MIRA
INFORM REPORT
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Report Date : |
20.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHENGHUA GROUP DEQING HUAYUAN PIGMENT CO.,
LTD. |
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Registered Office : |
Zhongguan
Industrial Park, Deqing County, Zhejiang Province 313220 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
19.04.1996 |
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Com. Reg. No.: |
330500400011046 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
manufacturing and selling iron oxide pigments |
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No. of Employees : |
500 |
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 |
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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 2012 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 under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
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
SHENGHUA GROUP DEQING HUAYUAN PIGMENT CO.,
LTD.
ZHONGGUAN
INDUSTRIAL PARK, DEQING COUNTY
ZHEJIANG
PROVINCE 313220 PR CHINA
TEL: 86 (0)
572-8401598/8400887/8400689
FAX: 86 (0)
572-8401282
EXECUTIVE SUMMARY
Date of Registration : JANUARY 19, 1996
REGISTRATION NO. : 330500400011046
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
REGISTERED CAPITAL :
USD 4,500,000
staff : 500
BUSINESS CATEGORY :
manufacturing & trading
Revenue :
CNY 456,810,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 113,210,000 (AS OF DEC. 31,
2011)
WEBSITE : www.ironoxide.com.cn
E-MAIL :
huayuan@ironoxide.com.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.17= 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 equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 330500400011046
on January 19, 1996.
SC’s Organization Code Certificate
No.: 60958420-2
SC’s registered capital: USD 4,500,000
SC’s paid-in capital: USD 4,500,000
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) |
% of Shareholding |
|
Deqing Xingyuan Information
Consultation Co., Ltd. |
3 |
|
Shenghua Group Holding Co.,
Ltd. |
72 |
|
Pei Co., Ltd. (in Chinese
Pinyin) (Japan) |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Zhu Zenglin |
|
Vice Chairman |
Gang Hong |
|
Director |
Yao Wenqing |
|
Qian Haiping |
|
|
Gao Jianhong |
RECENT
DEVELOPMENT
SC obtained the ISO9001 and ISO14001:2004 certificates, was awarded as
Manufacturing Leading Enterprise, Export Trade Advanced Enterprise, Zhejiang
Famous Mark, etc.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Deqing Xingyuan Information Consultation
Co., Ltd. 3
Shenghua Group Holding Co., Ltd. 72
Pei Co., Ltd. (in Chinese Pinyin) (Japan) 25
u
Deqing Xingyuan Information Consultation Co., Ltd.
---------------------------------------------------------------------
Registration No.: 330521000039060
Legal Form: One-person Limited Liabilities
Company
Legal Representative: Zhu Zenglin
Registered Capital: CNY 100,000
u
Shenghua Group Holding Co., Ltd.
-----------------------------------------------
Registration No.: 330521000000822
Legal Form: Limited Liabilities Company
Legal Representative: Xia Shilin
Registered Capital: CNY 80,542,900
Tel: 86 (0) 572-8401888
Fax: 86 (0) 572-8401828
Address: Zhongguan Industrial Park, Deqing,
Zhejiang
MANAGEMENT
Zhu Zenglin, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 46
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman and general manager
Also working in Zhejiang Deqing Huayuan Hangde Pigment Co., Ltd. Deqing Sanocon Pigment Co., Ltd., Deqing Xingyuan Information Consultation Co., Ltd. and Huzhou Dechang Iron Oxide Pigment Co., Ltd. etc. as legal representative
Gang Hong, Vice
Chairman
--------------------------------------------
Ø
Gender: M
Ø
Working
experience (s):
At present, working in SC as vice chairman
Director
-----------
Yao Wenqing
Qian Haiping
Gao Jianhong
BUSINESS
OPERATION
SC’s registered business
scope includes manufacturing iron oxide pigments, paints (excluding dangerous
chemicals); purchasing and exporting commodities (excluding commodities
involved in quota license management and
commodities privileged); heat recovery for power
generation. (with permit if needed)
SC is mainly
engaged in manufacturing and selling iron oxide pigments.
SC’s products
mainly include iron oxide red, iron oxide yellow, iron oxide black, iron oxide
brown, iron oxide orange, compound ferric green, heat stable product, easy
dispersible product, fine-milled product, etc.
Brand: HUAYUAN.
SC sources its
materials 100% from domestic market. SC sells 45% of its products in domestic
market, and 55% to the overseas market, mainly U.S.A., Japan and Hong Kong.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major
Client*
------------------
Mix
Mfg. Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 500 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
Zhejiang
Deqing Huayuan Hangde Pigment Co., Ltd.
Registration No.:
330500400011837
Legal
Representative: Zhu Zenglin
Registered
Capital: CNY 5,800,000
Date of
Registration: January 25, 1996
Deqing Sanocon
Pigment Co., Ltd.
Registration No.:
330500400014559
Legal
Representative: Zhu Zenglin
Registered
Capital: USD 500,000
Date of
Registration: September 26, 2003
Huzhou Dechang
Iron Oxide Pigment Co., Ltd.
Registration No.:
330500400012047
Legal
Representative: Zhu Zenglin
Date of
Registration: September 27, 1994
Registered
Capital: CNY 2,940,653
Shenghua Group
Deqing Sanfeng Chemical Industry Co., Ltd.
Registration No.:
330521000032118
Legal
Representative: Zhu Zenglin
Date of
Registration: December 3, 2002
Registered
Capital: CNY 302,000,000
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 Zhongguan Branch
AC#:
1205280209002452311
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
38,690 |
|
|
Notes receivable |
7,610 |
|
Accounts
receivable |
26,580 |
|
Advances to
suppliers |
62,640 |
|
Other receivable |
180 |
|
Inventory |
45,760 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
20 |
|
|
------------------ |
|
Current assets |
181,480 |
|
Fixed assets |
97,630 |
|
Construction in
progress |
270 |
|
Intangible
assets |
9,540 |
|
Long-term
investment |
0 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
720 |
|
|
------------------ |
|
Total assets |
289,640 |
|
|
============= |
|
Short-term loans |
64,870 |
|
Notes payable |
30,000 |
|
Accounts payable |
56,820 |
|
Payroll payable |
4,490 |
|
Taxes payable |
4,570 |
|
Advances from
clients |
0 |
|
Other payable |
10,750 |
|
Other current liabilities |
4,930 |
|
|
------------------ |
|
Current
liabilities |
176,430 |
|
Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
176,430 |
|
Equities |
113,210 |
|
|
------------------ |
|
Total
liabilities & equities |
289,640 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
456,810 |
|
Cost of sales |
371,510 |
|
Business taxes and surcharges |
1,030 |
|
Sales expense |
17,110 |
|
Management expense |
25,510 |
|
Finance expense |
1,030 |
|
Asset
impairment loss |
20,140 |
|
Non-operating
income |
2,660 |
|
Non-operating
expense |
490 |
|
Profit before
tax |
22,650 |
|
Less: profit tax |
6,510 |
|
16,140 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
|
*Current ratio |
1.03 |
|
*Quick ratio |
0.77 |
|
*Liabilities
to assets |
0.61 |
|
*Net profit
margin (%) |
3.53 |
|
*Return on
total assets (%) |
5.57 |
|
*Inventory /
Revenue ×365 |
37 days |
|
*Accounts
receivable/ Revenue ×365 |
22 days |
|
*
Revenue/Total assets |
1.58 |
|
* Cost of
sales / Revenue |
0.81 |
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 fairly good.
l
SC’s cost of sales 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 fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear average.
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.54.03 |
|
UK Pound |
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
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 |
|
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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.