MIRA INFORM REPORT
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Report Date : |
14.05.2013 |
IDENTIFICATION DETAILS
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Name : |
LIAONING SHIXING PHARMACEUTICAL &
CHEMICAL CO., LTD. |
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Registered Office : |
No. 4, Jinhu North Road, Longgang
District, Huludao, Liaoning
Province, 125003 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
16.05.2000 |
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Com. Reg. No.: |
211400000016676 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling different sorts of
chemicals |
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No. of Employees : |
800 |
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 : |
Moderate |
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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) |
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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 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 & address
LIAONING SHIXING
PHARMACEUTICAL & CHEMICAL CO., LTD.
NO. 4, JINHU NORTH ROAD, LONGGANG DISTRICT,
HULUDAO, LIAONING PROVINCE, 125003 PR CHINA
TEL: 86 (0) 429-2200111/2202112/2200018 FAX: 86 (0) 429-2200113/2091258
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 16, 2000
REGISTRATION NO. : 211400000016676
REGISTERED LEGAL FORM :
LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. DONG GUANGLIN (CHAIRMAN)
STAFF STRENGTH : 800
REGISTERED CAPITAL : CNY 66,000,000
BUSINESS LINE : MANUFACTURING & SELLING
TURNOVER :
CNY 378,660,000 (UNAUDITED, AS
OF DEC. 31, 2012)
EQUITIES :
CNY 157,760,000 (UNAUDITED, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.15 = 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
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 16, 2000.
Company Status: Limited Liabilities Co. This form of business in PR China is defined as a legal
person. No more than fifty shareholders contribute its registered capital
jointly. Shareholders bear limited liability to the extent of shareholding,
and the co. is liable for its debts only to extent of its total assets. The
characteristics of this form of co. are as follows: Upon the establishment of the co., an investment
certificate is issued to the each of shareholders. The board of directors is comprised of three to thirteen
members. The minimum registered capital for a co. is CNY 30,000. Shareholders may take their capital contributions in
cash or by means of tangible assets or intangible assets such as industrial
property and non-patented technology. Cash contributed by all shareholders must account for at
least 30% of the registered capital. Existing shareholders have pre-exemption right to
purchase shares of the co. offered for sale by the other shareholders and
to subscribe for the newly increased registered capital of the co.
SC’s registered
business scope includes manufacturing and selling p-aminophenol, paranitrochlorobenzene,
ortho-nitrochlorobenzene, chlorinated benzoic, phenylhydrazine,
parachloroaniline, pharmaceutical intermediates, paranitrophenylhydrazine,
hydrochloride, chlorobenzene hydrazine hydrochloride, acetaminophen, iron oxide
red, iron oxide yellow; selling methyl-guaiacol, ethyl- guaiacol,
methyl-vanillin, ethyl- vanillin and self chemical materils; hazardous chemicals (only flammable liquid
(methylbenzene, methyl alcohol & chlorinated benzenes) and corrosives
(hydrogen nitrate & sodium hydroxide)) wholesaling without storage;
exporting self-made products, importing technology research needed materials;
consulting service.
SC is mainly
engaged in manufacturing and selling different sorts of chemicals.
Mr. Dong Guanglin has been legal representative and chairman of SC since
2000.
SC is
known to have approx. 800 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 Huludao. Our checks reveal that SC owns the total premise about 116,587
square meters.
http://www.hldsxyh.cn/ The website
can’t be landed because of the technical reason.
Email: phchp@online.ln.cn
Changes of its
registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
2008-4-23 |
Shareholders |
Dong Guanglin 99%, Dong Dawei 1% |
The present ones |
|
Registered capital |
CNY 29,000,000 |
The present amount |
|
|
Registration No. |
2114002600257 |
The present one |
SC has been certified by ISO9001, ISO9001, ISO14001, and
OHSMS18001 International Quality System.
Honors:
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Dong Dawei ID#
211403197804238210 60
Dong Guanglin 20
Sun Jizhi ID# 21070219640802002X 10
Feng Qiusheng ID# 130229198308201415 5
Wang Baoqin ID# 210705195202208021 5
Legal
representative and chairman:
Mr. Dong Guanglin, ID# 211403490929801, born in 1949. He is currently
responsible for the overall management of SC.
Working
Experience(s):
From 2000 to present Working in SC as legal
representative and chairman.
SC is mainly engaged
in manufacturing and selling different sorts of chemicals.
SC’s products
mainly include 2-Ethoxyphenol, Paracetamol, Para-Amino phen,
P-Nitrochlorobenzene, O-Nitrochlorobenzene, etc.
SC offer dozens of
pharmaceutical, agrochemical and dyestuff intermediate, including
Ethyl-Vanillin, Ortho-Anisidine, O-Nitro anisole, 2-Ethyl Guaiacol, Para-Amino
phenol, P-Nitrochlorobenzene, O-Nitrochlorobenzene, etc. The target output is
Ethyl-Vanillin 1000 tons per year, Ortho-Anisidine 10000 tons per year and
Ortho-Nitro anisole 15000 tons per year.
SC sources its materials 90%
from domestic market, and 10% from overseas market, mainly Europe. SC sells 40%
of its products in domestic market, and 60% to overseas market, mainly Europe and
Southeast Asian market.
The buying terms of SC include Check, T/T, L/C 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 suppliers and customers.
SC
is not known to have any subsidiary at present.
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’s management
declined to release its bank details.
Balance Sheet
|
Unit: CNY’ 000 |
as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
|
Current liabilities |
323,380 |
249,790 |
|
Long term liabilities |
0 |
/ |
|
Other liabilities |
0 |
/ |
|
|
---------- |
---------- |
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Total liabilities |
323,380 |
339,780 |
|
Shareholders equities |
152,020 |
157,760 |
|
|
--------------- |
--------------- |
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Total assets |
475,400 |
497,540 |
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========== |
========== |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2012 |
|
Turnover |
378,660 |
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Cost of goods sold |
351,950 |
|
Sales expense |
4,550 |
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Management expense |
9,990 |
|
Finance expense |
14,550 |
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Non-operating
income |
2,450 |
|
Non-operating expense |
0 |
|
Other expenses |
64 |
|
Profit before
tax |
6 |
|
0 |
|
|
Profits |
6 |
Note: SC’s management refused to release its detailed Balance Sheet for Yr2011 and
Yr2012. And the financial
reports for Yr2012 have not been audited.
Important Ratios
===============
|
|
as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
|
*Liabilities to
assets |
0.68 |
0.68 |
|
*Net profit
margin (%) |
/ |
0.002 |
|
*Return on
total assets (%) |
/ |
0.001 |
|
*Turnover/Total
assets |
/ |
0.76 |
|
* Cost of
goods sold/Turnover |
/ |
0.93 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears fairly good in its line in 2012.
l SC’s net profit
margin appears average in 2012.
l SC’s return on
total assets appears average in 2012.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
l
SC’s turnover is in a fair level in 2012, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both 2 years.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.92 |
|
UK Pound |
1 |
Rs.84.44 |
|
Euro |
1 |
Rs.71.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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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.