MIRA
INFORM REPORT
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Report Date : |
08.11.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG RIKE CHEMICAL CO. LTD. |
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Registered Office : |
500 Meters South of Technology, 2nd Street, Changle
Economic Development Zone, Weifang, Shandong Province, 262400 Pr China |
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Country : |
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Financials (as on) : |
30.09.2013 |
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Date of Incorporation : |
26.12.2003 |
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Com. Reg. No.: |
370725228006199 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject engaged in manufacturing and selling plastic additives and plastic
additives. |
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No. of Employees : |
Approximately 461 |
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 – March, 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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China
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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 Rike Chemical Co., Ltd.
500 meters SOUTH OF technology 2nd street,
changle economic development zone, weifang, shandong PROVINCE, 262400 PR CHINA
TEL :
86 (0) 536-7522336/ 7522366
FAX :
86 (0) 536-7522300
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 26, 2003
REGISTRATION NO. : 370725228006199
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
MR. ZHAO DONGRI (CHAIRMAN)
STAFF STRENGTH :
461 (INCLUDING WHOLLY-OWNED SUBSIDIARIES)
REGISTERED CAPITAL : CNY 202,500,000
BUSINESS LINE :
MANUFACTURING & selling
TURNOVER :
CNY 719,785,000 (Consolidated, JAN. 1 TO Sep. 30, 2013)
EQUITIES :
CNY 1,177,257,000 (Consolidated, As of Sep. 30, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.10 = USD 1 AS OF
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 shares limited company at Shandong Provincial
Administration for industry & commerce (AIC - the official body of issuing
and renewing business license) on Dec. 26, 2003.
Company Status: Shares limited co. This form of business in PR China
is defined as a legal person. Its registered capital is divided into shares
of equal par value and the co. raises capital by issuing share certificates
by promotion or by public offer. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to the
extent of its total assets. The co has independent property of legal person
and enjoys property rights of legal person. The characteristics of
the shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes Pre-license items: wholesale of
compressed gas and liquefied gas: 1,3 - butadiene, flammable liquids: styrene, ethyl
acrylate, n-butyl acrylate, n-butyl methacrylate, methyl methacrylate,
methacrylic acid ethyl. General business items: researching, manufacturing and
selling plastic additives, plastic additives, chemicals (excluding the hazard
products) and import and exports its products (in accordance with
license).
SC is mainly engaged in manufacturing and selling plastic additives and
plastic additives.
Mr. Zhao Dongri is legal representative and chairman of SC at present.
SC is known to have approx. 461 employees at present,
including the ones in its wholly-owned subsidiaries.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the economic development zone of
Changle. The detailed information of the premise is unspecified.
SC is known to have another operating address: East of Weian Road and
South of Yingqian Street, Hi-tech Industry Development Zone, Weifang
http://www.rikechem.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: rikechem@rikechem.com service@rikechem.com
For the past two years there is no record of litigation.
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 300214.
Tax Registration Certificate No.: 370725757497098
Organization Code: 75749709-8
Honors:
1. In December 2008, SC was identified as high-tech enterprise by five
departments such as Department of Science and Technology of Shandong Province,
Department of Finance of Shandong Province and Shandong State Administration of
Taxation.
2. On 1 February 2010, SC was granted China's plastics industry (first)
corporate credit rating of AAA grade certificate by China Plastics processing
industry association.
3. In November 2010, SC was identified as Star Enterprise by five
departments such as Department of Science and Technology of Shandong Province
and intellectual Property Office of Shandong Province.
4. In 2010, SC was awarded as the most potential private enterprise in
2010 by Shandong Province Administration of Industry and Commerce.
MAIN SHAREHOLDERS:
(As of Sep. 30, 2013)
Name %
of Shareholding
Zhao Dongri 31.21
Liu Yejun 4.11
Sun Zhaoguo 3.96
Zhao Dongsheng 3.36
Qu Yong 2.67
Liu Qinzhang 1.97
Li Yukun 1.68
Han Kui 1.62
Tang Shouyu 1.57
Yang Xiufeng 1.5
Other shareholders 46.35
·
Legal
representative and Chairman:
Mr. Zhao Dongri, born in 1964 with Doctor’s Degree.
He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as
legal representative and chairman
Also working in Shandong Rike New Materials
Co., Ltd., Shandong Rike Rubber & Plastic Technology Co., Ltd. as legal
representative, etc.
·
General Manager:
Mr. Zhao Dongsheng, born in 1959, with
technical secondary education. He is currently responsible for the daily
management of SC.
Working
Experience(s):
At present Working in SC as general manager.
*Officials:
=======
Name Title
Liu Ancheng Vice
general manager
Hao Jianbo Vice
general manager
Feng Shengyu Independent
director
Qin Huaiwu Independent
director
Liu Yejun Director
Etc.
SC is mainly engaged in manufacturing and selling plastic additives and
plastic additives.
SC’s products mainly include: High impact MBS Impact Modifier, High
transparent MBS Impact Modifier, CPE impact modifier, SAN processing aid, etc.
SC sources its materials 70% from domestic market, and 30% from overseas
market. SC sells 70% of its products in domestic market, and 30% to overseas
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.
*Major Customers:
==============
·
Shandong Yiyuan Hongli Chemical Co., Ltd.
·
America PA Inc.
·
TL CHEMIE (TL Chemical Company)
*Major Suppliers:
==============
·
Shandong Tianli Drying Technology and Equipment
Co., Ltd.
·
Changle County Second Construction Engineering Co.,
Ltd.
SC is known to have the following subsidiaries:
·
Shandong Rike New Materials Co., Ltd. (wholly-owned
subsidiary)
Registration No.: 370726228017007
Incorporation Date:
Chairman: Zhao Dongri
·
Shandong Rike Plastic Co., Ltd. (wholly-owned
subsidiary)
Registration No.: 370700228075661
Incorporation Date:
Chairman: Zhao Weidong
·
Shandong Rike Rubber & Plastic Technology Co.,
Ltd.
Registration No.: 371624200005532
Incorporation Date:
Chairman: Zhao Dongri
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.
SC’s management declined to release its bank details.
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As
of Sep. 30, 2013 |
as
of Dec. 31, 2012 |
|
Cash & bank |
269,370 |
287,533 |
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Notes receivable |
98,906 |
114,985 |
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Inventory |
113,533 |
96,750 |
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Accounts receivable |
169,404 |
145,526 |
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Advances to suppliers |
173,946 |
180,754 |
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Other receivables |
2,962 |
6,434 |
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Other current assets |
0 |
0 |
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------------------ |
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Current assets |
828,121 |
831,982 |
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Fixed assets net value |
300,856 |
196,331 |
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Projects under construction |
114,223 |
99,834 |
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Project materials |
2,611 |
0 |
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Long term investment |
0 |
0 |
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Intangible assets |
65,348 |
66,937 |
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Other assets |
3,564 |
3,664 |
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Total assets |
1,314,723 |
1,198,748 |
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============= |
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Short loans |
54,018 |
0 |
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Accounts payable |
50,705 |
24,353 |
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Other payable |
20,173 |
9,444 |
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Accrued payroll |
466 |
3,049 |
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Taxes payable |
-15,783 |
-3,331 |
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Advances from clients |
15,624 |
6,113 |
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Interest payable |
707 |
0 |
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Other current liabilities |
0 |
0 |
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Current liabilities |
125,910 |
39,628 |
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Other liabilities |
11,556 |
11,309 |
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Total liabilities |
137,466 |
50,937 |
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Equities |
1,177,257 |
1,147,811 |
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Total liabilities & equities |
1,314,723 |
1,198,748 |
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Consolidated
Income Statement
Unit: CNY’000
|
|
Jan.
1 to Sep. 30, 2013 |
as
of Dec. 31, 2012 |
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Turnover |
719,785 |
1,047,158 |
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Cost of goods sold |
587,413 |
826,852 |
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Taxes and additional of main operation |
422 |
1,667 |
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Sales expense |
37,461 |
51,609 |
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Management expense |
41,284 |
53,688 |
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Finance expense |
-204 |
-6,754 |
|
Asset impairment loss |
1,411 |
7,984 |
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Non-operating income |
7,358 |
5,110 |
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Non-operating expense |
36 |
1,860 |
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Profit before tax |
59,320 |
115,362 |
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Less: profit tax |
9,625 |
17,913 |
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Profits |
49,695 |
97,449 |
Important Ratios
=============
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As
of Sep. 30, 2013 |
as
of Dec. 31, 2012 |
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*Current ratio |
6.58 |
20.99 |
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*Quick ratio |
5.68 |
18.55 |
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*Liabilities to assets |
0.10 |
0.04 |
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*Net profit margin (%) |
6.90 |
9.31 |
|
*Return on total assets (%) |
3.78 |
8.13 |
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*Inventory /Turnover ×365 |
/ |
34 days |
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*Accounts receivable/Turnover ×365 |
/ |
51 days |
|
*Turnover/Total assets |
0.55 |
0.87 |
|
* Cost of goods sold/Turnover |
0.82 |
0.79 |
PROFITABILITY: FAIRLY GOOD
·
The turnover of SC appears fairly
good in its line.
·
SC’s net profit margin is
fairly good.
·
SC’s return on total assets
is fairly good in 2012 but average in the first 3 quarters of 2013.
·
SC’s cost of goods sold is
average, comparing with its turnover.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal
level.
·
SC’s quick ratio is maintained in a normal level.
·
The inventory of SC appears average.
·
The accounts receivable of SC appears average.
·
SC has no short-term loan in 2012 and it appears
average in the first 3 quarters of 2013.
·
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY GOOD
·
The debt ratio of SC is low.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.57 |
|
|
1 |
Rs.100.63 |
|
Euro |
1 |
Rs.84.62 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIA |
RATING EXPLANATIONS
|
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 |
|
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 |
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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.