MIRA
INFORM REPORT
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Report Date : |
27.11.2012 |
IDENTIFICATION DETAILS
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Name : |
SHANGDONG TIANAN CHEMICAL CO., LTD. |
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Registered Office : |
North Of |
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Country : |
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Financials (as on) : |
30.06.2011 |
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Date of Incorporation : |
02.07.2008 |
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Com. Reg. No.: |
371424200000492 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling
chemicals |
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No. of Employees : |
230 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 : |
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 & address
Shangdong Tianan Chemical Co.,
Ltd.
north of
panhe village, longpan street, linyi county
shandong
PROVINCE 253500 PR CHINA
TEL: 86
(0) 534-4288003/5056718
FAX: 86
(0) 534-5056716
EXECUTIVE SUMMARY
Date of Registration : JULY 2, 2008
REGISTRATION NO. : 371424200000492
LEGAL FORM : Shares limited company
REGISTERED CAPITAL :
CNY
58,000,000
staff : 230
BUSINESS CATEGORY :
manufacturing
Revenue : CNY 40,505,000 (FROM JAN. 1,
2011 TO JUN. 30, 2011)
EQUITIES : cny 140,350,000 (as of JUN. 30, 2011)
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.27 = USD 1
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
LEGAL STATUS & HISTORY
***Note: SC’s contact ways should be the heading
one, while the given contact ways (86-512-68240980-9027) belongs to SC’s parent
company.
SC was
established as a shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 371424200000492 on July 2,
2008.
SC’s Organization Code Certificate No.:
67683903-3
SC’s Tax No.: 371424676839033
SC’s registered capital: CNY 58,000,000
SC’s paid-in capital: CNY 58,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2011 |
Registered
Capital |
CNY
25,000,000 |
CNY
55,000,000 |
|
2012 |
Shareholder
(s) (% of Shareholding) |
Suzhou
Tianma Specialty Chemicals Co., Ltd. 52.87% Feng
Ruquan 14.46% Feng
Li 13.45% Feng
Changle 6.46% Other Shareholders 12.76% |
Suzhou
Tianma Specialty Chemicals Co., Ltd. 81.43% Feng
Ruquan 10.85% Feng
Li 2.69% Feng
Changle 4.84% Su
Xianxin 0.13 Yue
Desheng 0.03% Zhang
Chengsheng 0.03 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Suzhou Tianma Specialty
Chemicals Co., Ltd. |
81.43 |
|
Feng Ruquan |
10.85 |
|
Feng Li |
2.69 |
|
Feng Changle |
4.84 |
|
Su Xianxin |
0.13 |
|
Yue Desheng |
0.03 |
|
Zhang Chengsheng |
0.03 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Feng Ruquan 冯如泉 |
|
Vice Chairman and general
manager |
Su Xianxin 苏现新 |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name % of Shareholding
Suzhou Tianma Specialty Chemicals Co., Ltd. 81.43
Feng Ruquan 10.85
Feng Li 2.69
Feng Changle 4.84
Su Xianxin 0.13
Yue Desheng 0.03
Zhang Chengsheng 0.03
l
Suzhou Tianma Specialty Chemicals Co., Ltd.
-------------------------------------------------------------
Registration No.: 320500000046770
Date of Registration: January 13, 1999
Legal Form: Shares
Limited Company
Registered Capital: CNY 240,000,000
Legal Representative: Xu Renhua
Web: www.tianmachem.com
MANAGEMENT
Feng
Ruquan, Legal Representative and
Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, worked in SC as legal
representative and chairman
Su
Xianxin, Vice Chairman and General
Manager
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, worked in SC as vice chairman
and general manager
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling phosgene, stearic acid chloride and hydrochloric acid; exporting its
products and technology; importing and exporting machinery, components, raw
materials & byproducts, and technology.
SC is
mainly engaged in manufacturing and selling chemicals.
SC’s
products mainly include:
· Phosgene
Stearic
Acid Chloride
Hydrochloric
Acid
SC sources its materials 100% from domestic market. SC sells
70% of its products in domestic market, and 30% to overseas market, mainly
Southeast Asia, etc.
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.
Staff & Office:
--------------------------
SC is
known to have approx. 230 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
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 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.
BANKING
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Jun. 30, 2011 |
|
6,018 |
6,837 |
|
|
Accounts
receivable |
18,395 |
28,822 |
|
Notes receivable |
1,100 |
11,647 |
|
Advances to
suppliers |
3,210 |
3,481 |
|
Other receivable |
24,085 |
84,841 |
|
Inventory |
8,491 |
11,174 |
|
Deferred expense |
0 |
6 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
61,299 |
146,808 |
|
Fixed assets |
50,089 |
50,637 |
|
Construction in
progress |
11,552 |
4,245 |
|
Intangible
assets |
9,671 |
9,592 |
|
Long-term
investment |
0 |
0 |
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Development
expenditure |
0 |
0 |
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Goodwill |
0 |
0 |
|
Long-term deferred
expense |
0 |
0 |
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Deferred income
tax assets |
753 |
753 |
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Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
133,364 |
212,035 |
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|
============= |
============= |
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Short-term loans |
49,000 |
45,700 |
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Notes payable |
0 |
0 |
|
Accounts payable |
-70 |
716 |
|
Wages payable |
947 |
211 |
|
Welfares payable |
0 |
-208 |
|
Taxes payable |
3,461 |
1,811 |
|
Interest payable |
0 |
0 |
|
Dividend payable |
0 |
0 |
|
Advances from
clients |
5 |
289 |
|
Other payable |
32,612 |
23,040 |
|
Accrued expenses |
581 |
126 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
86,536 |
71,685 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
86,536 |
71,685 |
|
Equities |
46,828 |
140,350 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
133,364 |
212,035 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
From Jan. 1, 2011 to Jun. 30, 2011 |
|
Revenue |
38,695 |
40,505 |
|
Cost of sales |
27,641 |
29,102 |
|
Taxes and surcharges |
182 |
229 |
|
Sales expense |
314 |
34 |
|
Management expense |
5,135 |
4,722 |
|
Finance expense |
2,199 |
2,673 |
|
Non-operating
income |
1,138 |
0 |
|
Non-operating
expense |
303 |
31 |
|
Profit before
tax |
4,059 |
3,713 |
|
Less: profit tax |
1,091 |
928 |
|
2,968 |
2,785 |
Important Ratios
|
|
As
of Dec. 31, 2010 |
As
of Jun. 30, 2011 |
|
*Current ratio |
0.71 |
2.05 |
|
*Quick ratio |
0.61 |
1.89 |
|
*Liabilities
to assets |
0.65 |
0.34 |
|
*Net profit
margin (%) |
7.67 |
6.88 |
|
*Return on
total assets (%) |
2.23 |
1.31 |
|
*Inventory /
Revenue ×365/180 |
81 days |
50 days |
|
*Accounts
receivable/ Revenue ×365/180 |
174 days |
129 days |
|
*
Revenue/Total assets |
0.29 |
0.19 |
|
* Cost of
sales / Revenue |
0.71 |
0.72 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
average in its line.
l
SC’s net profit margin is
fairly good.
l
SC’s return on total assets is average.
l
SC’s cost of sales is average, comparing with its revenue.
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 average.
l
The accounts receivable of SC appears fairly large.
l
The short-term loans of SC appear too large.
l
SC’s revenue 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: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. Too large amount of short-term loans may be a threat to SC’s
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.69 |
|
UK Pound |
1 |
Rs.89.20 |
|
Euro |
1 |
Rs.72.10 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.