MIRA
INFORM REPORT
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Report Date : |
22.11.2013 |
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 of chemicals. |
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No. of Employees : |
805 |
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
|
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 and 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
Date of Registration : MAY 16, 2000
REGISTRATION NO. : 211400000016676
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : DONG
GUANGLIN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 66,000,000
staff :
805
BUSINESS CATEGORY :
MANUFACTURING & TRADING
Revenue :
CNY 374,383,000 (AS OF
DEC. 31, 2012)
EQUITIES :
CNY 157,765,000 (AS OF
DEC. 31, 2012)
WEBSITE : www.hldsxyh.cn
E-MAIL :
lnsxyh_0429@126.com
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
FAIRly steady
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.10 = 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.: 211400000016676 on May 16, 2000.
SC’s Organization
Code Certificate No.: 12077030-9
SC’s registered
capital: CNY 66,000,000
SC’s paid-in
capital: CNY 66,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Shareholder (s) (%
of Shareholding) |
Dong Guanglin 99% Dong Dawei 1% |
Dong Dawei 60% Dong Guanglin 20% Sun Jizhi 10% Feng Qiusheng 5% Wang Baoqin 5% |
|
Registered Capital |
CNY 29,000,000 |
CNY 66,000,000 |
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Registration No. |
2114002600257 |
211400000016676 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Dong Dawei |
60 |
|
Dong Guanglin |
20 |
|
Sun Jizhi |
10 |
|
Feng Qiusheng |
5 |
|
Wang Baoqin |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Dong Guanglin |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
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
MANAGEMENT
Dong Guanglin, Legal Representative, Chairman and General
Manager
-------------------------------------------------------------------------------------------------------
Gender: M
ID#211403490929801
Age: 64
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general manager
BUSINESS OPERATION
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 chemicals.
SC’s products mainly include: 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.
Staff & Office:
--------------------------
SC is known to have approx. 805 staff at present.
SC owns an area as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is not known to have the subsidiary at present.
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 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.
BANKING
The bank information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
59,683 |
55,299 |
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Notes receivable |
9,725 |
4,095 |
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Accounts receivable |
12,161 |
13,291 |
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Advances to suppliers |
33,812 |
19,814 |
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Other receivable |
2,567 |
743 |
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Inventory |
142,808 |
175,687 |
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Deferred expenses |
0 |
0 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
260,756 |
268,929 |
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Fixed assets |
127,440 |
160,504 |
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Construction in progress |
36,725 |
1,055 |
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Intangible assets |
37,746 |
36,840 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
11,956 |
29,774 |
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Other non-current assets |
781 |
444 |
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------------------ |
------------------ |
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Total assets |
475,404 |
497,546 |
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============= |
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Short-term loans |
54,400 |
51,300 |
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Notes payable |
88,288 |
88,959 |
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Accounts payable |
41,911 |
54,378 |
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Wages payable |
586 |
548 |
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Taxes payable |
-4,049 |
300 |
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Advances from clients |
0 |
0 |
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Other payable |
6,942 |
9,296 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
188,078 |
204,781 |
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Non-current liabilities |
135,300 |
135,000 |
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------------------ |
------------------ |
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Total liabilities |
323,378 |
339,781 |
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Equities |
152,026 |
157,765 |
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------------------ |
------------------ |
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Total liabilities & equities |
475,404 |
497,546 |
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============= |
============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31, 2012 |
|
Revenue |
374,383 |
|
Cost of sales |
351,572 |
|
Taxes and surcharges |
69 |
|
Sales expense |
4,548 |
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Management expense |
9,987 |
|
Finance expense |
14,546 |
|
Non-operating income |
911 |
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Non-operating expense |
0 |
|
Profit before tax |
6 |
|
Less: profit tax |
0 |
|
6 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
1.39 |
1.31 |
|
*Quick ratio |
0.63 |
0.46 |
|
*Liabilities to assets |
0.68 |
0.68 |
|
*Net profit margin (%) |
-- |
0.002 |
|
*Return on total assets (%) |
-- |
0.001 |
|
*Inventory / Revenue ×365 |
-- |
172 days |
|
*Accounts receivable / Revenue ×365 |
-- |
13 days |
|
*Revenue / Total assets |
-- |
0.75 |
|
*Cost of sales / Revenue |
-- |
0.94 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line in 2012.
SC’s net profit margin is average in 2012.
SC’s return on total assets is average in 2012.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in both years.
SC’s quick ratio is maintained in a fair level in both years.
The inventory of SC appears large.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loans appear average.
SC’s revenue is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average in both years.
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. The large amount of inventory may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.89 |
|
|
1 |
Rs.101.14 |
|
Euro |
1 |
Rs.84.42 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
RATING EXPLANATIONS
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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 |
|
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.