MIRA INFORM REPORT
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Report Date : |
30.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
BASF POLYURETHANES (CHINA) CO., LTD. |
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Registered Office : |
No. 408 Huanshi Road South, Nansha Economic And Technical Development Zone, Guangzhou, Guangdong Province, 511458 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
19.01.1998 |
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Com. Reg. No.: |
440110400000147 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing and selling polyurethane combined materials. |
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No. of Employees : |
128 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
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
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
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
BASF POLYURETHANES (CHINA) CO., LTD.
NO. 408 HUANSHI ROAD SOUTH, NANSHA ECONOMIC
AND TECHNICAL DEVELOPMENT ZONE, GUANGZHOU, GUANGDONG PROVINCE, 511458 PR CHINA
TEL: 86 (0)
20-84982560-236 FAX: 86 (0) 20-84982561
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 19, 1998
REGISTRATION NO. : 440110400000147
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
ENTERPRISE
STAFF STRENGTH :
128
REGISTERED CAPITAL : CNY 49,852,800
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 1,119,900,000 (UNAUDITED, AS OF DEC. 31, 2012)
EQUITIES :
CNY 247,020,000 (UNAUDITED, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : 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 Ren Min Bi
%20CO%20,%20LTD%20%20-%20215979%2030-Mar-2013_files/image020.gif){kind=small}
SC was registered as a wholly foreign-owned
enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Jan. 19, 1998.
Company Status: Wholly foreign-owned enterprise This form of business in PR China is defined as a legal
person. It is a limited co. established within the territories of PR China
with capital provided totally by the foreign investors. More than one
foreign investor may jointly invest in a wholly foreign-owned enterprise.
The investing party/parties solely exercise management, reap profit and
bear risks and liabilities by themselves. This form of companies usually
have a limited duration is extendible upon approval of Examination and
Approval Authorities.
SC’s registered business scope includes manufacturing polyurethane
combined materials, polyester polyol, thermoplastic polyurethane, polyether
glycol, auto shock absorbers, related polyurethane and products (excluding
products related to license management), selling the above self-made products
in domestic and overseas markets, providing related processing and applying
technology; import and export, wholesaling and commission agent (excluding
auction) of similar commodities (excluding particular commodities), isocyanate,
polyurethane catalyst (according to Guangdong Guangzhou Security License
[2012]000836(10), valid until June 17, 2015),
organo-silica (surfactant), additives for polymers, polyether glycol combined materials,
polyester polyol combined materials, isocyanate combined materials,
polyurethane bumper block, polyurethane chassis vibration damper, loading
moulds and accessories used in manufacturing polyurethane bumper block and
polyurethane chassis vibration damper, and other related business. (with permit
if needed)
SC is mainly engaged
in manufacturing and selling polyurethane combined materials.
Mr. Jianfeng Lou
has been legal representative and chairman of SC since 2013.
SC is known
to have approx. 128 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the development zone of Guangzhou. Our checks
reveal that SC owns the total premise about 30,000 square meters.
%20CO%20,%20LTD%20%20-%20215979%2030-Mar-2013_files/image021.gif){kind=small}
http://www.greater-china.basf.com It is the website of BASF Greater China,
including SC. The design is professional and the content is well organized. At
present the web site is both in Chinese and English versions.
%20CO%20,%20LTD%20%20-%20215979%2030-Mar-2013_files/image022.gif){kind=small}
Changes
of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
2001-10-29 |
Legal Representative |
Joachim Streu |
Eng Soo Chew |
|
2003-2-20 |
Company name |
BASF Zhanyu Polyurethanes (China) Co., Ltd. |
Present one |
|
Shareholders |
BASF Venture Capital GmbH (Germany) BASF (China) Co., Ltd. Urasia International (Panama) Inc. |
BASF Venture Capital GmbH (Germany) BASF (China) Co., Ltd. |
|
|
2006-2-10 |
Registered capital |
CNY 39,000,000 |
Present amount |
|
Shareholders and % of Shareholdings |
BASF Venture Capital GmbH (Germany) BASF (China) Co., Ltd. |
BASF Venture Capital GmbH (Germany) 90% BASF Aktiengesellschaft (Germany) 10% |
|
|
2009 |
Registration No. |
300719 |
Present one |
|
Shareholders and % of Shareholdings |
BASF Venture Capital GmbH (Germany) 90% BASF Aktiengesellschaft (Germany) 10% |
BASF SE (Germany) 10% BASF Venture Capital GmbH (Germany) 90% |
|
|
2009-12-4 |
Legal Representative |
Eng Soo Chew |
Hyoung Soon Moon |
|
2010-12-30 |
Shareholders and % of Shareholdings |
BASF SE (Germany) 10% BASF Venture Capital GmbH (Germany) 90% |
Present ones |
|
2013 |
Legal Representative |
Hyoung Soon Moon |
Present one |
Tax Registration Certificate No.: 440101708216261
%20CO%20,%20LTD%20%20-%20215979%2030-Mar-2013_files/image023.gif){kind=small}
MAIN SHAREHOLDERS:
Name
%
of shareholdings
BASF (China) Co., Ltd. 10
BASF Venture Capital GmbH (Germany) 90
BASF (China) Co., Ltd.
=================
Registration No. : 310000400138178
Establishment Date:
Chief Executive: Johnny Chi Wah Kwan
Registered Capital: USD 140,000,000
Add: No. 300, Jiang Xin Sha Road, Shanghai
200137 P. R. China
Tel: 86-21-2039 1000
Fax: 86-21-2039 4306
BASF Venture Capital GmbH (Germany)
==============================
Add.: 4. Gartenweg, Gebäude Z 025, 67063
Ludwigshafen
P: +49 621 60-76801
F: +49 621 60-76819
BASF is the world’s leading chemical
company. With about 113,000 employees, six Verbund sites and approximately 380
additional production sites worldwide they serve customers and partners in
almost all countries of the world.
Website: http://www.basf.com
%20CO%20,%20LTD%20%20-%20215979%2030-Mar-2013_files/image024.gif){kind=small}
l Legal
Representative and Chairman:
Mr. Jianfeng Lou is currently responsible for the overall management of
SC.
Working Experience(s):
From 2013 to present
Working in SC as legal representative and chairman.
Also working in BASF Polyurethane
Specialties (China) Co., Ltd. as legal representative.
%20CO%20,%20LTD%20%20-%20215979%2030-Mar-2013_files/image025.gif){kind=small}
SC is mainly
engaged in manufacturing and selling polyurethane combined materials.
SC’s products mainly
include: isocyanates, polyether polyols, polyester polyols, polyurethane systems, thermoplastic
polyurethane elastomers.
%20CO%20,%20LTD%20%20-%20215979%2030-Mar-2013_files/image026.jpg)
%20CO%20,%20LTD%20%20-%20215979%2030-Mar-2013_files/image027.jpg)
SC sources its
materials 70% from domestic market, and 30% from the overseas market, mainly
Germany. SC sells 50% of its products in domestic market, and 50% to the
overseas market, mainly Southeast Asia, American and European countries.
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, L/C, T/T, and Credit of 30-60 days.
*Major Customers:
==============
BASF Polyurethane Specialties (China) Co., Ltd.
BASF Polyurethane (Taiwan) Co., Ltd.
BASF Australia Ltd.
*Major Suppliers:
==============
Elastogran GmbH
BASF Company Ltd.
BASF South East Asia Pte. Ltd.
%20CO%20,%20LTD%20%20-%20215979%2030-Mar-2013_files/image028.gif){kind=small}
BASF
Polyurethanes Specialties (China) Co., Ltd.
BASF-YPC
Company Limited
BASF
Auxiliary Chemicals Company Limited
BASF
Vitamin Co., Ltd.
BASF
Chemical Co., Ltd.
Shanghai
BASF Polyurethane Co., Ltd.
BASF
Shanghai Coating Co., Ltd.
BASF
Electronic Materials (Shanghai) Co., Ltd.
BASF Hong Kong Limited
Etc.
%20CO%20,%20LTD%20%20-%20215979%2030-Mar-2013_files/image029.gif){kind=small}
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’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.
%20CO%20,%20LTD%20%20-%20215979%2030-Mar-2013_files/image030.gif){kind=small}
Bank of China
Guangzhou Nansha Sub-branch
AC#:
683457755881
Relationship:
Normal
%20CO%20,%20LTD%20%20-%20215979%2030-Mar-2013_files/image031.gif){kind=small}
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2011 |
|
Cash & bank |
53,060 |
/ |
|
Notes receivable |
32,500 |
/ |
|
Inventory |
145,600 |
/ |
|
Accounts
receivable |
166,240 |
/ |
|
Advances to
suppliers |
18,200 |
/ |
|
Interest
receivable |
70 |
/ |
|
Other accounts
receivable |
22,320 |
/ |
|
Prepaid expenses |
0 |
/ |
|
|
------------------ |
------------------ |
|
Current assets |
437,990 |
375,640 |
|
Fixed assets net
value |
73,890 |
/ |
|
Project under
construction |
4,450 |
/ |
|
Deferred tax
debit |
6,040 |
/ |
|
Intangible and
other assets |
4,300 |
/ |
|
|
------------------ |
------------------ |
|
Total assets |
526,670 |
477,590 |
|
|
============= |
============= |
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Short loans |
0 |
/ |
|
Notes payable |
15,050 |
/ |
|
Accounts payable |
197,920 |
/ |
|
Advances from
clients |
3,620 |
/ |
|
Accrued payroll |
8,370 |
/ |
|
Taxes payable |
3,490 |
/ |
|
Estimated liabilities |
12,480 |
/ |
|
Other accounts payable |
38,720 |
/ |
|
Other current
liabilities |
0 |
/ |
|
|
------------------ |
------------------ |
|
Current
liabilities |
279,650 |
274,570 |
|
Long-term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
279,650 |
274,570 |
|
Equities |
247,020 |
203,020 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
526,670 |
477,590 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2012 |
|
Turnover |
1,119,900 |
|
Cost of goods sold |
951,230 |
|
Taxes and additional of main operation |
4,970 |
|
Sales expense |
90,840 |
|
Management expense |
11,520 |
|
Finance expense |
3,160 |
|
Income from
other operations |
1,960 |
|
Non-operating
income |
220 |
|
Non-operating expense |
1,840 |
|
Profit before
tax |
58,520 |
|
14,520 |
|
|
Profits |
44,000 |
Note: The Financial Report for Year 2012 hasn’t
been audited, and we did not find SC’s detailed financial reports for
Yr 2011.
Important
Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.57 |
1.37 |
|
*Quick ratio |
1.05 |
/ |
|
*Liabilities
to assets |
0.53 |
0.57 |
|
*Net profit
margin (%) |
3.93 |
/ |
|
*Return on
total assets (%) |
8.35 |
/ |
|
*Inventory
/Turnover ×365 |
48 days |
/ |
|
*Accounts
receivable/Turnover ×365 |
55 days |
/ |
|
*Turnover/Total
assets |
2.13 |
/ |
|
* Cost of
goods sold/Turnover |
0.85 |
/ |
%20CO%20,%20LTD%20%20-%20215979%2030-Mar-2013_files/image032.gif){kind=small}
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC
appears good in 2012.
l SC’s net profit
margin appears average in 2012.
l SC’s return on
total assets appears fairly good in 2012.
l
SC’s cost of goods sold is average in 2012,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level
in both years.
l
SC’s quick ratio is maintained in a normal level in
2012.
l
The inventory of SC appears average in 2012.
l
The accounts receivable of SC appears average in
2012.
l
SC has no short-term loan in 2012.
l
SC’s turnover is in a fairly good 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 low.
Overall financial
condition of the SC: Stable.
%20CO%20,%20LTD%20%20-%20215979%2030-Mar-2013_files/image033.gif){kind=small}
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.39 |
|
|
1 |
Rs.82.32 |
|
Euro |
1 |
Rs.69.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.