MIRA INFORM REPORT
|
Report Date : |
10.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
HUBEI CHISHUN CHEMICAL INDUSTRY CO., LTD. |
|
|
|
|
Registered Office : |
Aotou Village, Mugang Town, Yangxin County, Huangshi, Hubei Province
435200 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
17.12.2007 |
|
|
|
|
Com. Reg. No.: |
420222000001279 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
manufacturing and selling chemical
products |
|
|
|
|
No. of Employees : |
300 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
Slow but Correct |
|
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 |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
Hubei Chishun
Chemical Industry Co., Ltd.
aotou village, mugang town, yangxin county
huangshi, hubei province 435200 PR CHINA
TEL: 86 (0) 714-7582038/7582011
FAX: 86 (0) 714-7582037
EXECUTIVE
SUMMARY
Date of Registration : DECEMBER 17, 2007
REGISTRATION NO. : 420222000001279
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 61,000,000
staff : 300
BUSINESS CATEGORY : MANUFACTURING & trading
Revenue :
CNY 186,580,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 50,280,000 (AS OF DEC. 31, 2011)
WEBSITE : www.hbcshg.com
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.29 = 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
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 420222000001279 on
December 17, 2007.
SC’s Organization Code Certificate
No.: 66769670-4
SC’s registered capital: CNY 61,000,000
SC’s paid-in capital: CNY 61,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered Capital |
CNY 45,000,000 |
CNY 61,000,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wuhan Hi-tech Agriculture
Group Co., Ltd. |
16.39 |
|
Wuhan Unioasis Biological
Technology Co., Ltd. |
3.28 |
|
Ye Yuxiang |
8.85 |
|
Yin Qian |
39.34 |
|
Other shareholders |
32.14 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Yin Qian |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Wuhan Hi-tech Agriculture Group
Co., Ltd. 16.39
Wuhan Unioasis Biological
Technology Co., Ltd. 3.28
Ye Yuxiang 8.85
Yin Qian 39.34
Other shareholders 32.14
Wuhan
Hi-tech Agriculture Group Co., Ltd.
===================================
Date of Registration: October 31, 2001
Registration No.: 420100000292821
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 800,000,000
Wuhan
Unioasis Biological Technology Co., Ltd.
=======================================
Date of Registration: December 2, 2002
Registration No.: 420111000004183
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 100,000,000
MANAGEMENT
Yin
Qian, Legal Representative, Chairman, and General
Manager
---------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman, and general manager
BUSINESS
OPERATION
SC’s
registered business scope includes manufacturing and selling 17,000 tons of
ethyl chloride, 2,000 tons of methyl chloride, 5,000 tons of sulphur, 10,000
tons of hydrochloric acid, 10,000 tons of sodium sulfide, and 10,000 tons of
sodium hydrosulfide annually; importing and exporting commodities and
technology.
SC is
mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include: chemicals.
SC sources its materials 100% from domestic market. SC sells 60% of its merchandises in domestic market, and 40% to overseas market, mainly Southeast Asia,
etc.
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.
Staff & Office:
--------------------------
SC is
known to have approx. 300 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, 2011 |
|
1,870 |
|
|
Notes receivable |
0 |
|
Accounts
receivable |
23,830 |
|
Other receivable |
18,450 |
|
Inventory |
960 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
79,900 |
|
|
------------------ |
|
Current assets |
125,010 |
|
Fixed assets |
4,710 |
|
Construction in
progress |
37,490 |
|
Long-term
investment |
500 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
6,280 |
|
|
------------------ |
|
Total assets |
173,990 |
|
|
============= |
|
Short-term loans |
58,980 |
|
Notes payable |
0 |
|
Accounts payable |
41,490 |
|
Advances from
clients |
0 |
|
Other payable |
13,250 |
|
Other current
liabilities |
9,990 |
|
|
------------------ |
|
Current
liabilities |
123,710 |
|
Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
123,710 |
|
Equities |
50,280 |
|
|
------------------ |
|
Total
liabilities & equities |
173,990 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
186,580 |
|
Cost of sales |
161,070 |
|
Sales expense |
680 |
|
Management expense |
8,900 |
|
Finance expense |
8,640 |
|
Profit before
tax |
1,030 |
|
Less: profit tax |
0 |
|
1,030 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
|
*Current ratio |
1.01 |
|
*Quick ratio |
1.00 |
|
*Liabilities
to assets |
0.71 |
|
*Net profit
margin (%) |
0.55 |
|
*Return on
total assets (%) |
0.59 |
|
*Inventory /
Revenue ×365 |
2 days |
|
*Accounts
receivable/ Revenue ×365 |
47 days |
|
*
Revenue/Total assets |
1.07 |
|
* Cost of
sales / Revenue |
0.86 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears fairly 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 fairly high, 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 fairly good
level.
l
The inventory of SC appears small.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear fairly large.
l
SC’s revenue is in an
average 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.38 |
|
UK Pound |
1 |
Rs.83.99 |
|
Euro |
1 |
Rs.67.99 |
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.