MIRA INFORM REPORT
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Report Date : |
30.03.2013 |
IDENTIFICATION DETAILS
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Name : |
SICHUAN GUANGHAN SHIDA CARBON CO., LTD. |
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Registered Office : |
Xiwai
Township, Guanghan, Sichuan Province 618300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
18.08.2001 |
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Com. Reg. No.: |
510681000003777 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling graphite products |
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No. of Employees : |
548 |
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 – 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
Sichuan Guanghan Shida
Carbon Co., Ltd.
xiwai
Township, guanghan, sichuan PROVINCE 618300 PR CHINA
TEL: 86 (0)
838-5280013/5281190
FAX: 86
(0) 838-5280012
EXECUTIVE SUMMARY
Date of Registration : august 18, 2001
REGISTRATION NO. : 510681000003777
LEGAL FORM : Shares limited Company
CHIEF EXECUTIVE : zhang shigong (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 126,158,000
staff : 548
BUSINESS CATEGORY :
MANUFACTURING & TRADING
Revenue : CNY 389,110,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 532,680,000 (AS OF DEC. 31, 2012)
WEBSITE : www.shidacarbon.com
E-MAIL :
ghsd@shidacarbon.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.21 = 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 shares limited company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 510681000003777 on August 18, 2001.
SC’s Organization Code Certificate No.:
72983780-9
SC’s Tax No.: 510681729837809
SC’s registered capital: CNY 126,158,000
SC’s paid-in capital: CNY 126,158,000
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 |
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Beijing Wansheng Xingyuan Trade Co., Ltd. |
0.06 |
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Tianjin Boxin 1st Phase Investment Center
(Limited Partnership) |
6.94 |
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Shanghai Aoying 1st
Phase Equity Investment Center Limited Partnership |
3.96 |
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Shenzhen Hechuang Hongda
Investment Limited Partnership |
3.96 |
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Shanghai Lianxin Investment
(Limited Partnership) |
7.93 |
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Other Shareholders |
77.15 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Zhang Shigong |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name
%
of Shareholding
Beijing Wansheng Xingyuan Trade Co., Ltd. 0.06
Tianjin Boxin 1st Phase Investment Center
(Limited Partnership) 6.94
Shanghai Aoying 1st Phase Equity Investment
Center Limited Partnership 3.96
Shenzhen Hechuang Hongda Investment Limited
Partnership 3.96
Shanghai Lianxin Investment (Limited
Partnership) 7.93
Other Shareholders 77.15
MANAGEMENT
Zhang Shigong, Legal Representative, Chairman, and General Manager
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Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman, and general manager
BUSINESS OPERATION
SC’s registered
business scope includes graphite electrode, graphite powder, petroleum coke,
low pure silicon carbide, and carbon products; exporting its products and
technology; importing raw materials & accessories, meters &
instruments, machinery components and technology; processing
with imported materials, processing with imported samples, assemblying with
imported parts, and compensation trade in agreement; and renting machinery
equipment.
SC is mainly
engaged in manufacturing and selling graphite products.
SC’s products mainly include:
Isotropic
Graphite
Medium-Grain
Graphite
Graphite
Electrode
Carbon
Raiser
SC sources its materials 100% from domestic market. SC sells 60% of its products in domestic market and 60% to overseas market, mainly U.S.A., 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.
*Major Customer*
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The Uk Carbon & Graphite Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 548 staff
at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.
RELATED
COMPANY
· Sichuan Shida Trading Co., Ltd.
· Sichuan Dechang Shida Carbon Co., Ltd.
· Meishan Shida New Materials Co., Ltd.
· Sichuan Shida Special Carbon Material 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 supplier
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
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As
of Dec. 31, 2012 |
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Current assets |
516,380 |
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Fixed assets |
100,900 |
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------------------ |
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Total assets |
936,620 |
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------------------ |
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Current
liabilities |
403,940 |
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Non-current
liabilities |
0 |
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------------------ |
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Total
liabilities |
403,940 |
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Equities |
532,680 |
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============= |
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Revenue |
389,110 |
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Cost of sales |
356,630 |
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Sales expense |
10,280 |
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Management expense |
11,240 |
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Finance expense |
14,340 |
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Profit before
tax |
10,090 |
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Less: profit tax |
1,930 |
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Profits |
8,160 |
Note: The detailed financials for Y2012 are not available in SAIC.
Important Ratios
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As
of Dec. 31, 2012 |
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*Current ratio |
1.28 |
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*Quick ratio |
-- |
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*Liabilities
to assets |
0.43 |
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*Net profit
margin (%) |
2.10 |
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*Return on
total assets (%) |
0.87 |
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*Inventory /
Revenue ×365 |
-- |
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*Accounts
receivable/ Revenue ×365 |
-- |
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*
Revenue/Total assets |
0.42 |
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* Cost of
sales / Revenue |
0.92 |
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 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: Stable.
CONCLUSIONS
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 |
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UK Pound |
1 |
Rs.82.32 |
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Euro |
1 |
Rs.69.54 |
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.