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Report Date : |
09.06.2012 |
IDENTIFICATION DETAILS
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Name : |
GUANGXI FENGCHENGGANG DUOLIN CHEMICAL CO LTD. |
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Registered Office : |
Yuzhou Ping Industrial Zone |
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Country : |
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Date of Incorporation : |
22.08.2008 |
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Com. Reg. No.: |
450600200011126 |
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Legal Form : |
Limited Liabilities
Company |
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Line of Business : |
Manufacture and Sales of Phosphoric Acid |
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No. of Employees : |
50 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 |
|
name |
Guangxi Fengchenggang Duolin Chemical Co Ltd. |
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address |
Yuzhou Ping Industrial Zone |
Currency in this report is Chinese Yuan unless
otherwise stated.
Exchange Rate: 1 USD=6.37Chinese Yuan
"--"in this report indicates
"unavailable" due to insufficient information or "no
comments"
|
DATE OF establishment |
Aug. 22nd, 2008 |
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Aic Registration No. |
450600200011126 |
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REGISTERED LEGAL FORM |
limited liabilities
company |
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REGISTERED CAPITAL |
5,000,000.00 |
|
main BUSINESS |
manufacture and sales of phosphoric acid |
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employees |
50 |
|
import and export permits |
yes |
|
EXCHANGE RATE |
1 Usd=6.31CNY |
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Registered Address |
Yu Zhou Cheng Industrial Park, Gangkou Dist, Fangchenggang City,
Guangxi Province |
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Zip Code |
538001 |
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Business Address |
Yu Zhou Cheng Industrial Park, Gangkou Dist, Fangchenggang City, Guangxi
Province |
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Zip Code |
538001 |
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Telephone |
86 770 2862525 / 18907703702 |
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Fax |
86 770 2863199 |
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|
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SIC Code (China) |
2613 manufacture of inorganic sale |
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Name (Chinese) |
广西防城港多麟化工有限公司 |
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Name (English) |
GUANGXI FANGCHENGGANG DUOLIN CHEMICAL CO., LTD. |
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Date of Establishment |
AUG. 22nd, 2008 |
|
Registry |
Administration Bureau for Industry and Commerce – Fangchenggang City,
Guangxi Province |
|
Legal Representative |
Zhu Tie |
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AIC Registration Number |
450600200011126 |
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Registered Legal Form |
Limited liabilities company |
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Registered Capital |
5,000,000.00 |
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Operating Duration |
Aug. 22nd, 2008 to Aug. 21st, 2028 |
|
Business Scope |
Manufacture and sales of special level of phosphoric
acid and food additive phosphoric
acid; Import and export of commodities and technologies |
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
Subject’s
income comes mainly from manufacture of special level of phosphoric acid and
food additive phosphoric acid. Its clients are mainly food manufacturers and
traders. The industry of phosphoric acid product is an industry with fierce
competition. There are a lot of similar companies in the local place as
subject’s competitors. However, subject’s location is famous for sugar industry,
which provides certain support for subject’s business development. With certain
customer network and large sales volume, subject’s competitiveness is above
average in the local place.
Locating
in the Southwest of China’s coast line and facing the Southeast Asia countries,
Fangchenggang City has outstanding regional advantage. It is the link between
Southwestern China and Southeast Asia and even the world. Favorable location
and harbor condition provides local enterprises with good business environment
and industry development environment. The economic power of the city is keeping
increasing. In 2011, the GDP of the city reached 41.8 billion CNY, 3% higher
the whole Southwestern China.
As
indicated in the following table:
|
Shareholder |
Capital
Subscribed |
Percentage |
|
Liang Yuzhen |
1,625,000.00 |
32.5% |
|
Wang Yuping |
1,750,000.00 |
35% |
|
Zhu Tie |
1,,625,000.00 |
32.5% |
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Total |
5,000,000.00 |
100% |
Background
of major shareholder
|
Name |
Liang Yuzhen |
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Gender |
Female |
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Date of birth |
May 3rd, 1955 |
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Name |
Wang Yuping |
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Gender |
Male |
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Date of birth |
Aug. 3rd, 1985 |
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Name |
Zhu Tie |
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Gender |
Male |
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Date of birth |
May 14th, 1962 |
No affiliate of subject is
found after checking.
|
Name |
Zhu Tie |
|
Gender |
Male |
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Title |
Legal Representative |
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Date of birth |
May 14th, 1962 |
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Education |
-- |
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Working experience |
Industry experience: 15 years; Management experience: 5 years |
Employees:
50
Management
Staff: 10
Recent
recruitment: No
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Bank name |
Industrial and Commercial Bank of China –
Fangchenggang Branch |
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Account No. (CNY) |
-- |
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Tel. |
86 770 2822578 |
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Comment |
The bank information was provided by subject’s
staff. However, the bank staff refused to disclose any information. |
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Geographic Location |
Yu Zhou Cheng Industrial Park, Gangkou Dist, Fangchenggang City,
Guangxi Province |
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Area |
18,000 square meters |
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Environment |
Industrial zone |
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Traffic condition |
The traffic condittion is good. |
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Purpose |
Office; warehouse; plant |
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Property Ownership |
N/A |
Website Subject holds no
independent website.
After checking with the Trademark Office
of Chinese Administration Bureau of Industry and Commerce and the State
Intellectual Office, no trademarks or patents of SC were found.
|
Main business |
manufacture of
phosphoric acid |
|
Products and services |
Special level phosphoric acid, food additive phosphoric acid, industrial polishes etc. |
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Picture of specific products |
-- |
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Annual production capacity |
food additive phosphoric acid: 30,000 tons; industrial
polishes: 20,000 tons |
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Domestic sales |
60% |
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Regions |
All
over China |
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Major domestic clients |
GUANGXI LIUZHOU
GUITANG CO. LTD |
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Competitors |
HENAN PROVINCE LUSHAN
COUNTY YONGXING PHOSPHORIC ACID CHEMICAL INDUSTRY CO.,LTD; SICHUAN HONGDA CO., LTD; QINGZHOU XINYUAN CHEMICAL
CO. LTD; SHANDONG LUBEI CHEMICAL
CO. LTD |
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Payment terms |
Prompt payment; on credit |
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Export |
40% |
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Regions |
USA,
North America, Europe, Africa etc. |
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Major overseas clients |
Fang Chemicals, inc. |
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Payment terms |
L/C, T/T |
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Subject’s domestic
clients are mainly local sugar manufacturers. Its international clients are
mainly traders of chemical products. |
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The above information was
confirmed by SC’s employee on Jun.8th, 2012. |
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Main Commodities Purchased |
Yellow Phosphorus; iron; arsenic; production
equipments |
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Number of Major Suppliers |
About 5 |
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Region |
Domestic: 100% Import: 0% |
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Major suppliers |
GUIZHOU WENGFU
PHOSPHORUS CO. LTD |
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Main Terms of Payment |
Local: Prompt payment; on
credit Import: L/C, T/T |
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Subject’s chemical raw materials (yellow
phosphorus) are mainly purchased from Yunnan, Guizhou Province which has
sufficient and high quality yellow phosphorus. |
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The above information was confirmed by SC’s
employee on Jun.8th, 2012. |
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Name of supplier |
GUIZHOU
WENGFU PHOSPHORUS CO. LTD |
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Main commodities and service supplied |
yellow phosphorus |
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Interviewee |
Manager Chen (sales department) |
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Telephone of Interviewee |
86 854 2184808 |
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Payment comment |
Not clear |
After checking with China Court
organization, the local court website and other major searching websites, no
litigation record related to SC in the latest three years is found.
N/A
1. Subject’s introduction: http://www.gkqdj.gov.cn/News_View.asp?NewsID=1039
2. Subject’s introduction: http://www.jobui.com/company/8539180/
Subject’s financial
information is unavailable through AIC channel. According to Manager Chen, its
sales volume of 2011 was about 150 million CNY (28,000 tons).
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2010
|
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Return on net assets
(%) |
6.21 |
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Return on total
assets (%) |
2.37 |
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Net profit
margin (%) |
2.47 |
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Turnover of
total assets |
1.05 |
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Turnover of
current assets |
1.71 |
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Turnover days of
account receivable |
36.98 |
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Inventory
turnover days |
64.70 |
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Asset liability
ratio (%) |
58.57 |
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Current ratio |
1.31 |
|
Quick ratio |
0.96 |
Industry
SIC Code (China): 2613 manufacture of inorganic salt
Description: include Sulphates,
nitrate, Phosphate, carbonate etc. and other inorganic salt chemicals
Status
Quo & Trend
As an important basic raw
material of chemical industry, inorganic salt includes 22 series of more than 1300
kinds of products. So far, China’s inorganic salt industry has accumulated
certain scale and become the largest manufacturing country of inorganic salt.
From Jan. to Nov. 2011, the total sales income of 1495 large-sized enterprises
in the industry reached 130 billion CNY (increasing 31.45% y/y) with a total
profit of 6 billion CNY increasing 80.27% y/y.
During the 12th
Five Year Plan period, inorganic salt industry should accomplish reforms of
industry structure and product structure. The energy cost and emission
discharge should decrease at planned rate. Refined inorganic salt products
should account for higher than 50% of the total products.
Industry Associations
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Name of association |
Membership of subject (Yes/No) |
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China food grade sulfate industry association |
No |
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Chinese Salt Industry Association |
No |
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International phosphate industry association |
No |
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Guizhou phosphate industry association |
No |
Established
in Aug. 2008, subject is engaged in manufacture of food additive phosphoric
acid products. Its clients are mainly local sugar manufacturers and
international traders. With short history, its industry experience is limited.
With individual shareholders, the financing and risk resisting capacity is
weak.
The
developed sugar industry of Guangxi Province provides great development
opportunity for food additive phosphoric acid (a major raw material of sugar
industry) enterprises. Although started production from 2010, subject’s
business has been well developed. Convenient traffic condition also provides
supports to its business.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.36 |
|
|
1 |
Rs.85.64 |
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Euro |
1 |
Rs.69.21 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
RATING EXPLANATIONS
|
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 |
|
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 |
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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 |
-- |
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.