MIRA
INFORM REPORT
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Report Date : |
17.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
shandong huayuan chemical industry co., ltd. |
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Registered Office : |
No. 198, Nanguan Road, Penglai City
Shandong Province 265600 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
30.10.1993 |
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Com. Reg. No.: |
370000400002087 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing and Selling
Chemical 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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
shandong huayuan chemical industry co., ltd.
no. 198, nanguan road,
penglai city
SHANDONG province
265600 pr china
TEL: 86 (0)
535-5600905 FAX: 86 (0) 535-5600910
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 30, 1993
REGISTRATION NO. :
370000400002087
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
150
REGISTERED CAPITAL : USD 804,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 36,050,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 13,670,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 100,000
MARKET CONDITION : AVERAGE
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 Renminbi
Note: SC is also known as Shandong
Huayuan Chemical Co., Ltd.
SC was registered as a Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Oct.
30, 1993.
Company
Status: Chinese-foreign equity joint venture enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing, developing, and selling benzene & phenol products.
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Pan Jingang
has been chairman of SC since 1993.
SC is known
to have approx. 150 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 Penglai. Our checks reveal that SC
rents the total premise about 8,000 square meters.
http://www.hychem.cn
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
Changes:
|
Date
of change |
Item |
Before the
change |
After the change |
|
2008 |
Registration No. |
003419 |
370000400002087 |
SC passed ISO9002 Quality System Certificate in 2000.
MAIN SHAREHOLDERS:
Name Investment
(USD’000) % of
Shareholding
Beijing Huadi Renting Corp. 602 74.88
Dengshi Trading Limited (Spain) 202 25.12
(In Chinese Pinyin)
Beijing Huadi Renting Corp.
====================
INCORPORATION DATE : Aug. 26, 1993
REGISTRATION NO. :
1101021064470
REGISTERED LEGAL FORM : COLLECTIVE-OWNED ENTERPRISE
REGISTERED CAPITAL : CNY 1,200,000
l
Chairman and General Manager:
Mr. Pan Jingang, 48 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1993 to present Working in SC as chairman and
general manager.
Sales Manager:
Mr. Li Daomin
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products mainly include: 5-SULFOISOPHTALIC ACID (DMS.SIPM),
5-Sodiumsulfa Bis-Isophthalate (DES.SIPE), 5-(SODIOSULFO) ISPHTHALIC ACID
(SSIPA), Dimethyl iso-pthalate, 5-Sulfaisophaic Acid and TGIC etc.
SC sources its
materials 100% from domestic market, mainly Shandong. SC sells 40% in domestic
market, mainly Shandong, and 60% to overseas market, mainly America, Japan, and
South Korea.
The buying terms of SC include T/T, Check, and Credit of 30-60 days. The
payment terms of SC include T/T, Check, L/C, and Credit of 30-60 days.
SC is
known to have a branch at present:
Shandong
Huayuan Chemical Industry Co., Ltd. Beijing Sales Branch
Tel:
010-62015595
Fax:
010-62015595
E-mail: PJZ1226@sina.com
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.
Bank of China
Penglai Sub-branch
AC#N/A
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 |
9,820 |
9,290 |
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Inventory |
6,700 |
4,760 |
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Accounts
receivable |
3,710 |
6,800 |
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Other Accounts
receivable |
3,170 |
4,180 |
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Advances to
suppliers |
0 |
0 |
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To be
apportioned expense |
0 |
0 |
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Other current
assets |
10 |
0 |
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------------------ |
------------------ |
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Current assets |
23,410 |
25,030 |
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Fixed assets net
value |
4,520 |
9,040 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
3,940 |
200 |
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------------------ |
------------------ |
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Total assets |
31,870 |
34,270 |
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============= |
============= |
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Short loans |
16,590 |
16,570 |
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Accounts payable |
1,080 |
3,200 |
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Advances from
clients |
0 |
0 |
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Other Accounts
payable |
560 |
900 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current
liabilities |
-290 |
-70 |
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------------------ |
------------------ |
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Current
liabilities |
17,940 |
20,600 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
17,940 |
20,600 |
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Equities |
13,930 |
13,670 |
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------------------ |
------------------ |
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Total
liabilities & equities |
31,870 |
34,270 |
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============= |
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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 |
30,530 |
36,050 |
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Cost of goods
sold |
/ |
33,840 |
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Sales expense |
/ |
430 |
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Management expense |
/ |
1,620 |
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Finance expense |
/ |
580 |
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Profit before
tax |
/ |
-140 |
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Less: profit tax |
/ |
0 |
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Profits |
/ |
-140 |
Important
Ratios
=============
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|
2006 |
2007 |
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*Current ratio |
1.30 |
1.22 |
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*Quick ratio |
0.93 |
0.98 |
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*Liabilities to
assets |
0.56 |
0.60 |
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*Net profit
margin (%) |
/ |
-0.39 |
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*Return on
total assets (%) |
/ |
-0.41 |
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*Inventory
/Turnover ×365 |
80days |
48days |
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*Accounts
receivable/Turnover ×365 |
44days |
69days |
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*Turnover/Total
assets |
0.96 |
1.05 |
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* Cost of
goods sold/Turnover |
/ |
0.94 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line.
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SC’s net profit margin is fair in 2007.
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SC’s return on total assets is fair in 2007.
l
SC’s cost of goods sold is fairly high in 2007, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level in 2006 and
2007.
l
SC’s quick ratio is maintained in a normal level in 2006 and 2007.
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The inventory of SC appears average in both 2 years.
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The accounts receivable of SC is maintained in an average level in both
2 years.
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The short-term loan of SC appears LARGE in both 2 years.
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SC’s turnover is in an average level in both 2 years, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both 2 years.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of short-term loan could be a threat to SC’s
financial condition. A credit line up to USD 100,000 would appear to be within
SC’s capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.48.68 |
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UK Pound |
1 |
Rs.84.37 |
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Euro |
1 |
Rs.65.70 |
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%)