MIRA INFORM REPORT
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Report Date : |
24.01.2011 |
IDENTIFICATION DETAILS
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Name : |
ANHUI HUAXING 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 : |
13.02.1998 |
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Com. Reg. No.: |
340000000035598 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and Selling Pesticide and
chemical products. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
usd 4,000,000 |
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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 – June 30, 2010
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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
ANHUI HUAXING
CHEMICAL INDUSTRY CO., LTD.
TEL: 86 (0) 551-5393128/5848124 FAX: 86 (0) 551-5390578/5848133
EXECUTIVE SUMMARY
INCORPORATION DATE : february 13, 1998
REGISTRATION
NO. : 340000000035598
REGISTERED
LEGAL FORM : shares limited company
STAFF
STRENGTH : 1,698
REGISTERED CAPITAL : CNY 244,881,000
BUSINESS
LINE : MANUFACTURING
TURNOVER : CNY 870,212,000
(AS OF DEC. 31, 2009)
EQUITIES : CNY 742,380,000 (AS OF DEC. 31,
2009)
PAYMENT
: AVERAGE
RECOMM.
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : fairly stable
OPERATIONAL
TREND :
FAIRLY STEADY
GENERAL
REPUTATION : well known
EXCHANGE
RATE : CNY 6.83 = 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 shares limited company at
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 pesticide and chemical products; exporting its product
and relative technology, importing raw materials, accessories, machinery,
apparatus and instruments, components and technology needed in manufacture and
scientific research.
SC is mainly engaged in manufacturing and
selling pesticide and chemical products.
Mr. Xie Ping has been chairman of SC since
2008.
SC is known to have approx. 1,698 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 Chaohu. Our checks reveal that SC owns the
total premise about 388,000 square meters.
http://www.huaxingchem.com The design is
professional and the content is well organized. At present the web site is both
in Chinese and English versions.
E-mail: hxinfo@huaxingchem.com
SC was listed at Shenzhen Stock Exchange on July 13, 2004 (with the
stock code 002018).
SC is a leading pesticide manufacturer and exporter with
ISO9001 and ISO14001 certification in
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2008 |
Registration No. |
3400001300057 |
340000000035598 |
|
2008 |
Chairman |
Qing Zusen |
Xie Ping |
MAIN SHAREHOLDERS: (As of Dec. 31, 2009)
Name % of Shareholding
Qing Zusen 14.19
Xie Ping 8.63
Taikang Life Insurance Co., Ltd.-Variable Universal Life 2.45
Agricultural Bank of China-Zhongyou Core Securities Investment Fund 2.31
Ping An Life Insurance Company of China-General insurance products 2.17
Ji Zuhuan 1.31
Li Hui 0.99
China Everbright Bank Co., Ltd.-Taixin Securities Investment Fund 0.82
Industrial and Commercial Bank of China- SME Exchange-Traded
Index funds 0.79
Other shareholders 64.01
===========================================
Address: 7/F
Tel: 86 0551-2885534
Fax: 86 0551-2885534
Email: ahkjtz@ahkjtz.com.cn
l
Legal
Representative and Chairman:
Mr. Xie Ping, born in 1968 with master’s degree, senior engineer. He is
currently responsible for the overall management of SC.
Working Experience(s):
Worked in Hexian Pesticide Plant as manufacturing works superintendent, manufacturing section chief, and in SC as supply & marketing section chief, and assistant manager;
From 2004 to 2008 Worked in SC as general manager and board member.
From 2008 to present Working in SC as legal representative and chairman
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General
Manager:
Mr. Guo Zhibing, born
in 1979 with junior college education. He is currently responsible for the
daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
l
Vice
General Manager:
Mr. Li Hui, born in
1966 with master’s degree. He is currently responsible for the daily management
of SC.
Working Experience(s):
Before 2008 Worked in SC as director;
From 2008 to present Working
in SC as vice general manager.
l
Vice
General Manager:
Mr. Liu Yuansheng, born in 1963 with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
Worked in Hefei Chemical Factory as workshop director, in Research and Design Institute as Vice-President;
From 2004 to present Working in SC as vice
general manager.
SC is mainly engaged in manufacturing and selling pesticide and chemical
products.
SC has more than 40 technical products
and over 100 formulated products in three major series: insecticide, herbicide,
and fungicide.
SC’s products mainly include: Monosultap
(Monomehypo) 95%TC, Dimehypo (Thiosultap-sodium) 29%TC, Methomyl 98%TC, Cartap
98%TC, Fipronil 97%TC, Acetamiprid 95%TC, Imidacloprid 95%TC, Chlorpyrifos
97%TC, Triazophos 85%TC, Cypermethrin 95%TC, Beta-cypermethrin 95%TC,
Beta-cyfluthrin 95%TC, Lambda-cyhalothrin 95%TC, Etofenprox 95%TC,
Cycloprothrin 95%TC, and Abamectin 95%TC, etc.
SC sources its materials 80% from domestic
market, mainly
The buying terms of
SC include 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 Customers:
==============
Shenzhen Grains
& Oils and Foodstuffs Co., Ltd.
Anhui Huaxing Hengda
Bio-Tech Co., Ltd.
SC is
known to have the following subsidiaries:
· Anhui Xingnuo Chemical Co., Ltd.
· Anhui Huaxing Hengda Bio-Tech Co., Ltd.
· Anhui Huaxing Chemical Chongqing Co., Ltd.
· Anhui Xiyangyang Agriculture Materials Chain Co., Ltd.
·
Anhui Huaxing 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’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 Merchants Bank
AC# 2880130110001
Relationship:
Consolidated Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2008 |
As of Dec. 31, 2009 |
|
Cash & bank |
88,528 |
267,798 |
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Bills receivable |
7,141 |
2,310 |
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Inventory |
356,756 |
370,724 |
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Short investment |
0 |
0 |
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Accounts receivable |
123,491 |
231,379 |
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Other Accounts receivable |
4,262 |
30,153 |
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Advances to suppliers |
43,578 |
59,000 |
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To be apportioned expense |
0 |
0 |
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Other current assets |
0 |
1 |
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------------------ |
------------------ |
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Current assets |
623,756 |
961,365 |
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Fixed assets net value |
535,165 |
537,429 |
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Project materials |
8,149 |
9,538 |
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Projects under construction |
14,679 |
16,162 |
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Long term investment |
61,802 |
60,859 |
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Other assets |
41,368 |
33,831 |
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------------------ |
------------------ |
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Total assets |
1,284,919 |
1,619,184 |
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============= |
============= |
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Short loans |
98,121 |
359,368 |
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Bills payable |
48,600 |
109,850 |
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Accounts payable |
124,305 |
142,788 |
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Salaries payable |
6,141 |
8,783 |
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Shares payable |
0 |
0 |
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Welfares payable |
0 |
0 |
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Taxes payable |
21,645 |
1,011 |
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Other Accounts payable |
8,922 |
26,174 |
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Advance from clients |
186,365 |
136,471 |
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Other current liabilities |
98,203 |
2,802 |
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------------------ |
------------------ |
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Current liabilities |
592,302 |
787,247 |
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Long term liabilities |
2,800 |
50,000 |
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Other liabilities |
12,909 |
39,557 |
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------------------ |
------------------ |
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Total liabilities |
608,011 |
876,804 |
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Equities |
676,908 |
742,380 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
1,284,919 |
1,619,184 |
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============= |
============= |
Consolidated Income Statement
Unit: CNY’000
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|
As of Dec. 31, 2008 |
As of Dec. 31, 2009 |
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Turnover |
1,382,332 |
870,212 |
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Cost of goods sold |
930,863 |
719,216 |
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Sales
expense |
57,693 |
47,437 |
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Management expense |
40,342 |
44,940 |
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Finance expense |
35,567 |
27,319 |
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Investment income |
-2,579 |
-1,504 |
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Other expense |
107,900 |
14,417 |
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Profit before tax |
207,388 |
15,379 |
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Less: profit tax |
25,248 |
10,532 |
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Profits |
182,140 |
4,847 |
Important Ratios
=============
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|
As of Dec. 31, 2008 |
As of Dec. 31, 2009 |
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*Current ratio |
1.05 |
1.22 |
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*Quick ratio |
0.45 |
0.75 |
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*Liabilities to assets |
0.47 |
0.54 |
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*Net profit margin (%) |
13.18 |
0.56 |
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*Return on total assets (%) |
14.18 |
0.30 |
|
*Inventory /Turnover ×365 |
94 days |
155 days |
|
*Accounts receivable/Turnover ×365 |
33 days |
97 days |
|
*Turnover/Total assets |
1.08 |
0.54 |
|
* Cost of goods sold/Turnover |
0.67 |
0.83 |
PROFITABILITY: AVERAGE
l
The
turnover of SC appears fairly good, but it was declining in 2009.
l
SC’s net
profit margin is fairly good in 2008 but average in 2009.
l
SC’s
return on total assets is fairly good in 2008 but average in 2009.
l
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
l
The
current ratio of SC is normal in 2008 and 2009.
l
SC’s
quick ratio is maintained in a fair level.
l
The inventory
of SC appears fairly large in 2009.
l
The
accounts receivable of SC appears fairly large in 2009.
l
The
short-term loan of SC appears fairly large in 2009.
l
SC’s
turnover is in a fair level in 2009, comparing with the size of its total
assets.
LEVERAGE:
AVERAGE
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
Stable.
SC is considered
large-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. According to SC’s public annual report, the crisis has great
influence on SC. A credit line up to USD 4,000,000 would appear to be within
SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.70 |
|
|
1 |
Rs.72.78 |
|
Euro |
1 |
Rs.61.65 |
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 |
|
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 |
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.