MIRA
INFORM REPORT
|
Report Date : |
04.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG FUHAI INDUSTRIAL CO., LTD. |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
18.01.1994 |
|
|
|
|
Com. Reg. No.: |
370000018013222 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
manufacturer, processing and selling of aluminum, aluminum products,
plastic products and aluminum composite products |
|
|
|
|
No. of Employees : |
280 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
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 |
|
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
SHANDONG FUHAI
INDUSTRIAL CO., LTD.
no. 18 renhe street, MUPING DISTRICT
yantai, shandong province 264100 PR CHINA
TEL: 86 (0) 535-4615317/4281218/4281201/3396698
FAX: 86 (0) 535-3396681
EXECUTIVE SUMMARY
Date of Registration : january 18, 1994
REGISTRATION NO. : 370000018013222
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : JIANG PEIGUO (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
cny 52,000,000
staff : 280
BUSINESS CATEGORY :
manufacturing & trading
Revenue : CNY 552,260,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 86,470,000 (AS OF DEC. 31, 2012)
WEBSITE : www.sdfuhai.cn
E-MAIL :
export@sdfuhai.cn & qiaoling6@gmail.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.13 = 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
LEGAL STATUS & HISTORY
***Note: SC’s current address should be the heading
one.
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 370000018013222 on January 18,
1994.
SC’s Organization Code Certificate
No.: 70586717-3
SC’s registered capital: cny 52,000,000
SC’s paid-in capital: cny 52,000,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shandong Fuhai Group Co.,
Ltd |
46.15 |
|
Yantai Muping State
State-owned Assets Administration |
5.77 |
|
Staff Shareholders |
48.08 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Jiang Peiguo |
|
General Manager and Director |
Zhang Jianbo |
|
Director |
Kong Xiaoni |
|
Zhang Shuzheng |
|
|
Zhang Yongliang |
|
|
Supervisor |
Ma Xiaobo |
|
Zhang Shuzhong |
|
|
Zhao Daning |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Shandong Fuhai Group Co., Ltd. 46.15
Yantai Muping State State-ouned Assets
Administration Bureau 5.77
Staff Shareholders 48.08
n
Shandong Fuhai Group Co., Ltd.
-------------------------------------------
Registration No.: 370612228014104
Date of Registration: February 2, 1988
Legal Form: Limited Liabilities Company
Registered Capital: CNY 50,000,000
Legal Representative: Zhang Shuzheng
MANAGEMENT
Jiang Peiguo , Legal
Representative and Chairman
----------------------------------------------------------------------------
Ø
Gender: M
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Zhang
Jianbo, General Manager
and Director
-----------------------------------------------------------------------
Ø
Gender: M
Ø
Working
experience (s):
At present, working in SC as general manager and director
Director
-----------
Kong Xiaoni
Zhang Shuzheng
Zhang Yongliang
Supervisor
--------------
Ma Xiaobo
Zhang Shuzhong
Zhao Daning
BUSINESS OPERATION
SC’s registered business scope includes manufacturing, processing,
and selling aluminum, aluminum products, plastic products and aluminum
composite products; and international trade.
SC is
mainly engaged in manufacturing, processing and selling aluminum, aluminum products,
plastic products and aluminum composite products.
SC’s products mainly include:
Al
Coil
Al
Sheet
Al
Foil
Al-plastic
composition Lids
Al
Hydrophilic Foil
Brand:
Fuhai.
SC sources its materials 100% from domestic market.
SC sells 70% of its products in domestic market, and 30% to overseas market,
mainly Southeast Asia, etc.
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.
Staff & Office:
--------------------------
SC is
known to have approx. 280 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
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 local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
|
38,650 |
|
|
Notes receivable |
0 |
|
Accounts
receivable |
66,050 |
|
Advances to
suppliers |
0 |
|
Other receivable |
17,690 |
|
Inventory |
79,780 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
25,120 |
|
|
------------------ |
|
Current assets |
227,290 |
|
Fixed assets |
177,880 |
|
Construction in
progress |
0 |
|
Intangible
assets |
0 |
|
Deferred income tax
assets |
0 |
|
Other
non-current assets |
31,000 |
|
|
------------------ |
|
Total assets |
436,170 |
|
|
============= |
|
Short-term loans |
241,000 |
|
Notes payable |
0 |
|
Accounts payable |
117,420 |
|
Welfares payable |
0 |
|
Taxes payable |
0 |
|
Advances from
clients |
0 |
|
Other payable |
17,250 |
|
Other current
liabilities |
-25,970 |
|
|
------------------ |
|
Current
liabilities |
349,700 |
|
Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
349,700 |
|
Equities |
86,470 |
|
|
------------------ |
|
Total
liabilities & equities |
436,170 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
552,260 |
|
Cost of sales |
542,650 |
|
Sales expense |
17,140 |
|
Management expense |
8,030 |
|
Finance expense |
25,330 |
|
Profit before
tax |
-41,140 |
|
Less: profit tax |
0 |
|
-41,140 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
|
*Current ratio |
0.65 |
|
*Quick ratio |
0.42 |
|
*Liabilities
to assets |
0.80 |
|
*Net profit
margin (%) |
-7.45 |
|
*Return on
total assets (%) |
-9.43 |
|
*Inventory /
Revenue ×365 |
53 days |
|
*Accounts
receivable / Revenue ×365 |
44 days |
|
*Revenue /
Total assets |
1.27 |
|
*Cost of sales
/ Revenue |
0.98 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear too large.
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 average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair
financial conditions. Too large amount of short-term loans
may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.10 |
|
UK Pound |
1 |
Rs.91.07 |
|
Euro |
1 |
Rs.77.95 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.