MIRA INFORM REPORT
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Report Date : |
16.12.2011 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG HUALU-HENGSHENG CHEMICAL CO., LTD |
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Registered Office : |
No. 24 Tianqu West Road, Dezhou, Shandong Province, 253000 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2011 |
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Date of Incorporation : |
26.04.2000 |
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Com. Reg. No.: |
370000018060251 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling
chemical fertilizer and chemical products. |
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No. of Employees
: |
2,782 Persons
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RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 20,000,000 |
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Status : |
Good |
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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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
China |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
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 & address
SHANDONG
HUALU-HENGSHENG CHEMICAL CO., LTD.
NO. 24 TIANQU WEST ROAD, DEZHOU,
SHANDONG PROVINCE, 253000 PR CHINA
TEL: 86 (0) 534-2465426/2465499 FAX: 86 (0) 534-2465017
EXECUTIVE SUMMARY
INCORPORATION DATE : apr. 26, 2000
REGISTRATION NO. :
370000018060251
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 2,782
REGISTERED CAPITAL :
CNY 953,625,000
BUSINESS LINE :
MANUFACTURING & SELLING
TURNOVER :
CNY 3,845,179,000 (JAN. 1 TO SEP. 30,
2011)
EQUITIES :
CNY 4,993,410,000 (AS OF SEP. 30, 2011)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 20,000,000
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE : CNY 6.34 =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 shares limited company at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Apr. 26, 2000.
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 The minimum registered capital of a co. is CNY 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 chemical fertilizer, alcohols, aldehydes, resin, amine, carbonyl
compound, liquid nitrogen, liquid oxygen, liquid argon, hydrogen gas, carbon
monoxide, liquefied anhydrous ammonia, ammonia, and sulphur; import &
export business within the scope of license.
SC is
mainly engaged in manufacturing and selling chemical fertilizer and chemical
products.
Mr.
Cheng Guanghui has been the legal representative and chairman of SC since 2006.
SC is known to have approx. 2,782 employees at present, including 2,385 production staff, 76 management staff, 73
sales staff, 148 technical staff and 30 financial staff, and 70 other staff.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Dezhou. SC’s management
declined to release the detailed information of the premise.
http://www.hl-hengsheng.com
It is the website of SC’s parent company Shandong
Hualu Hengsheng Group Co., Ltd., and also includes the information of SC.
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: hl600426@sina.com
SC is one of the largest be-controlled stock subsidiaries,
and is the core of Shandong Hualu Hengsheng Group. The main products are urea,
methyl alcohol, formaldehyde, organic amine and DMF. And it passed firstly
ISO9002 Quality system certificate in Jan. of 2000, and ISO14001 Environment
system certificate in the same industry in Dec. of 2000. A stock
"Hualuhengsheng" (stock code: 600426) was listed successfully in
Shanghai stock exchange on 20 June of 2002, became the first marketed in
exchange in Dezhou city and 65th enterprise of Shandong. SC was awarded as High and New
Technology Enterprise in March of 2009.
Changes
of its registered information are as follows:
|
Date
of change |
Item |
Before the
change |
After the change |
|
2006 |
Legal representative |
Wang Chuntao |
Cheng Guanghui |
|
Unknown |
Registered capital |
CNY 330,500,000 |
CNY 495,750,000 |
|
Registered capital |
CNY 495,750,000 |
Present amount |
|
|
Registered no. |
3700001806025 |
Present one |
MAIN SHAREHOLDERS: (As of Jun. 30, 2011)
Name %
of shareholdings
Shandong Hualu Hengsheng Group
Co., Ltd. 30.4
Zhongcai Mingyuan Investment Management
Co., Ltd. (literal translation) 4.72
Jiangxi Yuke Investment Co., Ltd.
(literal translation) 4.61
Everbright Securities Co., Ltd. 2.66
E Fund Value Growth Mixed Securities
Investment Fund 2.66
Jiangxi Publishing Group Lanhai
International 2.33
Investment Co., Ltd. (literal translation)
Jinglongrongzun (Tianjin) Equity
Investment Fund Partnership 2.33
Corporation (Limited Partnership)
(literal translation)
HuaAn Innovation Securities Investment Fund
(literal translation) 2
Yue Liying 1.57
Changzhou Investment Group Co., Ltd. 1.57
Other shareholders 45.15
Shandong
Hualu Hengsheng Group Co., Ltd.
================================
Shandong Hualu Hengsheng Group Co., Ltd
is one of China top 500 chemical industries and one of 167 emphases
enterprises, with 3 subsidiaries (the stock is controlled or joined). The
products include four series of products such as chemical fertilizer, chemical
industrial products, and thermoelectricity, etc.
Registered capital: CNY 101,170,000
Incorporation date: June 4, 1996
Address: #24 Tianqu Road, Decheng District, Dezhou, Shandong
Tel: 0534-2465013
Fax: 0534-2465015
Website: http://www.hl-hengsheng.com
E-mail: office@hl-hengsheng.com
l
Legal
Representative and Chairman:
Mr. Cheng Guanghui, born in 1956, with MBA degree, senior
economist. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to 2004 Worked in Shandong Hualu Group Co., Ltd and Hong Kong Hualu Group Co., Ltd. as vice chairman and general manager
From 2004 to 2011-1 Worked in Hualu Holdings Co., Ltd. as vice chairman and general manager
From 2011-1 to present Working in Hualu Holdings Co., Ltd. as chairman and general manager
From 2006 to present Working in SC as legal representative and chairman
l
Vice
Chairman:
Mr. Yang Zhenfeng, born in 1959, with MBA degree, senior
engineer. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 2002 to 2005 Worked in Shandong Hualu Group Co., Ltd. as director
From 1999 to present Working in Shandong Hualu Hengsheng Group Co., Ltd. as director
From 2005 to present Working in Hualu Holdings Co., Ltd. as director
From 2003-4 to 2010-12 Worked in SC as vice chairman and general manager
From 2010-4 to present Working in Hualu Holdings Co., Ltd. as vice general manager
From 2010-12 to present Working in SC as vice chairman
l
General
Manager:
Mr. Chang Huaichun, born in 1967, with MBA degree. He is currently responsible for the daily
management of SC.
Working Experience(s):
From 2003-4 to 2009-4 Worked in SC as director and vice general manager and director
From 2009-4 to 2010-12 Worked in SC as director and routine vice general manager
From 2010-12 to present Working in Shandong Hualu Hengsheng Group Co., Ltd. as director
From 2010-12 to present Working in SC as general manager
l
Vice General
Manager:
Dong Yan
Gao Jinghong
Pan Desheng
Zhang Xinsheng
Zhuang Guangshan
l
Directors:
Han Huizhong
Xu Yancheng
Zhao Shengli
Sheng Jiemin
Pan Fei
Li Junfa
SC is
mainly engaged in manufacturing and selling chemical fertilizer and chemical
products.
SC’s
main products include: chemical fertilizer, alcohols, aldehydes, DMF,
trimethylamine, formaldehyde, monomethylamine, resin, amine, carbonyl compound,
acetic acid, anhydrides, liquid nitrogen, liquid oxygen, liquid argon, hydrogen
gas, carbon monoxide and heat electric, etc.
SC
sources its materials 90% from domestic market, mainly Shandong province, and
10% from overseas market. SC sells 97% of its products in domestic market, and
3% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
==============
Shandong Hualu Hengsheng Group Dezhou Thermoelectricity Co., Ltd.
Dezhou Dehua Equipment Engineering Co., Ltd.
*Major Customers:
==============
Shandong Hualu Hengsheng Group
Co., Ltd.
TRANSAMMOIN AG
· Shandong Hualu Hengsheng Group Dezhou Thermoelectricity Co., Ltd.
· Dezhou Dehua Equipment Engineering Co., Ltd.
· Shandong Hualu Hengsheng Group Dehua Architectural Design & Research Institute Co., Ltd. (literal translation)
· Dezhou Minxin Service Co., Ltd. (literal translation)
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.
China
Construction Bank
AC#: 261107166
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2010 |
As
of Sep. 30, 2011 |
|
Cash & bank |
2,349,796 |
1,405,306 |
|
Note receivable |
171,924 |
318,261 |
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Accounts
receivable |
15,075 |
15,894 |
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Advances to
suppliers |
842,854 |
1,461,396 |
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Bills receivable
|
0 |
0 |
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Other
receivables |
269 |
393 |
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Inventory |
389,423 |
505,933 |
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Other current
assets |
0 |
0 |
|
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------------------ |
------------------ |
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Current assets |
3,769,341 |
3,707,183 |
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Fixed assets net
value |
4,521,127 |
4,307,674 |
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Projects under
construction |
389,232 |
1,486,885 |
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Long term
investment |
0 |
0 |
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Project material |
43,075 |
153,789 |
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Long-term
deferred expenses |
56,238 |
47,941 |
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Intangible
assets |
255,318 |
264,949 |
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Deferred income
tax assets |
806 |
746 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
9,035,137 |
9,969,167 |
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============= |
============= |
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Short loans |
190,000 |
160,000 |
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Accounts payable |
385,752 |
423,712 |
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Accounts
receivable advance |
161,344 |
198,982 |
|
Bills payable |
83,578 |
238,696 |
|
Taxes payable |
25,523 |
11,314 |
|
Salaries payable |
10,872 |
10,848 |
|
Dividends
payable |
0 |
0 |
|
Other payable |
5,420 |
7,050 |
|
Non-current
assets due within one year |
160,000 |
1,088,000 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
1,022,489 |
2,138,602 |
|
Long term liabilities |
3,233,155 |
2,837,155 |
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------------------ |
------------------ |
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Total
liabilities |
4,255,644 |
4,975,757 |
|
Equities |
4,779,493 |
4,993,410 |
|
|
------------------ |
------------------ |
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Total liabilities
& equities |
9,035,137 |
9,969,167 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2010 |
Jan. 1 to Sep. 30, 2011 |
|
Turnover |
4,737,751 |
3,845,179 |
|
Cost of goods
sold |
4,109,860 |
3,275,389 |
|
Tax and additional duty of main operation |
6,400 |
6,167 |
|
Sales expense |
100,986 |
67,665 |
|
Management expense |
78,452 |
56,377 |
|
Finance expense |
152,202 |
114,968 |
|
Assets impairment loss |
-389 |
-456 |
|
Non-operating
income |
11,375 |
1,513 |
|
Non-operating expense |
1,926 |
136 |
|
Profit before
tax |
299,689 |
326,446 |
|
Less: profit tax |
45,549 |
49,171 |
|
Profits |
254,140 |
277,275 |
Important Ratios
=============
|
As of Dec. 31, 2010 |
As of Sep. 30, 2011 |
|
|
*Current ratio |
3.69 |
1.73 |
|
*Quick ratio |
3.31 |
1.50 |
|
*Liabilities
to assets |
0.47 |
0.50 |
|
*Net profit margin
(%) |
5.36 |
7.21 |
|
*Return on
total assets (%) |
2.81 |
2.78 |
|
*Inventory
/Turnover ×365 |
31 days |
/ |
|
*Accounts
receivable/Turnover ×365 |
2 days |
/ |
|
*Turnover/Total
assets |
0.52 |
0.39 |
|
* Cost of
goods sold/Turnover |
0.87 |
0.85 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is fairly good in 2010 and
normal in the first three quarters of 2011.
l
SC’s quick ratio is fairly good in 2010 and normal
in the first three quarters of 2011.
l
The inventory of SC is average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loan is average.
l
SC’s turnover is fair, comparing with the size of
its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
SC is well-known in its industry with fairly good financial conditions.
Credit dealings with SC in favorable terms can be considered.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.24 |
|
UK Pound |
1 |
Rs.83.77 |
|
Euro |
1 |
Rs.70.46 |
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 |
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.