MIRA INFORM REPORT
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Report Date : |
02.02.2013 |
IDENTIFICATION DETAILS
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Name : |
HEBEI CHENGXIN CO., LTD. |
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Registered Office : |
Yuanzhao Road, Yuanshi County, Shijiazhuang City Hebei
Province 051130 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
04.04.1994 |
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Com. Reg. No.: |
130132000002039 |
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Legal Form : |
One-Person Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling chemical materials and products. |
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No. of Employees : |
2,000 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 (31.03.2011) |
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 2010 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 near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. 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
HEBEI CHENGXIN CO., LTD.
YUANZHAO ROAD, YUANSHI COUNTY, SHIJIAZHUANG CITY
HEBEI PROVINCE 051130 PR CHINA
TEL: 86 (0) 311-84632643/84627321
FAX: 86 (0) 311-84636311
EXECUTIVE SUMMARY
Date of Registration : april 4, 1994
REGISTRATION NO. : 130132000002039
LEGAL FORM : one-person Limited liabilities company
REGISTERED CAPITAL : cny 139,000,000
staff :
2,000
BUSINESS CATEGORY : manufacturing
& trading
REVENUE :
CNY 1,254,210,000 (JAN. 1, 2012 TO JUN. 30, 2012)
EQUITIES :
CNY 1,140,650,000 (AS OF JUN. 30, 2012)
WEBSITE : www.hebeichengxin.com
E-MAIL :
chengxin@hebeichengxin.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.22 = 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 limited liabilities company of PRC on April 4, 1994. However, SC changed
to present legal form, and was registered as a one-person limited liabilities company of PRC with State
Administration for Industry & Commerce under registration No.: 130132000002039 on July 16, 2008.
SC’s Organization Code Certificate No.:
70070265-2
SC’s registered capital: cny 139,000,000
SC’s paid-in capital: cny 139,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registered Capital |
CNY 3,570,000 |
CNY 26,220,000 |
|
|
Registered Capital |
CNY 26,220,000 |
CNY 39,290,000 |
|
|
Registered Capital |
CNY 39,290,000 |
cny 139,000,000 |
|
|
Registered legal form |
Limited liabilities company |
One-Person Limited Liabilities Company |
|
Legal Representative |
Chu Xianying |
Zhi Qunshen |
|
|
-- |
Registration No. |
1301321000005 |
130132000002039 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Huyang Investment Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Zhi Qunshen |
|
Director |
Li Yiru |
|
Shen Yinshan |
|
|
Dong Junjie |
|
|
Liu Wenjian |
|
|
Hu Zhenlin |
|
|
Supervisor |
Dong Zhiyan |
|
Li Liyan |
|
|
Niu Huibo |
RECENT DEVELOPMENT
SC is one of the largest production base of Cyanidum and its derivatives
in China, and it has passed the ISO9001 (2000 Version) quality system
certification in 2000 and Kosher food certification in 2003. Now the ISO14000
environmental protection system certification is in processing. In 2003, SC was
elected as one of the leading 500 top chemical enterprises in China. The credit
standing of the enterprise is “AAA”.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Huyang Investment
Co., Ltd. 100
------------------------
Date of Registration : June
26, 2008
Registration No. :
130000000020430
Legal Form : Limited Liabilities Company
Registered Capital : CNY
209,300,000
MANAGEMENT
Zhi Qunshen ,
Legal Representative and Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 43
Ø
ID# 132331197005060197
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Li Yiru , Director
----------------------------------
Ø
Gender: M
Ø
Age: 50
Ø
ID# 132331196308130135
Shen Yinshan (申银山), Director
------------------------------------------
Ø
Gender: M
Ø
Age: 43
Ø
ID# 130102197012120333
Dong Junjie ,
Director
---------------------------------------
Ø
Gender: M
Ø
Age: 42
Ø
ID# 132331197105142974
Liu Wenjian ,
Director
-----------------------------------------
Ø
Gender: M
Ø
Age: 62
Ø
ID# 132331195112121574
Hu Zhenlin ,
Director
---------------------------------------
Ø
Gender: M
Ø
Age: 35
Ø
ID# 13233119780610417X
Dong Zhiyan ,
Supervisor
--------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø
ID# 132331196406012976
Li Liyan ,
Supervisor
--------------------------------------
Ø
Gender: M
Ø
Age: 41
Ø
ID# 132331197206042235
Niu Huibo ,
Supervisor
--------------------------------------
Ø
Gender: M
Ø
Age: 31
Ø
ID# 421003198205161030
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling sodium cyanide, sodium ferrocyanide, Cyanuric chloride, ethyl malonate,
dimethyl malonate, diisopropyl malonate, phenylacetonitrile, phenylacetic acid,
sodium phenylacetate (potassium), methyl cyanoacetate, ethyl cyanoacetate,
glycolonitrile, anilino-acetonitrile, glycolic acid, ethylenediamine tetracetic
acid, ethylene diamine tetraacetic acid disodium, ethylene diamine tetraacetic
acid, NaFeEDTA, and sodium sulfocyanate; developing new chemical products;
constructing new items; exporting its products; and importing raw materials,
accessories, machinery, instruments & apparatus, and components needed by
production and scientific research.
SC is mainly
engaged in manufacturing and selling chemical materials and products.
SC’s products
mainly include: Cyanuric Chloride, Diethyl Malonate, Dimethyl Malonate,
Diisopropyl Malonate, Benzyl Cyanide, Phenyl Acetic Acid, Potassium
phenylacetate, Sodium Phenylacetate, Sodium Cyanide, Cyano Acetic Acid, Methyl
Cyanoacetate, Ethyl Cyanoacetate, Sodium ferrocyanide, Hydroxyacetonitrile,
Glycolic Acid, N-Phenylglycinonitrile, Potassium ferrocyanide, Triethyl
orthoformate, Trimethyl Orthoformate, Triethyl orthoformate
SC sources its materials 95% from domestic market, mainly Hebei, and 5% from
overseas market. SC sells 30% in domestic market, and 70% to overseas market,
mainly South America, North America, Europe, Australia, South Africa.
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.
*Major Customer:
=============
Firmenich Chemical
Mfg. Center
Qualchem Inc.
Staff & Office:
--------------------------
SC is known
to have approx. 2,000 staff at present.
SC rents an area as
its operating office & factory of approx. 133,340 sq. meters at the heading
address.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As
of Jun. 30, 2012 |
|
Long term equity
investment |
236,000 |
|
Total assets |
2,104,590 |
|
|
------------- |
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Total
liabilities |
963,940 |
|
Equities |
1,140,650 |
|
|
------------- |
|
Unit: CNY’000 |
Jan.
1, 2012 to Jun. 30, 2012 |
|
Revenue |
1,254,210 |
|
Profit before
tax |
193,830 |
|
Less: profit tax |
48,450 |
|
Profits |
145,380 |
Important Ratios
=============
|
|
As
of Jun. 30, 2012 |
|
*Liabilities
to assets |
0.46 |
|
*Net profit
margin (%) |
11.59 |
|
*Return on
total assets (%) |
6.91 |
|
*
Revenue/Total assets |
0.60 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears good in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
LIQUIDITY: AVERAGE
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
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 Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.32 |
|
|
1 |
Rs.84.60 |
|
Euro |
1 |
Rs.72.63 |
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.