MIRA
INFORM REPORT
|
Report Date : |
16.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
shandong sanhe chemical CO., LTD. |
|
|
|
|
Registered Office : |
Shangzhuang Village, Dongdu Town, Xintai,
Shandong Province, 271222 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
20.06.2003 |
|
|
|
|
Com. Reg. No.: |
370982228008366 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Manufacturing and selling melamine and ammonium hydrogen carbonate. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
usd 300,000 |
|
Status : |
Moderate |
|
Payment Behaviour : |
No Complaints |
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Name and address
shandong sanhe chemical CO., LTD.
SHANGZHUANG
VILLAGE, DONGDU TOWN, XINTAI,
SHANDONG province,
271222 PR CHINA
TEL: 86 (0)
538-7382666/7382888 FAX: 86 (0)
538-7382699/7382888
EXECUTIVE SUMMARY
INCORPORATION DATE : june 20, 2003
REGISTRATION NO. : 370982228008366
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
400
REGISTERED CAPITAL : CNY 60,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 163,370,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 51,840,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 300,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.3857 = 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
SC was registered as a limited liabilities co. at local Administration
for Industry & Commerce (AIC – The official body of issuing and renewing
business license) on June 20, 2003.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered
business scope includes manufacturing & selling melamine and ammonium
hydrogen carbonate; import & export business.
SC is mainly
engaged in manufacturing and selling melamine and ammonium hydrogen carbonate.
Mr. Yang
Xinhe has been legal representative,
chairman and general manager of SC since 2010.
SC is known to
have approx. 400 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 Xintai. Our checks
reveal that SC owns the total premise about 40,000 square meters.
http://www.cnsdsanhe.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: woody_xu@vip.sohu.com
Qualifications:
SC has passed ISO 9001:2008, ISO 14001:2004, GB/T28001.
SC was also honored “Model Unit”, “Contract-Stressing and
Promise-Keeping Enterprises”, “Advanced Collectivity”, etc.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2010 |
Legal representative |
Li Shenhe |
Present one |
|
Registered capital |
CNY 30,000,000 |
Present amount |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yang Le’en 80
Yang Xinhe 10
Li Shenyan 10
l
Legal representative, chairman and general manager:
Mr. Yang Xinhe , in his
Working Experience(s):
From 2010
to present
Working in SC as legal representative, chairman and general manager.
SC is mainly
engaged in manufacturing and selling melamine and ammonium hydrogen carbonate.
SC’s products mainly include: melamine, bicarbonate of ammonia, etc.
SC sources its materials 100% from domestic
market. SC sells 95% of its products in domestic market, and 5% 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.
Note:
SC refused to release its major clients and suppliers.
SC
is not known to have any subsidiary at present.
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.
Dongdu Rural
Credit Cooperatives
AC#20100034889
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
|
Cash & bank |
48,630 |
|
Inventory |
109,750 |
|
Bills receivable |
0 |
|
Accounts
receivable |
10,520 |
|
Other Accounts
receivable |
0 |
|
Advances to
suppliers |
0 |
|
To be
apportioned expense |
0 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
168,900 |
|
Fixed assets net
value |
94,480 |
|
Projects under
construction |
11,090 |
|
Long-term
investment |
0 |
|
Intangible and other
assets |
0 |
|
|
------------------ |
|
Total assets |
274,470 |
|
|
============= |
|
Short loans |
30,000 |
|
Accounts payable |
81,730 |
|
Advance from
customers |
0 |
|
Other Accounts
payable |
700 |
|
Notes payable |
42,500 |
|
Accrued payroll |
1,080 |
|
Taxes payable |
330 |
|
Withdraw the
expenses in advance |
0 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
156,340 |
|
|
Long term
liabilities |
66,290 |
|
Other
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
222,630 |
|
Equities |
51,840 |
|
|
------------------ |
|
274,470 |
|
|
|
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2010 |
|
Turnover |
163,370 |
|
Cost of goods sold |
153,990 |
|
Taxes and additional of main operation |
1,360 |
|
Sales expense |
120 |
|
Management expense |
2,890 |
|
Finance expense |
3,450 |
|
Profit before
tax |
1,560 |
|
Less: profit tax |
330 |
|
Profits |
1,230 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
|
*Current ratio |
1.08 |
|
*Quick ratio |
0.38 |
|
*Liabilities
to assets |
0.81 |
|
*Net profit
margin (%) |
0.75 |
|
*Return on total
assets (%) |
0.45 |
|
*Inventory
/Turnover ×365 |
245 days |
|
*Accounts
receivable/Turnover ×365 |
24 days |
|
*Turnover/Total
assets |
0.60 |
|
* Cost of
goods sold/Turnover |
0.94 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC is LARGE.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loan is fairly large in 2010.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory
and short loans could be a threat to SC’s financial condition. A credit
line up to USD 300,000 would appear to be within SC’s capacities upon a
periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.37 |
|
|
1 |
Rs.73.53 |
|
Euro |
1 |
Rs.64.36 |
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 |
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 |
|
-- |
NB |
New Business |
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.