MIRA
INFORM REPORT
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Report Date : |
07.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
ningxia yinglite chemicals co., ltd. |
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Registered Office : |
Hebin Industry Park, Huinong District,
Shizuishan City, Ningxia 753202
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
24.07.1996 |
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Com. Reg. No.: |
6400001201316 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling various Chemical Materials and Products. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 2,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
ningxia yinglite chemicals co., ltd.
Hebin industry
park, huinong district, shizuishan city
ningxia 753202 PR
CHINA
TEL: 86 (0)
952-3689700 FAX: 86 (0)
952-3689300
EXECUTIVE SUMMARY
INCORPORATION DATE : july 24, 1996
REGISTRATION NO. : 6400001201316
REGISTERED LEGAL FORM : Shares limited company
STAFF STRENGTH :
2,702
REGISTERED CAPITAL : cny 137,474,400
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 1,062,910,000 (jan. 1 to jun.
30, 2008)
EQUITIES :
CNY 818,773,000 (AS OF jun. 30, 2008)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 2,000,000 (PERIODICAL REVIEW)
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
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 Ren Min Bi
Note: SC’s name should be the above stated one, instead of
the given one-Ningxia Yingline Chemicals Co., Ltd.
SC was registered as a shares limited company at Ningxia
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on July 24, 1996.
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, selling and developing calcium carbide, lime
nitrogen, Cyanamide, dicyandiamide, sulfocarbamide, Formamidinesulfinic acid,
oxygen, nitrogen, carbon paste & series of extension products, PVC,
hydrochloric acid, liquid chlorine, caustic soda, sodium hypochlorite &
series of extension products, active carbon & series of extension products,
limestone & calcareousness, ferro-silicon alloy, silicon-aluminum alloy,
monocrystalline silicon, macle silicon, magnesium metals & series of
extension products, electric power, heating power, and various trickle tubes;
repairing and processing machinery; manufacturing, selling, and developing
grape juice, various wines, and grape beverage; importing and exporting the
above commodities, raw materials, accessories, machinery, instruments &
apparatus, components, and relevant technology needed by production and
scientific research; undertaking Chinese foreign
equity joint venture enterprise and Chinese foreign contractual joint venture
enterprise; importing and exporting commodities & technology; and processing
with imported materials, processing with imported samples, assemblying with
imported parts, and compensation trade in agreement; and counter trade & transit trade.
SC is mainly
engaged in manufacturing and selling various chemical materials & products.
Mr. Qin Jiangyu
has been chairman of SC since 2004.
SC is known to
have approx. 2,702 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industry park of Shizuishan. Our checks
reveal that SC owns the total premise about 200,000 square meters.
http://www.yinglitechem.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: ylt_zqb@yinglitechem.com
SC (called NYCC for Short) is a middle-sized chemical enterprise whose
stocks listed in Shenzhen Exchange from 1996 with the code: 000635. It is one
of the ten listed corporations in Ningxia Autonomous Region. In 2000, SC passed
the authentication of ISO2000 and England Sira International Quality
Authentication.
MAIN SHAREHOLDERS: (As of June 30, 2008)
Name %
of Shareholding
Ningxia Yinglite Electric (Group) Co. Ltd. 21.18
Yinchuan Xinyuan Industry Co., Ltd. 5.45
Bank of Communications-
Hua’an Strategy Selected Stock Security Investment
Fund 4.44
Bank of Communications-
Boshi Xinxing Growth Stock Security
Investment Fund 2.80
Ningxia Minmetals Science Industry and Trade
Co., Ltd. 2.78
Ningxia Tianjing Electric Energy Development
Group Co., Ltd. 2.71
Bank of Communications-
Tianzhi Core Growth Stock Security
Investment Fund 2.51
Bank of China-Yifangda Strategy Growth
Security Investment Fund 2.10
Bank of China- Yifangda Strategy Growth II
Mixed Security Investment Fund 2.04
China Cinda Asset Management Corp. 1.77
Other shareholders 52.22
Ningxia Yinglite Electric (Group) Co. Ltd.
==============================
Address: No. 297, Great Wall East Road,
Yinchuan, Ningxia
Tel: 0951-4912588
Fax: 0951-4918792
Ningxia Minmetals Science Industry &
Trade Co., Ltd.
========================================
In 2003, the Agricultural Bank of China,
Ningxia Branch awarded “AAA” credit enterprise to Ningxia Minmetals Science
Industry and Trade Co., Ltd., which is also chosen by Yinchuan Commercial Bank
as one of hundred powerful enterprises.
Address: 4th floor, Topway building, 8
Zhenyuan North street, Yinchuan, Ningxia
Tel: 0951-5048680 Fax: 0951-5044587
E-mail: nxmmetal@email.nx.cninfo.net Website: http://www.nxminmetal.com
China Cinda Asset Management Corp.
===========================
Address: Block B, East Ring Square, No. 29,
Dongzhong Street, Dongcheng District, Beijing
Tel: 010-64181266
Fax: 010-64181218
Website: http://www.cinda.com.cn
Email: service@cindamc.com.cn
l
Chairman:
Mr. Qin Jiangyu, 42 years old with master’s degree. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2002 to 2004 Worked in SC as board member and
general manager;
From 2004 to present Working in SC as chairman;
At present Working in Ningxia Yinglite Electric (Group)
Co. Ltd. as chairman and general manager, and in Ningxia Western PVC Co., Ltd.
as board member.
l
General Manager:
Mr. Shi Jianxin, 39 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
Worked in Jiangsu Dongshan Ningxia Electric Power Training
Base as chief of office, and in Ningxia Electric Power Jian’an Company as chief
of office;
From 2006 to present
Working in SC as general
manager;
At
present
Working in Ningxia Shizuishan Qingshan Hotel Co., Ltd. as chairman and
general manager.
l
Deputy General
Manager:
Mr. Li Xuejun, 34 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
Worked in Ningxia
Ninghe National Chemicals Co., Ltd.
From 2003 to 2004 Worked in SC’s Cyanamide Branch;
From May of 2008 to present
Working in SC as deputy general manager.
SC is mainly
engaged in manufacturing and selling various chemical materials & products.
SC’s products mainly
include: calcium carbide, calcium cyanamide, dicyandiamide, polyvinyl chlorid,
liquid custic soda, caustic soda flakes, solid caustic soda, liquid chlorine
and hydrochloric acid.
The annual output
of polyvinyl chlorid and caustic soda are both 25000 tons. And the annual
output of calcium carbide, calcium cyanamide, dicyandiamide, dicyandiamide
electronic-grade, and hydrochloric acid are 90,000 tons, 40,000 tons, 10,000
tons, 1,500 tons and 1,200 tons respectively.
The calcium
cyanamide and dicyandiamide products won the title of "new products of
national grade".
SC sources its
materials 90% from domestic market, mainly Ningxia, and 10% from overseas
market. SC sells 95% of its products in domestic market, and 5% to overseas
market, mainly Japan, America, and Germany.
The buying terms of SC include T/T, L/C, Check, and Credit of 30-60
days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier:
==============
Ningxia Yinglite Electric (Group) Co. Ltd.
SC is
known to have the following subsidiaries and branches at present:
Ningxia
Western PVC Co., Ltd.
Address:
Yinglite Turnpikeroad, Hebin Industrial Park, Huinong District, Shizuishan
City, Ningxia
Tel:
086-952-3686800
Fax:
086-952-3687777
Postal
code: 753202
Ningxia
Weining Activate Carbon Co., Ltd.
Address:
ShiDa Road, Huinong District, Shizuishan City, Ningxia
Tel:
086-952-3326215
Branch
Company for Cyanamide:
Address:
ShiDa Road, Huinong District, Shizuishan City, Ningxia
Tel:
086-952-3310315
Fax:
086-952-3310315
Postal
code: 753202
Branch
Company for Chlorine Alkali:
Address:
Yinglite Turnpikeroad, Hebin Industrial Park, Huinong District, Shizuishan
City, Ningxia
Tel:
086-952-3681850
Fax:
086-952-3681850
Postal
code: 753202
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.
Industrial and Commercial Bank of China
AC#N/A
Relationship:
Normal.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2007 |
As
of Jun. 30, 2008 |
|
Cash & bank |
147,235 |
241,159 |
|
Inventory |
147,636 |
210,350 |
|
Bills receivable |
17,586 |
3,891 |
|
Shares
receivable |
0 |
0 |
|
Accounts
receivable |
29,027 |
37,265 |
|
Other Accounts
receivable |
7,081 |
4,198 |
|
Advances to
suppliers |
207,356 |
341,576 |
|
To be
apportioned expense |
0 |
0 |
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Other current
assets |
0 |
381 |
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------------------ |
------------------ |
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Current assets |
555,921 |
838,820 |
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Fixed assets net
value |
2,962,478 |
2,847,650 |
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Projects
material |
1,271 |
757 |
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Projects under
construction |
49,976 |
92,735 |
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Long term
investment |
33,986 |
33,986 |
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Other assets |
120,153 |
112,543 |
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------------------ |
------------------ |
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Total assets |
3,723,785 |
3,926,491 |
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============= |
============= |
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Short loans |
606,460 |
569,460 |
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Bills payable |
198,954 |
311,685 |
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Accounts payable |
452,474 |
478,346 |
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Advances from
clients |
56,977 |
85,325 |
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Other Accounts
payable |
614,736 |
573,077 |
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Salaries payable |
12,800 |
13,560 |
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Taxes payable |
46,102 |
47,981 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current
liabilities |
33,693 |
150,379 |
|
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------------------ |
------------------ |
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Current
liabilities |
2,022,196 |
2,229,813 |
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Long term
liabilities |
984,673 |
870,993 |
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Other
liabilities |
6,530 |
6,912 |
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------------------ |
------------------ |
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Total
liabilities |
3,013,399 |
3,107,718 |
|
Equities |
710,386 |
818,773 |
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------------------ |
------------------ |
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Total
liabilities & equities |
3,723,785 |
3,926,491 |
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============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2007 |
Jan. 1 to Jun.
30, 2008 |
|
Turnover |
1,565,858 |
1,062,910 |
|
Cost of goods
sold |
1,103,938 |
757,322 |
|
Sales expense |
42,244 |
33,928 |
|
Management expense |
58,446 |
33,601 |
|
Finance expense |
97,942 |
78,646 |
|
Investment
earnings |
-4,073 |
135 |
|
Profit before
tax |
206,322 |
146,545 |
|
Less: profit tax |
2,413 |
17,660 |
|
Profits |
203,909 |
128,885 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2007 |
As of Jun. 30, 2008 |
|
*Current ratio |
0.27 |
0.38 |
|
*Quick ratio |
0.20 |
0.28 |
|
*Liabilities
to assets |
0.81 |
0.79 |
|
*Net profit
margin (%) |
13.02 |
12.13 |
|
*Return on
total assets (%) |
5.48 |
3.28 |
|
*Inventory
/Turnover ×365 |
34days |
72days |
|
*Accounts
receivable/Turnover ×365 |
7days |
13days |
|
*Turnover/Total
assets |
0.42 |
0.27 |
|
* Cost of
goods sold/Turnover |
0.71 |
0.71 |
PROFITABILITY: FAIRLY
GOOD
l
The turnover of SC appears good in its line.
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SC’s net profit margin is good.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a poor level.
l
The quick ratio of SC is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC is maintained in an average level.
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The short-term loan of SC appears large.
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SC’s turnover is fair, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high.
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 2,000,000 appears acceptable upon a
periodical review basis.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.46 |
|
UK Pound |
1 |
Rs.83.37 |
|
Euro |
1 |
Rs.64.46 |
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%)