
Relationship: Normal.
Consolidated Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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Cash & bank |
79,088 |
85,587 |
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Bills receivable |
1,379 |
1,648 |
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Inventory |
118,014 |
132,044 |
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Short invest |
0 |
0 |
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Accounts
receivable |
40,474 |
54,586 |
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Other Accounts
receivable |
4,128 |
5,689 |
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Accounts payable
in advance |
15,305 |
17,960 |
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To be
apportioned expense |
0 |
0 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
258,388 |
297,514 |
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Fixed assets |
295,872 |
438,788 |
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Fixed assets net
value |
112,123 |
361,539 |
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Project
materials |
18,568 |
21,742 |
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Projects under
construction |
165,181 |
55,507 |
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Long term
investment |
1,510 |
35,278 |
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Other assets |
2,095 |
1,907 |
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Total assets |
557,865 |
773,487 |
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============= |
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Short loans |
77,706 |
130,519 |
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Bills payable |
69,400 |
100,927 |
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Accounts payable |
34,835 |
54,069 |
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Salaries payable |
2,655 |
1,281 |
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Shares payable |
0 |
0 |
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Welfares payable |
2,234 |
2,989 |
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Taxes payable |
-26 |
1,714 |
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Other Accounts
payable |
5,504 |
5,150 |
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Withdraw the
expenses in advance |
1,703 |
1,663 |
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Other current
liabilities |
40,139 |
70,900 |
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Current
liabilities |
234,150 |
369,212 |
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Long term
liabilities |
50,502 |
107,010 |
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Other
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
284,652 |
476,222 |
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Equities |
273,213 |
297,265 |
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Total
liabilities & equities |
557,865 |
773,487 |
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Consolidated Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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Turnover |
355,239 |
437,605 |
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Cost of goods
sold |
276,299 |
340,036 |
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Sales expense |
25,962 |
28,061 |
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Management expense |
14,964 |
19,395 |
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Finance expense |
2,210 |
12,450 |
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Profit before
tax |
34,682 |
38,333 |
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Less: profit tax |
10,975 |
11,847 |
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Profits |
23,707 |
26,486 |
Important Ratios
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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*Current ratio |
1.10 |
0.81 |
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*Quick ratio |
0.60 |
0.45 |
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*Liabilities
to assets |
0.51 |
0.62 |
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*Net profit
margin (%) |
6.67 |
6.05 |
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*Return on
total assets (%) |
4.25 |
3.42 |
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*Inventory
/Turnover ×365 |
121 days |
110 days |
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*Accounts
receivable/Turnover ×365 |
42 days |
46 days |
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*Turnover/Total
assets |
0.64 |
0.57 |
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* Cost of
goods sold/Turnover |
0.78 |
0.78 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line and it was increased
greatly in 2006.
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SC’s net profit margin is acceptable.
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SC’s return on total assets is acceptable.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal level in 2005 and
2006.
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SC’s quick ratio is maintained in a fair level in 2005 and 2006.
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The inventory of SC is maintained in a 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 is maintained in a fairly large level.
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SC’s turnover is in an average good level, comparing with the size of
its total assets.
LEVERAGE: AVERAGE
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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: Fairly good.
SC is considered medium-sized in its line with fairly good financial
conditions. A credit line up to USD 3,000,000 would appear to be within SC’s
capacities.
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
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%)