MIRA INFORM REPORT
|
Report Date : |
30.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
HUBEI XINGFA CHEMICALS GROUP CO., LTD. |
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Registered Office : |
Floor 8, Sanxia Shangcheng, No. 52-1, Jiefang Road,
Yichang, Hubei Province, 443000
Pr |
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Country : |
China
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Financials (as on) : |
30.06.2011 |
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Date of Incorporation : |
17.08.1994 |
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Com. Reg. No.: |
420000000007536 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling 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 7,000,000 |
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Status : |
Good |
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Payment
Behaviour : |
Usually Correct |
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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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Company name & address
HUBEI
XINGFA CHEMICALS GROUP CO., LTD.
floor 8, SANXIA
SHANGCHENG, no. 52-1, JIEFANG ROAD, YICHANG,
HUBEI PROVINCE,
443000 PR CHINA
TEL: 86 (0) 717-6760939 FAX: 86 (0) 717- 6760850
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 17, 1994
REGISTRATION NO. : 420000000007536
STAFF STRENGTH : 4,318
REGISTERED CAPITAL :
CNY 365,480,000
BUSINESS LINE : MANUFACTURING &
SELLING
TURNOVER : CNY 3,273,250,000 (Consolidated, JAN. 1 TO
jun. 30, 2011)
EQUITIES : CNY 2,099,008,000 (Consolidated, AS OF jun.
30, 2011)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 7,000,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY 6.40 = USD 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a shares limited co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Aug. 17, 1994.
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
phosphorus chemistry products and fine chemical products; producing and
selling of baking-free bricks; transporting and selling automotive parts;
installing electromechanical equipment; construction and decoration;
hydropower, power supply; phosphorus ore exploitation and selling; renting and
providing property management services; exporting its products and importing
the materials, machinery, instruments and technology needed for its products;
doing Sino-foreign joint venture co-production
and processing with imported
samples, assembling with imported parts, and compensation trade in agreement;
producing and selling of methyl-carbonate, phosphorus pentasulfide and dimethyl
sulfoxide.
SC is
mainly engaged in manufacturing and selling fine chemical products.
Mr. Li Guozhang has been legal representative and chairman of SC since 2006.
SC is known
to have approx. 4,318 employees at
present.
SC is currently
operating at the above stated address, and this address houses its operating
office in the commercial zone of Yichang. Our checks reveal that SC rents the
total premise about 600 square meters. SC’s factory is located in Zhaojun
Shanzhuang, Zhaojun Road, Gufu Town, Xingshan County, Yichang, Hubei Province
www.xingfagroup.com The design
is professional and the content is well organized. At present it is in both
Chinese and English versions.
Email: sunwd@xingfagroup.com
SC listed in Shanghai Stock Exchange in Jun., 1999 with the code of
600141.
SC has got GB/T 19001 Quality, GB/T 24001 Environment, GB/T 28001
Occupational Health and Safety and GB/T 22000 Food Safety Management Systems
Certificates.
Changes of its
registered information:
|
Date of change |
Items |
Before the change |
After the change |
|
Unknown |
Registered no. |
4200001000061 |
420000000007536 |
MAIN
SHAREHOLDERS: (As of June 30, 2011)
Name % of Shareholding
Yichang Xingfa Group Co., Ltd. 21.3
Xingshan County Water and Power
Professional Co. (literal translation) 6.69
Industrial and Commercial Bank
of China
-Nuoan Value Growth Stock
Securities Investment Funds (literal translation) 3.66
Hangzhou Fengying Electronic
Technology Co., Ltd. (literal translation) 3.63
Yichang Yiling State-owned
Assets Operation Co., Ltd. 3.6
Industrial and Commercial Bank
of China
-Yifangda Value Growth Mixed
Security Investment Fund 2.76
China Life Insurance Co., Ltd. -
Bonus-Individual Bonus
China Merchants Bank Co., Ltd-
Fuguo Tianhe Steady Returning Type Preference
Stock Type Securities Investment
Funds (literal translation) 1.66
Industrial and Commercial Bank
of China
-Huitianfu Balance Growth Stock
Type Securities Investment Funds (literal translation) 1.66
Industrial and Commercial Bank of China
Co., Ltd.
-Nuoan Growth Stock Type
Securities Investment Funds (literal translation) 1.38
Other shareholders 51.73
Yichang Xingfa Group Co., Ltd.
=======================
Legal Rep: Li Guozhang
Registered Capital: CNY
300,500,000
Registration no.:
420526000000682
Incorporated date: Dec. 29, 1999
Add.: Zhaojun
Shanzhuang, Zhaojun Road, Gufu Town, Xingshan County,
Yichang, Hubei Province
Website: www.ycxfgroup.com/
Tel.: +86-717-2581719
Fax: +86-717-2581719
Xingshan County Water and Power
Professional Co.
======================================
Legal Rep: Xiong Ai
Registered Capital: CNY
52,500,000
Incorporated date: Apr. 5, 2004
Registration no.:
420526000001659
Add.: Gufu Town, Xingshan County, Yichang,
Hubei Province
Tel: 86 0717- 2585798
Yichang Yiling State-owned
Assets Operation Co., Ltd.
========================================
Registered Capital: CNY
1,000,000,000
Legal Rep: Guo Xijun
Add.: Qinye Commercial Building, No. 7
Xilingyi Road, Yichang, Hubei Province
Tel：86 0717-6748089
Fax:
86 0717-6748001
Web: http://ylgzgs.com
Hangzhou Fengying Electronic Technology
Co., Ltd.
======================================
Registration no.: 330100000067749
Legal Rep: Lu Weidong
Add.: Room 904, No. 558, Middle of Zhongshan
Road, Shangcheng District, Hangzhou, Zhejiang Province, 310006 PR China
Tel.: 86 0571-56982222
l
Legal Representative and Chairman:
Mr. Li Guozhang, born in 1966, with Master’s
degree, senior economist. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2006 to present Working in SC as legal representative and chairman.
Also working in Yichang Xingfa
Group Co., Ltd. as chairman
l
Director and General Manager:
Mr. Shu Long, born in 1964, with Master’s
degree. He is currently responsible for the daily management of SC.
Working Experience(s):
Before 2006 Worked in SC as vice general manager.
From 2006 to present Working in SC as general manager and director.
*Officials:
=======
Name Title
Wang Jie Vice
general manger
Yang Tiejun Vice general
manger
Wang Xiangsen Vice
general manger
Hu Kunyi Vice
general manger and Chief accountant
Wu Huiqing Vice
general manger
Yuan Bing Vice
general manger
SC is
mainly engaged in manufacturing and selling fine chemical products.
SC’s products mainly include: phosphates technical grade, intermediates,
flame retardant, herbicide, tooth paste addititives, phosphates food grade and
feed grade phosphate, etc.
SC sources its materials 82% from
domestic market, and 18% from overseas market, mainly USA and Europe. SC sells
83% of its products in domestic market, and 17% to overseas market, mainly
Japan, Korea and Southeast Asian market.
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
Clients:
============
Procter & Gamble (U.S.A.)
*Major
Supplier:
=============
Chongqing
Xingfa Jinguan Chemical Co., Ltd.
Hubei Taisheng
Chemical Co., Ltd. (literal translation)
Shennongjia
Hengxin Mineral Industry Co., Ltd. (literal translation)
SC is known to have the following subsidiaries:
· Xingshan County Xingsheng Minerals Co., Ltd.
· Xingshan County Xingying Mineral Co., Ltd.
· Yichang Chulin Chemical Co., Ltd.
· Xingshan County Ju’an Blasting Engineering Co., Ltd.
·
Hubei Xingfa Chemicals Export & Import Co., Ltd.
· Liucheng Xingfa Economic Trading Co., Ltd.
· Guangxi Xingfa Chemical Co., Ltd.
· Xingshan Xingfa Installation Xiushi Co., Ltd.
· Yichang Xingfa Trading Co., Ltd.
· Hubei Xingfu Electronic Materials Co., Ltd.
· Yidu Xingfa Chemical Co., Ltd.
· Yichang Xinglin Phosphorus Chemicals Testing Co., Ltd.
· Baokang Chufeng Chemical Co., Ltd.
· Xingshan County Gengjiahe Coal Co., Ltd.
· Xingshan County Xinxing Chemical Co., Ltd.
· Shennongjia Wushan Mineral Industry Co., Ltd.
· Xingshan County Xiakou Port Co., Ltd.
· Anning Seastar Chemical Co, Ltd.
· Yangzhou Ruiyang Chemical Co., Ltd.
· Baokang Zhuangyuan Fertilizer Co., Ltd.
· Xingshan Hongxing Mineral Industry Co., Ltd.
· Xingshan Pingyikou Port Service Co., Ltd.
· Xingshan Ruitai Mining Technology Consultation Service Co., Ltd. (literal translation)
Etc.
SC is
known to invest in the following companies:
· Chongqing Xingfa Jinguan Chemical Co., Ltd.
· Hubei Taisheng Chemical Co., Ltd. (literal translation)
Etc.
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 supplier
refused to make 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 Construction Bank Xingshan Branch
AC#: 71122100566
Relationship:
Normal
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As of Jun. 30, 2011 |
As
of Dec. 31, 2010 |
|
Cash & bank |
447,979 |
183,356 |
|
Accounts
receivable |
545,945 |
274,770 |
|
Advances to
suppliers |
315,744 |
142,877 |
|
Bills receivable
|
147,346 |
156,728 |
|
Other
receivables |
39,737 |
6,758 |
|
Inventory |
308,932 |
459,212 |
|
Other current
assets |
1,336 |
5,059 |
|
|
------------------ |
------------------ |
|
Current assets |
1,807,019 |
1,228,760 |
|
Fixed assets net
value |
3,250,630 |
3,326,910 |
|
Projects under
construction |
1,702,350 |
875,065 |
|
Long term
investment |
218,441 |
194,058 |
|
Project material |
12,353 |
13,138 |
|
Long-term
prepaid expenses |
869 |
912 |
|
Intangible
assets |
526,502 |
537,416 |
|
Deferred income
tax assets |
11,626 |
15,320 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
7,529,790 |
6,191,579 |
|
|
============= |
============= |
|
Short loans |
347,518 |
200,000 |
|
Accounts payable |
480,467 |
351,851 |
|
Accounts
receivable advance |
135,906 |
116,595 |
|
Bills payable |
8,825 |
0 |
|
Taxes payable |
-64,213 |
-30,402 |
|
Salaries payable |
21,752 |
41,646 |
|
Interest payable |
3,571 |
2,340 |
|
Dividends
payable |
1,686 |
1,686 |
|
Other payable |
77,700 |
74,782 |
|
Non-current assets
due within one year |
873,070 |
374,510 |
|
Other current
liabilities |
400,000 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
2,286,282 |
1,133,008 |
|
Long term
payable |
10,886 |
10,886 |
|
Specified
payables |
4,300 |
4,300 |
|
Other
non-current assets |
185,344 |
177,673 |
|
Long term
liabilities |
2,943,970 |
2,896,180 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
5,430,782 |
4,222,047 |
|
Equities |
2,099,008 |
1,969,532 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
7,529,790 |
6,191,579 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
Jan. 1 to Jun. 30, 2011 |
As of Dec. 31, 2010 |
|
Turnover |
3,273,250 |
4,678,040 |
|
Cost of goods
sold |
2,872,020 |
3,965,240 |
|
Tax and additional duty of main operation |
41,213 |
61,250 |
|
Sales expense |
52,005 |
125,301 |
|
Management expense |
61,804 |
106,299 |
|
Finance expense |
85,622 |
139,796 |
|
Assets impairment loss |
18,095 |
10,312 |
|
Investment
income |
2,132 |
17,256 |
|
Non-operating
income |
21,756 |
21,808 |
|
Non-operating expense |
15,365 |
70,323 |
|
Profit before
tax |
151,014 |
238,583 |
|
Less: profit tax |
35,809 |
51,280 |
|
Profits |
115,205 |
187,303 |
Important Ratios
=============
|
As of June 30, 2011 |
As of Dec. 31, 2010 |
|
|
*Current ratio |
0.79 |
1.08 |
|
*Quick ratio |
0.66 |
0.68 |
|
*Liabilities
to assets |
0.72 |
0.68 |
|
*Net profit
margin (%) |
3.52 |
4.00 |
|
*Return on total
assets (%) |
1.53 |
3.03 |
|
*Inventory
/Turnover ×365 |
35days |
36days |
|
*Accounts
receivable/Turnover ×365 |
61days |
22days |
|
*Turnover/Total
assets |
0.43 |
0.76 |
|
* Cost of
goods sold/Turnover |
0.88 |
0.85 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears good in 2010 and the 1st
half of 2011.
l
SC’s net profit margin is average in 2010 and the 1st
half of 2011.
l
SC’s return on total assets is average in 2010 and
the 1st half of 2011.
l
SC’s cost of goods sold is average, comparing with
its turnover in 2010 and 1st half of 2011.
LIQUIDITY: FAIR
l
The current ratio of SC is fair in 2010 but fair in
the 1st half of 2011.
l
SC’s quick ratio is fair in 2010 and the 1st
half of 2011.
l
The inventory of SC is average in 2010.
l
The accounts receivable of SC is maintained in an
average level in 2010.
l
SC’s short-term loan is average in 2010 and the 1st
half of 2011.
l
SC’s turnover is fair in 2010 and the 1st
half of 2011, 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 conditions.
A credit line up to USD 7,000,000 appears to be
within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.93 |
|
UK Pound |
1 |
Rs.76.52 |
|
Euro |
1 |
Rs.66.65 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.