MIRA INFORM REPORT
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Report Date : |
12.04.2013 |
IDENTIFICATION DETAILS
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Name : |
DONGYING HI-TECH SPRING CHEMICAL INDUSTRY CO., LTD. |
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Registered Office : |
Shengli industrial park, dongying, shandong PROVINCE, 257000 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
18.09.2006 |
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Com. Reg. No.: |
370500400001420 |
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Legal Form : |
Chinese-foreign equity joint venture enterprise |
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Line of Business : |
Manufacturing and selling chemical products |
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No. of Employees : |
230 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 : |
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
dongying hi-tech spring chemical industry co., ltd.
shengli industrial
park, dongying,
shandong PROVINCE,
257000 PR CHINA
TEL: 86 (0)
546-8180357/7791023 FAX: 86 (0)
546-8183959/7791057
EXECUTIVE SUMMARY
INCORPORATION DATE : september 18, 2006
REGISTRATION NO. : 370500400001420
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH :
230
REGISTERED CAPITAL : CNY 22,288,810
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 999,420,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 86,670,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable (AS OF DEC. 31, 2011)
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.20 = USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a Chinese-foreign equity
joint venture enterprise at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on September
18, 2006.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing and selling dimethyl carbonate, isopropyl
alcohol, diisopropyl ether, propylene carbonate, propylene glycol, propylene
glycol second reduction, and carbon dioxide.
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Zhang
Zaizhong has been chairman of SC since
2006.
SC is known to
have approx. 230 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Dongying. Our checks
reveal that SC owns the total premise, but the gross area is unspecified.
http://www.chinadmc.com
The design is professional and the content is well organized. At present the
web site is in Chinese, English and other versions.
E-mail: quhao@chinadmc.com
SC has got the certificate ISO9001.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
Unknown |
Registration No. |
3705022802939 |
370500400001420 |
|
2011 |
Shareholders (% of shareholding) |
Shandong Hi-tech Chemical Group Co., Ltd.
32.45% HK Profit United Investment Limited香25.00% Yang Xiaohong1.62% Other 46 individuals 40.93% |
Present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shandong Hi-tech Chemical Group Co., Ltd. 74.87
Haike Holding Hong Kong Limited 25.00
Zhang Hualan 0.13
Shandong Hi-tech Chemical Group Co., Ltd.:
=================================
Shandong Hi-tech Chemical Group Co., Ltd,
founded in 1988, is a petro-chemical company specialized in petroleum refining,
with the import and export rights. As the first petro-chemical enterprise of
china listed in London securities trading market, it successfully went public
on London Stock Exchange with the stock code HAIK, in 14th Feb. 2007.
Registration no.: 370500400001288
Address: Haochun Road, Dongying District,
Dongying City, Shandong Province
Tel: 86 0546-7753307/7753308
Fax: 86 0546-7753345/8596740
Haike Holding Hong Kong Limited
============================
Incorporation Date : March
3, 2006
Registration No. :
1028246
Registered Legal Form : Private
Haike Holding Hong Kong Limited was formerly named as (HK) Profit United
Investment Limited
l Chairman and
General Manager:
Mr. Zhang Zaizhong , with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working in SC as chairman and
general manager.
Also working in Shandong
Hi-Tech Shengli Electrochemical Industry Co., Ltd. as legal representative.
l Directors:
Zhang Hualan
Liu Dongguang
Cheng Jinjie
Liu Qingyi
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products
mainly include:
Dimethyl Carbonate
Propylene Glycol tech grade
Propylene Glycol pharma grade
Propylene Carbonate
Diisopropylether
SC sources its materials 100% from domestic
market, mainly Shandong. SC sells 70% of its products in domestic market, and
30% to overseas market, mainly Southeast Asian 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.
Note: SC’s management refused to release its
main clients and suppliers.
Dongying
Hi-Tech Chemical Industry Co., Ltd.
Shandong
Hi-Tech Shengli Electrochemical Industry Co., Ltd.
Dongying
Hi-Tech Ruilin Chemical Industry Co., Ltd.
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.
SC declined to
release its bank details.
Financial Summary
===============
Unit: CNY’000
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As of Dec. 31, 2011 |
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Current assets |
250,940 |
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Total assets |
439,950 |
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========= |
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Current
liabilities |
352,780 |
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Specified payables |
500 |
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-------------- |
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Total liabilities |
353,280 |
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Equities |
86,670 |
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-------------- |
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Total liabilities & equities |
439,950 |
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========= |
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Turnover |
999,420 |
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Cost of goods sold |
910,850 |
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Profit before tax |
23,190 |
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Less: profit tax |
5,860 |
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Profits |
17,330 |
Note:
we did not find SC’s detailed financial reports for Yr2011. SC’s management
declined to release the latest financial information.
Important
Ratios
=============
|
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As
of Dec. 31, 2011 |
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*Current ratio |
0.71 |
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*Quick ratio |
/ |
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*Liabilities to
assets |
0.80 |
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*Net profit
margin (%) |
1.73 |
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*Return on
total assets (%) |
3.94 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
2.27 |
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* Cost of
goods sold/Turnover |
0.91 |
PROFITABILITY:
AVERAGE
l The turnover 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 fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.53 |
|
|
1 |
Rs.83.59 |
|
Euro |
1 |
Rs.71.33 |
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 |
-- |
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.