MIRA
INFORM REPORT
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Report Date : |
11.12.2013 |
IDENTIFICATION DETAILS
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Name : |
QINGDAO ASPIRIT CHEMICAL CO., LTD. |
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Registered Office : |
5c, Inter Royal Mansion, No. 15, Donghai West Road, Qingdao, Shandong Province, 266071 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
21.01.2009 |
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Com. Reg. No.: |
370202230027224 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
selling of chemical products and raw materials such as Propylene Glycol
Tech Grade, Propylene Glycol Pharma Grade, Propylene Carbonate, Dipropylene
Glycol, Poly Aluminium Chloride, Caustic Soda Flakes, Calcium Chloride and
Calcium Bromide |
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No. of Employees : |
20 |
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 : |
Slow but Correct |
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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 – September 30th, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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.
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Source : CIA |
Company name & address
QINGDAO ASPIRIT CHEMICAL Co., Ltd.
5C, INTER ROYAL MANSION, NO. 15, DONGHAI
WEST ROAD,
QINGDAO, SHANDONG PROVINCE, 266071 PR CHINA
TEL: 86 (0) 532-89072278 FAX:
86 (0) 532-89072276
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 21, 2009
REGISTRATION NO. : 370202230027224
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : MR. ZHANG YULIN (CHAIRMAN)
STAFF STRENGTH :
20
REGISTERED CAPITAL : CNY 12,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 81,130,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 11,690,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.10 = 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 Liability Company at local
Administration for industry & commerce (AIC - the official body of issuing
and renewing business license) on Jan. 21, 2009.
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 wholesaling chemical products and raw materials (not including
dangerous goods); import and export of goods and technologies. (with permit if
needed)
SC is mainly
engaged in selling chemical products and raw materials.
Mr. Zhang Yulin has been the legal representative, chairman and general
manager of SC since 2009.
SC is known
to have approx. 20 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Qingdao. The detailed information of
the area is unspecified.
www.arrow-chemical.com/ The
design is professional and the content is well organized. At present the web
site is in English, Japanese and other versions.
Email: market@arrow-chemical.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2011-8-9 |
Registered
capital |
CNY 600,000 |
Present amount |
The paid-up capital of SC was increased from CNY 6,000,000 to CNY
12,000,000 in 2012.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Gao Dongmei 33.33
Zhang Weizhng 33.33
Zhang Yulin 33.34
Legal
representative, Chairman and General manager:
Mr. Zhang Yulin born in 1982. He is currently
responsible for the overall management of SC.
Working
Experience(s):
From 2009 to present Working in
SC as legal representative, chairman and general manager
Supervisor:
…………..
Zhang Weizhong
SC is mainly
engaged in selling chemical products and raw materials.
SC’s products mainly
include Propylene Glycol tech grade (50, 000mt/year), Propylene Glycol pharma
grade (30, 000mt/year), Propylene Carbonate (15, 000mt/year), Dipropylene
Glycol (5, 000mt/year), Poly Aluminium Chloride (20, 000mt/year), Caustic Soda
Flakes (40, 000mt/year), Calcium Chloride (50, 000mt/year) and Calcium Bromide
(30, 000mt/year).
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’s management declined to release its major clients and suppliers.
According
to SC’s website:
Arrow-chem Iran Office
Unit# 103 , 1th Floor , No. 63 , East Mousavi St. (East 5th
Golestan St.) , Heravi Sq. , Pasdaran Area, Tehran, Iran
Tel: (+98) 21 2298 4346, 47 Fax: (+98) 21 2297 2551
Iran Office Manager: Mohammadali Gharibdoust
Cell Phone: (+98) 912 359 3237
E-Mail: gharibdoust@arrow-chemical.com
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 |
as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
|
Cash & bank |
16,120 |
690 |
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Inventory |
100 |
650 |
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Accounts
receivable |
22,180 |
51,000 |
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Other accounts
receivable |
3,180 |
8,440 |
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Other current
assets |
710 |
2,370 |
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------------------ |
------------------ |
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Current assets |
42,290 |
63,150 |
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Fixed assets net
value |
30 |
1,140 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other
non-current assets |
0 |
20 |
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------------------ |
------------------ |
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Total assets |
42,320 |
64,310 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
13,870 |
8,210 |
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Advances from
clients |
1,510 |
0 |
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Other accounts
payable |
12,960 |
44,630 |
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Bills payable |
8,330 |
0 |
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Taxes payable |
-20 |
-220 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
36,650 |
52,620 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
36,650 |
52,620 |
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Equities |
5,670 |
11,690 |
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------------------ |
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Total
liabilities & equities |
42,320 |
64,310 |
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Income Statement
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Unit: CNY’000 |
as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
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Turnover |
62,960 |
81,130 |
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Cost of goods sold |
60,250 |
72,240 |
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Sales expense |
2,900 |
6,680 |
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Management expense |
630 |
2,190 |
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Finance expense |
-330 |
530 |
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Non-operating
income |
50 |
550 |
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Non-operating expenses |
0 |
0 |
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Profit before
tax |
-440 |
40 |
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Less: profit tax |
0 |
0 |
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Profits |
-440 |
40 |
Important
Ratios
=============
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as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
|
*Current ratio |
1.15 |
1.20 |
|
*Quick ratio |
1.15 |
1.19 |
|
*Liabilities
to assets |
0.87 |
0.82 |
|
*Net profit
margin (%) |
-0.70 |
0.05 |
|
*Return on
total assets (%) |
-1.04 |
0.06 |
|
*Inventory
/Turnover ×365 |
1 day |
3 days |
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*Accounts
receivable/Turnover ×365 |
129 days |
230 days |
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*Turnover/Total
assets |
1.49 |
1.26 |
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* Cost of goods
sold/Turnover |
0.96 |
0.89 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line, and
it increased in 2012.
l
SC’s net profit margin is fair in 2011 and average
in 2012.
l
SC’s return on total assets is fair in 2011 and
average in 2012.
l
SC’s cost of goods sold is high in 2011 and average
in 2012, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The accounts receivable of SC appears large.
l
The inventory of SC appears average.
l
There is no short-term loan of SC in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
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 accounts receivable could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.21 |
|
UK Pound |
1 |
Rs.100.65 |
|
Euro |
1 |
Rs.84.15 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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 |
|
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.