MIRA INFORM REPORT

 

 

Report Date :

21.03.2012

 

IDENTIFICATION DETAILS

 

Name :

YIBIN TIANYUAN GROUP CO.LTD.

 

 

Registered Office :

Xiajiangbei, Yibin, Sichuan Province 644004 PR

 

 

Country :

China

 

 

Financials (as on) :

30.09.2011

 

 

Date of Incorporation :

01.01.1994

 

 

Com. Reg. No.:

511500000003613

 

 

Legal Form :

Shares Limited Company

 

 

Line of Business :

Manufacturing and Selling Basic Chemical Raw Materials, Synthetic Organic Chemical Raw Materials

 

 

No. of Employees :

6,658

 

 

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 15,000,000

Status :

Good

Payment Behaviour :

No complaints

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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 and address

 

YIBIN TIANYUAN GROUP CO.，LTD.

xiajiangbei, yibin, sichuan province 644004 PR CHINA

TEL: 86 (0) 831-3608560/3608918

FAX: 86 (0) 831-3601446/3607026

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : January 1, 1994

REGISTRATION NO.                  : 511500000003613

LEGAL FORM                           : SHARES LIMITED COmpany

CHIEF EXECUTIVE                    : XIAO CHIQUAN (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 479,771,290

staff                                      : 6,658

BUSINESS CATEGORY : processing & trading

Revenue                                : CNY 4,351,832,000 (Consolidated, JAN. 1 TO SEP. 30, 2011)

EQUITIES                                 : cny 4,294,209,000 (Consolidated, AS OF SEP. 30, 2011)

WEBSITE                                 : www.ybty.com

E-MAIL                                     : ybty@ybty.com

PAYMENT                                : AVERAGE

Recommended Credit Limit: UP TO USD 15,000,000

MARKET CONDITION                : COMPETITIVE

FINANCIAL CONDITION             : fairly good

OPERATIONAL TREND  : STEADY

GENERAL REPUTATION           : FAIRLY GOOD

EXCHANGE RATE                     : CNY 6.32 = USD

 

 

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 shares limited company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 511500000003613 on January 1, 1994.

 

SC’s Organization Code Certificate No.: 20885067-X

SC’s registered capital: CNY 479,771,290

 

SC’s paid-in capital: CNY 479,771,290

 

Registration Change Record:

Date

Change of Contents

Before the change

After the change

1997-10-17

Registration No.

20885067-X

20886104-5

Registered Capital

CNY 135,066,900

CNY 97,650,300

2005-08

Registered Capital

CNY 97,650,300

CNY 195,300,600

2007-11

Registration No.

20886104-5

511500000003613

Registered Capital

CNY 195,300,600

CNY 299,809,409

2010

Registered Capital

CNY 299,809,409

CNY 479,771,290

 

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

Name of Shareholder (s) (As of June 30, 2011)

% of Shareholding

Yibin City State-Owned Assets Management Co., Ltd.

 

17.52

Zhejiang Rongsheng Holding Group Co., Ltd.

 

15.69

China Orient Asset Management Corporation

 

12.55

Guangdong Dymatic Chemicals Co., Ltd.

 

11.77

Hangzhou Chenyang Investment Co., Ltd.

 

11.77

China Greatwall Asset Management Corporation

 

2.61

China Everbright Bank-Taixin First Strategy Open-End Securities Investment Funds

 

1.56

National Social Security Fund Council

 

1.39

Industrial and Commercial Bank of China- E Fund Value Selected Stock Securities Investment Fund

 

0.83

China Pacific Life Insurance Company Limited- Dividend - Personal Dividends

 

0.54

Other shareholders

 

23.77

 

SC’s Chief Executives:-

Position

Name

Legal Representative and Chairman

Xiao Chiquan

Vice Chairman

Li Shuirong

CEO

Luo Yun

 

 

RECENT DEVELOPMENT

 

SC is a listed company in Shenzhen Stock Exchange Market with the code of 002386.

 

 

SHAREHOLDER CHART & BACKGROUND

 

 

Name (As of June 30, 2011)                                                                   % of Shareholding

 

Yibin City State-Owned Assets Management Co., Ltd.

                                                                                                            17.52

 

Zhejiang Rongsheng Holding Group Co., Ltd.

                                                                                                            15.69

 

China Orient Asset Management Corporation

                                                                                                            12.55

 

Guangdong Dymatic Chemicals Co., Ltd.

                                                                                                            11.77

 

Hangzhou Chenyang Investment Co., Ltd.

                                                                                                            11.77

 

China Greatwall Asset Management Corporation

                                                                                                            2.61

 

China Everbright Bank-Taixin First Strategy Open-End Securities Investment Funds

 

National Social Security Fund Council

                                                                                                            1.39

 

Industrial and Commercial Bank of China- E Fund Value Selected Stock Securities Investment Fund

                                                                                                            0.83

 

China Pacific Life Insurance Company Limited- Dividend - Personal Dividends

                                                                                                            0.54

 

Other shareholders

                                                                                                            23.77

 

*         Yibin City State-Owned Assets Management Co., Ltd.

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

Registration No.: 511500000006030

Legal Form: Sole State-Owned Enterprise

Chief Executive: Yu Mingshu

Registered Capital: CNY 1390,000,000

 

*         Zhejiang Rongsheng Holding Group Co., Ltd.

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

Date of Registration: September 13, 2006

Registration No.: 330000000010055

Legal Form: Limited Liabilities Company

Chief Executive: Li Shuirong

Registered Capital: CNY 200,000,000

 

 

MANAGEMENT

 

Xiao Chiquan, Legal Representative and Chairman

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

Ø         Gender: F

Ø         Age: 56

Ø         Qualification: EMBA

Ø         Working experience (s):

 

From 2000 to present, working in SC as legal representative and chairman

 

Li Shuirong, Vice Chairman

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

Ø         Gender: M

Ø         Age: 56

Ø         Qualification: University

Ø         Working experience (s):

 

At present, working in SC as vice chairman

Also working in Zhejiang Rongsheng Holding Group Co., Ltd. as legal representative

 

Luo Yun , CEO

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

Ø         Gender: M

Ø         Age: 47

Ø         Qualification: University

Ø         Working experience (s):

 

From 2000 to present, working in SC as CEO

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing and selling basic chemical raw materials, synthetic organic chemical raw materials, chemical products, international trade; manufacturing and installing plastic products, pressure vessels, wire and cable, building materials, chemical machinery, electrical instrumentation installation and construction, manufacturing medical oxygen; manufacturing and selling flavors and fragrances.

 

SC is mainly engaged in cultivation, propagation, promotion and sales of high-tech crop seeds and seedlings; processing and selling agricultural and sideline products.

 

SC’s products mainly include:

TRICHLOROETHYLENE

Sodium Formate

Caustic Soda Flakes

Sodium Hexametaphosphate

Sodium Tripolyphosphate

Formic Acid

Hydrazine Hydrate

Polyvinyl chloride (PVC)

Etc.

  

SC sources its materials 100% from domestic market, mainly Sichuan. SC sells 25% of its products to overseas market, and 75% in domestic market.

 

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

 

*Major Customers:

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

Yibin Hiest Fibre Limited Corporation

Guangdong Liansu Technology Industry Co., Ltd.

Shanghai Conch Chemicals Company Limited

Tianjin Sunlight Import & Export Trading Co., Ltd.

Henan Lianchuang Chemical Co., Ltd.

 

Staff & Office:

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

SC is known to have approx. 6,658 staff at present.

 

SC owns an area as its operating office and factory, but the detailed information is unknown.

 

 

RELATED COMPANY

 

Subsidiaries:

==========

Yibin Tianyi Special Resin Co., Ltd.

 

Yibin Tianlan Chemical Co., Ltd.

 

Yibin Tianyuan Special Cement Co., Ltd.

 

Yibin Tianchang Logistic Co., Ltd.

 

Yibin Tiangang Logistic Co., Ltd.

 

Yunnan Tianyuan Group Co., Ltd.

 

Yunnan Tianli Coalification Co., Ltd.

 

Yibin Haifeng Heyue Co., Ltd.

Etc.

 

 

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:

 

Agricultural Bank of China

 

AC#: 22-480101040007390

 

 

FINANCIALS

 

Consolidated Balance Sheet

Unit: CNY’000

As of Dec. 31, 2010

As of Sep. 30, 2011

Cash

1,710,972

1,851,230

Held for trading financial assets

0

0

Accounts receivable

64,137

91,849

Notes receivable

332,617

413,889

Advances to suppliers

360,881

704,016

Interest receivable

0

0

Other receivable

86,561

86,336

Inventory

656,634

659,471

Dividend receivable

0

0

Other current assets

0

0

 

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

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

Current assets

3,211,802

3,806,791

Fixed assets

4,838,187

4,641,770

Construction in progress

1,156,289

2,189,081

Project materials

12,874

80,784

Intangible assets

677,384

663,919

Long-term investment

101,915

104,518

Development expenditure

0

0

Goodwill

132,437

132,437

Long-term deferred expense

13,043

14,945

Deferred income tax assets

17,963

15,035

Other non-current assets

23,387

23,387

 

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

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

Total assets

10,185,281

11,672,667

 

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

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

Short-term loans

1,846,380

2,738,200

Notes payable

393,261

765,790

Accounts payable

884,263

626,717

Wages payable

51,781

18,446

Taxes payable

-8,833

-26,112

Interest payable

268

26,209

Dividend payable

0

0

Advances from clients

160,631

229,948

Other payable

139,562

102,469

Other current liabilities

557,499

1,016,500

 

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

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

Current liabilities

4,024,812

5,498,167

Non-current liabilities

1,745,391

1,880,291

 

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

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

Total liabilities

5,770,203

7,378,458

Equities

4,415,078

4,294,209

 

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

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

Total liabilities & equities

10,185,281

11,672,667

 

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

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

 

Consolidated Income Statement

Unit: CNY’000

As of Dec. 31, 2010

Jan. 1 to Sep. 30, 2011

Revenue

4,958,043

4,351,832

     Cost of sales

4,204,368

3,718,828

     Taxes and surcharges

27,221

24,873

     Sales expense

160,255

103,941

     Management expense

356,130

282,074

     Finance expense

113,416

157,204

     Assets impairment loss

1,983

-402

Investment income

6,208

3,856

Non-operating income

51,974

56,586

     Non-operating expense

1,507

3,027

Profit before tax

151,344

122,729

Less: profit tax

22,066

31,487

Profits

129,278

91,242

 

Important Ratios

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

 

As of Dec. 31, 2010

As of Sep. 30,  2011

*Current ratio

0.80

0.69

*Quick ratio

0.63

0.57

*Liabilities to assets

0.57

0.63

*Net profit margin (%)

2.61

2.10

*Return on total assets (%)

1.27

0.78

*Inventory / Revenue ×365/270

49 days

41 days

*Accounts receivable/ Revenue ×365/270

5 days

6 days

* Revenue/Total assets

0.49

0.37

* Cost of sales / Revenue

0.85

0.86

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: AVERAGE

l         The revenue of SC appears good in its line.

l         SC’s net profit margin is average.

l         SC’s return on total assets is average.

l         SC’s cost of sales is average, comparing with its revenue.

 

LIQUIDITY: FAIR

l         The current ratio of SC is maintained in a fair level.

l         SC’s quick ratio is maintained in a fair level.

l         The inventory of SC is maintained in an average level.

l         The accounts receivable of SC is maintained in an average level.

l         The short-term loans of SC appear large.

l         SC’s revenue is in a fair level, comparing with the size of its total assets.

 

LEVERAGE: FAIRLY GOOD

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 Good.

 

 

CONCLUSIONS

 

SC is considered large-sized in its line with fairly good financial conditions. A credit line up to USD 15,000,000 would appear to be within SC’s capacities.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.50.25

UK Pound

1

Rs.79.76

Euro

1

Rs.66.52

 

 

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.