MIRA INFORM REPORT
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Report Date : |
16.02.2011 |
IDENTIFICATION DETAILS
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Name : |
DONGYING HI-TECH SPRING CHEMICAL INDUSTRY
CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
18.09.2006 |
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Com. Reg. No.: |
370500400001420 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
manufacturing and selling chemical products |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
usd 300,000 |
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Status : |
Moderate |
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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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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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 & address
dongying hi-tech
spring chemical industry co., ltd.
TEL: 86 (0) 546-8180357/7791023 FAX: 86 (0) 546-8183959
EXECUTIVE SUMMARY
INCORPORATION DATE :
september 18, 2006
REGISTRATION NO. : 370500400001420
REGISTERED
LEGAL FORM : Chinese-foreign equity joint venture
STAFF
STRENGTH : 600
REGISTERED
CAPITAL :
CNY 22,288,810
BUSINESS
LINE : manufacturing
TURNOVER : CNY 377,810,000
(AS OF DEC. 31, 2009)
EQUITIES : CNY 49,440,000
(AS OF DEC. 31, 2009)
PAYMENT
: AVERAGE
RECOMM.
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : fair
OPERATIONAL
TREND :
fairly STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.60 = USD 1
Adopted abbreviations
ANS - amount not
stated
NS - not stated
SC - subject company
(the company inquired by you)
NA - not available
CNY -
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 September 18, 2006.
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 and selling dimethyl carbonate, isopropyl alcohol, diisopropyl
ether, propylene carbonate, propylene glycol, propylene glycol second
reduction, and carbon dioxide.
SC is mainly engaged in manufacturing and
selling chemical products.
Mr. Zhang Zaizhong has been chairman of SC
since 2006.
SC is known to have approx. 600 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 Dongying. Our checks reveal that SC owns the
total premise, but the gross area is unspecified.
http://www.chinadmc.com The design is
professional and the content is well organized. At present the web site is in
Chinese, English and etc. versions.
E-mail: quhao@chinadmc.com
SC has got the
certificate ISO9001.
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration No. |
3705022802939 |
370500400001420 |
MAIN SHAREHOLDERS:
Name % of Shareholding
HK Profit United Investment Limited 25.00
Yang Xiaohong 1.62
Other 46 individuals 40.93
=================================
Address: Hi-tech Mansion,
Tel: 86 0546-7756678
Fax: 86 0546-7753345
Web: http://www.sinohi-tech.cn
HK Profit United Investment Limited:
============================
Incorporation Date : March 3, 2006
Registration No. : 1028246
Registered Legal
Form : Private
l
Chairman
and General Manager:
Mr. Zhang Zaizhong, with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman and general manager.
SC is mainly engaged in manufacturing and
selling chemical products.
SC’s products mainly include:
Dimethyl Carbonate
Propylene Glycol tech grade
Propylene Glycol pharma grade
Propylene Carbonate
Diisopropyl ether
SC sources its materials 100% from domestic market, mainly
The buying terms of
SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include
T/T, L/C and Credit of 30-60 days.
SC is known to have
following related companies:
· Dongying Tiandong biochemical industry Co., Ltd.
·
· Dongying Hi-tech Ruilin Chemical Industry Co., Ltd.
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.
SC declined to release its bank details.
Balance Sheet
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Unit: CNY’000 |
as of Dec. 31, 2008 |
as of Dec. 31, 2009 |
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Cash & bank |
54,950 |
45,390 |
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Inventory |
34,980 |
35,410 |
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Accounts receivable |
10,820 |
19,600 |
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Other Accounts receivable |
95,740 |
180 |
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Advances to suppliers |
67,270 |
51,130 |
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To be apportioned expense |
0 |
0 |
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Other current assets |
10,590 |
10,750 |
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------------------ |
------------------ |
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Current assets |
274,350 |
162,460 |
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Fixed assets net value |
185,980 |
193,450 |
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Projects under construction |
0 |
0 |
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Long term investment |
0 |
0 |
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Other assets |
6,530 |
6,780 |
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------------------ |
------------------ |
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Total assets |
466,860 |
362,690 |
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============= |
============= |
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Short loans |
90,000 |
139,000 |
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Accounts payable |
78,590 |
71,400 |
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Other Accounts payable |
178,120 |
71,980 |
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Withdraw the expenses in advance |
0 |
0 |
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Other current liabilities |
47,040 |
30,760 |
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------------------ |
------------------ |
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Current liabilities |
393,750 |
313,140 |
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Long term liabilities |
0 |
0 |
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Other liabilities |
140 |
110 |
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------------------ |
------------------ |
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Total liabilities |
393,890 |
313,250 |
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Equities |
72,970 |
49,440 |
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------------------ |
------------------ |
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Total liabilities & equities |
466,860 |
362,690 |
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============= |
============= |
Income Statement
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Unit: CNY’000 |
as of Dec. 31, 2009 |
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Turnover |
377,810 |
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Cost of goods sold |
368,420 |
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Sales expense |
14,050 |
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Management expense |
11,190 |
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Finance expense |
3,270 |
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Profit before tax |
-17,970 |
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Less: profit tax |
0 |
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Profits |
-17,970 |
Important Ratios
=============
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|
As of Dec. 31, 2008 |
As of Dec. 31, 2009 |
|
*Current ratio |
0.70 |
0.52 |
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*Quick ratio |
0.61 |
0.41 |
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*Liabilities to assets |
0.84 |
0.86 |
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*Net profit margin (%) |
/ |
-4.76 |
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*Return on total assets (%) |
/ |
-4.95 |
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*Inventory /Turnover ×365 |
/ |
35 days |
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*Accounts receivable/Turnover ×365 |
/ |
19 days |
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*Turnover/Total assets |
/ |
1.04 |
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* Cost of goods sold/Turnover |
/ |
0.98 |
PROFITABILITY: FAIR
l
The turnover
of SC appears fairly good in its line.
l
SC’s net
profit margin is fair.
l
SC’s
return on total assets is fair.
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 poor level.
l
SC’s
quick ratio is maintained in a fair level.
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 loan of SC appears large in 2009.
l
SC’s
turnover is in an average level, 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 average.
Overall financial condition of the SC: Fair.
SC is considered medium-sized
in its line with fair financial conditions. The large amount of 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.50 |
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|
1 |
Rs.73.07 |
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Euro |
1 |
Rs.61.63 |
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 |
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 |
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.