MIRA INFORM REPORT
|
Report Date : |
20.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
GUANGDONG
ZHONGCHENG CHEMICALS INC., LTD. |
|
|
|
|
Registered Office : |
No. 2 Industrial Zone, Machong
Town, Dongguan, Guangdong
Province 523130 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
03.03.1993 |
|
|
|
|
Com. Reg. No.: |
440000400014190 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and selling chemical products. |
|
|
|
|
No. of Employees : |
917 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
Regular |
|
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 (31.03.2012) |
Current Rating (30.06.2012) |
|
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 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
GUANGDONG ZHONGCHENG CHEMICALS
INC., LTD.
NO. 2
INDUSTRIAL ZONE, MACHONG TOWN, DONGGUAN
GUANGDONG
PROVINCE 523130 PR CHINA
TEL: 86
(0) 769-88825425/88828115/88825606-2093
FAX: 86
(0) 769-88822342-2218
EXECUTIVE SUMMARY
Date of Registration : MARCH 3, 1993
REGISTRATION NO. : 440000400014190
LEGAL FORM :
shares limited company
REGISTERED CAPITAL :
CNY 651,100,000
staff : 917
BUSINESS CATEGORY :
manufacturing & TRADING
Revenue : CNY 961,210,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 670,250,000 (AS OF DEC. 31, 2012)
WEBSITE : www.zhongcheng.cn
E-MAIL : zhongcheng@china.com
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.25 = USD
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 shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 440000400014190 on March
3, 1993.
SC’s Organization Code Certificate
No.: 61832268-5
SC’s registered capital: CNY 651,100,000
SC’s paid-in capital: CNY 651,100,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
003375 |
440000400014190 |
|
Legal Representative |
Wang Zhiliang |
Liao Nengcheng |
|
|
Registered Capital |
CNY 411,100,000 |
CNY 611,100,000 |
|
|
Registered Capital |
CNY 611,100,000 |
CNY 651,100,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Liuzhou Chemical Industry
Group Co., Ltd. |
99 |
|
Liuzhou Liuhua Compound
Fertilizer Co., Ltd. |
1 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Liao
Nengchen |
|
Executive-Director |
Qin
Yongqiang |
RECENT DEVELOPMENT
No recent development was found during our checks at
present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Liuzhou Chemical Industry Group
Co., Ltd.
99
Liuzhou Liuhua Compound
Fertilizer Co., Ltd.
1
n Liuzhou
Chemical Industry Group Co., Ltd.
----------------------------------------------------------
Registration No.:
450200000012181
Date of Registration: November
5, 1981
Registered Capital: CNY
424,000,630
Legal Representative: Liao
Nengcheng
Add: No. 67 Beique Road, Liuzhou
Tel: 86-772-2510401
Fax: 86-772-2510401
MANAGEMENT
Liao
Nengcheng, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 56
Ø Qualification:
University
Ø Working
experience (s):
At present,
working in SC as legal representative, chairman and general manager
Also working in Liuzhou
Chemical Industry Group Co., Ltd., Hunan Zhicheng Chemicals Co., Ltd. and Hunan
Zhongcheng Chemicals Co., Ltd., Liuzhou Chemical Industry Co., Ltd., etc. as
legal representative
Qin
Yongqiang, Executive-Director
---------------------------------------------------------
Ø
Gender: M
Ø
Age: 47
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC as executive-director
BUSINESS OPERATION
SC’s
registered business scope includes manufacturing and selling sodium
hydrosulfite, sodium sulfite, sodium metabisulfite, carbon dioxide, peroxide,
formaldehyde sodium sulfoxylate, zinc oxide, precision chemical products (water
treatment: sodium carbonate; catalyst, additive and oil additive: peroxyacetic
acid); dangerous goods transportation; importing and exporting goods and
technology.
SC is
mainly engaged in manufacturing and selling chemical products.
SC’s
products mainly include:
Sodium
hydrosulfite: with a total annual capacity of 260,000MT, SC accounts for about
40% of the world's capacity. Being a global leading producer, SC exports to
over 60 countries.
Hydrogen
Peroxide: with a total annual capacity of 92,000MT (100% based), SC is a
leading hydrogen peroxide producer and exporter in China.
Other
products include: sodium percarbonate, sodium formaldehyde sulfoxylate
(Rongalite), zinc oxide, sodium sulfite, sodium metabisulfite, sodium
thiosulfate, CO2, dry ice, high purity hydrogen, liquid argon, liquid oxygen,
liquid nitrogen, methanol, formalin, ammonia, urea carbamide, ammonium
chloride, soda ash etc.
SC
sources its materials 95% from domestic markets, and 5% from the overseas
market, mainly Japan. SC sells 50% of its products in domestic markets, and 50%
to the overseas market.
The buying terms of SC include 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.
SC has three major manufacturing
bases in Dongguan, Guangdong and Zhuzhou, Hunan.
*Major Client*
-----------------
Dongguan Fu’an Textiles Printing
and Dyeing Co., Ltd.
*Major Supplier*
---------------------
Guangdong Power Grid Corp.
Dongguan Electric Supply Branch
Staff & Office:
--------------------------
SC is
known to have approx. 917
staff at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.
RELATED COMPANY
Liuzhou Chemical Industry Co., Ltd.
SC is known to have
3 subsidiaries as following,
Hunan Zhicheng Chemicals Co., Ltd.
Hunan Zhongcheng Chemicals Co., Ltd.
Dongguan Zhenhua Special Package Co., Ltd.
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’s
suppliers declined to make any comments.
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 Dongguan Branch
AC#: 2010027909024200577
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2012 |
|
490,000 |
|
|
Notes receivable |
0 |
|
Accounts
receivable |
43,930 |
|
Advances
to suppliers |
0 |
|
Other
receivable |
701,410 |
|
Inventory |
67,390 |
|
Non-current
assets within one year |
0 |
|
Other
current assets |
35,110 |
|
|
------------------ |
|
Current
assets |
1,337,840 |
|
Fixed
assets |
149,220 |
|
Construction
in progress |
11,400 |
|
Intangible
assets |
0 |
|
Long-term
investment |
619,360 |
|
Deferred
income tax assets |
0 |
|
Other
non-current assets |
51,710 |
|
|
------------------ |
|
Total
assets |
2,169,530 |
|
|
============= |
|
Short-term
loans |
277,180 |
|
Notes
payable |
757,130 |
|
Accounts
payable |
40,280 |
|
Welfares
payable |
0 |
|
Taxes
payable |
0 |
|
Advances
from clients |
11,230 |
|
Other
payable |
116,730 |
|
Other
current liabilities |
7,740 |
|
|
------------------ |
|
Current
liabilities |
1,210,290 |
|
Non-current
liabilities |
288,990 |
|
|
------------------ |
|
Total
liabilities |
1,499,280 |
|
Equities |
670,250 |
|
|
------------------ |
|
Total
liabilities & equities |
2,169,530 |
|
|
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2012 |
|
Revenue |
961,210 |
|
Cost of sales |
806,070 |
|
Sales expense |
21,270 |
|
Management expense |
36,440 |
|
Finance expense |
32,970 |
|
Profit
before tax |
39,590 |
|
Less:
profit tax |
6,450 |
|
33,140 |
Important
Ratios
=============
|
|
As of
Dec. 31, 2012 |
|
*Current
ratio |
1.11 |
|
*Quick
ratio |
1.05 |
|
*Liabilities
to assets |
0.69 |
|
*Net
profit margin (%) |
3.45 |
|
*Return
on total assets (%) |
1.53 |
|
*Inventory
/ Revenue ×365 |
26
days |
|
*Accounts
receivable/ Revenue ×365 |
17
days |
|
*Revenue/Total
assets |
0.44 |
|
*Cost
of sales / Revenue |
0.84 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The
revenue of SC appears fairly good in its line.
l SC’s
net profit margin is average.
l SC’s
return on total assets is average.
l
SC’s cost of sales is average,
comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level.
l
SC’s quick ratio is maintained in a
fairly good level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is
maintained in an average level.
l
SC’s short-term loans appear fairly
large.
l
SC’s revenue is in a fair 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 medium-sized in its line with fairly stable
financial conditions. The fairly 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.54.26 |
|
|
1 |
Rs.81.93 |
|
Euro |
1 |
Rs.70.21 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.