MIRA
INFORM REPORT
|
Report Date : |
03.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
LELING FANGLUN CHEMICAL CO., LTD. |
|
|
|
|
Registered Office : |
Tieying, Yeling, Dezhou, Shandong Province 253611 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
25.06.2010 |
|
|
|
|
Com. Reg. No.: |
371481200002801 |
|
|
|
|
Legal Form : |
One-Person Limited Liabilities Company |
|
|
|
|
Line of Business : |
Subject is engaged in the manufacturing and selling
terephthaloylchloride, poly- p- phenylene terephthamide, polyether ether
ketone resin, and polyether sulfones; importing and exporting commodities and
technology. |
|
|
|
|
No. of Employees : |
208 |
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 : |
Satisfactory |
|
Payment Behaviour : |
No complaints |
|
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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 2013 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
consumption; (b) facilitating higher-wage job opportunities for the aspiring
middle class, including rural migrants and increasing numbers of college
graduates; (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. Debt overhang from
its credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future.
However, China has made only marginal progress toward these rebalancing goals.
The new government of President XI Jinping has signaled a greater willingness
to undertake reforms that focus on China's long-term economic health, including
giving the market a more decisive role in allocating resources.
|
Source
: CIA |
Company name and address
LELING FANGLUN CHEMICAL CO., LTD.
TIEYING, YELING, DEZHOU, SHANDONG PROVINCE 253611 PR CHINA
TEL: 86 (0) 534-6521897
FAX: N/A
EXECUTIVE SUMMARY
Date of Registration : june 25, 2010
REGISTRATION NO. :
371481200002801
LEGAL FORM : ONE-PERSON Limited liabilities company
CHIEF EXECUTIVE :
DONG XIAOXUAN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 49,000,000
staff :
208
BUSINESS CATEGORY : MANUFACTURING & TRADING
REVENUE :
CNY 93,930,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 52,042,000 (AS OF DEC. 31, 2013)
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.20 = 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 one-person limited liabilities company of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 371481200002801 on June 25, 2010.
SC’s Organization Code Certificate No.:
55787254-3
SC’s Tax No.: 371481557872543
SC’s registered capital: CNY 49,000,000
SC’s paid-in capital: CNY 49,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2012 |
Registered Capital |
CNY 17,000,000 |
CNY 49,000,000 |
|
2013 |
Legal Representative |
Liang Wei |
Dong Xiaoxuan |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Dong Xiaoxuan |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Dong Xiaoxuan |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Dong Xiaoxuan 100
MANAGEMENT
Dong Xiaoxuan, Legal Representative, Chairman and General
Manager
--------------------------------------------------------------------------------------------------------
Gender: F
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
terephthaloylchloride, poly- p- phenylene terephthamide, polyether ether ketone
resin, and polyether sulfones; importing and exporting commodities and
technology.
SC is mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include: terephthaloylchloride, poly- p- phenylene
terephthamide, polyether ether ketone resin, and polyether sulfones.
SC sources its materials 100% from domestic market. SC sells 60% in
domestic market and 40% to overseas market, mainly Southeast Asia, etc.
The buying terms of SC include Check, T/T 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. 208
staff at present.
SC rents 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
Basic Bank:
Dezhou Leling Rural Credit Cooperatives
AC#: 9140114083442050000560
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
20,037 |
7,833 |
|
|
Notes receivable |
940 |
754 |
|
Accounts receivable |
0 |
7,385 |
|
Advances to suppliers |
9,653 |
35,928 |
|
Other receivable |
433 |
1,117 |
|
Inventory |
12,178 |
9,824 |
|
Deferred expenses |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
43,241 |
62,841 |
|
Fixed assets |
0 |
27,929 |
|
Construction in progress |
21,316 |
28,379 |
|
Intangible assets |
14,186 |
14,195 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
78,743 |
133,344 |
|
|
============= |
============= |
|
Short-term loans |
10,000 |
15,270 |
|
Notes payable |
40,000 |
6,000 |
|
Accounts payable |
13,348 |
34,555 |
|
Wages payable |
-50 |
734 |
|
Taxes payable |
-3,278 |
27 |
|
Advances from clients |
0 |
1,507 |
|
Other payable |
592 |
23,209 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
60,612 |
81,302 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
60,612 |
81,302 |
|
Equities |
18,131 |
52,042 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
78,743 |
133,344 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
Revenue |
93,930 |
|
Cost of sales |
82,667 |
|
Taxes and surcharges |
346 |
|
Sales expense |
2,242 |
|
Management expense |
3,321 |
|
Finance expense |
2,537 |
|
Non-operating income |
0 |
|
Non-operating expense |
3 |
|
Profit before tax |
2,813 |
|
Less: profit tax |
906 |
|
1,907 |
Important Ratios
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.71 |
0.77 |
|
*Quick ratio |
0.51 |
0.65 |
|
*Liabilities to assets |
0.77 |
0.61 |
|
*Net profit margin (%) |
-- |
2.03 |
|
*Return on total assets (%) |
-- |
1.43 |
|
*Inventory / Revenue ×365/180 |
-- |
39 days |
|
*Accounts receivable / Revenue ×365/180 |
-- |
29 days |
|
*Revenue / Total assets |
-- |
0.70 |
|
*Cost of sales / Revenue |
-- |
0.88 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
·
The revenue of SC appears average.
·
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
· The current ratio of SC is maintained in a fair level.
· SC’s quick ratio is maintained in a fair level.
· The inventory of SC appears average.
· 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.
·
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.65 |
|
|
1 |
Rs.99.21 |
|
Euro |
1 |
Rs.82.39 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
NNA |
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.