MIRA INFORM REPORT
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Report Date : |
14.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
HENGSHUI JINGHUA CHEMICAL 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 : |
12.12.2000 |
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Com. Reg. No.: |
131102100000534 |
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Legal Form : |
Limited
Liability Company |
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Line of Business : |
manufacture and sales of chemical products |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
3,500,000.00 Chinese
Yuan |
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Status : |
Moderate |
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Payment
Behaviour : |
Regular |
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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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
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
HENGSHUI JINGHUA CHEMICAL CO.
LTD
053000
Tel : 86
318 2667890
Fax 86 318 2159918
Email Box Info@Jinghuachem.Net
Website http://www.jinghuachem.net/gsjj.htm
Currency in this report is Chinese Yuan unless otherwise stated.
Exchange Rate: 1 USD=6.54 Chinese Yuan
"--"in this report indicates "unavailable" due to
insufficient information or "no comments"
Note: The telephone,
website, name and address provided in the order is not correct, the correct
ones are as what the report shows. The fax and email provided in the order
belong to subject company.
EXECUTIVE
SUMMARY
DATE OF
establishment : dec 12th,
2000
Aic
Registration No. : 131102100000534
REGISTERED
LEGAL FORM : limited
liability company
chief
executive : wu guoqing
REGISTERED
CAPITAL : 30,000,000.00
main
BUSINESS : manufacture
and sales of chemical products
TURNOVER : 326,789,000.00 (As of 2009)
net
profit : 4,034,000.00 (As of Dec.31th, 2009)
total
assets : 181,473,000.00 (As of Dec.31th, 2009)
net
worth : 70,294,000.00 (As of Dec.31th, 2009)
employees :
400
import
and export
permits :
yes
credit
rating : CR4
base CREDIT limiit
: 3,500,000.00 CHINESE Yuan
EXCHANGE
RATE : 1 Usd=6.54 CNY
(APR 7th, 2011)
Registered Address:
Telephone: 86 318 2150318
Business
Address:
Telephone: 86 318 2667890
Fax:
86 318 2159918
SIC Code (
REGISTRATION
|
Date of Establishment |
Dec 12th, 2000 |
|
Registry |
Hengshui Administration Bureau of Industry and Commerce |
|
Legal Representative |
Wu Guoqing |
|
AIC Registration Number |
131102100000534 |
|
Registered Legal Form |
limited liability company |
|
Registered Capital |
30,000,000.00 |
|
Operating Period |
From Dec 12th, 2000 to Dec 11th,
2030 |
|
Business Scope |
Manufacture of sebacic acid and its by-products, etc. Export of the
chemical products it produces by itself (excluding those organized joint
operation by the government).Import of raw materials, mechanical equipment,
instrument and meter, spare parts and related technologies, etc.(excluding
those forbidden by the government and with license for those needed) |
|
Changes in Registration |
1.
Sep 15th, 2010 Subject’s name was changed from HENGSHUI JINGHUA CHEMICAL FACTORY to
the present name. 2.
Sep 15th, 2010 Subject’s shareholders were changed from HENGSHUI CITY CHENGQU DAMASEN
COUNTRY ECONOMIC COMMISSION to the present shareholders. |
Limited
liabilities co.
This form of business in PR China is defined
as a legal person. Its registered capital is contributed jointly by at least
two shareholders and no more than fifty. Shareholders bear limited liability to
the extent of shareholding, and the co. is liable for its debts only to extent
of its total assets. The characteristics of this form of co. are as follows:
Upon the establishment of the co., an
investment certificate is issued to the each of shareholders.
The board of directors is comprised of three
to thirteen members.
The minimum registered capital for a co. is
listed as follows:
-manufacturing co. :
RMB 500,000.00
-trading &wholesaling co. :
RMB 500,000.00
-retailing co. : RMB 300,000.00
-consultancy & service co. :
RMB 100,000.00
Shareholders may take their capital
contributions in cash or by means of tangible assets or intangible assets such
as industrial property and non-patented technology.
Cash contributed by all shareholders must
account for at least 50% of the registered capital while contribution by
intangible assets must not exceed 20% of the registered capital.
Existing shareholders have pre-exemption
right to purchase shares of the co. offered for sale by the other shareholders
and to subscribe for the newly increased registered capital of the co.
REGISTRATION INFO: AVAILABLE
FINANCIAL REPORTS: AVAILABLE
FIELD
INVESTIGATION
1. Subject’s income comes mainly from chemical
products. Its sales are developed directly to the end users including
pharmaceutical and chemical manufacturers. The industry of chemical products is
an industry with fierce competition and SC has many competitors in the local
place. With a long history and a large scale, SC enjoys certain reputation and
customer base in the local industry. Generally speaking, SC’s competitiveness
in the local industry is above average.
2. Hengshui, where SC is
located, is an important traffic hinge with very convenient transportation
conditions. Its development provides the enterprise with a wide development
space. As a domestic enterprise, SC mainly deals with the manufacture and sales
business of chemical products. The local government doesn’t provide any favorable
policies.
SHAREHOLDERS
AND SHARES
As indicated in the following table:
|
Shareholder |
Capital Subscribed |
Percentage |
|
HENGSHUI JINGHUA STEEL PIPE CO.,LTD. |
27,000,000.00 |
90.00% |
|
Wu Guoqing |
3,000,000.00 |
10.00% |
|
Total |
30,000,000.00 |
100% |
|
Shareholder |
Way of Investment |
Paid-up Percentage |
|
HENGSHUI JINGHUA STEEL PIPE CO.,LTD. |
Capital |
100% |
|
Wu Guoqing |
Capital |
100% |
Background of major shareholder
|
Name |
HENGSHUI
JINGHUA STEEL PIPE CO.,LTD. |
|
Address |
|
|
Telephone |
86 318 6018005 |
|
Website |
http://www.jhhg.net/branch/index.asp?T=2 |
|
Main
Business |
Manufacture and sales of many kinds of steel tubes. |
|
Other
important information |
HENGSHUI
JINGHUA STEEL PIPE CO., LTD was established in 1993. It belongs to JINGHUA
CREATION GROUP CO. LTD and is a key enterprise in Hengshui. |
AFFILIATE(S)
After checking with the industry
and commerce channels, no affiliates of SC is found.
MANAGEMENT
|
Name |
Wu Guoqing |
|
Title |
Executive Director |
|
Gender |
Male |
|
ID No. |
133001196109080231 |
|
Date of birth |
Sep 8th, 1961 |
|
Working experience |
Wu Guoqing is now the vice general manager of JINGHUA CREATION GROUP
CO. LTD and at the same time the executive director of subject company. |
NUMBER OF EMPLOYEES
Employees: 400
Recent Recruitment No
BANKERS INFORMATION
|
Bank Name |
China Construction Bank – Hengshui Taocheng Branch |
|
Telephone of the person investigated |
86 318 2113145 |
|
Comment |
The investigated person confirmed subject opened an account in the
above bank. He refused to disclose any account information for the reason of
keeping secret for the depositor. |
OFFICE FACILITIES
Geographic Location: SC is located in
Property Ownership: self - owned
MAIN
PRODUCTS & SERVICES
|
Main business |
Manufacture and sales of chemical products |
|
Products and services |
SC mainly deals with manufacture and sales of chemical products. Its
products include sebacic Acid, sec-octyl alcohols, glycerin,
fatty acid, etc. Subject now can produce |
SALES
INFORMATION
|
Percentage of domestic
sales |
70% |
|
Regions |
All over |
|
Major domestic clients |
DU PONT CHINA HOLDING CO. LTD |
|
Sales Terms: |
Prompt payment; on credit |
|
Percentage of international sales |
30% |
|
Regions |
Europe, |
|
Sales Terms |
L/C |
|
Subject’s products are mainly sold domestically, only a small amount of
its products are sold in Europe and |
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|
The above information was confirmed by SC’s employee |
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PURCHASE
INFORMATION
|
Main Commodities Purchased |
Sulfuric acid, castor oil plant, production
facilities, office supplies, etc. |
|
Number of Major Suppliers |
More than 3 |
|
Major Suppliers |
HEBEI JIHENG GROUP CO LTD( 86 318 5179088) |
|
Main Terms of Payment |
Prompt payment, on credit (domestic) L/C T/T (overseas) |
|
Subject mainly imports castor oil plants from |
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|
The
above information was confirmed by SC’s employee |
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CREDIT
|
Name of supplier |
HEBEI JIHENG GROUP CO LTD |
|
Main commodities supplied |
Sulfuric acid |
|
Post of interviewee |
Sales staff |
|
Tel |
86 318 5179088 |
|
Remarks of interviewee |
Subject is one of this company’s clients. They cooperate well and
subject’s credit condition is normal. |
LITIGATION RECORDS
After
checking with
FINANCE
Balance Sheet (Unit: 1,000 Chinese Yuan):
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|
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Current assets |
|
|
|
|
Money capital |
|
21,075 |
40,126 |
|
Short-term
investment |
|
|
|
|
Notes receivable |
|
638 |
9,386 |
|
Net ball of
Account Receivable |
|
41,587 |
29,158 |
|
Payment in advance |
|
|
|
|
Subsidy Receivable |
|
|
|
|
Other Account
Receivable |
|
3,111 |
4,305 |
|
Inventory |
|
55,820 |
33,838 |
|
Other current
assets |
|
|
|
|
Export rebates
receivable |
|
|
|
|
Total current
Assets |
- |
122,231 |
116,813 |
|
Long-term
investment |
|
|
|
|
Long-term
investment |
|
|
|
|
Original value
of fixed assets |
|
73,571 |
83,039 |
|
Accumulated depreciation |
|
29,765 |
28,932 |
|
Net fixed assets |
0 |
43,806 |
54107 |
|
Fixed assets
depreciation reserve |
|
|
|
|
Net Value of Fixed
Assets |
0 |
43,806 |
54,107 |
|
Fixed assets in
liquidation |
|
|
|
|
Projects being
constructed |
|
8,243 |
|
|
Fixed assets losses in suspense |
|
|
|
|
Total fixed assets |
0 |
52,049 |
54,107 |
|
Intangible assets and deferred assets |
|
|
|
|
Intangible assets |
|
6,603 |
10,553 |
|
Deferred assets |
|
|
|
|
Total intangible and deferred assets |
- |
6,603 |
10,553 |
|
Other long-term assets |
|
|
|
|
Other long-term assets |
|
|
|
|
Total assets |
227,790 |
180,883 |
181,473 |
|
Current
liabilities |
|
|
|
|
Short-term loans |
|
|
|
|
Notes payable |
|
10,000 |
0 |
|
Account payable |
|
26,342 |
14,046 |
|
Deposit received |
|
|
|
|
Other accounts
payable |
|
48,827 |
112,297 |
|
Wages payable |
|
185 |
0 |
|
Welfare payable |
|
560 |
166 |
|
Tax unpaid |
|
-15,731 |
-19,145 |
|
Unpaid profit |
|
|
|
|
Accrued expenses |
|
0 |
3,815 |
|
L/T debt due in 1
year |
|
|
|
|
Other current
liabilities |
|
|
|
|
Total current
liabilities |
0 |
70,183 |
111,179 |
|
L/T liabilities |
|
|
|
|
L/T loans |
|
10,000 |
0 |
|
Bonds payable |
|
|
|
|
L/T account
payable |
|
|
|
|
Total L/T
liabilities |
10,000 |
10,000 |
0 |
|
Deferred tax |
|
|
|
|
Deferred tax |
|
|
|
|
Total liabilities |
133,680 |
80,183 |
111,179 |
|
Owner’s
interest |
|
|
|
|
Paid-up capital |
|
30,000 |
30,000 |
|
Contributed
surplus |
|
25,950 |
3,450 |
|
Surplus reserves |
|
11,941 |
0 |
|
Unconfirmed
investment loss |
|
|
|
|
Undistributed
profits |
|
32,809 |
36,844 |
|
Minority interest |
|
|
|
|
Total owner’s
interest |
94,110 |
100,700 |
70,294 |
|
Liabilities and owner’s interest |
227,790 |
180,883 |
181,473 |
Income
Statement (Unit:
1,000):
|
|
2007 |
2008 |
2009 |
|
Main business
income |
482,635 |
412,321 |
326,789 |
|
Main business cost |
|
381,348 |
310,925 |
|
Tax and associate
charge |
|
156 |
57 |
|
Main business
profit |
|
30,973 |
15,864 |
|
Other business
profit |
|
-94 |
|
|
Operation expenses |
|
4,846 |
4,623 |
|
- management
expenses |
|
5,757 |
5,491 |
|
Financial expenses |
|
11,317 |
4,009 |
|
Operation profit |
0 |
8,959 |
1,741 |
|
Investment profit |
|
|
|
|
Subsidy income |
|
|
|
|
Non business
income |
|
41 |
2,293 |
|
- non business
expenses |
|
209 |
|
|
Prior year income
adjustment |
|
|
|
|
Total profit |
22,362 |
8,791 |
4,034 |
|
- income tax |
20,864 |
2,197 |
0 |
|
Minority stock
holder’s interest |
|
|
|
|
Net profit |
1,498 |
6,594 |
4,034 |
Important
Ratios:
|
|
2007 |
2008 |
2009 |
|
Return on net
assets (%) |
1.59 |
6.55 |
5.74 |
|
Return on total
assets (%) |
0.66 |
3.65 |
2.22 |
|
Net profit margin
(%) |
0.31 |
1.60 |
1.23 |
|
Turnover of total
assets |
2.12 |
2.28 |
1.80 |
|
Turnover of
current assets |
|
3.37 |
2.80 |
|
Turnover of
accounts receivable |
|
9.91 |
11.21 |
|
Inventory turnover |
|
6.83 |
9.19 |
|
Asset liability
ratio (%) |
58.69 |
44.33 |
61.26 |
|
Current ratio |
|
1.74 |
1.05 |
|
Quick ratio |
|
0.95 |
0.75 |
Major Financial Information (Unit: 1,000)
|
|
2007 |
2008 |
2009 |
|
Main business income |
482,635 |
412,321 |
326,789 |
|
Total profit |
22,362 |
8,791 |
4,034 |
|
Net profit |
1,498 |
6,594 |
4,034 |
|
Total assets |
227,790 |
180,883 |
181,473 |
|
Total liabilities |
133,680 |
80,183 |
111,179 |
|
Total owner’s interest |
94,110 |
100,700 |
70,294 |
|
Source from |
government |
government |
government |
|
Whether audited or not |
Yes |
Yes |
Yes |
Analysis of
Financial Indicators
We mainly analyze Subject’s indicators in 2009. All of SC’s profitability
indicators are negative which indicates that SC’s profitability is poor. SC’s
turnover of total assets and turnover of current assets were all low which
indicates that its capital operation ability is poor. SC’s turnover of account
receivable is too much which indicates that its debt recovery speed is fast.
SC’s asset liability ratio which is reasonable which indicates that its
long-term solvency is OK. In addition, SC’s current ratio was low than quick
ration which indicates that its short-term solvency is poor.
INDUSTRY
PROFILE
Industry
SIC Code (
Description:
manufacture of organic intermediate, HC and halogen derivative, alcohol, phenol
and the derivative, ether, ketone,
amides, organic phosphate, organic compound, salt etc.
Status Quo & Trend
From January to
March 2010, the export value of chemicals of
GENERAL
COMMENTS
Subject
Company which was established in December, 2000 was a limited liability
company. SC mainly deals with manufacture and sales of chemical products. With
a long history and a large business scale, it enjoys certain reputation and
influence power in its industry.
SC’s
existing financial data show that its main business income in 2009 decreased by
20.74% compared with that of 2008. That indicates that SC’s business
development shrinked a lot in 2009. Since SC’s cost control ability is poor, its
net profit ratio is low. SC’s inventories and accounts receivable are in
reasonable range in 2009 which is favorable to SC’s normal capital turnover and
capital operation. SC had many other account payable in 2009 which indicates
that it has close business relationship with its related companies.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.10 |
|
|
1 |
Rs.74.64 |
|
Euro |
1 |
Rs.64.42 |
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 |
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.