MIRA INFORM REPORT
|
Report Date : |
16.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
Shandong
Hualu-Hengsheng Chemical Co., ltd. |
|
|
|
|
Registered Office : |
No. 24, Tianqu West Road, Decheng District, Dezhou City, Shandong
Province, 253024 Pr |
|
|
|
|
Country : |
China |
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|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
26.04.2000 |
|
|
|
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Com. Reg. No.: |
370000018060251 |
|
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|
|
Legal Form : |
Shares Limited Company |
|
|
|
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Line of Business : |
Subject is engaged in manufacturing and selling chemical fertilizer
and chemical products. |
|
|
|
|
No. of Employees : |
3,151 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
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
Shandong Hualu-Hengsheng Chemical Co., ltd.
no. 24, tianqu west road, decheng district,
dezhou city, shandong PROVINCE, 253024 PR CHINA
TEL: 86 (0) 534- 2465426/2465499 FAX: 86 (0) 534-2465017
EXECUTIVE
SUMMARY
INCORPORATION DATE : April 26, 2000
REGISTRATION NO. : 370000018060251
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
MR. CHANG HUAICHUN (legal representative)
STAFF STRENGTH :
3,151 (AS OF DEC. 31, 2012)
REGISTERED CAPITAL : CNY 953,625,000
BUSINESS LINE :
MANUFACTURE
AND SALES
TURNOVER :
CNY 5,969,390,000 (JAN. 1 TO SEP. 30, 2013)
EQUITIES :
CNY 5,707,640,000 (AS OF SEP. 30, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.0925 = 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 shares limited company at provincial
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on April 26, 2000.
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 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. 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 manufacturing
and selling chemical fertilizer (excluding pretage examination and approval
project); import and export business within the record; protocol and network
power supply business, technical extension services.
SC is mainly engaged in manufacturing and selling chemical fertilizer
and chemical products.
Mr. Chang Huaichun has been legal
representative and vice chairman of SC since 2012 and general manager of SC
since December of 2010.
SC is known to have approx. 3,151 employees at present, including
2,701 production staff, 85 management staff, 49 sales staff, 284 technical
staff and 32 financial staff.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Dezhou. SC’s
management declined to release the detailed information of the premise.
http://www.hl-hengsheng.com
It is the website of SC’s parent company Shandong Hualu Hengsheng Group Co.,
Ltd., and also includes the information of SC. The design is professional and
the content is well organized. At present it is in both Chinese and English
versions.
Email: hl600426@sina.com,
dehuazhuangbei@163.com
SC listed in Shanghai Stock Exchange on June 20, 2002, and the stock
number is 600426.
SC is the core of Shandong Hualu Hengsheng Group.
SC passed firstly ISO9002 Quality system certificate in Jan. of 2000,
and ISO14001 Environment system certificate in the same industry in Dec. of
2000.
SC is the first marketed in exchange in Dezhou city, and 65th
Enterprise of Shandong.
SC was awarded as High and New Technology Enterprise in March of 2009.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2006 |
Legal representative & Chairman |
Wang Chuntao |
Cheng Guanghui |
|
Wang Chuntao |
Cheng Guanghui |
||
|
Unknown |
Registered capital |
CNY 330,500,000 |
CNY 495,750,000 |
|
Registered capital |
CNY 495,750,000 |
Present amount |
|
|
Registered no. |
3700001806025 |
Present one |
|
|
2012 |
Legal representative |
Cheng Guanghui |
Present one |
|
Chairman |
Cheng Guanghui |
Yang Zhenfeng |
See below for SC as executive party (defendant).
|
Executed Party |
Shandong Hualu-Hengsheng Chemical Co., Ltd. |
|
Court |
Nanchang City Qingyunpu District People's Court |
|
Date of Case |
Mar. 23, 2006 |
|
Case Number |
(2006) 00028 |
|
Claim Amount |
RMB 1,110,000 |
|
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: (As of Sep. 30, 2013)
Name % of Shareholding
Shandong Hualu Hengsheng Group Co., Ltd 32.39
Zhongcai Mngyuan Investment Management Co., Ltd. 4.89
Jiangxi Yuke Investment Co., Ltd. 4.61
Everbright Securities Co., Ltd. 2.62
Jiangxi Publishing Group Co., Ltd. 2.33
National Social Security Fund No. 106 2.01
Zhang Xilei 0.63
Bank of China Limited - Huatai-Pinebridge Positive Growth Mixed
Securities Investment Fund 0.55
Industrial Bank - Aegon-Industrial Trend Investment Mixed Securities
Investment Fund 0.51
Goldman Sachs Asset Management International -Goldman Sachs
International China Fund 0.43
Other shareholders 49.03
Shandong Hualu Hengsheng Group Co., Ltd.
=================================
Shandong Hualu Hengsheng Group Co., Ltd is one of China top 500 chemical
industries and one of 167 emphases enterprises, with 3 subsidiaries (stock
controlled or joined). The products include four series of products such as
chemical fertilizer, chemical industrial products, and thermoelectricity, etc.
Incorporation date:
Registered capital: CNY 101,170,000
Registration no.: 371400018009185
Legal representative: Dong Yan
Address: No. 24 Tianqu Road, Decheng District, Dezhou, Shandong
Tel: 0534-2465031
Fax: 0534-2465017
Website: http://www.hl-hengsheng.com
E-mail: hlhs2465031@126.com
Jiangxi Yuke Investment Co., Ltd.
========================
Incorporation date:
Registered capital: CNY 50,000,000
Registration no.: 360000110007324
Legal representative: Tu Dongren
Jiangxi Publishing Group Co., Ltd.
========================
Incorporation date:
Registered capital: CNY 2,173,350,000
Registration no.: 360000010000569
Legal representative: Zhao Dongliang
Website: http://www.jxpp.com/
Email: zwcm@jxpp.commailto:zwcm@jxpp.com
Tel: 86-0791-86894992
Legal Representative, Vice Chairman and
General Manager:
Mr. Chang Huaichun born in 1967,
with MBA degree, senior engineer. He is currently responsible for the overall management
of SC.
Working
Experience(s):
From 2003-4 to 2009-4 Worked in SC as director and vice
general manager;
From 2009-4 to 2010-12 Worked in SC as director and routine
vice general manager;
From 2010-12 to present Working
in SC as general manager;
From 2012 to present Working in SC as legal representative and
vice chairman
Also working in Shandong Hualu Hengsheng Group Co., Ltd. as director.
Chairman:
Mr. Yang Zhenfeng , born in 1959, with MBA degree, senior engineer, national
model worker. He is currently
responsible for the overall management of SC.
Working
Experience(s):
From 2002 to 2005
Worked in Shandong Hualu Group Co., Ltd. as director
From 1999 to present
Working in Shandong Hualu Hengsheng Group Co., Ltd. as director
From 2005 to present
Working in Hualu Holdings Co., Ltd. as director
From 2003-4 to 2010-12 Worked
in SC as vice chairman and general manager
From 2010-4 to present
Working in Hualu Holdings Co., Ltd. as vice general manager
From 2010-12 to 2012-4 Worked
in SC as vice chairman
From 2012-4 to present Working in SC as chairman.
Vice General Managers:
Mr. Dong Yan , born in 1964, with master’s degree, senior economist;
Mr. Gao Jinghong , born in 1970;
Mr. Pan Desheng , born in 1965;
Mr. Zhang Xinsheng , born in 1967;
Mr. Zhuang Guangshan , born in 1974;
They are currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as vice general managers.
Dong Yan is also working in SC as vice chairman and working in Shandong
Hualu Hengsheng Group Co., Ltd as legal representative.
Directors:
Han Huizhong
Sheng Jiemin
Li Junfa
Zhou Ping
Wang Quanxi
Sun Xiujiang
Wang Yuanren
Yu Xixin
Supervisors:
Ding Xinlin
Peng Xiugang
Zhang Chengyong
SC is mainly engaged in manufacturing and selling chemical fertilizer
and chemical products.
SC’s main products include: chemical fertilizer, alcohols, aldehydes,
DMF, trimethylamine, formaldehyde, monomethylamine, resin, amine, carbonyl
compound, acetic acid, anhydrides, liquid nitrogen, liquid oxygen, liquid
argon, hydrogen gas, carbon monoxide and heat electric, urea, DMF, etc.
SC sources its materials 90% from domestic market, mainly Shandong
province, and 10% from overseas market. SC sells 95% of its products in
domestic market, and 5% 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 T/T, L/C and Credit of 30-60 days.
*Major Supplier:
==============
Dezhou Dehua Equipment Engineering Co., Ltd.
*Major Customers:
==============
Xuchuan Chemical (Suzhou) Co., Ltd.
Zhejiang Huafeng Synthetic Resin Co., Ltd.
Wenzhou Yutian Resin Co., Ltd.
Shandong Hualu Hengsheng Group Dehua Architectural Design & Research
Institute Co., Ltd. (literal translation)
===============================================
Registration no.: 371400018025094
Incorporation date:
Registered capital: CNY 5,000,000
Legal representative: Zhang Shengge 张胜革
According to the website: http://www.hl-hengsheng.com
Shandong Hualu Hengsheng Group Dezhou Thermoelectricity Co., Ltd.
===================================================
Registration no.: 371400018019768
Incorporation date:
Registered capital: CNY 54,576,700
Legal representative: Liu Haiying
Dezhou Dehua Equipment Engineering Co., Ltd.
===================================
Registration no.: 371400018025826
Incorporation date:
Registered capital: CNY 38,642,635.64
Legal representative: Shen Yong
Dezhou Minxin Service Co., Ltd. (literal translation)
=====================================
Registration no.: 371400018018458
Incorporation date:
Registered capital: CNY 300,000
Legal representative: Li Jianping
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.
China Construction Bank
AC#: N/A
Relationship: Normal.
Balance Sheet
|
CNY’000 |
as of Dec. 31, 2012 |
as of Sep. 30, 2013 |
|
Cash & bank |
1,102,007 |
994,550 |
|
Notes receivable |
746,726 |
726,730 |
|
Inventory |
548,139 |
432,640 |
|
Accounts receivable |
31,165 |
32,700 |
|
Advances to suppliers |
343,213 |
612,000 |
|
Other receivables |
1,618 |
530 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
2,772,868 |
2,799,150 |
|
Long-term investments |
0 |
0 |
|
Fixed assets net value |
7,217,579 |
8,400,500 |
|
Projects under construction |
1,633,406 |
937,200 |
|
Material for construction |
76,878 |
39,800 |
|
Intangible assets |
286,120 |
350,530 |
|
Long-term deferred expenses |
41,012 |
34,590 |
|
Deferred income tax assets |
1,311 |
2,170 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
12,029,174 |
12,563,940 |
|
|
============= |
============= |
|
Short loans |
310,000 |
170,000 |
|
Notes payable |
408,650 |
412,560 |
|
Accounts payable |
527,815 |
962,370 |
|
Advances from customers |
228,922 |
321,070 |
|
Employee pay payable |
16,060 |
19,340 |
|
Interest payable |
8,591 |
50,140 |
|
Taxes payable |
639 |
-180,900 |
|
Other accounts payable |
4,146 |
7,340 |
|
Non-current liabilities due within one year |
512,300 |
1,051,000 |
|
Other current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current liabilities |
2,017,123 |
2,812,920 |
|
Long term liabilities |
4,489,871 |
4,027,380 |
|
Special payable |
0 |
16,000 |
|
|
------------------ |
------------------ |
|
Total liabilities |
6,506,994 |
6,856,300 |
|
Shareholders equities |
5,522,180 |
5,707,640 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
12,029,174 |
12,563,940 |
|
|
============= |
============= |
Income Statement
|
CNY’000 |
as of Dec. 31, 2012 |
as of Sep. 30,
2013 |
|
Turnover |
7,003,119 |
5,969,390 |
|
Cost of goods sold |
5,984,169 |
5,179,460 |
|
Taxes and additional of main operation |
2,379 |
0 |
|
Sales expense |
141,429 |
114,680 |
|
Management expense |
82,203 |
63,580 |
|
Finance expense |
260,298 |
224,540 |
|
Asset impairment loss |
3,797 |
8,070 |
|
Non-operating income |
4,694 |
5,210 |
|
Non-operating expense |
1,109 |
360 |
|
Profit before tax |
13,483,197 |
383,910 |
|
Less: profit tax |
80,864 |
59,140 |
|
Net profit |
451,565 |
324,770 |
Important Ratios
=============
|
|
As of Dec. 31,
2012 |
as of Sep. 30,
2013 |
|
*Current ratio |
1.37 |
1.00 |
|
*Quick ratio |
1.10 |
0.84 |
|
*Liabilities to assets |
0.54 |
0.55 |
|
*Net profit margin (%) |
6.45 |
5.44 |
|
*Return on total assets (%) |
3.75 |
2.58 |
|
*Inventory /Turnover ×365 |
29 days |
/ |
|
*Accounts receivable/Turnover ×365 |
2 days |
/ |
|
*Turnover/Total assets |
0.58 |
0.48 |
|
* Cost of goods sold/Turnover |
0.85 |
0.87 |
PROFITABILITY:
FAIRLY GOOD
The turnover of SC appears good.
SC’s net profit margin is fairly good.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is in a normal level.
SC’s quick ratio is in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears small.
SC’s short-term loan is average.
SC’s turnover is fair in 2012, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is average.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.06 |
|
|
1 |
Rs.101.15 |
|
Euro |
1 |
Rs.84.95 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.