MIRA
INFORM REPORT
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Report Date : |
12.10.2013 |
IDENTIFICATION DETAILS
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Name : |
guangrao liuhe
chemicals Ltd. |
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Registered Office : |
(Shicun) East Of Guangrui Road, Economic Development Zone, Guangrao
County, Dongying, Shandong Province, 257399 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
06.12.2006 |
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Com. Reg. No.: |
370523228014025 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling industrial guar gum. |
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No. of Employees : |
30 |
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.
|
Source
: CIA |
company name AND adddress
guangrao liuhe chemicals Ltd.
(Shicun)
east of guangrui road, economic development zone, guangrao county, dongying,
shandong PROVINCE, 257399 PR CHINA
TEL: 86 (0) 546-7797516 FAX: 86 (0) 546-7797517
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 6, 2006
REGISTRATION NO. : 370523228014025
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. chen hushan (CHAIRMAN)
STAFF STRENGTH :
30
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 135,650,000 (UNaudited, AS OF
DEC. 31, 2012)
EQUITIES :
CNY 13,230,000 (UNaudited, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.12 = 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 address should be the heading one.
SC was registered as a limited liabilities co. at local Administration
for industry & commerce (AIC - the official body of issuing and renewing business
license) on Dec. 6, 2006.
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 manufacturing and selling
industrial hydroxypropyl guar gum, industrial guar gum and oilfield assistant; import
and export business within limits.
SC is mainly engaged in manufacturing and selling industrial guar gum.
Mr. Chen Hushan has been legal representative and chairman of SC since
Mar., 2013.
SC is known to have approx. 30 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the economic development zone of
Guangrao County. The detailed information of the premise is unspecified.
http://www.liuheguar.cn/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: renqy_01@vip.163.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2013-1 |
Registered capital |
CNY 10,000,000 |
Present amount |
|
2013-3 |
Legal representative |
Ren Qiuying 任秋英 |
Present one |
SC’s quality system meets the international standards of ISO 9001 and
OHSAS 18001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ren Qiuying 38.08
Zhang Tingyu 39.3
Zhang Tingru 2.62
Chen Hushan 20
Legal
representative, Chairman and General manager:
Mr. Chen Hushan, in his
Working Experience(s):
From Mar., 2013 to present
Working in SC as legal representative, chairman and general manager
SC is mainly engaged in manufacturing and selling industrial guar gum.
SC’s products mainly include: guar gum, food grade guar gum, textile
grade guar gum, textile grade guar gum.
SC sources its materials 90% from domestic market, and 10% 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.
Note: SC’s management declined to release its customer and supplier
details.
Qingdao Sales office (website sources)
Tel: 0532-80861056
Fax: 0532-80861057
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’s management declined to release its bank details.
Balance
Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Cash & bank |
5,910 |
6,290 |
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Inventory |
6,850 |
3,060 |
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Accounts receivable |
8,160 |
34,370 |
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Advances to suppliers |
2,950 |
28,610 |
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Other receivables |
1,270 |
60 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
25,140 |
72,390 |
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Fixed assets net value |
2,040 |
2,740 |
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Long term investment |
0 |
0 |
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Projects under construction |
30 |
30 |
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Intangible and other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
27,210 |
75,160 |
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=========== |
=========== |
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Short loan |
0 |
0 |
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Accounts payable |
2,330 |
20,270 |
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Advances from clients |
7,270 |
35,960 |
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Taxes payable |
50 |
450 |
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Other Accounts payable |
5,550 |
4,980 |
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Other current liabilities |
300 |
270 |
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------------------ |
------------------ |
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Current liabilities |
15,500 |
61,930 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
15,500 |
61,930 |
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Equities |
11,710 |
13,230 |
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------------------ |
------------------ |
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Total liabilities & equities |
27,210 |
75,160 |
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=========== |
=========== |
Income
Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
|
Turnover |
135,650 |
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Cost of goods sold |
131,640 |
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Sales expense |
1,040 |
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Management expense |
1,310 |
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Finance expense |
40 |
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Profit before tax |
2,030 |
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Less: profit tax |
510 |
|
Profits |
1,520 |
Note: The above financial for Yr2012 have
not been audited.
Important
Ratios
=============
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
1.62 |
1.17 |
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*Quick ratio |
1.18 |
1.20 |
|
*Liabilities to assets |
0.57 |
0.82 |
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*Net profit margin (%) |
/ |
1.12 |
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*Return on total assets (%) |
/ |
2.02 |
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*Inventory /Turnover ×365 |
/ |
9 days |
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*Accounts receivable/Turnover ×365 |
/ |
93 days |
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*Turnover/Total assets |
/ |
1.80 |
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* Cost of goods sold/Turnover |
/ |
0.97 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good 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 goods sold is high, comparing with its turnover in both
years.
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 in both years.
The accounts receivable of SC appears fairly large in 2012.
SC has no short-term loan in both years.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high in 2012.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial conditions.
The large amount of accounts receivable could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.16 |
|
|
1 |
Rs.97.77 |
|
Euro |
1 |
Rs.82.78 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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 |
|
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.