MIRA
INFORM REPORT
|
Report Date : |
12.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
LANXESS SHANGHAI PIGMENTS CO., LTD. |
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|
|
Registered Office : |
No. 845 Qilianshan Road, Shanghai 200331 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
20.07.1995 |
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Com. Reg. No.: |
310000400118761 |
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Legal Form : |
Wholly Foreign Owned Enterprise |
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Line of Business : |
Manufacturing and selling pigments |
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No. of Employees : |
135 |
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 : |
Good |
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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 |
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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 and address
LANXESS SHANGHAI PIGMENTS CO., LTD.
NO. 845 QILIANSHAN ROAD, SHANGHAI 200331 PR CHINA
TEL: 86 (0) 21-52846999/52847368/52847897
FAX: 86 (0) 21-52847863
EXECUTIVE SUMMARY
Date of Registration : JULy 20, 1995
REGISTRATION NO. : 310000400118761
LEGAL FORM : WHOLLY FOREIGN OWNED ENTERPRISE
REGISTERED CAPITAL : USD 12,000,000
staff :
135
BUSINESS CATEGORY : MANUFACTURING
Revenue :
CNY 347,710,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 141,850,000 (AS OF DEC. 31, 2012)
WEBSITE : www.lanxess.cn
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.14 = 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
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a wholly foreign owned enterprise of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 310000400118761 on July
20, 1995.
SC’s Organization Code Certificate No.:
60731376-7
SC’s registered capital: USD 12,000,000
SC’s paid-in capital: USD 12,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010 |
Legal
Representative |
Peter Kiemle |
Rolf Haselhorst |
|
2012 |
Legal
Representative |
Rolf Haselhorst |
Rafael Suchan |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Lanxess Hong Kong Limited |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Rafael Suchan |
|
General Manager |
Wolfgang Oehlert
|
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Lanxess Hong Kong Limited 100
------------------------
Date of Registration: September 12, 1958
Registration No.: 0005229
Legal Form: Private
Address: Cambridge House, TaiKoo Place,
36/Fl., 979 King's Road, Island East, Hongkong
Tel.: (852) 3526 8888
MANAGEMENT
Rafael Suchan, Legal Representative and Chairman
-------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Wolfgang Oehlert ,
General Manager
-----------------------------------------------------------
Ø
Gender: M
Ø
Nationality: Germany
Ø
Qualification:
University
Ø
Working
experience (s):
From 2007 to present, working in SC as general manager
Also working in LANXESS Specialty
Chemicals Co. Ltd. as legal representative
BUSINESS OPERATION
SC’s registered business scope includes manufacturing ferric oxide
pigments; selling its products.
SC is mainly
engaged in manufacturing and selling pigments.
SC’s products
mainly include: iron oxide pigments.
SC sources its materials 70% from domestic market, and 30% from the overseas market, mainly European countries. SC sells 65% of its products in domestic market, and 35% to the overseas market, mainly American and European countries.
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 Customers:
==============
Lanxess Deutschland GmbH
Lanxess Corporation
Staff & Office:
--------------------------
SC is known
to have approx. 135 staff at
present.
SC rents an area
as its operating office & factory of approx. 12,000 sq. meters at the
heading address.
RELATED COMPANY
According the above
website:
n
LANXESS Chemical (China) Company
Limited
n
LANXESS Specialty Chemicals Co. Ltd.
n
LANXESS (Wuxi) Chemicals Co., Ltd
n
Rhein Chemie (Qingdao) Ltd.
Etc.
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:
China Construction Bank Shanghai Branch
AC#:
31001550400050004212
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
3,410 |
3,690 |
1,730 |
|
|
Short-term investment |
142,170 |
17,420 |
85,110 |
|
Accounts
receivable |
42,330 |
44,880 |
43,790 |
|
Advances to
suppliers |
0 |
1,330 |
150 |
|
Other receivable |
1,090 |
760 |
920 |
|
Inventory |
54,740 |
55,000 |
56,130 |
|
Non-current
assets within one year |
0 |
0 |
0 |
|
Other current
assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
243,740 |
123,080 |
187,830 |
|
Long-term
investment |
14,380 |
9,210 |
0 |
|
Fixed assets |
24,870 |
23,350 |
20,560 |
|
Construction in
progress |
1,050 |
870 |
0 |
|
Intangible
assets |
31,980 |
31,060 |
30,140 |
|
Long-term
prepaid expenses |
0 |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
1,070 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
316,020 |
187,570 |
239,600 |
|
|
============= |
============= |
============= |
|
Short-term loans |
120,160 |
9,410 |
0 |
|
Notes payable |
6,150 |
3,980 |
5,400 |
|
Accounts payable |
37,510 |
14,870 |
18,240 |
|
Wages payable |
3,300 |
2,850 |
0 |
|
Taxes payable |
6,830 |
6,060 |
5,160 |
|
Advances from
clients |
980 |
20 |
10 |
|
Other payable |
6,140 |
8,750 |
8,490 |
|
Accrued expenses |
6,120 |
1,920 |
5,460 |
|
Other current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
187,190 |
47,860 |
42,760 |
|
Non-current
liabilities |
0 |
0 |
54,990 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
187,190 |
47,860 |
97,750 |
|
Equities |
128,830 |
139,710 |
141,850 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
316,020 |
187,570 |
239,600 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
321,220 |
355,220 |
347,710 |
|
Cost of sales |
236,100 |
286,300 |
275,090 |
|
Sales expense |
23,780 |
25,170 |
28,890 |
|
Management expense |
25,820 |
18,000 |
22,540 |
|
Finance expense |
6,230 |
8,710 |
4,840 |
|
Profit before
tax |
15,910 |
14,680 |
6,270 |
|
Less: profit tax |
10,580 |
3,800 |
4,130 |
|
5,330 |
10,880 |
2,140 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.30 |
2.57 |
4.39 |
|
*Quick ratio |
1.01 |
1.42 |
3.08 |
|
*Liabilities
to assets |
0.59 |
0.26 |
0.41 |
|
*Net profit
margin (%) |
1.66 |
3.06 |
0.62 |
|
*Return on
total assets (%) |
1.69 |
5.80 |
0.89 |
|
*Inventory /
Revenue ×365 |
63 days |
57 days |
59 days |
|
*Accounts
receivable/ Revenue ×365 |
49 days |
47 days |
46 days |
|
*
Revenue/Total assets |
1.02 |
1.89 |
1.45 |
|
* Cost of
sales / Revenue |
0.74 |
0.81 |
0.79 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good in its line.
l
SC’s net profit margin is average in three years.
l
SC’s return on total assets is average in three
years.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans in 2012.
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 low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered medium-sized in its line with stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.11 |
|
|
1 |
Rs.94.77 |
|
Euro |
1 |
Rs.81.54 |
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.