MIRA
INFORM REPORT
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Report Date : |
27.09.2012 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG DONGJIA GROUP CO., LTD. |
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Registered Office : |
No. 55, Henglihe, Qiugu, Boshan District, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
19.12.2002 |
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Com. Reg. No.: |
370300228041166 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling sulphuric acid and titanium pigment; investing and managing subsidiaries. |
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No. of Employees : |
1,500 |
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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
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 and address
SHANDONG DONGJIA GROUP Co., Ltd.
NO. 55, HENGLIHE,
QIUGU, BOSHAN DISTRICT, ZIBO,
SHANDONG PROVINCE,
255200 PR CHINA
TEL: 86 (0)
533-4161746/4167709 FAX: 86 (0)
533-4167709
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 19, 2002
REGISTRATION NO. :
370300228041166
REGISTERED LEGAL FORM : SHARES
LIMITED CO.
STAFF STRENGTH : 1,500
REGISTERED CAPITAL : CNY 100,000,000
BUSINESS LINE :
MANUFACTURING, investing & managing
TURNOVER :
CNY 1,375,860,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 700,790,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.30 =USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY –
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
December 19, 2002 and has been under present ownership since 2007.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be
domiciled in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within one year
of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes manufacturing and selling
sulphuric acid, titanium pigment, ferrous sulfate, ammonium sulfate and
polyferric sulphate; selling titanium ore and high titanium slag; electric
power production, processing and installation
mechanical equipment (except the passenger car less than nine seats);
plastic welding and maintenance; building maintenance; anticorrosive processing
of mechanical equipment (except the passenger car less than nine seats) and
pipeline, property management; import and export of goods (except the forbid
ones; with permit if needed)
SC is mainly
engaged in manufacturing and selling sulphuric acid and titanium pigment;
investing and managing subsidiaries.
Mr.
Sun Jiacai is legal representative and
chairman of SC at present.
SC is known
to have approx. 1,500 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in Zibo. Our checks reveal that SC owns the total
premise, but SC’s accountant refused to release the gross area.
http://www.dongjiagroup.com/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: market@dongjiagroup.com
Honors:
======
SC’s services and products have been recognized with various
certifications, including “Hi-tech enterprise certificate”, “The national
excellent chemical enterprise”, “ISO14001:
Changes
of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2004-3 |
Registered Capital |
CNY 10,000,000 |
CNY 36,860,000 |
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Company Name |
Zibo Dongjia Chemicals Co., Ltd. (In Chinese pinyin) |
Shandong Dongjia Group Co., Ltd. |
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Registered
Capital |
CNY 36,860,000 |
CNY 67,180,000 |
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2007-3 |
Chinese Name |
山东东佳集团有限公司 |
Present one |
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Registered Legal Form |
Limited Liabilities Co. |
Present one |
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2007-6 |
Registered Capital |
CNY 67,180,000 |
CNY 87,180,000 |
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2007-9 |
Registered Capital |
CNY 87,180,000 |
Present amount |
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Unknown |
Registered No. |
3703002804116 |
Present one |
Note: SC changed its Chinese name in 2007, while its English name
remains the same.
MAIN SHAREHOLDERS:
Name
% of
shareholdings
Sun Jiacai ID#: 370304490101131 44.1
Yan Liyuan ID#: 370304520203131 7.2
Zhao Wanzhang ID#: 370304620203131 3.86
Sun Yusheng ID#: 370304510715001 2.4
Li Jinliang ID#: 110108641220235 2.3
Nie Yongsheng ID#: 370304660509161 1.56
Xiong Jiaxiang ID#: 43010419690921435X 1.5
Huang Baofeng ID#: 620103196703075015 1.8
Other individuals 35.28
l
Legal representative and chairman:
Mr. Sun Jiacai , born in 1949 with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman.
SC is mainly
engaged in manufacturing and selling sulphuric acid and titanium pigment;
investing and managing subsidiaries.
SC’s products mainly include titanium dioxide, cobalt salt, sulphuric
acid, ammonium bisulfite, sulphuric, copper sponge, etc.
SC sources its materials 50% from domestic
market, and 50% from overseas market. SC sells 50% of its products in domestic
market, and 50% to overseas market.
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 refused to release its main customers and suppliers
SC is known to have the following subsidiaries:
Shandong
Suntiox Industrial Co., Ltd
Shandong
Jinhong Titanium Dioxide chemicals Co., Ltd.
Zibo
Dongjia Industry & Trade 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.
Bank of China Zibo
Boshan Sub-branch
AC#:
239005421440
Relationship:
Normal.
Financial Summary
Unit: CNY’000
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As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
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Equity |
585,221 |
700,790 |
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Long-term liabilities |
5,000 |
5,000 |
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Total liabilities |
711,590 |
791,570 |
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Total assets |
1,296,811 |
1,492,360 |
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Long term investment |
131,820 |
130,950 |
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Turnover |
901,866 |
1,375,860 |
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Profit before tax |
83,290 |
152,150 |
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Profits |
67,197 |
118,330 |
Note: SC’s
detailed financial reports for Yr2010 & 2011 were not found during our
checks with local AIC.
Important
Ratios
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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*Liabilities
to assets |
0.55 |
0.53 |
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*Net profit
margin (%) |
7.45 |
8.60 |
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*Return on
total assets (%) |
5.18 |
7.93 |
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*Turnover/Total
assets |
0.70 |
0.92 |
PROFITABILITY: FAIRLY GOOD
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The turnover of SC appears fairly good in both
years, and appears a rising trend.
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SC’s net profit margin appears fairly good in both
years.
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SC’s return on total assets appears fairly good in
both years.
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SC’s turnover is in a fair level in both years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.58 |
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1 |
Rs.86.60 |
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Euro |
1 |
Rs.68.94 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.