MIRA
INFORM REPORT
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Report Date : |
19.10.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI PHICHEM MATERIAL CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.04.2013 |
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Date of Incorporation : |
26.04.2002 |
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Com. Reg. No.: |
310115400094077 |
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Legal Form : |
Shares Limited
Company |
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Line of Business : |
Manufacturing and selling optoelectronic materials |
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No. of Employees : |
134 |
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 |
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
SHANGHAI PHICHEM
MATERIAL CO., LTD.
NO. 169 GUIQIAO ROAD,
JINQIAO EXPORT PROCESSING ZONE
PUDONG NEW AREA,
SHANGHAI 201206 PR CHINA
TEL: 86 (0)
21-50322662/50551001-8226
FAX: 86 (0)
21-50322661
***Note: SC is also known as Shanghai
Phichem Corporation and Shanghai
Phichem Photoelectric Material Co., Ltd.
EXECUTIVE SUMMARY
Date of Registration : april 26, 2002
REGISTRATION NO. : 310115400094077
LEGAL FORM : Shares limited company
CHIEF EXECUTIVE : zhang JINSHAN
(LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 60,000,000
staff :
134
BUSINESS CATEGORY :
MANUFACTURING
REVENUE :
CNY 58,235,000 (JAN. 1 2013 TO APR. 30, 2013)
EQUITIES :
CNY 119,444,000 (AS OF APR. 30, 2013)
WEBSITE : investor@phichem.com.cn
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
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 limited liabilities company of PRC on April 26, 2002. 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.: 310115400094077.
SC’s Organization
Code Certificate No.: 73814112-5
SC’s registered
capital: CNY 60,000,000
SC’s paid-in
capital: CNY 60,000,000
Registration Change Record:-
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Date |
Change of Contents |
Before the change |
After the change |
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-- |
Legal Form |
Limited
Liabilities Company |
Shares Limited
Company |
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Company Chinese
Name |
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Current Co search indicates SC’s shareholders & chief
executives are as follows:-
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Name of Shareholder (s) |
% of Shareholding |
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Domestic Shareholder (s) |
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Beijing Hongcheng Xintuo Management Consulting Co., Ltd. |
28.27 |
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Rugao Boxin Enterprise Management Services Co., Ltd. |
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Beijing Hanhe Taixing Management Consulting Co., Ltd. |
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Shanghai Kaijia Investment & Management Consulting Co., Ltd. |
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Beijing Dele Management Consulting Co., Ltd. |
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Jiangsu KK Telecom Materials Co., Ltd. |
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Shanghai Kangqi Investment Co., Ltd. |
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Beijing Lianhe Sikai Logistics Software Co., Ltd. |
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Overseas Shareholder (s) |
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Hong Kong Phichem Holdings, Limited |
71.73 |
SC’s Chief Executives:-
|
Position |
Name |
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Legal Representative, Chairman, and General Manager |
Zhang Jinshan |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Domestic Shareholder (s), as follows, 28.27
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Beijing Hongcheng Xintuo Management Consulting Co., Ltd.
Rugao Boxin Enterprise Management Services Co., Ltd.
Beijing Hanhe Taixing Management Consulting Co., Ltd.
Shanghai Kaijia Investment & Management Consulting Co., Ltd.
Beijing Dele Management Consulting Co., Ltd.
Jiangsu KK Telecom Materials Co., Ltd.
Shanghai Kangqi Investment Co., Ltd.
Beijing Lianhe Sikai Logistics Software Co., Ltd.
Overseas Shareholder (s), as follows, 71.73
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Hong Kong Phichem Holdings, Limited
Beijing Hongcheng Xintuo Management Consulting Co., Ltd.
Registration No.: 110113012969706
Legal Form:
One-person Limited Liability Company
Chief Executive: Li Yongcheng
Registered Capital: CNY 100,000
Registration No.: 110113012951353
Legal Form:
One-person Limited Liability Company
Chief Executive: Wang Lin
Registered Capital: CNY 100,000
Shanghai Kaijia Investment & Management Consulting Co., Ltd.
Registration No.: 310115001253645
Legal Form: Limited
Liability Company
Chief Executive: Zhang Yanxia
Registered Capital: CNY 3,500,000
Registration No.: 110302012915910
Legal Form:
One-person Limited Liability Company
Chief Executive: Yu Li
Registered Capital: CNY 100,000
Shanghai Kangqi Investment Co., Ltd.
Registration No.: 310107000492207
Legal Form:
One-person Limited Liability Company
Chief Executive: Yang Jianhua
Registered Capital: CNY 34,000,000
Beijing Lianhe Sikai Logistics Software Co., Ltd.
Registration No.: 110108010210496
Legal Form:
One-person Limited Liability Company
Chief Executive: Jin Ding
Registered Capital: CNY 500,000
Hong Kong Phichem Holdings, Limited
Registration No.: 0830489
Legal Form: Private
MANAGEMENT
Zhang Jinshan , Legal Representative, Chairman and General
Manager
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Gender: M
Age:
Qualification: Doctor degree
Working experience (s):
From 2002 to present, working in SC as legal representative, chairman and general manager
BUSINESS OPERATION
SC’s registered business scope includes researching and manufacturing high performance coatings, selling its owned products, providing related technical advice and after-sales service; wholesale, import and export of above similar products and chemical products, providing related supporting business.
SC is mainly engaged in manufacturing and selling optoelectronic materials
Brand: PHICHEM
SC’s products mainly include: Optical Fiber and Cable Materials, Plastic Surface Finishes UV Coatings, UV Printing Products, etc.
SC sources its materials 100% from domestic market, mainly Shanghai. SC sells 75% of its products in domestic market, and 25% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Phichem America Inc.
Staff & Office:
--------------------------
SC is known to have approx. 134 staff at present.
SC owns an area as its operating office & factory of approx. 10,000 sq. meters at the heading address.
RELATED COMPANY
SC is known to have a
subsidiary at present,
Anqing Feikai Macromolecule Materials 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 SAIC.
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As of Apr. 30, 2013 |
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Total assets |
188,436 |
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Long term liabilities |
0 |
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Total liabilities |
68,992 |
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Equities |
119,444 |
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Unit: CNY’000 |
Jan. 1 2013 to Apr. 30, 2013 |
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Revenue |
58,235 |
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Cost of sales |
46,400 |
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Profit before tax |
2,700 |
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Less: profit tax |
0 |
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Profits |
2,700 |
Important Ratios
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As of Apr. 30, 2013 |
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*Liabilities to assets |
0.37 |
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*Net profit margin (%) |
4.64 |
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*Return on total assets (%) |
1.43 |
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*Revenue / Total assets |
0.31 |
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*Cost of sales / Revenue |
0.80 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: FAIR
SC’s revenue 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: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.28 |
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|
1 |
Rs.99.03 |
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Euro |
1 |
Rs.83.80 |
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 |
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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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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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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.