MIRA
INFORM REPORT
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Report Date : |
30.04.2012 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Haier Industrial Park, No. 1 Haier Road, Laoshan District, Qingdao City, Shandong Province, 266100 Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
17.04.2001 |
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Com. Reg. No.: |
370281400007657 |
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Legal Form : |
Chinese-Foreign
Equity Joint Venture |
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Line of Business : |
manufacturing, researching and developing plastic materials |
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No. of Employees : |
550 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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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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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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
QINGDAO HAIER NEW MATERIAL R&D CO., LTD.
HAIER INDUSTRIAL PARK, NO. 1 HAIER ROAD,
LAOSHAN DISTRICT,
QINGDAO CITY, SHANDONG PROVINCE, 266100 PR CHINA
TEL: 86 (0)
532-88935614 FAX: 86 (0)
532-88935648
EXECUTIVE SUMMARY
INCORPORATION
DATE : APR. 17, 2001
REGISTRATION
NO. : 370281400007657
REGISTERED
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF
STRENGTH : 550
REGISTERED
CAPITAL :
USD 7,229,000
BUSINESS
LINE : MANUFACTURe,
R&D
TURNOVER : CNY 1,090,250,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 104,280,000 (AS OF DEC. 31, 2011)
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.29= 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
Note: SC’s complete English name is the heading one.
SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Apr. 17, 2001.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR China
is defined as a legal person. It is a limited co. jointly invested by one
or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition position
in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes engineering
plastics, special plastics, nano-materials, bio-materials, electronic
materials, decomposition, reuse of waste materials, research, development,
production, technology transfer and technical services of related products(with
permit if needed).
SC is mainly
engaged in manufacturing, researching and developing plastic materials.
Ms. Yang Mianmian
has been legal representative, chairman and general manager of SC since 2001.
SC is known to
have approx. 550 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Qingdao. Our checks reveal that
SC owns the total premise, but SC’s accountant refused to release the gross
area of the premise.
Note:
SC’s factory is located in Jiaozhou Haier International Industrial Zone,
Qingdao
http://www.haierplastic.com/
The website can’t be landed because of the technical reason.
SC’s former shareholders were Star Ocean International Limited (Hong
Kong)25%, Haier Group Company 65%, and HKH National
Engineering Research Center of Plastics Co., Ltd.10%, in July of 2010, they
were changed to the present ones.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Star Ocean International Limited (Hong Kong) 25
Qingdao Zhuoao Investment Co.,
Ltd. 75
Star Ocean International Limited (Hong Kong)
==================================
Incorporation Date: Dec. 9, 1998
Registration No.: 0662141
Registered Legal Form: Private
Qingdao Zhuoao Investment Co.,
Ltd.
===========================
Registration no.:
370282230030056
Legal representative: Bi Xian
Date of incorporation: May 14,
2010
Legal Representative,
Chairman & General Manager:
Ms. Yang Mianmian, born in 1941, with university education. She is currently responsible for the overall management of
SC.
Working Experience(s):
From 2001 to present Working in SC as legal representative, chairman and general manager
Also working in Qingdao Haier Special Electrical Appliances Co., Ltd., Qingdao Haier Software Investment Co., Ltd., Zhangqiu Haier Electromotor Co., Ltd. as legal representative.
SC is mainly engaged
in manufacturing, researching and developing plastic materials.
SC’s products mainly include: modified
functional plastics, heat resisting material, flame retardant material, alloy
material, nano-materials, PVC material,
etc.
SC sources its materials 50%
from domestic market, and 50% from overseas market, mainly Korea, India and
Taiwan. SC sells 80% of its products in domestic market, and 20% to overseas
market, mainly Hong Kong and Thailand
The buying terms of SC include Check, T/T, L/C and Credit of 30-45 days.
The payment terms of SC include T/T, L/C and Credit of 30-45 days.
Note: SC refused
to release its main customers and suppliers.
Qingdao Haier Special Electrical Appliances Co., Ltd.
Qingdao Haier Software Investment Co., Ltd.
Zhangqiu Haier Electromotor Co., Ltd.
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 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.
China
Construction Bank Qingdao Jiaozhou Sub-branch
AC# 37101997706059618618
Relationship:
Normal
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
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Cash & bank |
40,020 |
6,240 |
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Inventory |
141,920 |
80,710 |
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Bills receivable |
13,740 |
/ |
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Accounts receivable |
82,400 |
126,980 |
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Other Accounts receivable |
60 |
4,450 |
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Advances to suppliers |
13,150 |
24,440 |
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Other current assets |
30 |
3,600 |
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Current assets |
291,320 |
246,420 |
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Fixed assets net value |
52,240 |
50,040 |
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Projects under construction |
3,520 |
2,160 |
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Long term investment |
0 |
0 |
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Invisible assets |
1,390 |
3,220 |
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Other assets |
60 |
0 |
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Total assets |
348,530 |
301,840 |
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Short loans |
0 |
0 |
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Accounts payable |
186,070 |
143,180 |
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Dividends payable |
45,830 |
38,960 |
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Tax payable |
-24,590 |
-10,490 |
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Other Accounts payable |
5,750 |
6,150 |
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Notes payable |
20,800 |
3,810 |
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Advances from clients |
31,140 |
11,400 |
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Accrued expenses |
4,540 |
/ |
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Other current liabilities |
20 |
4,550 |
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Current liabilities |
269,560 |
197,560 |
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Long term liabilities |
0 |
0 |
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Total liabilities |
269,560 |
197,560 |
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Equities |
78,970 |
104,280 |
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Total liabilities & equities |
348,530 |
301,840 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
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Turnover |
842,190 |
1,090,250 |
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Cost of goods sold |
750,030 |
981,650 |
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Sales expense |
19,410 |
21,230 |
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Management expense |
36,590 |
43,910 |
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Finance expense |
1,570 |
3,670 |
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Profit before
tax |
34,740 |
34,100 |
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Less: profit tax |
8,790 |
8,790 |
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Profits |
25,950 |
25,310 |
Important Ratios
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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*Current ratio |
1.08 |
1.25 |
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*Quick ratio |
0.55 |
0.84 |
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*Liabilities
to assets |
0.77 |
0.65 |
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*Net profit
margin (%) |
3.08 |
2.32 |
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*Return on
total assets (%) |
7.45 |
8.39 |
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*Inventory
/Turnover ×365 |
62 days |
28 days |
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*Accounts
receivable/Turnover ×365 |
36 days |
43 days |
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*Turnover/Total
assets |
2.42 |
3.61 |
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* Cost of
goods sold/Turnover |
0.89 |
0.90 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line
and it increased in 2011.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level in
2010 and in a normal level in 2011.
l
The inventory of SC appears fairly large in 2010
and average in 2011.
l
The accounts receivable of SC appears average in
2010 but fairly large in 2011.
l
SC has no short-term loan in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high in 2010 and
average in 2011.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable
financial conditions. The large amount of accounts receivable
could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.52.68 |
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UK Pound |
1 |
Rs.85.12 |
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Euro |
1 |
Rs.69.38 |
INFORMATION DETAILS
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Report Prepared
by : |
MNL |
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 |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.