MIRA INFORM
REPORT
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Report Date : |
13.01.2011 |
IDENTIFICATION DETAILS
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Name : |
CHENGUANG RESEARCH INSTITUTE OF CHEMICAL
INDUSTRY |
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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 : |
01.02.1965 |
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Com. Reg. No.: |
510300000002444 |
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Legal Form : |
State-Owned |
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Line of Business : |
Researching,
Developing, Manufacturing and Selling Chemical Products. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
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 1,000,000 |
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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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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|
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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
CHENGUANG RESEARCH
INSTITUTE OF CHEMICAL INDUSTRY
NO.
135
TEL: 86 (0) 813-7201466 FAX: 86 (0) 813-7201124
EXECUTIVE SUMMARY
INCORPORATION DATE : FEB. 1, 1965
REGISTRATION NO. : 510300000002444
REGISTERED LEGAL FORM : STATE-OWNED
STAFF STRENGTH :
3,500
REGISTERED CAPITAL : CNY 108,850,000
BUSINESS LINE :
R&D, MANUFACTURING
TURNOVER : CNY 777,070,000 (AS OF DEC. 31, 2009)
EQUITIES :
CNY 454,690,000 (AS OF DEC. 31, 2009)
PAYMENT :
average
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
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 -
Note: SC is also known as Zhonghao Chenguang Research Institute of
Chemical Industry; the given address (
SC was registered as a state-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Feb. 1, 1965.
Company Status: State-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered business scope includes researching, developing,
manufacturing and selling synthetic resin, organic silicon, AOF materials and
products, plastic and products, machinery anti-acid equipment, special
synthetic rubber, cyanuric chloride, sulfur hexafluoride, Western medicine,
fine chemical products, medical instruments, veterinary drugs and feed,
chemical and pharmaceutical engineering designing, construction engineering
designing, compressor vassal designing and technology service; manufacturing
and selling drinking water; manufacturing and selling wood packaging products,
plastic packaging products, steel packaging products and paper packaging cases;
industrial oxygen, nitrogen, pure nitrogen, hydrochloric acid, hydrofluoric
acid and perfluoropropylene.
SC is mainly
engaged in researching, developing, manufacturing and selling chemical
products.
Ms. Li Jia has
been president of SC since 2010.
SC is known
to have approx. 3,500 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
http://www.chenguang.cn The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
E-Mail: cgy@chenguang.cn
Changes of SC’s registered information:
|
Date |
Item |
Before changed |
After changed |
|
Mar., 2006 |
Legal rep. |
Zhang Zaili |
Peng Buer |
|
Sep., 2007 |
Peng Buer |
Xie Xueduan |
|
|
Aug., 2009 |
Xie Xueduan |
Yang Wanshi |
|
|
Oct., 2010 |
Yang Wanshi |
Present one |
SC has got the certificates of ISO 9001 and ISO 14001.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Southwest China Haohua Chemical Co., Ltd. 100
Tel: 0813-4662515
Fax: 0813-2760209
E-mail: office@haohuasw.com
Note: SC’s superior department is China
Haohua Chemical (Group) Corporation.
=================================
Add: No. 19, Xiaoyinglu, Chaoyang District,
Tel: +86-10-58650262
E-mail: admin@chinahaohua.com.cn
Web: http://www.chinahaohua.com.cn
l
President:
Ms. Li Jia, ID#: 430104196905224024, born in
1969, with university education. She is currently responsible for the overall
management of SC.
Working Experience(s):
From 2010 to present Working
in SC as president.
ccc
SC’s products
mainly include:
Fluoroelastomers
(gumstock, precompounds, compounds)
Fluoro resin
powders and dispersions
Silicones
(rubbers, fluids, grease, etc.)
PTFE Articles
Chemical Machine
and Equipment
Aromatic Polyester
Powder
SC sources its
materials 90% from domestic market, and 10% from the overseas market, mainly
European countries. SC sells 70% of its products in domestic market, and 30% to
the overseas market, mainly
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.
SC
is known to have the following departments, branch factories and subsidiary:
· Chenguang Research Institute of Chemical Industry Beijing Department
· Chenguang Research Institute of Chemical Industry Tianjin Department
· Chenguang Research Institute of Chemical Industry Shenyang Department
· Chenguang Research Institute of Chemical Industry Shanghai Department
· Chenguang Research Institute of Chemical Industry Changzhou Department
· Chenguang Research Institute of Chemical Industry Yinzhou Department
· Chenguang Research Institute of Chemical Industry Jiashan Department
· Chenguang Research Institute of Chemical Industry Xiamen Department
· Chenguang Research Institute of Chemical Industry Qingdao Department
· Chenguang Research Institute of Chemical Industry Zhengzhou Department
· Chenguang Research Institute of Chemical Industry Wuhan Department
· Chenguang Research Institute of Chemical Industry Zhuzhou Department
· Chenguang Research Institute of Chemical Industry Department
· Chenguang Research Institute of Chemical Industry Chengdu Department
·
Chenguang Research Institute of Chemical
Industry
· Chenguang Research Institute of Chemical Industry Jiaxing Xingchen Plastic Factory
· Shanghai Chenguang Co-Creative Polymer 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’s management declined
to release it bank information.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2008 |
As of Dec. 31, 2009 |
|
Cash & bank |
97,060 |
167,020 |
|
Short term
investment |
310 |
130 |
|
Inventory |
303,390 |
261,700 |
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Accounts
receivable |
59,660 |
71,860 |
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Bills receivable
|
8,660 |
24,340 |
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Advances to
suppliers |
38,860 |
23,240 |
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Other
receivables |
49,610 |
29,820 |
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Other current
assets |
0 |
0 |
|
|
---------------- |
--------------- |
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Current assets |
557,550 |
578,110 |
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Fixed assets net
value |
543,780 |
687,910 |
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Projects under
construction |
312,450 |
386,040 |
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Long term
investment |
30,690 |
30,690 |
|
Other assets |
82,470 |
75,530 |
|
|
----------------- |
--------------- |
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Total assets |
1,526,940 |
1,758,280 |
|
|
============ |
============ |
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Short loans |
0 |
643,400 |
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Bills payable |
34,000 |
23,500 |
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Accounts payable |
182,990 |
194,970 |
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Advances from
clients |
9,190 |
15,200 |
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Taxes payable |
-5,020 |
-620 |
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Salaries payable |
16,380 |
20,300 |
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Other payable |
107,270 |
52,790 |
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Long term
liabilities due within one year |
48,000 |
5,000 |
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Other current
liabilities |
517,940 |
30 |
|
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----------------- |
------------------- |
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Current
liabilities |
910,750 |
954,570 |
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Long term
liabilities |
192,030 |
349,020 |
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----------------- |
------------------- |
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Total
liabilities |
1,102,780 |
1,303,590 |
|
Equities |
424,160 |
454,690 |
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|
------------------ |
------------------- |
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Total
liabilities & equities |
1,526,940 |
1,758,280 |
|
|
============ |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2008 |
As
of Dec. 31, 2009 |
|
Turnover |
766,050 |
777,070 |
|
Cost of goods
sold |
632,210 |
626,260 |
|
Sales expense |
0 |
0 |
|
Management expense |
79,940 |
77,530 |
|
Finance expense |
30,120 |
25,270 |
|
Profit before
tax |
27,530 |
32,220 |
|
Less: profit tax |
1,470 |
1,690 |
|
Profits |
26,060 |
30,530 |
Important Ratios
=============
|
|
2008 |
2009 |
|
*Current ratio |
0.61 |
0.61 |
|
*Quick ratio |
0.28 |
0.33 |
|
*Liabilities
to assets |
0.72 |
0.74 |
|
*Net profit
margin (%) |
3.40 |
3.93 |
|
*Return on
total assets (%) |
1.71 |
1.74 |
|
*Inventory
/Turnover ×365 |
145days |
123days |
|
*Accounts
receivable/Turnover ×365 |
28days |
34days |
|
*Turnover/Total
assets |
0.50 |
0.44 |
|
* Cost of
goods sold/Turnover |
0.83 |
0.81 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in both
years.
l
SC’s net profit margin is fairly good in both
years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a poor level in
both years.
l
The inventory of SC is fairly large in both years.
l
The accounts receivable of SC is average in both
years.
l
The short loans of SC are large in 2009.
l
SC’s turnover is in a fair level in both years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered an old-established business with favorable background.
The large amount of inventory and short loans could be a threat to SC’s
financial conditions. A credit line up to USD 1,000,000 appears acceptable upon
a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.16 |
|
|
1 |
Rs.70.64 |
|
Euro |
1 |
Rs.58.68 |
RATING EXPLANATIONS
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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 |
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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.