MIRA
INFORM REPORT
|
Report Date : |
08.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
SANMENXIA AOKE CHEMICAL
INDUSTRY CO., LTD. |
|
|
|
|
Registered Office : |
Chemical Industry Cluster Area Of Shanxian (Guanyintang), Sanmenxia, Henan Province 472143 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
04.02.2002 |
|
|
|
|
Com. Reg. No.: |
411222100002352 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Manufacturing and selling chemical products |
|
|
|
|
No. of Employees : |
200 |
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 |
|
Payment Behaviour : |
No Complaints |
|
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 and address
SANMENXIA
AOKE CHEMICAL INDUSTRY CO., LTD.
CHEMICAL INDUSTRY
CLUSTER AREA OF SHANXIAN (GUANYINTANG), SANMENXIA, HENAN PROVINCE 472143 PR
CHINA
TEL: 86 (0)
398-2530006
FAX: 86 (0)
398-2530001
EXECUTIVE SUMMARY
INCORPORATION DATE : feb. 4, 2002
REGISTRATION NO. : 411222100002352
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
200
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 162,190,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 61,630,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.12= 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 Limited liabilities co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Feb. 4, 2002.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s
registered business scope includes developing, manufacturing and selling isooctyl
thioglycolate, mercaptan series products, bromine generation of isooctane,
bromoalkane, chloro-iso-octane, chlorinated paraffin, di-sec-butyl disulfide,
dimethyl sulfur sec-nucleotide, 2- thionaphthol, octyl phosphate, eighteen
alkyl phosphate, 3,4-two oxygen ethylene thiophene, zinc chloride; importing
and exporting commodities and technologies (excluding commodities and
technologies prohibited by the state).
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Wu Jikang is legal representative and chairman of SC at
present.
SC is known to
have approx. 200 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 Shanxian. The
detailed premise information is unspecified.
http://www.aokeby.com/ The design is professional and the content is
well organized. At present the web site is in Chinese and English versions.
E-mail: Aokechem@aokeby.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of Shareholding
He Jianhui 11.7
Liu Jian 1.8
Zhang Liping 2.5
He Baosen 1.3
Zhang Shuqiang 9.4
Fan Zhanyin 1.5
Qu Hengchun 3.1
Qu Shengting 5.5
Wu Suixing 1.5
Cheng Xinkang 1.0
Wu Jikang 13.8
Gao Shangyong 1.0
Qu Shubao 4.7
Song Baoyin 4.0
Fu Yanchao 1.0
He Jinzhong 4.9
Wei Xiaofei 2.5
Zhao Songfang 7.1
Wu Jianzhong 5.2
Wei Xiaomin 1.5
Xue Jianhua 6.5
Chao Mingyun 8.5
l
Legal representative and chairman:
Mr. Wu Jikang 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 chemical products.
SC’s products mainly include 2-Ethylhexyl Thioglycolate, Hydrochloric
Ether Series, Bromization Series and Sulfhydyl (thio-alcohol) Series, 2,
2’-Thiodiglycolic acid and its derivative, etc.
SC sources its
materials 90% from domestic market and 10% from overseas market. SC sells 5% of
its products in domestic market and 95% 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 declined to release its major suppliers and clients.
SC is not known to have any subsidiary at present.
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’s accountant
refused to release the bank details, so the given banking information can’t be
confirmed.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
|
Cash & bank |
14,200 |
|
Inventory |
9,660 |
|
Accounts
receivable |
11,290 |
|
Other
receivables |
54,380 |
|
Other current
assets |
/ |
|
|
------------------ |
|
Current assets |
/ |
|
Fixed assets net
value |
/ |
|
Long term
investment |
/ |
|
Projects under
construction |
/ |
|
Intangible and
other assets |
/ |
|
|
------------------ |
|
Total assets |
174,320 |
|
|
=========== |
|
Short loan |
/ |
|
Accounts payable |
/ |
|
Other Accounts
payable |
/ |
|
Other current
liabilities |
/ |
|
|
------------------ |
|
Current
liabilities |
/ |
|
Long term
liabilities |
/ |
|
|
------------------ |
|
Total
liabilities |
112,690 |
|
Equities |
61,630 |
|
|
------------------ |
|
Total
liabilities & equities |
174,320 |
|
|
=========== |
Note: We didn’t find SC’s detailed Balance Sheet for Yr2012.
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2012 |
|
Turnover |
162,190 |
|
Cost of goods sold |
127,770 |
|
Sales expense |
6,640 |
|
Management expense |
14,190 |
|
Finance expense |
4,180 |
|
Profit before tax |
11,040 |
|
Less: profit tax |
900 |
|
Profits |
10,140 |
Important
Ratios
=============
|
|
As of Dec. 31, 2012 |
|
*Current ratio |
/ |
|
*Quick ratio |
/ |
|
*Liabilities
to assets |
0.65 |
|
*Net profit
margin (%) |
6.25 |
|
*Return on
total assets (%) |
5.82 |
|
*Inventory
/Turnover ×365 |
22 days |
|
*Accounts
receivable/Turnover ×365 |
26 days |
|
*Turnover/Total
assets |
0.93 |
|
* Cost of
goods sold/Turnover |
0.79 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
SC’s turnover 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.
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.39 |
|
|
1 |
Rs.94.17 |
|
Euro |
1 |
Rs.81.70 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.