MIRA
INFORM REPORT
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Report Date : |
19.02.2013 |
IDENTIFICATION DETAILS
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Name : |
NANTONG HAIDI CHEMICALS CO., LTD. |
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Registered Office : |
Tangjia Town, Haimen City, Nantong, Jiangsu Province 226126 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
01.12.2000 |
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Com. Reg. No.: |
320684400004968 |
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Legal Form : |
One-Person Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling chemical products. |
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No. of Employees : |
550 |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 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
NANTONG HAIDI CHEMICALS co., Ltd.
TANGJIA TOWN,
HAIMEN CITY, NANTONG, JIANGSU PROVINCE 226126 PR CHINA
TEL: 86 (0)
513-82763133/68630208
FAX: 86 (0)
513-82611227
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 1, 2000
REGISTRATION NO. : 320684400004968
REGISTERED LEGAL FORM : ONE-PERSON LIMITED
LIABILITIES COMPANY
STAFF STRENGTH :
550
REGISTERED CAPITAL : CNY 138,431,085
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 351,010,000 (unAUDITED, AS OF DEC. 31, 2012)
EQUITIES :
CNY 209,570,000 (unAUDITED, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.23 = 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 Chinese-foreign contractual joint venture
enterprise at local Administration for Industry & Commerce (AIC-The
official body of issuing and renewing business license) on Dec. 1, 2000 and has
been under present legal form since 2012.
Company Status: One-person limited liabilities co. Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered
business scope includes manufacturing and selling chemical products (pigments, dyes
and dye intermediates); exporting self-made products and technology, and
importing self-needed machinery and equipment, spare parts, raw and auxiliary
materials; excluding the goods and technology prohibited or limited by the
country.
SC is mainly engaged
in manufacturing and selling chemical products.
Mr. Ni
Haiping is the legal representative,
chairman and general manager of SC at present.
SC is known to have approx. 550 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 Haimen. Our checks
reveal that SC owns the total premise about 38,000 square meters.
http://www.haidi.cn/
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
Email: caixl@haidi.cn
SC has obtained ISO9001:2000 certificate:
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2012 |
Registered capital |
USD 6,790,000 |
CNY 138,431,085 |
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Registered legal form |
Chinese-foreign contractual joint venture enterprise |
Present one |
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Shareholders (Shareholding) |
DIC Corporation DIC株28.87%; Haimen City Chemical Raw Material Factory
Co, Ltd.71.13% |
Present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Haimen City Chemical Raw Material Factory
Co, Ltd.
100
Legal representative: Ni Haiping
Registration No.: 320684000003292
Incorporation date: Oct. 16, 1989
Add: Sanchang
Town, Haimen City, Jiangsu Province
Tel: 0513-82380303
Fax: 0513-82611127
l
Legal representative, chairman and
general manager:
Mr. Ni Haiping , ID# 320625195705053178, born in 1957, he is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager;
Also
working in Haimen City Chemical Raw Material Factory Co, Ltd. and Nantong
Huamei Packaging Material Co., Ltd. as legal representative
Directors:
…………..
Qian Yue
Huang Yusheng
Qiu Yongzhong
Yang Ping
Supervisor:
…………..
Yang Yiming
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products mainly include organic pigments, intermediates, polymers,
etc.
SC sources its
materials and products 95% from domestic market and 5% from overseas market. SC
sells its products 70% in domestic market and 30% 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 clients and suppliers.
According to SC’s website:
Haimen Ruifeng Color Co., Ltd.
…………………………………
Tel:
0513-82760201
Fax:
0513-82763998
Add:
Tangjia Town, Haimen, Jiangsu Province
Nantong
Huamei Packaging Material Co., Ltd.
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.
Bank of China
AC#：N/A
Relationship:
Normal
Financial Summary
Unit: CNY’000
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as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
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Total Liabilities |
188,410 |
195,910 |
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Shareholders equities |
185,750 |
209,570 |
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Total Assets |
374,160 |
405,480 |
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Turnover |
559,370 |
351,010 |
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Net profit |
34,510 |
23,970 |
Note: we did not find SC’s detailed
financial reports for Yr2011 & 2012. The
above financial of Year2012 have not been audited.
Important
Ratios
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as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
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*Liabilities
to assets |
0.50 |
0.48 |
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*Net profit
margin (%) |
6.17 |
6.83 |
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*Return on
total assets (%) |
9.22 |
5.91 |
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*Turnover/Total
assets |
1.50 |
0.87 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line,
but it decreased in 2012.
l
SC’s net profit margin is fairly good in both
years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s turnover is in an average level in 2011 but in
a fair level in 2012, 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.54.29 |
|
|
1 |
Rs.84.09 |
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Euro |
1 |
Rs.72.44 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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.