MIRA
INFORM REPORT
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Report Date : |
03.11.2012 |
IDENTIFICATION DETAILS
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Name : |
HAILIR PESTICIDES AND CHEMICALS GROUP CO.,
LTD |
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Formerly Known As : |
Qingdao Hailir Pesticides and Chemicals Co.,
Ltd. |
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Registered Office : |
No. 216, Guocheng Road, Chengyang District, Qingdao,
Shandong Province 266109 Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
01.12.1999 |
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Com. Reg. No.: |
370214228027509 |
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
manufacturing and
selling pesticides |
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No. of Employees : |
400 employees |
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 : |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned
system to a more market-oriented one that plays a major global role - in 2010 China
became the world's largest exporter. Reforms began with the phasing out of
collectivized agriculture, and expanded to include the gradual liberalization
of prices, fiscal decentralization, increased autonomy for state enterprises,
creation of a diversified banking system, development of stock markets, rapid
growth of the private sector, and opening to foreign trade and investment.
China has implemented reforms in a gradualist fashion. In recent years, China
has renewed its support for state-owned enterprises in sectors it considers
important to "economic security," explicitly looking to foster
globally competitive national champions. After keeping its currency tightly
linked to the US dollar for years, in July 2005 China revalued its currency by
2.1% against the US dollar and moved to an exchange rate system that references
a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of
the renminbi against the US dollar was more than 20%, but the exchange rate
remained virtually pegged to the dollar from the onset of the global financial
crisis until June 2010, when Beijing allowed resumption of a gradual
appreciation. The restructuring of the economy and resulting efficiency gains
have contributed to a more than tenfold increase in GDP since 1978. Measured on
a purchasing power parity (PPP) basis that adjusts for price differences, China
in 2010 stood as the second-largest economy in the world after the US, having
surpassed Japan in 2001. The dollar values of China's agricultural and industrial
output each exceed those of the US; China is second to the US in the value of
services it produces. Still, per capita income is below the world average. The
Chinese government faces numerous economic challenges, including: (a) reducing
its high domestic savings rate and correspondingly low domestic demand; (b)
sustaining adequate job growth for tens of millions of migrants and new
entrants to the work force; (c) reducing corruption and other economic crimes;
and (d) containing environmental damage and social strife related to the
economy's rapid transformation. Economic development has progressed further in
coastal provinces than in the interior, and by 2011 more than 250 million
migrant workers and their dependents had relocated to urban areas to find work.
One consequence of population control policy is that China is now one of the
most rapidly aging countries in the world. Deterioration in the environment -
notably air pollution, soil erosion, and the steady fall of the water table,
especially in the North - is another long-term problem. China continues to lose
arable land because of erosion and economic development. The Chinese government
is seeking to add energy production capacity from sources other than coal and
oil, focusing on nuclear and alternative energy development. In 2010-11, China
faced high inflation resulting largely from its credit-fueled stimulus program.
Some tightening measures appear to have controlled inflation, but GDP growth
consequently slowed to near 9% for 2011. An economic slowdown in Europe is
expected to further drag Chinese growth in 2012. Debt overhang from the
stimulus program, particularly among local governments, and a property price
bubble challenge policy makers currently. The government's 12th Five-Year Plan,
adopted in March 2011, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent on
exports in the future. However, China has made only marginal progress toward
these rebalancing goals.
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Source : CIA |
Company name & address
HAILIR PESTICIDES AND CHEMICALS GROUP CO., LTD.
NO. 216, GUOCHENG
ROAD, CHENGYANG DISTRICT,
QINGDAO, SHANDONG
PROVINCE 266109 PR CHINA
TEL: 86 (0) 532-66961509 FAX:
86 (0) 532-85722222
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 1, 1999
REGISTRATION NO. : 370214228027509
REGISTERED LEGAL FORM : SHARES LIMITED CO.
STAFF STRENGTH : 400
REGISTERED CAPITAL : CNY 90,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER : CNY 261,450,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 197,710,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.24 =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 correct name should be the heading one; the given address belongs to SC’s foreign trade department and the completed address should be the heading one.
SC was registered as a Limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Dec. 1, 1999 and has been under present ownership since 2011.
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 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. 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 pesticides,
chemical raw materials and fertilizer; importing and exporting commodities and
technologies. (with permit if needed)
SC is mainly engaged in manufacturing and
selling pesticides.
Mr.
Ge Yaolun is the legal representative
and chairman of SC at present.
SC is
known to have approx. 400 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in Qingdao. The
detailed premise information is unknown.
http://www.hailir.cn/ The design is professional and the content is
well organized. At present the web site is in Chinese and English versions.
Email: sales@hailir.net
SC was recognized as municipal-level technology center by
Qingdao Municipal Government; the “Waier” brand was selected as “Well-known
trademark” by both the Qingdao City and Shandong Province; in Jan. 2007, SC was
appraised as first-class credit rating enterprise by Qingdao Enterprise Credit
Committee.
Changes
of its registered information are as follows:
|
Date
of change |
Item |
Before
the change |
After the change |
|
2011 |
Company name |
Qingdao Hailir Pesticides and Chemicals Co., Ltd. |
Present one |
|
Legal form |
Limited liabilities co. |
Present one |
MAIN SHAREHOLDERS:
Name % of Shareholding
Zhang Aiying 51.53
Tianjin Huaxia Ruite Real Estate Investment
Management Co., Ltd. 2
Shanghai Sike Ruixin Investment Management
Center (Limited partnership) 2
Qingdao Yongwan High-tech Venture Investment
Co., Ltd. 1.01
Qingdao Liangxin Investment Center (Limited
partnership) 2.76
Qingdao Heyi Investment Center (Limited
partnership) 8.44
Qingdao Haorun Business Operation Management
Co., Ltd. 2
Ge Yaolun 25.11
Ge Dapeng 5.15
Legal
Representative and Chairman:
Mr. Ge Yaolun, born in 1961, senior economist, with Master’s degree. He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative and chairman.
Also working in
SC is mainly engaged in manufacturing and
selling pesticides.。
SC’s products mainly include: pesticides.
SC sources its materials 60% from domestic market and 40% from overseas market. SC sells 70% of its products in domestic market and 30% to overseas market.
The buying terms of SC include Check, T/T, L/C, and Credit of 30-60 days. The payment terms of SC include T/T, L/C, Check and Credit of 30-60 days.
Note: SC declined to
release its major suppliers and clients.
Subsidiaries:
(according to SC’s website)
Qingdao
Audis Bio-Tech Co., Ltd.
Registered
no.: 370214400021396
Legal
representative: Shi Shengxian
Establishment
date:
Registered
capital: CNY 10,160,000
Shandong
Hailir Chemical Co., Ltd.
Registered
no.: 370700400011923
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.
The banking
information of SC is unknown.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2011 |
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Cash & bank |
49,810 |
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Inventory |
75,750 |
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Accounts
receivable |
170 |
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Other
receivables |
129,960 |
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Other current
assets |
34,670 |
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------------------ |
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Current assets |
290,360 |
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Fixed assets net
value |
52,740 |
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Long term
investment |
123,680 |
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Projects under
construction |
150 |
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Intangible and
other assets |
4,850 |
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------------------ |
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Total assets |
471,780 |
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=========== |
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Short loan |
77,000 |
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Accounts payable |
21,090 |
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Advances from
clients |
50,940 |
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Taxes payable |
4,840 |
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Other Accounts
payable |
73,410 |
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Other current
liabilities |
45,540 |
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------------------ |
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Current
liabilities |
272,820 |
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Long term
liabilities |
1,250 |
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------------------ |
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Total
liabilities |
274,070 |
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Equities |
197,710 |
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------------------ |
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Total
liabilities & equities |
471,780 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2011 |
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Turnover |
261,450 |
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Cost of goods sold |
191,780 |
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Sales expense |
3,610 |
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Management expense |
36,230 |
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Finance expense |
3,780 |
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Profit before tax |
27,380 |
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Less: profit tax |
4,920 |
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Profits |
22,460 |
Important
Ratios
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As of Dec. 31, 2011 |
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*Current ratio |
1.06 |
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*Quick ratio |
0.79 |
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*Liabilities
to assets |
0.58 |
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*Net profit
margin (%) |
8.59 |
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*Return on
total assets (%) |
4.76 |
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*Inventory
/Turnover ×365 |
106 days |
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*Accounts
receivable/Turnover ×365 |
1 day |
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*Turnover/Total
assets |
0.55 |
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* Cost of
goods sold/Turnover |
0.73 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
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 normal level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears small.
l
The short-term loan of SC appears fairly large.
l
SC’s turnover is in a fair level, 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 average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.66 |
|
UK Pound |
1 |
Rs.86.37 |
|
Euro |
1 |
Rs.69.24 |
INFORMATION DETAILS
|
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 |
|
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 |
|
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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.