MIRA INFORM REPORT
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Report Date : |
26.03.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG SINCHEM SILICA GEL CO., LTD. |
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Formerly Known as: |
Tengzhou Hengtai Chemical Co., Ltd. |
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Registered Office : |
No. 1, Sinchem Industrial Park, Dongguo Town, Tengzhou City, Shandong Province, 277533 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
02.02.2007 |
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Com. Reg. No.: |
370481228026516 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
processing and selling sodium silicate and silica gel products |
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No. of Employees : |
500 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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Payment Behaviour : |
Usually Correct |
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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 (31.03.2012) |
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.
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Source : CIA |
Company name & address
SHANDONG SINCHEM SILICA GEL co., ltd.
NO. 1, SINCHEM INDUSTRIAL PARK, DONGGUO
TOWN, TENGZHOU CITY, SHANDONG PROVINCE, 277533 PR CHINA
TEL: 86 (0)
632-2528033/2528333 FAX: 86 (0)
632-2528007
EXECUTIVE SUMMARY
INCORPORATION DATE : FEB. 2, 2007
REGISTRATION NO. : 370481228026516
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF STRENGTH :
500
REGISTERED CAPITAL : CNY 6,600,000
BUSINESS LINE :
PROCESSING & TRADING
TURNOVER :
CNY 66,050,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 6,500,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE (AS OF DEC. 31, 2010)
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.22 = 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
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC was registered as a limited liabilities co. at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on Feb. 2, 2007, and has been under present
legal form since 2011.
SC’s registered
business scope includes processing and selling sodium silicate and silica gel,
importing & exporting related products (excluding hazardous chemicals).
SC is mainly
engaged in processing and selling sodium silicate and silica gel products.
Mr. Qiu Xingya has
been legal representative and chairman of SC since 2007.
SC is known to
have approx. 500 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 Tengzhou. SC’s
accountant refused to release the detailed information of the premise.
http://www.sinchem.com.cn The
design is professional and the content is well organized. At present, the web
is both in Chinese and English versions.
E-mail: sinchem@188.com
Qualification:
===========
SC has passed ISO 9001:2008, ISO 14001:2004, SC also won
"Chinese special silicone Incubation Base” in 2005 and SC was awarded “Hi-Tech
Enterprise”, “A Grade Enterprise”, “Advanced Unit”, etc.
Changes
of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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Company’s name |
Tengzhou Hengtai Chemical Co., Ltd. |
Present one |
Registered capital
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CNY 500,000 |
Present amount |
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Shareholders (% of shareholding)
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Qiu Ronglin20% Qiu Xingdong 20% Qiu Yuqiu 12% Qiu Xinli 12% Qiu Yushen 12% Qiu Guangliang 12% Lin Jiazeng 12% |
Qiu Ronglin 1.52% Qiu Xingdong 1.52% Qiu Xingya 1.52% Qiu Yuqiu 0.91% Qiu Xinli 0.91% Qiu Yushen 0.91% Qiu Guangliang 0.91% Lin Jiazeng 0.91% Dai Zengliang 0.89% |
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Shareholders (% of shareholding)
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Qiu Ronglin 1.52% Qiu Xingdong 1.52% Qiu Xingya 1.52% Qiu Yuqiu 0.91% Qiu Xinli仇0.91% Qiu Yushen 0.91% Qiu Guangliang 0.91% Lin Jiazeng 0.91% Dai Zengliang 90.89% |
Present ones |
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Registered Legal Form |
limited liabilities co. |
Present one |
MAIN SHAREHOLDERS:
Name % of Shareholding
Qiu Ronglin 1.52
Qiu Xingdong 1.52
Qiu Xingya 1.52
Dai Zengliang 55.44
Aaralyn Int'l Limited (Hong Kong) 40
Aaralyn Int'l Limited (Hong Kong)
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Registration no.: 1357991
Legal form: private
Legal
representative and chairman:
Mr. Qiu Xingya, ID# 37048119841210785X, born in 1984, he is currently responsible for the overall management of SC.
Working
Experience(s):
From 2007 to present Working in SC as legal representative and chairman.
SC is mainly
engaged in processing and selling sodium silicate and silica gel products.
SC’s products mainly include: sodium silicate
series, white carbon black, industrial silica gel, civil silica gel, cat
litter, etc.
SC manufactures more than 45,000 tons of silica gel per
year, and sodium silicate produces around 120,000 tons annually.
SC sources its materials 100% from domestic
market. SC sells its products 50% in domestic market, and 50% to overseas
market.
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.
Note:
SC refused to release its major clients and suppliers.
According to
SC’s website:
· Tengzhou Xinxu Chemical Co., Ltd.
· Tengzhou Hongtai Chemical Co., Ltd.
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.
SC declined to
release its banking details.
Financial Summary
===============
Unit: CNY’000
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As of Dec. 31, 2010 |
As of Dec. 31, 2009 |
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Total liabilities |
19,240 |
20,210 |
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Equities |
6,500 |
6,350 |
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-------------- |
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Total assets |
25,740 |
26,560 |
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========= |
========= |
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Turnover |
66,050 |
43,040 |
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Profit before tax |
221 |
8,490 |
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Less: profit tax |
76 |
8,740 |
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Profits |
145 |
-250 |
Note: we did not find SC’s detailed financial reports for Yr2009 and 2010. SC’s management declined to release the latest financial information.
Important Ratios
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2009 |
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*Liabilities
to assets |
0.75 |
0.76 |
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*Net profit
margin (%) |
0.22 |
-0.58 |
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*Return on
total assets (%) |
0.56 |
-0.94 |
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*Turnover/Total
assets |
2.57 |
1.62 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears average in its line, and it increased in 2010.
l SC’s net profit
margin appears fair in 2009, and average in 2010.
l SC’s return on
total assets appears fair in 2009, and average in 2010.
l
SC’s turnover is in an average level in 2009 and
fairly good in 2010, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.09 |
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UK Pound |
1 |
Rs.82.47 |
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Euro |
1 |
Rs.70.49 |
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 |
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NB |
New Business |
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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.