MIRA
INFORM REPORT
|
Report Date : |
06.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
SHANGHAI DONGMEI CHEMICAL CO., LTD. |
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Registered Office : |
No. 55,
Chenbao Road, Malu Town, Jiading District,
Shanghai 201801 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
19.08.1997 |
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Com. Reg. No.: |
023895 |
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Legal Form : |
Chinese Foreign Contractual Joint Venture
Enterprise |
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Line of Business : |
manufacturing and selling chemical products |
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No. of Employees : |
108 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
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
SHANGHAI DONGMEI
CHEMICAL CO., LTD.
no. 55, chenbao road, malu town, jiading district
SHANGHAI 201801 PR CHINA
TEL: 86 (0) 21-62761029/62761039
FAX: 86 (0) 21-62761022/62761078
EXECUTIVE SUMMARY
Date of Registration : AUG. 19, 1997
REGISTRATION NO. : 023895
LEGAL FORM : CHINESE FOREIGN CONTRACTUAL JOINT VENTURE
ENTERPRISE
REGISTERED CAPITAL : USD 500,000
staff : 108
BUSINESS CATEGORY : manufacturing & trading
REVENUE :
CNY 22,407,000 (JAN. 1 2012 TO JUN. 30, 2012)
EQUITIES :
CNY 21,490,000 (AS OF JUN. 30, 2012)
WEBSITE : www.dongmei.net
E-MAIL :
dm@dongmei.net & sophia@dongmei.net
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.35 = 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 Chinese foreign contractual joint venture enterprise of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 023895 on Aug.
19, 1997.
SC’s Organization Code Certificate No.:
60737635-4
SC’s registered capital: USD 500,000
SC’s paid-in capital: USD 500,000
Registration Change Record:-
No significant changes of SC have been
noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
Investment |
|
Shanghai Lingyang Industry Co., Ltd. |
Premise |
|
Taiwan Youchen Co., Ltd. |
Capital 100% |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Lin Xianyang |
RECENT DEVELOPMENT
SC has got the certificate ISO9001.
SHAREHOLDER CHART & BACKGROUND
Name Investment
Shanghai Lingyang Industry Co.,
Ltd. Premise
Taiwan Youchen Co., Ltd. Capital
100%
Shanghai Lingyang Industry Co., Ltd.
---------------------------------------------------
Date of Registration: July 3, 1993
Registration No.: 3101141008275
Legal Form: Limited Liabilities Company
Registered Capital: CNY 1,180,000
Address: Chencun, Malu Town, Jiading
District, Shanghai
Tel: 86 021-69153413
MANAGEMENT
Lin Xianyang, Legal Representative and Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: Taiwan
Ø
Qualification:
University
Ø
Working
experience (s):
From 1997 to present, working in SC as legal representative and chairman
Also working in Taiwan Youchen Co., Ltd. as chairman
Wang Guoquan, Sales Manager
----------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
various printing and dyeing accessory ingredients and fixed coating; and
selling its products.
SC is
mainly engaged in manufacturing and selling chemical products.
SC’s
products mainly include: Dyestuff in textile, Chemical auxiliaries in
textile, Flammable retardant range.
SC sources its
materials 95% from domestic market, and 5% from the overseas market, mainly
European countries. SC sells 85% of its products in domestic market, and 15% to
the overseas market, mainly USA, Europe and Southeast Asia.
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 and Credit of 30-60 days.
*Major Customer:
=============
Taiwan Youchen Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 108 staff at present.
SC rents an area
as its operating office & factory of approx. 8,000 sq. meters at the
heading address.
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
Basic Bank:
Industrial and Commercial Bank of China Changshou Road Sub-branch
AC#: 1001210009016210351
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
830 |
620 |
|
|
Accounts
receivable |
10,820 |
8,600 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
3,510 |
2,220 |
|
Inventory |
14,040 |
14,780 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
29,200 |
26,220 |
|
Fixed assets |
3,570 |
3,170 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
40 |
50 |
|
|
------------------ |
------------------ |
|
Total assets |
32,810 |
29,440 |
|
|
============= |
============= |
|
Short-term loans |
1,500 |
2,940 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
9,510 |
5,090 |
|
Wages payable |
0 |
0 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
140 |
110 |
|
Other current
liabilities |
420 |
280 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
11,570 |
8,420 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
11,570 |
8,420 |
|
Equities |
21,240 |
21,020 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
32,810 |
29,440 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
|
Revenue |
37,560 |
|
Cost of sales |
32,950 |
|
Sales expense |
1,120 |
|
Management expense |
3,520 |
|
Finance expense |
160 |
|
Profit before
tax |
-180 |
|
Less: profit tax |
30 |
|
-210 |
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Jun. 30, 2012 |
|
Current assets |
26,532 |
-- |
|
Fixed assets |
2,949 |
-- |
|
Long term investment |
0 |
-- |
|
Intangible
assets |
33 |
-- |
|
Total assets |
29,515 |
35,845 |
|
|
------------- |
------------- |
|
Total
liabilities |
9,484 |
14,355 |
|
Equities |
20,031 |
21,490 |
|
|
------------- |
------------- |
|
|
As of Dec. 31,
2011 |
From
Jan. 1, 2012 to Jun. 30, 2012 |
|
Revenue |
49,321 |
22,407 |
|
Cost of sales |
45,173 |
17,610 |
|
Profit before
tax |
-906 |
1,693 |
|
Less: profit tax |
45 |
0 |
|
Profits |
-951 |
1,693 |
Note: The detailed financials for Y2011 and June of 2012 are not
available in SAIC.
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Jun. 30, 2012 |
|
*Current ratio |
2.52 |
3.11 |
-- |
-- |
|
*Quick ratio |
1.31 |
1.36 |
-- |
-- |
|
*Liabilities
to assets |
0.35 |
0.29 |
0.32 |
0.40 |
|
*Net profit
margin (%) |
-- |
-0.56 |
-1.93 |
7.56 |
|
*Return on
total assets (%) |
-- |
-0.71 |
-3.22 |
4.72 |
|
*Inventory /
Revenue ×365/180 |
-- |
144 days |
-- |
-- |
|
*Accounts
receivable/ Revenue ×365/180 |
-- |
84 days |
-- |
-- |
|
*
Revenue/Total assets |
-- |
1.28 |
1.67 |
0.63 |
|
* Cost of
sales / Revenue |
-- |
0.88 |
0.92 |
0.79 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
average in its line.
l
SC’s net profit margin is fair in 2010 and 2011.
l
SC’s return on total assets is fair in 2010 and
2011.
l
SC’s cost of goods sold is fairly high, comparing
with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fairly
good level in 2009 and 2010.
l
SC’s quick ratio is maintained in a fairly good
level in 2009 and 2010.
l
The inventory of SC appears large in 2010.
l
The accounts receivable of SC appears fairly large
in 2010.
l
SC’s short-term loan is in an average level in 2009
and 2010.
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 small-sized in its line with
fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.89 |
|
UK Pound |
1 |
Rs.88.63 |
|
Euro |
1 |
Rs.70.03 |
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.