MIRA INFORM REPORT
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Report Date : |
15.05.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG SUNSHINE PIGMENT CO., LTD. |
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Formerly Known as: |
Ji’ning Sunshine
Auxiliary Agent of Pigment Co., Ltd. |
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Registered Office : |
Chezhan Nan Road, Ji’ning City, Shandong Province, 272000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
17.01.1990 |
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Com. Reg. No.: |
370800228024012 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling organic pigment
and intermediates |
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No. of Employees : |
206 |
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 : |
Slow but 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 – 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.
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Source : CIA |
Company name & address
SHANDONG SUNSHINE PIGMENT CO., LTD.
Chezhan Nan Road,
Ji’ning city,
shandong PROVINCE,
272000 PR CHINA
TEL: 86 (0) 537-2389684/2317897/2396862
FAX: 86 (0) 537-2311908
EXECUTIVE SUMMARY
INCORPORATION DATE : january 17, 1990
REGISTRATION NO. : 370800228024012
REGISTERED LEGAL
FORM : Limited liabilities company
CHIEF EXECUTIVE : MR. yu xiansong (CHAIRMAN)
STAFF STRENGTH :
206
REGISTERED CAPITAL : CNY 76,200,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 185,380,000 (unaudited, AS OF DEC. 31, 2012)
EQUITIES :
CNY 50,950,000 (unaudited, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fairLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1425 = 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
Note: SC’s correct fax no. should be the heading one.
SC was registered as a collective-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing and
renewing business license) on january 17, 1990 and has been under present
legal form since 1998.
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 importing and exporting its products and technology, processing
with imported materials, processing with imported samples, assembling with
imported parts, and compensation trade in agreement, manufacturing pigment
additives, printing and dyeing additives, and other chemical additives,
wholesale and retail solvent oil, pigments, dyes, chemical products, textiles
and hardware, petroleum products retail.
SC is mainly
engaged in manufacturing and selling organic pigment and intermediates.
Mr. Yu
Xiansong has been legal representative
and chairman of SC since 1990.
SC is known to
have approx. 206 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 Ji’ning. Detailed
information of the premise is unknown.
http://www.sino-pigment.com
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: market@sino-pigment.com
Changes of its
registered information are as follows:
|
Date
of change |
Item |
Before
the change |
After
the change |
|
1998-8-24 |
Company name |
Ji’ning Light Textile Additives Factory |
Ji’ning Sunshine Auxiliary Agent of Pigment Co.,
Ltd. |
|
Registered
Legal Form |
Collective-owned
enterprise |
Limited Liabilities Company |
|
|
Registered
Capital |
CNY 2,050,000 |
CNY 1,706,000 |
|
|
2001-4-9 |
Registered
Capital |
CNY 1,706,000 |
CNY 3,170,000 |
|
2001-12-26 |
Registered
Capital |
CNY 3,170,000 |
CNY 3,493,400 |
|
2002-3-15 |
Registered
Capital |
CNY 3,493,400 |
CNY 4,543,400 |
|
2003-2-20 |
Registered
Capital |
CNY 4,543,400 |
CNY 5,500,000 |
|
2004-3-17 |
Registered
Capital |
CNY 5,500,000 |
CNY 6,600,000 |
|
2004-11-23 |
Registered
Capital |
CNY 6,600,000 |
CNY 7,260,000 |
|
2005-2-28 |
Registered
Capital |
CNY 7,260,000 |
CNY 10,360,000 |
|
2005-6-16 |
Company name |
Ji’ning Sunshine Auxiliary Agent of Pigment Co.,
Ltd. |
Shandong Sunshine Pigment Co., Ltd. |
|
2007-4-16 |
Registered
Capital |
CNY 10,360,000 |
CNY 15,000,000 |
|
2008-1-22 |
Registered Capital |
CNY 15,000,000 |
CNY 20,000,000 |
|
2008-11-5 |
Registered Capital |
CNY 20,000,000 |
CNY 30,000,000 |
|
2011 |
Registered Capital |
CNY 30,000,000 |
CNY 39,000,000 |
|
2012 |
Registered Capital |
CNY 39,000,000 |
CNY 50,800,000 |
|
2013 |
Registered Capital |
CNY 50,800,000 |
CNY 76,200,000 |
“Century Sunshine” is honored as Shandong Provincial famous brand.
See below for SC as executive party (defendant).
|
Executed Party |
Shandong Sunshine Pigment Co., Ltd. |
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Court |
Ji’ning Rencheng District People's Court |
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Date
of Case |
Aug. 3, 2012 |
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Case Number |
(2012) 00701 |
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Claim
Amount |
RMB 16,354 |
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Case
Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN
SHAREHOLDERS:
Name
%
of Shareholding
Li Benjian (ID#370802541019121) 18.87
Yu Xiansong (ID#37080219611227301X) 18.67
Yu Yang 17.24
Huang Zhiqiang (ID#37080219850615301X) 7.88
Hao Yan 6.25
Other 33 individuals 31.09
Legal
Representative and Chairman:
Mr. Yu Xiansong, ID#37080219611227301X, born in 1961 with university education. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 1990 to present Working
in SC as legal representative and chairman.
Also working in Ji’ning Sunshine Coal-Chem Co., Ltd. as legal representative.
SC is mainly
engaged in manufacturing and selling organic pigment and intermediates.
SC’s products mainly include:
· Plastic pigment
Coating material paint
pigment
Ink pigment
Pigment intermediate
Brand: Century Sunshine
SC sources its materials 100% from domestic
market, mainly Shandong. SC sells 70% of its products in domestic market, and
30% to overseas market, mainly Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Note: SC’s management refused to release its main suppliers and clients.
SC is known to
invest in the following companies:
· Zaozhuang Global Printing and Dyeing Co., Ltd.
Zaozhuang Yutai Printing
and Dyeing Co., Ltd.
Yantai Deda Printing and
Dyeing Co., Ltd.
Shandong Gongyongda
Smart Water Co., Ltd. (in Chinese pinyin)
Ji’ning Sunshine
Chemical Co., Ltd.
Ji’ning Sunshine
Coal-Chem 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 bank details.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2012 |
|
Cash & bank |
81,400 |
|
Inventory |
106,030 |
|
Bills receivable |
26,860 |
|
Accounts
receivable |
60 |
|
Other Accounts
receivable |
9,630 |
|
Advances to
suppliers |
0 |
|
To be
apportioned expense |
0 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
223,980 |
|
Fixed assets net
value |
22,500 |
|
Projects under
construction |
3,670 |
|
Disposal of
fixed assets |
1,030 |
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Long-term
investment |
82,980 |
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Intangible and
other assets |
3,590 |
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------------------ |
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Total assets |
337,750 |
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|
============= |
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Short loans |
80,200 |
|
Accounts payable |
40,300 |
|
Advance from
customers |
0 |
|
Other Accounts
payable |
39,810 |
|
Notes payable |
126,000 |
|
Taxes payable |
250 |
|
Withdraw the expenses
in advance |
0 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
286,560 |
|
|
Long term
liabilities |
240 |
|
Other
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
286,800 |
|
Equities |
50,950 |
|
|
------------------ |
|
337,750 |
|
|
|
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2012 |
|
Turnover |
185,380 |
|
Cost of goods sold |
175,270 |
|
Taxes and additional of main
operation |
330 |
|
Sales expense |
2,720 |
|
Management expense |
7,750 |
|
Finance expense |
3,350 |
|
Investment
income |
1,650 |
|
Subsidy income |
80 |
|
Non-operating
income |
70 |
|
Non-operating expense |
50 |
|
Profit before
tax |
-2,310 |
|
Less: profit tax |
0 |
|
Profits |
-2,310 |
Note: The Financial Report for Year 2012 hasn’t
been audited.
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
|
*Current ratio |
0.78 |
|
*Quick ratio |
0.41 |
|
*Liabilities
to assets |
0.85 |
|
*Net profit
margin (%) |
-1.25 |
|
*Return on
total assets (%) |
-0.68 |
|
*Inventory
/Turnover ×365 |
209 days |
|
*Accounts receivable/Turnover
×365 |
1 day |
|
*Turnover/Total
assets |
0.55 |
|
* Cost of
goods sold/Turnover |
0.95 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
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 is large.
l
The accounts receivable
of SC is small.
l
SC’s short-term loan appears large in 2012.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial conditions.
The large amount of inventory and short loans could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.63 |
|
UK Pound |
1 |
Rs.83.67 |
|
Euro |
1 |
Rs.71.02 |
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 |
---- |
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.