MIRA
INFORM REPORT
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Report Date : |
25.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG LIAHERD CHEMICAL INDUSTRY CO., LTD. |
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Registered Office : |
No. 36,
Dongfeng Road, Yiyuan County, Zibo City, Shandong Province 256120 Pr |
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Country : |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
09.03.2006 |
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Com. Reg. No.: |
370000228057564 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling chemical
products |
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No. of Employees : |
2,655 employees |
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 |
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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.
|
Source : CIA |
Company name & address
SHANDONG LIAHERD CHEMICAL INDUSTRY CO., LTD.
NO. 36, DONGFENG
ROAD, YIYUAN COUNTY, ZIBO CITY
SHANDONG
PROVINCE 256120 PR CHINA
TEL: 86 (0)
533-3261986/3263203/3286425
FAX: 86 (0)
533-3251274/3286374
EXECUTIVE SUMMARY
Date of Registration : march 9, 2006
REGISTRATION NO. : 370000228057564
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : CNY 334,476,000
staff : 2,655
BUSINESS CATEGORY : manufacturing & TRADING
REVENUE :
CNY 620,455,000 (CONSOLIDATED,
JAN. 1 2012 TO JUN. 30, 2012)
EQUITIES :
CNY 921,417,000 (CONSOLIDATED, AS
OF JUN. 30, 2012)
WEBSITE : www.lianhechem.com.cn
E-MAIL :
sales@lianhechem.com.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.26 = 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 shares limited company
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 370000228057564 on
March 9, 2006.
SC’s Organization Code Certificate
No.: 74988111-0
SC’s Tax No.: 370323749881110
SC’s registered capital: CNY 334,476,000
SC’s paid-in capital was CNY 334,476,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2012 |
Registered capital |
CNY 222,984,000 |
CNY 334,476,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (As of June 30, 2012) |
% of Shareholding |
|
Wang Yiming |
21.84 |
|
Wang Yifei |
2.37 |
|
Li Shunan |
2.31 |
|
Gao Xiujia |
2.31 |
|
Pang Shisen |
2.29 |
|
Zhao Xiyun |
2.29 |
|
Li Xizhi |
2.12 |
|
Fang Jing |
2.11 |
|
Xin Jun |
1.93 |
|
Gao Huazhong |
1.78 |
|
Other Shareholders |
58.65 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Wang Yiming |
|
General Manager |
Pang Shisen |
|
Independent Directors |
Liang Shinian |
|
Xu Bo |
|
|
Jiang Deli |
|
|
Directors |
Li Dejun |
|
Fang Jing |
|
|
Li Feng |
|
|
Liu Zhuqing |
|
|
Pang Shisen |
|
|
Wang Yiming |
RECENT DEVELOPMENT
A
stock "Lianhe Chemical" (stock code: 002217) was listed successfully
in Shenzhen stock exchange on Feb. 20, 2008.
******Honors:
===========
²
Industry Star Enterprise
²
Advanced industrial enterprise
²
Consumer satisfaction units
²
Etc.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As of June 30, 2012)
----------------------------------
Wang Yiming 21.84
Wang Yifei 2.37
Li Shunan 2.31
Gao Xiujia 2.31
Pang Shisen 2.29
Zhao Xiyun 2.29
Li Xizhi 2.12
Fang Jing 2.11
Xin Jun 1.93
Gao Huazhong 1.78
Other Shareholders 58.65
MANAGEMENT
Wang Yiming, Legal Representative and Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 46
Ø
Qualification:
University
Ø
Senior
Engineer
Ø
Working
experience (s):
From 2008 to present, working in
SC as legal representative and chairman
Also as director of SC
Pang Shisen, General Manager
----------------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø
Qualification:
University
Ø
Engineer
Ø
Working
experience (s):
From 2008 to present, working in SC as general manager
Also as director of SC
Independent Directors
-----------------------------
Liang Shinian
Xu Bo
Jiang Deli
Directors
------------
Li Dejun
Fang Jing
Li Feng
Liu Zhuqing
Pang Shisen
Wang Yiming
BUSINESS OPERATION
SC’s registered business scope includes exporting its
products and importing the materials, instrument, machinery, parts and
technology needed for its production; processing with imported materials,
processing with imported samples, assembling with imported parts, and
compensation trade in agreement; manufacturing and selling nitric acid, sodium
carbonate, ammonia chloride, isobutene, EHN, ammonium nitrate, sodium nitrate,
sodium nitrite, me.lamint, ammonia water (≦10%), liquid
ammonia, carbamide, nitro compound fertilizer, and methanol.
SC is
mainly engaged in manufacturing and selling chemical products.
SC’s products
mainly include:
Melamine
T321 Sulphurised
isobutylene
Methanol
T2201 Diesel oil
cetane number improver (2-Ethylhexyl nitrate)
Nitric acid
Sodium nitrite
Brand: “LIAHERD”
SC sources its
materials 100% from domestic market, mainly Shandong, Shanxi, etc. SC sells 95%
of its products in domestic market, mainly Shandong, Liaoning, etc. and 5% to
overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Top 5
Suppliers:
============
ü
Yiyuan County Power Supply Corp.
ü
Shanxi Jincheng Anthracite Mining Group
Co., Ltd.
ü
Dezhou Longyuan Chemical Co., Ltd.
ü
Dongying Sanjin Materials Co., Ltd.
ü
Taiyuan Huagui Precious Metals Co.,
Ltd.
Top 5
Clients:
==========
ü
Weifang Longhai Folk-Dynamlte Co., Ltd.
ü
Shandong Jinling Chemical Co., Ltd.
ü
Fushun Longye Chemical Nanzamu Co.,
Ltd.
ü
New Times (Jinan) Folk-Dynamlte
Technology Industry Co., Ltd.
ü
Qingzhou Chuangji Import & Export
Trading Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 2,655
staff at present.
SC owns an area as
its operating office & factory of approx. 110,000
sq. meters at the heading address.
RELATED COMPANY
SC is known to have 3
subsidiaries at present:
==================================
u
Shandong Xintai Lianhe Chemical Co., Ltd.
u
Yiyuan Xinlianhua Transportation Co., Ltd.
u
Shandong Lianhe Fengyuan Chemical Co., Ltd.
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
Bank of China Yiyuan County Sub-branch
AC#:
15-250101040012158
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Jun. 30, 2012 |
|
129,859 |
122,153 |
|
|
Trading financial assets |
0 |
0 |
|
Accounts receivable |
25,671 |
28,446 |
|
Notes receivable |
160,467 |
107,110 |
|
Advances to
suppliers |
130,075 |
129,391 |
|
Other receivable |
5,764 |
9,469 |
|
Inventory |
103,823 |
98,717 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
1,000 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
556,659 |
495,286 |
|
Real estate
investment |
81 |
78 |
|
Fixed assets |
645,563 |
609,520 |
|
Construction in
progress |
70,679 |
110,092 |
|
Project
materials |
28,989 |
27,379 |
|
Fixed assets in
liquidation |
0 |
0 |
|
Intangible
assets |
140,846 |
143,796 |
|
Long-term
investments |
0 |
0 |
|
Goodwill |
0 |
0 |
|
Long-term
deferred expense |
189 |
104 |
|
Deferred income
tax assets |
5,953 |
9,679 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
1,448,959 |
1,395,934 |
|
|
============= |
============= |
|
Short-term loans |
190,000 |
220,000 |
|
Notes payable |
61,938 |
44,480 |
|
Accounts payable |
226,773 |
197,057 |
|
Payroll payable |
6,582 |
8,822 |
|
Taxes payable |
-8,713 |
-21,114 |
|
Interest payable |
0 |
0 |
|
Advances from
clients |
18,195 |
9,985 |
|
Other payable |
9,148 |
10,032 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
503,923 |
469,262 |
|
Non-current
liabilities |
5,439 |
5,255 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
509,362 |
474,517 |
|
Equities |
939,597 |
921,417 |
|
|
------------------ |
------------------ |
|
Total liabilities
& equities |
1,448,959 |
1,395,934 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
Jan.
1 2012 to Jun. 30, 2012 |
|
Revenue |
1,368,542 |
620,455 |
|
Cost of sales |
1,111,763 |
549,914 |
|
Business Taxes and Surcharges |
8,515 |
3,193 |
|
Sales expense |
25,874 |
10,327 |
|
Management expense |
84,792 |
45,443 |
|
Finance expense |
3,311 |
5,902 |
|
Asset impairment loss |
2,146 |
1,212 |
|
Investment
income |
1,691 |
820 |
|
Non-operating
income |
19,716 |
5,851 |
|
Non-operating expense |
7,555 |
146 |
|
Profit before
tax |
145,994 |
10,990 |
|
Less: profit tax |
37,489 |
5,300 |
|
108,505 |
5,690 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Jun. 30, 2012 |
|
*Current ratio |
1.10 |
1.06 |
|
*Quick ratio |
0.90 |
0.85 |
|
*Liabilities
to assets |
0.35 |
0.34 |
|
*Net profit
margin (%) |
7.93 |
0.92 |
|
*Return on
total assets (%) |
7.49 |
0.41 |
|
*Inventory /
Revenue ×365/180 |
28 days |
29 days |
|
*Accounts
receivable/ Revenue ×365/180 |
7 days |
9 days |
|
*
Revenue/Total assets |
0.94 |
0.44 |
|
* Cost of
sales / Revenue |
0.81 |
0.89 |
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 goods sold 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 average.
l
The short-term loans of SC appear fairly 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 low.
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.53.59 |
|
UK Pound |
1 |
Rs.85.81 |
|
Euro |
1 |
Rs.69.91 |
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.