MIRA
INFORM REPORT
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Report Date : |
16.08.2013 |
IDENTIFICATION DETAILS
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Name : |
Baoding Lucky Chemical Co. Limited |
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Registered Office : |
No. 6, Lekai South Street, Xinshi District, Baoding, Hebei Province 071054 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
25.09.2002 |
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Com. Reg. No.: |
130605000010609 |
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Legal Form : |
Limited
liabilities company |
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Line of Business : |
Manufacturing and
Selling photographic chemicals, pharmaceutical intermediates, electronic
chemicals, water treatment agent, dyes and auxiliaries, surface active agent,
antioxidant and stabilizing agent, nanometer material, radiation curing
materials; importing and exporting commodities. |
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No. of Employees : |
96 |
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 – March 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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
BAODING LUCKY CHEMICAL CO.,
LTD.
NO. 6, LEKAI SOUTH
STREET, XINSHI DISTRICT, BAODING,
HEBEI PROVINCE 071054
PR CHINA
TEL: 86 (0) 312-7922186
FAX:
86 (0) 312-7922223
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 25, 2002
REGISTRATION NO. : 130605000010609
REGISTERED LEGAL FORM
: LIMITED LIABILITIES CO.
STAFF STRENGTH : 96
REGISTERED CAPITAL :
CNY 5,082,561
BUSINESS LINE : MANUFACTURING &
TRADING
TURNOVER : CNY 26,380,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY
26,870,000 (AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
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 Sep. 25, 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 manufacturing and selling photographic chemicals, pharmaceutical
intermediates, electronic chemicals, water treatment agent, dyes and auxiliaries,
surface active agent, antioxidant and stabilizing agent, nanometer material,
radiation curing materials; importing and exporting commodities. (with permit
if needed).
SC is mainly engaged in manufacturing and selling photographic chemicals.
Mr. Wang Yining is legal representative and chairman of SC at present.
SC is known to have approx. 96 employees at present.
SC is currently
operating at the above stated address, and this address houses its operating
office and factory in Baoding. Our checks reveal that SC rents the total
premise, but the gross area of the premise is unspecific.
http://www.bdluckychem.com/ The design is professional and the content is well organized. At present the web site is in Chinese and English versions.
E-mail: hxsc@bdluckychem.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
Lucky Film Co., Ltd. 19.68
China Lucky Group Corporation 39.15
Li Yanbin 4.61
Other individuals 36.56
Lucky Film Co., Ltd.
================
Incorporation Date: Jan. 16, 1998
Registered no.: 130000400001573
Registered capital: CNY 342,000,000
Legal representative: Song Liding
The said company is listed in Shanghai Stock Exchange with the code of 600135.
Address: No. 6, Lekai South Street, Xinshi District, Baoding, Hebei Province
Tel: +86 (312) 3302372
Fax: +86 (312) 3302386
Web: http://gufen.luckyfilm.com.cn/
China Lucky Group Corporation
========================
Registered no.: 130600100005424
Legal representative: Teng Fangqian
Establishment date:
Address: No. 6, Lekai South Street, Xinshi District, Baoding, Hebei Province
Tel: 0312-7923000
Fax: 0312-7923001
Web: http://www.luckyfilm.com.cn/
l Legal representative and chairman:
Mr. Wang Yining, born in 1960, with university education, senior engineer. He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in
SC as legal representative and chairman.
Also working in Lucky Film Co., Ltd. as director; working in China Lucky Group Corporation as vice general manager.
SC is mainly engaged in manufacturing and selling photographic chemicals.
SC’s products mainly include light stabilizers, antioxidants, chemical intermediates, functional dyes, photograph chemicals, etc.
SC sources its materials 100% from domestic market. SC sells 20% of its products in domestic market and 80% to overseas market.
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.
Note: SC declined to release its major suppliers and clients.
According to http://www.luckyfilm.com.cn/
Lucky Huaguang Graphics Co., Ltd.
Registered no.: 411391000001359
Legal representative: Teng
Fangqian
Establishment date:
Tel:
0377-63862878/63863163
Fax:
0377-63132092
Baoding
Lucky Innovative Materials Co., Ltd.
Registered no.: 130605000009731
Legal representative: Teng
Fangqian
Establishment date:
Tel: 0312-7922574
Fax: 0312-3232324
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.
SC’s accountant refused to release the bank details.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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Cash & bank |
11,420 |
4,650 |
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Inventory |
8,240 |
10,090 |
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Accounts receivable |
5,090 |
2,770 |
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Advances to suppliers |
460 |
270 |
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Other receivables |
660 |
60 |
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Other current assets |
350 |
110 |
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------------------ |
------------------ |
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Current assets |
26,220 |
17,950 |
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Fixed assets net value |
5,150 |
4,370 |
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Long term investment |
0 |
0 |
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Projects under construction |
1,190 |
8,440 |
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Intangible and other assets |
40 |
30 |
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------------------ |
------------------ |
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Total assets |
32,600 |
30,790 |
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=========== |
=========== |
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Short loan |
0 |
0 |
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Accounts payable |
4,230 |
3,400 |
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Advances from clients |
0 |
120 |
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Taxes payable |
-430 |
-750 |
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Other Accounts payable |
350 |
60 |
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Other current liabilities |
1,510 |
980 |
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------------------ |
------------------ |
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Current liabilities |
5,660 |
3,810 |
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Long term liabilities |
0 |
110 |
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------------------ |
------------------ |
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Total liabilities |
5,660 |
3,920 |
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Equities |
26,940 |
26,870 |
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------------------ |
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Total liabilities & equities |
32,600 |
30,790 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2012 |
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Turnover |
26,380 |
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Cost of goods sold |
19,780 |
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Sales expense |
1,370 |
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Management expense |
4,920 |
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Finance expense |
10 |
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Profit before tax |
370 |
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Less: profit tax |
-80 |
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Profits |
450 |
Important Ratios
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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*Current ratio |
4.63 |
4.71 |
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*Quick ratio |
3.18 |
2.06 |
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*Liabilities to assets |
0.17 |
0.13 |
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*Net profit margin (%) |
/ |
1.71 |
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*Return on total assets (%) |
/ |
1.46 |
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*Inventory /Turnover ×365 |
/ |
140 days |
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*Accounts receivable/Turnover ×365 |
/ |
39 days |
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*Turnover/Total assets |
/ |
0.86 |
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* Cost of goods sold/Turnover |
/ |
0.75 |
PROFITABILITY: AVERAGE
l The turnover of SC appears average in 2012.
l SC’s net profit margin is average in 2012.
l SC’s return on total assets is average in 2012.
l SC’s cost of goods sold is average, comparing with its turnover in 2012.
LIQUIDITY: AVERAGE
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 appears fairly large in 2012.
l The accounts receivable of SC appears average.
l SC has no short-term loan in both years.
l SC’s turnover is in a fair level, comparing with the size of its total assets in 2012.
LEVERAGE: FAIRLY GOOD
l The debt ratio of SC is low.
l The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial conditions. The large amount of inventory could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.52 |
|
|
1 |
Rs. 94.99 |
|
Euro |
1 |
Rs. 81.63 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
|
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.