MIRA INFORM REPORT

 

 

Report Date :           

09.09.2011

 

IDENTIFICATION DETAILS

 

Name :

QINGDAO DOUBLE-PEACH SPECIALTY CHEMICALS (GROUP) CO., LTD.

 

 

Registered Office :

No. 28 Hangzhou Road, Sifang District, Qingdao, Shandong Province 266031 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

01.01.1919

 

 

Com. Reg. No.:

370200018039070

 

 

Legal Form :

Limited Liabilities Company

 

 

Line of Business :

manufacturing dye and other fine chemical products

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 4,000,000

Status :

Good

Payment Behaviour :

Usually Correct 

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

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name & address 

 

QINGDAO DOUBLE-PEACH SPECIALTY CHEMICALS (GROUP) CO., LTD.

NO. 28 HANGZHOU ROAD, SIFANG DISTRICT

QINGDAO, SHANDONG PROVINCE 266031 PR CHINA

TEL: 86 (0) 532-83733154/83075898

FAX: 86 (0) 532-83734209/83734296

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : JANUARY 1, 1919

REGISTRATION NO.                  : 370200018039070

LEGAL FORM                           : Limited liabilities company

CHIEF EXECUTIVE                                               : ZENG QINGJUN (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 417,290,000

staff                                      : 1,109

BUSINESS CATEGORY : MANUFACTURING

Revenue                                : CNY 532,000,000 (AS OF DEC. 31, 2010)

EQUITIES                                 : CNY 486,470,000 (AS OF DEC. 31, 2010)

WEBSITE                                 : www.qingdaodyes.com

E-MAIL                                     : qddyes@qingdaodyes.com

PAYMENT                                : AVERAGE

Recommended Credit Limit: UP TO USD 4,000,000

MARKET CONDITION                : COMPETITIVE

FINANCIAL CONDITION             : fairly GOOD

OPERATIONAL TREND  : STEADY

GENERAL REPUTATION           : fairly good

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 limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 370200018039070.

 

SC’s Organization Code Certificate No.: 16356988-2

 

SC’s registered capital: CNY 417,290,000

 

SC’s paid-in capital: CNY 417,290,000

 

No significant changes of SC have been noted in SAIC since its incorporation.

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Qingdao Hiwin Group Co., Ltd.

 

56.03

Qingdao Enterprise Development & Investment Co., Ltd.

 

4.07

China Huarong Asset Management Corporation

 

13.10

China Cinda Asset Management Co., Ltd.

 

26.80

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative and Chairman

Zeng Qingjun

General Manager

Lin Fengzhang

 

 

RECENT DEVELOPMENT

 

SC’s 's predecessor was Qingdao Dye Factory 青岛染料厂. It is a leading role in the Chinese dyestuff industry.

 

SC is both ISO9001 and Oeko-Tex certified.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                                                                              % of Shareholding

·         Qingdao Hiwin Group Co., Ltd.                                                                                  56.03

·         Qingdao Enterprise Development & Investment Co., Ltd.                                              4.07

·         China Huarong Asset Management Corporation                                                          13.10

·         China Cinda Asset Management Co., Ltd.                                                                  26.80

 

*         Qingdao Hiwin Group Co., Ltd.

===========================

Registration No.: 370200018055166

Date of Registration: December 31, 1997

Legal Form: Sole State-owned Enterprise

Registered Capital: CNY 506,770,000

Legal Representative: Luo Fanghui

Add: No. 52 Hong Kong Middle Road, Qingdao

Tel: 86 (0) 532-85759200

Fax: 86 (0) 532-85759202

E-mail: info@qdhw.com

Web: http://www.qdhw.com

 

*         Qingdao Enterprise Development & Investment Co., Ltd.

===============================================

Registration No.: 370200018084466

Date of Registration: March 15, 2004

Legal Form: Sole State-owned Enterprise

Registered Capital: CNY 822,000,000

Legal Representative: Wang Lei

Add: No. 10 West Donghai Road, Shinan District, Qingdao

Tel: 86 (0) 532-83889211

 

*         China Huarong Asset Management Corporation

========================================

Registration No.: 100000000032506

Date of Registration: November 1, 1999

Legal Form: Sole State-owned Enterprise

Registered Capital: CNY 10,000,000,000

Legal Representative: Lai Xiaomin

Address: No. 8 Financial Street, Xicheng District, Beijing

Tel: 86 (0) 10-59618888

Fax: 86 (0) 10-59618000

Web: http://www.chamc.com

 

*         China Cinda Asset Management Co., Ltd.

===================================

Registration No.: 100000000031562

Date of Registration: April 19, 1999

Legal Form: Shares Liabilities Company

Registered Capital: CNY 25,155,090,000

Legal Representative: Hou Jianhang

Address: Building 1 Yard 9 Naoshikou Street, Xicheng District, Beijing

Tel: 86 (0) 10-63080000

Fax: 86 (0) 10-63080266

Web: http://www.cinda.com.cn

 

 

MANAGEMENT

 

Zeng Qingjun, Legal Representative and Chairman

------------------------------------------------------------------------------

Ø         Gender: M

Ø         ID# 37020419651025181X

Ø         Age: 46

Ø         Qualification: University

Ø         Working experience (s):

 

At present, working in SC as legal representative and chairman

 

Lin Fengzhang, General Manager

-------------------------------------------------------

Ø         Gender: M

Ø         ID# 370205196401281012

Ø         Age: 47

Ø         Qualification: University

Ø         Working experience (s):

 

At present, working in SC as general manager

Also working in Qingdao Double-Peach Specialty Chemicals (Group) Co., Ltd., Pingdu Branch as principal

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing dye, paint, intermediates; technology development, analysis & test, consultation, transferring, services for dye and intermediates; manufacturing, installing and leasing chemical equipment; storage services; wastewater treatment; leasing houses; exporting self-made products; importing technology, equipment, raw materials and preparation materials required in manufacturing (with permit if needed).

 

SC is mainly engaged in manufacturing dye and other fine chemical products.

 

disperse dyes, acid dyes, acid dyes for worsted fiber, acid dyes for polyamide fiber, acid dyes for leather, basic dyes, nigrosine, ices dyes, solvent dyes, organic intermediates.

 

Brand:

 

SC sources its materials 95% from domestic market, mainly Shandong Province, and 5% from overseas market. SC sells 80% of its products in domestic market, mainly Shandong Province, Zhejiang Province, etc., and 20% to overseas market, mainly India, Germany, etc.

 

The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.

 

*Major Supplier:

============

Dezhou Hongqiao Dyestuff Chemical Co., Ltd.

 

*Major Customer:

=============

Zhejiang Shengda Charter Win Chemicals Co., Ltd.

 

Staff & Office:

--------------------------

SC is known to have approx. 1,109 staff at present.

 

SC owns an area as its operating office & factory of approx. 340,000 sq. meters at the heading address.

 

 

RELATED COMPANY

 

SC is known to have the following subsidiaries and branches,

==============================================

n         Huntsman Textile Effects (Qingdao) Co., Ltd.

Registration No.: 370200400035350

Date of Registration: April 29, 1995

Legal Form: Chinese-foreign equity joint venture enterprise

Registered Capital: USD 25,000,000

Legal Representative: BARTHOLOMEW GRIFFIN

 

n         Qingdao Derui Leather Chemical Co., Ltd. (in translation)

Registration No.: 370200400017340

Date of Registration: December 31, 1994

Legal Form: Limited Liabilities Company

Registered Capital: CNY 24,848,400

Legal Representative: Xiao Xiao

 

n         Qingdao Double-Peach Specialty Chemicals (Group) Co., Ltd., Pingdu Branch

Registration No.: 370283330006223

Date of Registration: August 17, 2010

Principal: Lin Fengzhang

Etc.

 

SC is known to have the following offices,

================================

Tianjin Office                                                   Tel: 022-24553716 Fax: 022-24553716

Wuxi Office                                                    Tel: 0510-83128448           Fax: 0510-83151905

Yiwu Office                                                     Tel: 0579-85389578           Fax: 0579-85389578

Shaoxing Office                                              Tel: 0575-88978876           Fax: 0575-88605414

Nanhai Office                                                  Tel: 0757-85917056           Fax: 0757-85917056

 

 

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’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.

 

 

BANKING

 

Basic Bank:

Industrial & Commercial Bank of China Qingdao Sifang Sub-branch

AC#: 3803024009003300165

 

FINANCIALS

 

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2008

As of Dec. 31, 2009

As of Dec. 31, 2010

Cash

27,700

25,550

17,520

Notes receivable

7,780

11,740

0

Accounts receivable

73,030

79,300

82,800

Advances to suppliers

5,790

7,840

6,820

Other receivable

38,460

34,390

34,770

Inventory

68,010

83,500

95,170

Non-current assets within one year

0

0

0

Deferred expense

0

0

0

Other current assets

230

3,770

17,220

 

------------------

------------------

------------------

Current assets

221,000

246,090

254,300

Financial assets available for sale

0

0

0

Fixed assets

125,000

127,580

126,000

Construction in progress

5,540

4,280

32,820

Intangible assets

264,220

264,180

0

Long-term investment

36,610

35,190

35,190

Deferred income tax assets

0

0

0

Long-term deferred expenses

0

0

0

Other non-current assets

190

120

255,650

 

------------------

------------------

------------------

Total assets

652,560

677,440

703,960

 

=============

=============

=============

Short-term loans

97,500

124,200

172,300

Notes payable

13,000

15,000

0

Accounts payable

45,040

50,370

34,230

Salaries payable

0

0

0

Welfare payable

0

0

0

Taxes payable

-540

870

1,050

Advances from clients

0

0

0

Other payable

7,470

1,310

1,320

Other unpaid expenses

0

0

0

Accrued expenses

0

0

0

Other current liabilities

5,580

0

2,210

 

------------------

------------------

------------------

Current liabilities

168,050

191,750

211,110

Non-current liabilities

9,870

6,140

6,380

 

------------------

------------------

------------------

Total liabilities

177,920

197,890

217,490

Equities

474,640

479,550

486,470

 

------------------

------------------

------------------

Total liabilities & equities

652,560

677,440

703,960

 

=============

=============

=============

 

 

 

Income Statement

Unit: CNY’000

As of Dec. 31, 2009

As of Dec. 31, 2010

Revenue

428,040

532,000

Cost of sales

380,500

443,190

    Sales expense

13,340

14,500

    Management expense

30,380

47,960

    Finance expense

6,990

8,200

Investment income

4,690

1,450

Profit before tax

3,090

18,870

Less: profit tax

890

3,780

Profits

2,200

15,090

 

Important Ratios

=============

 

As of Dec. 31, 2008

As of Dec. 31, 2009

As of Dec. 31, 2010

*Current ratio

1.32

1.28

1.20

*Quick ratio

0.91

0.85

0.75

*Liabilities to assets

0.27

0.29

0.31

*Net profit margin (%)

--

0.51

2.84

*Return on total assets (%)

--

0.32

2.14

*Inventory / Revenue ×365

--

72 days

66 days

*Accounts receivable/ Revenue ×365

--

68 days

57 days

* Revenue/Total assets

--

0.63

0.76

* Cost of sales / Revenue

--

0.89

0.83

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: FAIRLY GOOD

l         The revenue of SC appears fairly good, and it increased in 2010.

l         SC’s net profit margin is average in 2009, fairly good in 2010.

l         SC’s return on total assets is average in 2009, fairly good in 2010.

l         SC’s cost of goods sold is average, comparing with its revenue in 2009 & 2010.

 

LIQUIDITY: AVERAGE

l         The current ratio of SC is maintained in a normal level in three years.

l         SC’s quick ratio is maintained in a normal level in three years.

l         The inventory of SC appears average.

l         The accounts receivable of SC appears average.

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: FAIRLY GOOD

l         The debt ratio of SC is average in three years.

l         The risk for SC to go bankrupt is low.

 

Overall financial condition of the SC: Fairly Good.

 

 

CONCLUSIONS

 

SC is considered large-sized in its line with fairly good financial conditions. Taking into consideration of SC’s development history, background, general performance, reputation as well as market conditions, a credit line up to USD 4,000,000 would appear to be within SC’s capacities.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.46.18

UK Pound

1

Rs.73.65

Euro

1

Rs.64.95

 

 

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%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.