MIRA
INFORM REPORT
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Report Date : |
10.11.2012 |
IDENTIFICATION DETAILS
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Name : |
AIHUA
HOLDING GROUP CO., LTD. |
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Registered Office : |
17/F, New |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
19.05.2003 |
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Com. Reg. No.: |
331000000001676 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in investing & managing subsidiaries and
international trade. |
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No. of Employees : |
381 |
RATING & COMMENTS
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
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
|
Source
: CIA |
Company name and address
AIHUA HOLDING GROUP CO., LTD.
17/F, NEW TAIZHOU BUILDING, TAIZHOU,
ZHEJIANG PROVINCE, 318000 PR CHINA
TEL: 86 (0) 576-88551771 FAX: 86 (0) 576-88551788/88600076
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAY 19, 2003
REGISTRATION NO. :
331000000001676
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
381
REGISTERED CAPITAL : CNY 231,800,000
BUSINESS LINE :
INVESTMENT & TRADE
TURNOVER :
CNY 1,721,800,000 (AS OF DEC.
31, 2011)
EQUITIES :
CNY 115,180,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.24 = USD
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 limited
liabilities co. at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on May 19, 2003.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. 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 CNY 30,000. 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 30% 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.
SC’s registered business scope includes wholesaling chemical
raw materials (including toluene, methanol, acetone, N, N-dimethylformamide, ethanol,
ethyl acetate, tetrahydrofuran, dichloromethane, chloroform and glacial acetic
acid, N-butanol, isobutanol, China propanol, butanone, dichloroethane, (b)
carbonate, methyl acetate, methyl acetate, pyridine, styrene, epichlorohydrin,
benzene, sulfur, methyl isobutyl ketone, ethylene glycol diethyl ether,
methylal, xylene isomer mixture, hexane, hexamethylene tetramine (urotropine),
1,2 - dichloropropane); storing hazardous chemical raw materials (validity
period as of May 30, 2013); industrial investment; landscaping; manufacturing
cement products; manufacturing furniture; manufacturing metal structure;
wholesaling and retailing building materials, metal materials, machinery
electrical equipment, decorative materials and fuel oil (excluding refined oil);
processing with metal; manufacturing, processing and selling gold & silver
crafts and silver products; technical development, transfer and consulting
service; importing and exporting commodities; general cargo; warehousing
services (excluding hazardous chemicals); selling aluminum, aluminum products,
copper, copper products, plastic products, rubber products and daily
necessaries; select to deal with any items that do not need any permit. (with
permit if needed)
SC is
mainly engaged in investing & managing subsidiaries and international
trade.
Mr.
Xiang Daoquan is legal representative, chairman and general manager of SC at
present.
SC is
known to have approx. 381 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and head office in the commercial zone of Taizhou.
Our checks reveal that SC owns the total premise, but SC’s accountant refused
to release the gross area.
http://www.aihuagroup.com.cn/ The design is
professional and the content is well organized. At present it is in Chinese
version.
Email: aihua@aihuagroup.com.cn
Changes of its registered information:
|
Date |
Item |
Before the change |
After the change |
|
2012 |
Registered capital |
CNY 111,800,000 |
Present amount |
|
Shareholding |
Xiang Daoquan55.28%; Chen Aili 44.72% |
Present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xiang Daoquan
78.43
ID#: 332601650623033
Chen Aili 21.57
ID#: 332601196906240321
l
Legal representative, chairman
and general manager:
Mr. Xiang Daoquan, 47 years old with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager;
Also working in Aihua Holding Group Co., Ltd. Domestic Trade
Branch, Aihua Holding Group Co., Ltd. Import & Export Branch, and Aihua
Holding Group Co., Ltd. Logistics Branch as principal; and working in Zhejiang
Aihua New Material Science & Technology Co., Ltd, Zhejiang Aihua New Taizhou
Building Co., Ltd., Taizhou Aihua Science & Technology Venture Centre Co.,
Ltd., Zhejiang Aihua Real Estate Development Co., Ltd., Taizhou Aihua Ocean
Logistics Service Center Co., Ltd., Zhejiang Aihua Optoelectronics Technology
Co., Ltd., etc. as legal representative and chairman
SC is
mainly engaged in investing & managing subsidiaries and international
trade.
SC’s
products mainly include chemical products, bulk products, silver dinner plates,
Xinyi floating dock, etc.
SC sources its
materials 40% from domestic market and 60% from overseas market. SC sells 20%
of its products in domestic market and 80% to overseas market, mainly America
and Europe.
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.
Note: SC’s management declined to release its main clients and
suppliers.
Branches:
………….
Aihua Holding Group Co., Ltd. Domestic Trade Branch
Aihua Holding Group Co., Ltd. Import & Export Branch
Aihua Holding Group Co., Ltd. Petrochemical Branch
Aihua Holding Group Co., Ltd. Logistics Branch
SC is known to invest in the following subsidiaries:
Zhejiang Aihua New Material Science & Technology Co., Ltd.
Zhejiang Aihua New Taizhou Building Co., Ltd.
Zhejiang Aihua Real Estate Development Co., Ltd.
Taizhou Aihua Science & Technology Venture Centre Co., Ltd.
Taizhou Aihua Ocean Logistics Service Center Co., Ltd.
Zhejiang Aihua Optoelectronics Technology Co., Ltd.
Taizhou Aihua Property Management 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.
Agricultural
Bank of China Taizhou Development Zone Sub-branch
AC #:
900101040009919
Relationship:
Normal.
Balance
Sheet
Unit:
CNY’000
|
|
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
Cash
& bank |
166,730 |
296,150 |
|
Inventory |
50,150 |
70,390 |
|
Accounts
receivable |
64,520 |
76,020 |
|
Advances
to suppliers |
-17,480 |
38,760 |
|
Bills
receivable |
6,550 |
2,000 |
|
Other
receivables |
54,540 |
151,370 |
|
Other
current assets |
445,070 |
553,100 |
|
|
------------------ |
------------------ |
|
Current
assets |
770,080 |
1,187,790 |
|
Fixed
assets |
57,430 |
57,900 |
|
Long-term
investment |
135,700 |
128,320 |
|
Projects
under construction |
18,390 |
20,230 |
|
Intangible
and other assets |
-11,470 |
-12,200 |
|
|
------------------ |
------------------ |
|
Total
assets |
970,130 |
1,382,040 |
|
|
============= |
============= |
|
Short
loans |
482,550 |
619,600 |
|
Accounts
payable |
84,970 |
184,020 |
|
Bills
payable |
78,740 |
172,000 |
|
Advances
from clients |
1,890 |
-24,270 |
|
Accrued
payroll |
0 |
0 |
|
Welfare
payable |
160 |
0 |
|
Other
Accounts payable |
26,100 |
65,220 |
|
Taxes
payable |
-1,210 |
-7,080 |
|
Other
current liabilities |
200,530 |
257,370 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
873,730 |
1,266,860 |
|
Long
term liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
873,730 |
1,266,860 |
|
Shareholders
equities |
96,400 |
115,180 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
970,130 |
1,382,040 |
|
|
============= |
============= |
Income
Statement
Unit:
CNY’000
|
|
as
of Dec. 31, 2011 |
|
Turnover |
1,721,800 |
|
Cost
of goods sold |
1,697,110 |
|
Taxes and additional of main
operation |
440 |
|
Sales expense |
15,170 |
|
Management expense |
9,430 |
|
Finance expense |
31,830 |
|
Investment
income |
52,180 |
|
Subsidy
income |
0 |
|
Income
from other operations |
8,960 |
|
Non-operating
income |
630 |
|
Non-operating expense |
12,640 |
|
Profit
before tax |
16,930 |
|
Less:
profit tax |
0 |
|
Profits |
16,930 |
Important
Ratios
=============
|
|
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
*Current
ratio |
0.88
|
0.94
|
|
*Quick
ratio |
0.82
|
0.88
|
|
*Liabilities
to assets |
0.90
|
0.92
|
|
*Net
profit margin (%) |
/ |
0.98
|
|
*Return
on total assets (%) |
/ |
1.23
|
|
*Inventory
/Turnover ×365 |
/ |
15
days |
|
*Accounts
receivable/Turnover ×365 |
/ |
16
days |
|
*Turnover/Total
assets |
/ |
1.25
|
|
*
Cost of goods sold/Turnover |
/ |
0.99
|
PROFITABILITY:
AVERAGE
l
The turnover of SC appears good in its
line in 2011.
l
SC’s net profit margin is average in
2011.
l
SC’s return on total assets is average
in 2011.
l
SC’s cost of goods sold is high in 2011,
comparing with its turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained
in a fair level in both years.
l
SC’s quick ratio is maintained in a
normal level in both years.
l
The inventory of SC appears average in
both years.
l
The accounts receivable of SC appears
average in both years.
l
The short-term loan of SC appears large
in both years.
l
SC’s turnover is in an average level in
2011, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Fairly stable.
SC is considered large-sized in its line with fairly stable
financial conditions. The large amount of short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.44 |
|
|
1 |
Rs.87.00 |
|
Euro |
1 |
Rs.69.47 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.