MIRA
INFORM REPORT
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Report Date : |
07.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
ningxia xingping fine chemical stock co., ltd. |
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Registered Office : |
Taisha Industrial Park, Taixi Tiwn,
Pingluo County, Ningxia Hui Autonomous
Region, 753400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
01.06.2001 |
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Com. Reg. No.: |
6400001201406 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling Fine Chemicals. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 900,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
ningxia xingping fine chemical stock co., ltd.
TAISHA INDUSTRIAL PARK,
TAIXI TIWN, pingluo county,
Ningxia Hui
Autonomous REGION, 753400 PR CHINA
TEL: 86 (0)
952-6682290 FAX: 86 (0) 952-6681136
EXECUTIVE SUMMARY
INCORPORATION DATE : June 1, 2001
REGISTRATION NO. : 6400001201406
REGISTERED LEGAL FORM : shares limited company
STAFF STRENGTH :
1,000
REGISTERED CAPITAL : CNY 10,090,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 339,721,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 138,599,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 900,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.84896 = 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 Renminbi
SC was registered as a shares limited company at provincial Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license).
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 dicyandiamide, calcium carbide, lime
nitrogen, glass fiber products, plastic woven products, ferrosilicon, oxygen,
and electrode paste products, exporting self-made ferrosilicon, dicyandiamide
and calcium carbide.
SC is mainly
engaged in manufacturing and selling fine chemicals.
Mr. Li Suihe has
been chairman and legal representative of SC since 2001.
SC is known to have approx. 1,000 employees 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 Pingluo county. Our
checks reveal that SC owns the total premise about 38,000 square meters.
http://www.xingpingchem.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: sales@xingpingchem.com
SC’s quality system meets the international standards of ISO9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Li Suihe 18.93
Liu Zhanrong 4.66
Zhou Jingui 3.07
Zhang Shoumin 3.07
Song Yongkang 3.07
Ding Hongyun 1.59
Si Quanyi 1.59
Staff Share-holding Association 64.02
l
Chairman and General Manager:
Mr. Li Suihe, 50 years old with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working
in SC as chairman and general manager
l
Vice General Manager:
Mr. Liu Zhanrong, about 50 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2001 to present
Working in SC as vice general
manager.
SC is mainly
engaged in manufacturing and selling fine chemicals.
SC’s products
mainly include: dicyandiamide, dicyandiamide, superfine electronic grade, ferro
silicon, calcium carbide, calcium cyanamide, hard coke, glass fiber, plastic
woven products.
SC annually produces 250,000 tons of calcium
carbide, 120,000 tons of lime nitrogen and 30,000 tons of cyanamide
products.
SC sources its materials 100% from domestic
market, mainly Ningxia. SC sells 60% of its products in domestic market, and
40% to overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
SC is
known to have 6 offices at present:
Tianjin
office
Address: 7 Yongtai Port, Tanggu District, Tianjin,
China
Contact: Yang Kai
Tel: +86-22-66280537
Fax:
+86-22-66280671
M.P.: +86-13920191737
E-mail: nxyk@vip.163.com
P.C.: 300450
Suzhou
office
Address: 8 Minzhu Road, Baiyangwan, Suzhou, Jiangsu
Province, China
Contact: Zhang Jiuxing
Tel: +86-512-66721017
M.P.: +86-13013878121
P.C.: 310015
Hangzhou
office
Address: 258 Shixiang Road, Hangzhou, Zhejiang
Province, China
Contact: Li Chongli
Tel: +86-571-88013814
M.P.: +86-13588846663
Shenyang
office
Address: Siku, Gujiazi, Dongling District, Shenyang,
China
Contact: Wang Lihua
Tel: +86-13909567550
P.C.: 110168
Yin
Chuan office
Address: Yin Chuan
Contact: Xia Ti
Tel: +86-951-5050948
Fax: +86-951-5055206
Mobile
Tel: +86-13995075352
P.C.: 750000
Guangzhou
office
Address: Huasen Mansion Qiangnian Road E.D Zone,
Guangzhou, China.
Contact: Chen Jianjun
Tel: 086-020-82211316
Fax:
086-020-82211320
Mobile
Tel: 13002095921
P.C.: 510700
E-mail: xingpingchem@163.com
SC is known to invest in following company:
Ningxia
Xingping Baodi Cyanamide 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.
Construction Bank of China Pingluo County Sub-Branch
AC#6400130133605005306
Relationship:
Normal.
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 |
13,058 |
50,030 |
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Inventory |
40,851 |
44,310 |
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Accounts
receivable |
14,567 |
-4,016 |
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Other
receivables |
41,629 |
41,940 |
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Prepaid expenses |
0 |
108 |
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Other current
assets |
1,148 |
2,159 |
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------------------ |
------------------ |
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Current assets |
111,253 |
134,531 |
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Fixed assets net
value |
135,870 |
133,947 |
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Projects under
construction |
40,251 |
11,414 |
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Long-term
investments |
4,687 |
4,687 |
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Intangible and
other assets |
36,034 |
64,659 |
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------------------ |
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Total assets |
328,095 |
349,238 |
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============= |
============= |
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Short loans |
45,100 |
46,820 |
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Accounts payable |
16,283 |
3,861 |
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Other Accounts
payable |
21,648 |
18,089 |
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Notes payable |
20,400 |
52,379 |
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Advances from
customers |
9,473 |
5,168 |
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Other current
liabilities |
12,968 |
20,997 |
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----------------- |
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Current
liabilities |
125,872 |
147,314 |
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Long term
liabilities |
65,579 |
63,325 |
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------------------ |
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Total
liabilities |
191,451 |
210,639 |
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Shareholders
equities |
136,644 |
138,599 |
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------------------ |
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Total
liabilities & equities |
328,095 |
349,238 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Turnover |
264,461 |
339,721 |
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Cost of goods
sold |
221,193 |
294,134 |
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Sales expense |
19,359 |
19,649 |
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Management expense |
10,591 |
10,765 |
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Finance expense |
7,964 |
10,173 |
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Operation Profit |
4,068 |
5,088 |
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Less: profit tax |
610 |
763 |
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Net profit |
3,458 |
4,325 |
Important Ratios
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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*Current ratio |
0.88 |
0.91 |
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*Quick ratio |
0.56 |
0.61 |
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*Liabilities
to assets |
0.58 |
0.60 |
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*Net profit
margin (%) |
1.31 |
1.27 |
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*Return on
total assets (%) |
1.05 |
1.24 |
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*Inventory
/Turnover ×365 |
57 days |
48 days |
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*Accounts
receivable/Turnover ×365 |
21 days |
/ |
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*Turnover/Total
assets |
0.81 |
0.97 |
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* Cost of
goods sold/Turnover |
0.84 |
0.87 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line, and it was rising in
2007.
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SC’s net profit margin is average in both two years.
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SC’s return on total assets is average in both two years.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC is maintained in an average level in 2006.
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SC’s short-term loan is in an average level.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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 financial
conditions. A credit line up to USD 900,000 would appear to be within SC’s
capacities upon a periodical review basis.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.47.46 |
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UK Pound |
1 |
Rs.83.37 |
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Euro |
1 |
Rs.64.46 |
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%)