MIRA INFORM REPORT
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Report Date : |
04.05.2013 |
IDENTIFICATION DETAILS
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Name : |
HEBEI CHROMATE CHEMICALS CO., LTD. |
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Registered Office : |
Douyu Industrial
Zone, Luancheng County, Shijiazhuang Hebei Province 051430 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
05.04.1996 |
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Com. Reg. No.: |
130124000010853 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is mainly
engaged in manufacturing and selling chrome oxide green. |
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No. of Employees : |
328 |
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 |
|
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
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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.
Source
: CIA
Company Name and Address
HEBEI CHROMATE CHEMICAL CO., LTD.
DOUYU INDUSTRIAL
ZONE, LUANCHENG COUNTY, SHIJIAZHUANG
HEBEI PROVINCE
051430 PR CHINA
TEL: 86 (0)
311-86784004
FAX: 86 (0)
311-87621036/85921178
EXECUTIVE SUMMARY
Date of Registration : APRIL 5, 1996
REGISTRATION NO. :
130124000010853
LEGAL FORM : Limited Liabilities Company
CHIEF EXECUTIVE : NIU MENGCHEN
(LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 10,000,000
staff : 328
BUSINESS CATEGORY :
MANUFACTURING & TRADING
Revenue : CNY 148,823,000 (AS OF
DEC. 31, 2012)
EQUITIES : CNY 35,493,000 (AS OF
DEC. 31, 2012)
WEBSITE : www.chrome-chem.com
E-MAIL :
sales@chrome-chem.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.18 = 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
Not yet be
determined
LEGAL STATUS & HISTORY
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 130124000010853 on April 5, 1996.
SC’s Organization Code Certificate
No.: 10471803-3
SC’s registered capital: CNY 10,000,000
SC’s paid-in capital: CNY 10,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010-05 |
Registered Capital |
CNY 2,632,000 |
CNY 10,000,000 |
|
Shareholder (s) (% of
Shareholding) |
Niu Mengchen 17.48% Zhen Yuliang 2.81% Han Shuzhi 2.77% Zhang Linsheng 2.74% Zhou Shenghai 2.70% Liu Shengyi 2.70% Chen Hongwei 2.70% Bai Yan 2.66% Liu Shengfa 2.66% Han Wenyi 2.66% Other 22 individuals 58.12% |
Niu Mengchen 26.32% Niu Shaohui 73.68% |
|
|
-- |
Registration No. |
1301241000099 |
130124000010853 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Niu Mengchen |
26.32 |
|
Niu Shaohui |
73.68 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Niu Mengchen |
|
General Manager |
Han Yingkui |
|
Supervisor |
Niu Shaohui |
RECENT DEVELOPMENT
Honors,
----------
SC has got ISO 9001:2000 System Certificate.
SC was awarded “Quality Trustworthy Enterprise” in 2002.
SC was awarded “Enterprise with Good Credit” in 2001.
SC was awarded “Unit of Honoring the Contract and Keeping the Promise”
in 2000.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Niu Mengchen 26.32
Niu Shaohui 73.68
MANAGEMENT
Niu Mengchen, Legal Representative and Chairman
-------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 130124195105022416
Ø
Age: 62
Ø Working experience
(s):
From 1996 to present, working in SC as legal
representative and chairman
Han Yingkui, General Manager
-----------------------------------------------------
Ø
Gender: M
Ø
ID# 120106196903180558
Ø
Age: 44
Ø Working experience
(s):
From 1996 to present, working in SC as
general manager
Niu Shaohui, Supervisor
-------------------------------------------
Ø
Gender: M
Ø
ID# 130124198608060055
Ø
Age: 27
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing and selling chromic acid, sodium
bichromate, chrome oxide green, basic chromium acid, colorant of beer bottle,
and glauber salt; operating minerals, technological development, catering
services, building materials, planting, and fish farming; international trade;
exporting self-made sodium bichromate, chromic acid and chrome oxide green;
importing raw materials, mechanical equipments, instruments
and parts needed in manufacture and research.
SC is mainly
engaged in manufacturing and selling chrome oxide green.
SC’s products mainly include: basic chrome sulphate, sodium bichromate, chromic acid, chrome oxide
green, etc.
SC sources its materials 100% from domestic
market. SC sells 40% of its products in domestic market, and 60% 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.
Staff & Office:
--------------------------
SC is
known to have approx. 328 staff
at present.
SC
rents an area as its operating office and factory, but the detailed information
is unknown.
RELATED COMPANY
Tradecome
International Resource Limited
Registration
No.: 1261877
Date
of Registration: August 4, 2008
Legal
Form: Private
Status:
Live
Offices,
----------
Foshan Office
Shenyang Office
Shanghai Office
Shijiazhuang Office
Zibo Office
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
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
14,025 |
42,782 |
8,548 |
|
|
Short-term
investments |
0 |
0 |
0 |
|
Notes receivable |
0 |
0 |
0 |
|
Accounts
receivable |
29,319 |
27,343 |
13,400 |
|
Advances to
suppliers |
0 |
0 |
0 |
|
Other receivable |
23,469 |
37,413 |
63,619 |
|
Inventory |
42,885 |
63,311 |
74,615 |
|
Non-current
assets within one year |
0 |
0 |
0 |
|
Other current
assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Current assets |
109,698 |
170,849 |
160,182 |
|
Fixed assets |
29,414 |
47,477 |
46,587 |
|
Construction in
progress |
3,546 |
8,189 |
8,289 |
|
Intangible
assets |
9,508 |
9,508 |
9,998 |
|
Long-term
prepaid expenses |
0 |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Total assets |
152,166 |
236,023 |
225,056 |
|
|
============= |
============= |
============= |
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Short-term loans |
27,220 |
43,752 |
14,800 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
34,900 |
70,697 |
81,867 |
|
Payroll payable |
0 |
0 |
21 |
|
Taxes payable |
-448 |
-108 |
0 |
|
Advances from
clients |
0 |
0 |
0 |
|
Other payable |
67,302 |
87,839 |
98,877 |
|
Accrued expense |
0 |
0 |
0 |
|
Other current
liabilities |
-4,069 |
0 |
-6,002 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
124,905 |
202,180 |
189,563 |
|
Non-current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
124,905 |
202,180 |
189,563 |
|
Equities |
27,261 |
33,843 |
35,493 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
152,166 |
236,023 |
225,056 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
166,008 |
194,509 |
148,823 |
|
Cost of sales |
151,616 |
169,068 |
142,691 |
|
Taxes and surcharges |
615 |
304 |
130 |
|
Sales expense |
4,220 |
7,609 |
1,320 |
|
Management expense |
4,947 |
10,438 |
4,529 |
|
Finance expense |
2,417 |
2,033 |
2,381 |
|
Non-operating
income |
2,888 |
4 |
2,677 |
|
Non-operating expense |
415 |
164 |
9 |
|
Profit before
tax |
4,666 |
4,895 |
439 |
|
Less: profit tax |
0 |
0 |
0 |
|
4,666 |
4,895 |
439 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.88 |
0.85 |
0.85 |
|
*Quick ratio |
0.53 |
0.53 |
0.45 |
|
*Liabilities
to assets |
0.82 |
0.86 |
0.84 |
|
*Net profit
margin (%) |
2.81 |
2.52 |
0.29 |
|
*Return on total
assets (%) |
3.07 |
2.07 |
0.20 |
|
*Inventory /
Revenue ×365 |
95 days |
119
days |
183
days |
|
*Accounts
receivable/ Revenue ×365 |
65 days |
52
days |
33
days |
|
*
Revenue/Total assets |
1.09 |
0.82 |
0.66 |
|
* Cost of
sales / Revenue |
0.91 |
0.87 |
0.96 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears
fairly good in its line in three years.
l SC’s net profit
margin is average in three years.
l SC’s return on
total assets is average in three years.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear large in 2011.
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high in three years.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.95 |
|
|
1 |
Rs.70.50 |
|
Euro |
1 |
Rs.83.81 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.