MIRA
INFORM REPORT
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Report Date : |
01.10.2013 |
IDENTIFICATION DETAILS
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Name : |
LIER CHEMICAL CO., LTD. |
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Registered Office : |
The Economic And Technical Development Zone Of Mianyang Sichuan
Province 621000 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2013 |
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Date of Incorporation : |
26.07.2000 |
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Com. Reg. No.: |
510700400000030 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in manufacturing and selling agricultural chemical
products |
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No. of Employees : |
1,917 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
LIER CHEMICAL CO., LTD.
THE ECONOMIC AND TECHNICAL DEVELOPMENT ZONE OF MIANYANG SICHUAN
PROVINCE 621000 PR CHINA
TEL: 86 (0) 816-2841069/2845441
FAX: 86 (0) 816-2845440
EXECUTIVE SUMMARY
Date of Registration : july 26, 2000
REGISTRATION NO. : 510700400000030
LEGAL FORM : Shares limited company
CHIEF EXECUTIVE :
gao wen (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 202,444,000
staff :
1,917
BUSINESS CATEGORY : manufacturing AND
TRADING
Revenue :
CNY 763,979,000 (FROM JAN. 1, 2012
TO JUN. 30, 2013)
EQUITIES :
CNY 1,302,757,000 (AS OF JUN. 30, 2013)
WEBSITE : www.lierchem.com
E-MAIL :
lierchem@lierchem.com
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
CNY 6.12 = 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 Chinese-foreign equity joint venture enterprise
of PRC on July 26, 2000. However,
SC changed to present legal form, and was registered as a shares limited company of PRC with
State Administration for Industry & Commerce (SAIC) under registration No.:
510700400000030 on July 24, 2007.
SC’s Organization Code Certificate No.:
62096012-5
SC’s registered capital: CNY 202,444,000
SC’s paid-in capital: CNY 202,444,000
Registration Change Record:-
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Date |
Change of Contents |
Before the change |
After the change |
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Legal Form |
Chinese-foreign equity joint venture enterprise |
Shares Limited Company |
||
|
-- |
Legal Representative |
Huang Xiaozhong |
Gao Wen |
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Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of June 30, 2013) |
% of Shareholding |
|
Sichuan Forever Holding Co., Ltd. |
27.26 |
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China Tech Investments Limited (Hong Kong) |
25.73 |
|
China Academy of Engineering Physics Chemical Materials Research
Institute |
9.14 |
|
Chen Xuelin |
2 |
|
Zhang Chengxian |
1.35 |
|
Zhang Jun |
1.06 |
|
Ping An Life Insurance Company of China, Ltd.-Bonus-Personal Insurance
Bonus |
0.83 |
|
Yunnan International Trust Co., Ltd.-Yunxin Growth- Aggregate Asset Trust |
0.81 |
|
China Life Insurance Company Limited-Bonus-Personal Bonus |
0.77 |
|
National Social Security Fund Council Switched Two |
0.67 |
|
Other Shareholders |
30.38 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Gao Wen |
|
Vice Chairman |
Li Liqun |
|
General Manager |
Yin Yingsui |
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Independent Director |
Dai Mingjiao |
|
Fang Jianguo |
|
|
Fu Daiguo |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002258.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As of June 30,
2013)
---------------------------------
Sichuan Forever Holding Co., Ltd. 27.26
China Tech Investments Limited (Hong Kong) 25.73
China Academy of Engineering Physics Chemical Materials Research
Institute 9.14
Chen Xuelin 2
Zhang Chengxian 1.35
Zhang Jun 1.06
Ping An Life Insurance Company of China, Ltd.-Bonus-Personal Insurance
Bonus 0.83
Yunnan International Trust Co., Ltd.-Yunxin Growth-
Aggregate Asset Trust 0.81
China Life Insurance Company Limited-Bonus-Personal Bonus
National Social Security Fund Council Switched Two 0.67
Other Shareholders 30.38
Sichuan Forever Holding Co., Ltd.
----------------------------------------------
Registration No.: 510705000001981
Legal Form: Sole State-owned Enterprise
Registered Capital: CNY 200,000,000
Legal Representative: Deng Quannong
Website: www.caep-forever.com.cn
Address: Jiuyuan Commercial Buildig, No. 97, East Mianxing Road,
Mianyang, Sichuan
Tel: 86 (0) 816-2399356
China Tech Investments Limited (Hong Kong)
-------------------------------------------------------------
Registration No.: 0968930
Legal Form: Private
Status: Live
MANAGEMENT
Gao Wen, Legal
Representative and Chairman
---------------------------------------------------------------------
Gender: M
Age: 49
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman, and general
manager
Li Liqun, Vice Chairman
--------------------------------------------
Gender: M
Age: 53
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
Yin Yingsui, General Manager
----------------------------------------------------
Gender: M
Age: 43
Qualification: University
Working experience (s):
At present, working in SC as general manager
Independent
Director
----------------------------
Dai Mingjiao
Fang Jianguo
Fu Daiguo
BUSINESS OPERATION
SC’s registered business scope includes researching, developing,
manufacturing, and selling pesticide, preparation, chemical materials, and
chemical products; exporting its products; importing machinery, meters &
instruments, components, and related technology; processing & trade
business; technology transfer, technology check & consultation; investment
management and consultation.
SC is mainly engaged in manufacturing and selling agricultural chemical
products.
SC’s products mainly include:
Herbicide
Insecticide
Fungicide
|
Formulation: 250g/L EC, 150g/l Difenoconazole +
150g/l Propiconazole EC |
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Formulation: 250g/L EC, 150g/l Difenoconazole +
150g/l Propiconazole EC |
|
SC sources its materials 80% from domestic market, and 20% from overseas
market, mainly U.S.A. and Europe. SC sells 70% of its products in domestic
market, and 30% to overseas market, mainly Southeast Asia, etc.
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. 1,917 staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is known to
have the following subsidiaries:
Jiangsu Kuaida Agrochemical Co., Ltd.
Chengdu Foison International Co., Ltd.
Mianyang Kangbosi Chemical Co., Ltd.
Sichuan Foison International Co., Ltd.
Jiangyou Qimingxing Chlorine-caustic Soda Chemical Co., Ltd.
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
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Jun. 30,
2013 |
|
168,865 |
116,540 |
|
|
Held for trading
financial assets |
0 |
130 |
|
Notes receivable |
44,500 |
27,989 |
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Accounts receivable |
218,438 |
248,566 |
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Advances to suppliers |
28,659 |
46,208 |
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Dividend receivable |
0 |
0 |
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Other receivable |
2,147 |
2,628 |
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Inventory |
276,235 |
308,116 |
|
Other current assets |
20,000 |
20,000 |
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|
------------------ |
------------------ |
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Current assets |
758,844 |
770,177 |
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Long term equity investment |
19,683 |
16,252 |
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Investment real estate |
0 |
0 |
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Fixed assets |
440,381 |
549,354 |
|
Construction in progress |
133,161 |
161,918 |
|
Project materials |
38 |
2,294 |
|
Fixed assets in liquidation |
916 |
916 |
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Intangible assets |
116,747 |
115,372 |
|
Long-term deferred expenses |
0 |
0 |
|
Deferred income tax assets |
9,321 |
9,320 |
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Other non-current assets |
12,936 |
12,936 |
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------------------ |
------------------ |
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Total assets |
1,492,027 |
1,638,539 |
|
|
============= |
============= |
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Short-term loans |
0 |
65,000 |
|
Financial liabilities for trading |
0 |
0 |
|
Notes payable |
45,401 |
50,528 |
|
Accounts payable |
105,248 |
120,779 |
|
Advances from clients |
23,565 |
36,012 |
|
Payroll payable |
20,936 |
16,650 |
|
Taxes payable |
-9,650 |
-17,980 |
|
Interest payable |
0 |
793 |
|
Other payable |
5,657 |
7,118 |
|
Non-current liabilities within one year |
0 |
0 |
|
Other current liabilities |
36,986 |
41,730 |
|
|
------------------ |
------------------ |
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Current liabilities |
228,143 |
320,630 |
|
Non-current liabilities |
15,417 |
15,152 |
|
|
------------------ |
------------------ |
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Total liabilities |
243,560 |
335,782 |
|
Equities |
1,248,467 |
1,302,757 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
1,492,027 |
1,638,539 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
From Jan. 1,
2013 to Jun. 30, 2013 |
|
Revenue |
1,278,093 |
763,979 |
|
Cost of sales |
986,416 |
587,679 |
|
Business Taxes and Surcharges |
1,153 |
261 |
|
Sales expense |
44,297 |
17,726 |
|
Management expense |
106,649 |
52,838 |
|
Finance expense |
-902 |
8,589 |
|
Assets Devaluation |
514 |
-311 |
|
Investment income |
-344 |
-3,266 |
|
Non-operating income |
24,071 |
3,641 |
|
Non-operating expense |
26,006 |
6,284 |
|
Profit before tax |
137,688 |
91,416 |
|
Less: profit tax |
18,610 |
14,148 |
|
119,078 |
77,268 |
Important Ratios
=============
|
|
As of Dec. 31,
2012 |
As of Jun. 30,
2013 |
|
*Current ratio |
3.33 |
2.40 |
|
*Quick ratio |
2.12 |
1.44 |
|
*Liabilities to assets |
0.16 |
0.20 |
|
*Net profit margin (%) |
9.32 |
10.11 |
|
*Return on total assets (%) |
7.98 |
4.72 |
|
*Inventory / Revenue ×365/180 |
79 days |
73 days |
|
*Accounts receivable / Revenue ×365/180 |
63 days |
59 days |
|
*Revenue / Total assets |
0.86 |
0.47 |
|
*Cost of sales / Revenue |
0.77 |
0.77 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is average, comparing with its revenue.
LIQUIDITY: FAIRLY
GOOD
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
The short-term loans of SC appear average.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is low.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.78 |
|
|
1 |
Rs.101.42 |
|
Euro |
1 |
Rs.84.67 |
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.