MIRA INFORM REPORT
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Report Date : |
20.07.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI DONGMEI CHEMICAL CO., LTD. |
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Registered Office : |
No. 55, Chenbao Road, Malu Town, Jiading District, Shanghai 201801 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
19.08.1997 |
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Com. Reg. No.: |
310000400178021 |
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Legal Form : |
Chinese Foreign Contractual Joint Venture
Enterprise |
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Line of Business : |
manufacturing and selling
of chemical products including Dyestuff in
textile, Chemical auxiliaries in textile, Flammable retardant range. |
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No. of Employees : |
108 |
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.
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Source : CIA |
Company name & address
SHANGHAI
DONGMEI CHEMICAL CO., LTD.
no. 55, chenbao road, malu town, jiading
district
SHANGHAI 201801 PR CHINA
TEL: 86 (0) 21-62761029/62761039
FAX: 86 (0) 21-62761022/62761078
Note:
The subject’s administration department, marketing department and international department locate in the (4/F No. 19 lane 1258 Changde Road Shanghai 200060 PR), and the subject’s factory, R & D department, testing room locate in the above mentioned address.
EXECUTIVE SUMMARY
Date of Registration : AUGUST 19, 1997
REGISTRATION NO. : 310000400178021
LEGAL FORM : CHINESE FOREIGN CONTRACTUAL JOINT VENTURE
ENTERPRISE
CHIEF EXECUTIVE : LIN XIANYANG (LEGAL REPRESENTATIVE)
REGISTERED CAPITA : USD 500,000
staff : 108
BUSINESS CATEGORY :
manufacturing & trading
Sale :
CNY 40,558,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 22,156,000 (AS OF DEC. 31, 2012)
WEBSITE : www.dongmei.net
E-MAIL :
dm@dongmei.net & sophia@dongmei.net
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.14 = 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
SC was
established as a Chinese foreign contractual joint venture enterprise of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 310000400178021 on August
19, 1997.
SC’s Organization Code Certificate No.:
60737635-4
SC’s registered capital: USD 500,000
SC’s paid-in capital: USD 500,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
-- |
Registration No. |
023895 |
310000400178021 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
Investment |
|
Shanghai Lingyang Industry Co., Ltd. |
Premise |
|
Taiwan Youchen Co., Ltd. |
Capital 100% |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Lin Xianyang |
RECENT
DEVELOPMENT
SC has got the certificate ISO9001.
SHAREHOLDER
CHART & BACKGROUND
Name
Investment
Shanghai Lingyang Industry Co.,
Ltd. Premise
Taiwan Youchen Co., Ltd. Capital
100%
Shanghai
Lingyang Industry Co., Ltd.
==============================
Date of Registration: July 3, 1993
Registration No.: 310114000053790
Legal Form: Limited Liabilities Company
Registered Capital: CNY 1,180,000
Address: Chencun, Malu Town, Jiading
District, Shanghai
Tel: 86 021-69153413
MANAGEMENT
Lin Xianyang, Legal Representative and Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: Taiwan
Ø Qualification:
University
Ø Working experience
(s):
From 1997 to present, working in SC as legal representative and chairman
Also working in Taiwan Youchen Co., Ltd. as chairman
Wang Guoquan, Sales Manager
----------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing
various printing and dyeing accessory ingredients and fixed coating; and
selling its products.
SC is
mainly engaged in manufacturing and selling chemical products.
SC’s
products mainly include: Dyestuff in textile, Chemical auxiliaries in
textile, Flammable retardant range.
SC sources its
materials 95% from domestic market, and 5% from the overseas market, mainly
European countries. SC sells 85% of its products in domestic market, and 15% to
the overseas market, mainly USA, Europe and Southeast Asia.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Taiwan Youchen Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 108 staff at present.
SC rents an area
as its operating office & factory of approx. 8,000 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
Basic Bank:
Industrial and Commercial Bank of China Changshou Road Sub-branch
AC#: 1001210009016210351
fINANCIALS
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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Current assets |
26,532 |
-- |
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Fixed assets |
2,949 |
-- |
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Long term investment |
0 |
-- |
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Intangible
assets |
33 |
-- |
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Total assets |
29,515 |
31,668 |
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|
------------- |
------------- |
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Total
liabilities |
9,484 |
9,512 |
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Equities |
20,031 |
22,156 |
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------------- |
------------- |
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As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Sale |
49,321 |
40,558 |
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Cost of sales |
45,173 |
31,631 |
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Profit before
tax |
-906 |
2,636 |
|
Less: profit tax |
45 |
470 |
|
Profits |
-951 |
2,166 |
Note: The detailed financials for Y2011 and 2012 are not available in
SAIC.
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Liabilities
to assets |
0.32 |
0.30 |
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*Net profit
margin (%) |
-1.93 |
5.34 |
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*Return on
total assets (%) |
-3.22 |
6.84 |
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* Sale/Total
assets |
1.67 |
1.28 |
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* Cost of
sales / Revenue |
0.92 |
0.78 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The sale of SC appears average in its line.
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 average in 2012,
comparing with its sale.
LIQUIDITY:
AVERAGE
l
SC’s sale 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: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly
stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.79 |
|
UK Pound |
1 |
Rs.91.03 |
|
Euro |
1 |
Rs.78.52 |
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 |
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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 |
|
---- |
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.