MIRA
INFORM REPORT
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Report Date : |
10.12.2011 |
IDENTIFICATION DETAILS
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Name : |
WEIFANG PARASIA CHEM CO., LTD. |
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Registered Office : |
No. 88 Taixing Street, Economic & Technical Development Zone Weifang, Shandong Province 261031 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
29.04.2004 |
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Com. Reg. No.: |
370700400003142 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing and selling Sodium cyanide, Hydrogen sodium acetate, Methyl cyanide, Ethyl acetate, diethyl malonate, and Hydrogen acid ester derivatives, etc. |
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No. of Employees : |
200 |
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 1,200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name and address
WEIFANG PARASIA CHEM CO., LTD.
NO. 88 TAIXING STREET, ECONOMIC & TECHNICAL DEVELOPMENT
ZONE
WEIFANG, SHANDONG PROVINCE 261031 PR CHINA
TEL: 86 (0) 536-2103219/2103265/2103271
FAX: 86 (0) 536-2103219
EXECUTIVE SUMMARY
Date of Registration : april 29, 2004
REGISTRATION NO. : 370700400003142
LEGAL FORM : Wholly foreign-owned enterprise
REGISTERED CAPITAL : USD 5,200,000
staff :
200
BUSINESS CATEGORY : MANUFACTURING
Revenue :
cny 674,310,000 (AS
OF DEC. 31, 2010)
EQUITIES :
CNY 215,820,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
Recommended Credit Limit: UP TO USD
1,200,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.39 = USD 1
Adopted abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a Chinese-foreign equity joint venture enterprise of PRC on April 29, 2004. However, SC changed to
present legal form, and was registered as a wholly foreign-owned enterprise of
PRC with State Administration for Industry & Commerce (SAIC) under
registration No.: 370700400003142 in November 2004.
SC’s Organization Code Certificate No.: 76096898-9
SC’s registered capital: USD 5,200,000
SC’s paid-in capital: USD 5,200,000
Registration Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
|
2004-11 |
Legal Form |
Chinese-foreign equity joint venture enterprise |
Wholly foreign-owned enterprise |
|
-- |
Registered Capital |
USD 2,600,000 |
USD 5,200,000 |
|
Legal Representative |
Guo Yucheng |
Guo Xitian |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Techsmart Holdings
Limited (B.V.I.) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Guo Xitian |
RECENT DEVELOPMENT
SC has passed ISO9001-2000 quality management system certification, ISO
14001 environmental management system certification, and GB/T 28001 occupation
health and safety management system certification.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Techsmart Holdings Limited
(B.V.I.) 100
On 28 September 2004, Techsmart
Holdings Limited was incorporated in the B.V.I. with an authorized share
capital of US$50,000 (or about CNY407,550) of US$1 (or about CNY8.151) each, of
which one share of US$1 (or about CNY8.151) was issued and allotted to Cheerhill, credited as fully paid. Techsmart
was incorporated to act as an intermediate holding company of Tiande Chemical Holdings Limited.
MANAGEMENT
Guo Xitian , Legal
Representative, Chairman, and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman,
and general manager
Also working in Weifang Common Chem Co., Ltd. as legal representative
Mr.
Guo is an executive Director and deputy general
manager of the Group (Tiande Chemical Holdings
Limited). Mr. Guo is responsible for the overall
production and technology development of the Group. He graduated from the East
China Petroleum Institute (now known as the University of Petroleum (East
China)) in 1982, majoring in basic organic chemistry. Prior to joining the
Group, Mr. Guo had been working in Shandong Zibo Dongfeng Chemical Factory.
Mr. Guo joined the Group in March 1999. Mr. Guo has over 25 years of experience in the chemical
industry.
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing and selling Sodium cyanide, Hydrogen sodium
acetate, Methyl cyanide, Ethyl acetate, diethyl malonate,
and Hydrogen acid ester derivatives, etc.
SC is mainly
engaged in manufacturing and selling fine chemical products.
SC’s products
mainly include:
Sodium Cyanide
Methyl (Ethyl) Cyanoacetate
Malonates
Etc.
SC has the
production capacity of a series of chemicals derived from Sodium Cyanide,
including the annual production of 20,000 tons Methyl (Ethyl) Cyanoacetate and 8,000 tons Malonates,
etc.
SC sources its materials 100% from domestic
market, mainly Shandong Province. SC sells 60% of its products in domestic
market, and 40% to overseas market, mainly Southeast Asia.
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.
Staff & Office:
--------------------------
SC is known
to have approx. 200 staff at
present.
SC owns an area as
its operating office & factory of approx. 178,605 sq. meters at the heading
address.
RELATED COMPANY
l
Tiande Chemical Holdings Limited (Cayman Islands)
Registration No.: F001392
(Incorporated in the Cayman Islands with limited liability) (Stock Code:
609)
Registered Office: Cricket Square Hutchins
Drive P.O. Box 2681 Grand Cayman KY1–1111 Cayman Islands
l
Great Growth Holdings Limited (Hong Kong)
l
Great Spirit Holdings Limited (Hong Kong)
l
Great Promise Holdings Limited (Hong Kong)
l
Smartcham Holdings Limited (B.V.I.)
l
Smartpoint Enterprises Limited (B.V.I.)
l
Weifang Common Chem Co., Ltd.
l
Shanghai Dehong Chemical Company Limited
l
Weifang Binhai Petro-Chem Co., Ltd.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
The bank information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
3,210 |
24,750 |
|
|
Accounts
receivable |
11,540 |
118,130 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
5,580 |
1,900 |
|
Inventory |
11,470 |
25,310 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
39,410 |
36,050 |
|
|
------------------ |
------------------ |
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Current assets |
71,210 |
206,140 |
|
Fixed assets |
191,460 |
208,180 |
|
Construction in
progress |
3,840 |
1,840 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
17,840 |
17,720 |
|
|
------------------ |
------------------ |
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Total assets |
284,350 |
433,880 |
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|
============= |
============= |
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Short-term loans |
20,000 |
32,000 |
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Notes payable |
0 |
0 |
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Accounts payable |
71,690 |
93,320 |
|
Wages payable |
0 |
0 |
|
Advances from
clients |
4,020 |
1,380 |
|
Other payable |
20,390 |
20,620 |
|
Other current
liabilities |
67,660 |
70,740 |
|
|
------------------ |
------------------ |
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Current
liabilities |
183,760 |
218,060 |
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Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
183,760 |
218,060 |
|
Equities |
100,590 |
215,820 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
284,350 |
433,880 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
|
Revenue |
674,310 |
|
Cost of sales |
526,270 |
|
Sales expense |
7,700 |
|
Management expense |
8,160 |
|
Finance expense |
2,230 |
|
Profit before
tax |
130,520 |
|
Less: profit tax |
15,290 |
|
115,230 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
0.39 |
0.95 |
|
*Quick ratio |
0.33 |
0.83 |
|
*Liabilities
to assets |
0.65 |
0.50 |
|
*Net profit
margin (%) |
-- |
17.09 |
|
*Return on
total assets (%) |
-- |
26.56 |
|
*Inventory /
Revenue ×365 |
-- |
14 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
64 days |
|
*
Revenue/Total assets |
-- |
1.55 |
|
* Cost of
sales / Revenue |
-- |
0.78 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good in its line
in 2010.
l
SC’s net profit margin is fairly good in 2010.
l
SC’s return on total assets is fairly good in 2010.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a poor level
in 2009, fair in 2010.
l
SC’s quick ratio is maintained in a poor level in
2009, normal in 2010.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear average.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. Taking into consideration of SC’s general performance, reputation
as well as market conditions, a credit line up to USD 1,200,000 would appear to
be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.28 |
|
|
1 |
Rs.81.55 |
|
Euro |
1 |
Rs.69.60 |
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.