MIRA
INFORM REPORT
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Report Date : |
07.08.2014 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG HEAD
CO., LTD. |
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Registered Office : |
Industrial Development Zone, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
07.12.1992 |
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Com. Reg. No.: |
370000018001899 |
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
Engaged in manufacturing and selling chemical products and equipment. |
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No. of Employees : |
657 |
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 : |
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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, growth of the
private sector, development of stock markets and a modern banking system, 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 considered important to "economic
security," explicitly looking to foster globally competitive industries.
After keeping its currency tightly linked to the US dollar for years, in July
2005 China 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 and
expanded the daily trading band within which the RMB is permitted to fluctuate.
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. Several factors
are converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and
reiterated at the Communist Party's "Third Plenum" meeting in
November 2013, emphasizes continued economic reforms and the need to increase
domestic consumption in order to make the economy less dependent in the future
on fixed investments, exports, and heavy industry. 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
SHANDONG HEAD CO., LTD.
INDUSTRIAL DEVELOPMENT ZONE, WANGCUN TOWN, ZHOUCUN DISTRICT,
ZIBO CITY, SHANDONG PROVINCE, 255311 PR CHINA
TEL: 86 (0) 533-6680088 FAX:
86 (0) 533-6681698
EXECUTIVE SUMMARY
INCORPORATION DATE :
DEC. 7, 1992
REGISTRATION NO. :
370000018001899
REGISTERED LEGAL FORM : SHARES LIMITED CO.
STAFF STRENGTH : 657
REGISTERED CAPITAL : CNY 71,580,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER : CNY 459,175,000
(CONSOLIDATED, AS OF DEC. 31, 2013)
EQUITIES : CNY 310,454,000 (CONSOLIDATED, AS OF
DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1732 = 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 Ren Min Bi
SC was registered as a shares limited co. at local Administration for Industry & Commerce
(AIC-The official body of issuing and renewing business license) on Dec. 7,
1992.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be
domiciled in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within one year
of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes manufacturing,
selling and installing chemical anticorrosion equipment, heat exchanger
equipment and metal structure; installing machinery equipment and electric
appliance; manufacturing and selling water-soluble polymeric compound series
products, diacetone acrylamide products, food additives; selling of byproduct
of industrial salt, ammonium sulfate; international trade within the scope of
qualification certificate.
SC
is mainly engaged in manufacturing and selling chemical products and equipment.
Mr.
Bi Xinde has been legal representative
and chairman of SC since 1992.
SC is known
to have approx. 657 employees at present, including 501 production staff, 40 sales staff, 64 technology
staff and 52 administration staff.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial development zone of Zibo. Our
checks reveal that SC owns the total premise about 87,000 square meters.
SC also houses its international department office in “16/F, Building A,
Guomao Building, No. 107 Liuquan Road, Zhangdian District, Zibo, Shandong
http://www.sdhead.com/ The design is
professional and the content is well organized. At present it is in Chinese, English, and other versions.
Email: sale@sdhead.com
Honors:
======
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unspecified |
Registered Capital |
CNY 19,883,340 |
Present amount |
|
1998 |
Company’s name |
Zibo Head Co., Ltd. |
Present one |
Subject passed the annual inspection of 2012 with
Administration for Industry & Commerce.
Organization Code: 164367239
Note: SC’s predecessor is Zibo Graphite Chemical Equipment Factory
See below for SC as executive party (defendant).
|
Executed
Party |
SC |
|
Court |
Zibo City Intermediate People's Court |
|
Date of Case |
|
|
Case
Number |
(2006) 00352 |
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Claim Amount |
RMB 57,504 |
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Case Status |
Completed |
Remark: Due to the lack of information, we are
unable to provide the cause of action, judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Bi Xinde 41.55
Bi Yudong 3.36
Bi Songling 0.62
Bi Yanheng 0.49
Bi Jianjun 0.48
Bi Yuzhuang 0.39
Yang Baoluan 0.11
Other shareholders 53.00
l
Legal Representative and Chairman:
Mr. Bi Xinde , born in 1954, he is currently responsible for the overall
management of SC.
Working Experience(s):
From 1992 to present
Working in SC as legal representative and chairman.
l
General Manager:
Mr. Bi
Yudong, born in 1981, with bachelor’s degree, he is currently responsible for
the daily management of SC.
Working Experience(s):
From 2011 to present
Working in SC as general manager.
l
Directors:
Bi Songling
Yang Baoluan
Nie Xingkai
Bi Yudong
Bi Yusui
Zou Jianping
l
Supervisors:
Wang Dunhua
Bi Yuzhuang
SC
is mainly engaged in manufacturing and selling chemical products and equipment.
SC’s products
mainly include:
*Cellulose ether:
Medical and food grade cellulose, Building grade cellulose ether, etc.
*Graphite or
graphite lined chemical equipment: GH Floating Head Shell & Tube Graphite,
GH Floating Head Shell & Tube Graphite, YKB Block Type Graphite Heat
Exchanger, etc.
SC sources its
materials 96% from domestic market, and 4% from overseas markets, mainly Netherlands.
SC sells 55% of its products in domestic market, and 45% to overseas market,
mainly Middle East and Europe.
Trademark & Patents
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Registration No. |
3694823 |
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Registration Date |
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Trademark Design |
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The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, L/C, T/T, and Credit of 30-60 days.
==========
Knauf Gips KG. (
Pankaj Sales Agency (
Wuzhou Shenguan Protein Casing Co., Ltd.
Netherlands ECEM Company
Major
suppliers
============
Tangshan Sanyou
Group Dongguang Pulp Co., Ltd.
Shandong Befar
Group Dongrui Chemical Co., Ltd.
Shanghai Qingchuan
Industry Co., Ltd.
Shandong Licun
Bio-technology Co., Ltd. (literal translation)
SC is known to invest in the following companies:
Yantai Fuchuan Chemical Co., Ltd. (literal
translation)
Registration
No.: 370682200003500
Incorporation
Date:
Chairman:
Bi Sixin
Shandong Healsee Capsule Co., Ltd.
======================
Registration No.: 370300000002316
Incorporation Date:
Chairman: Dong Chengxi
Web: www.healsee.net
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’s suppliers
refused to make any comment.
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.
Zibo Zhoucun District Rural Credit Union Cooperation Wangcun Credit
Cooperation
AC#:
90308811120110019868
Shanghai Pudong Development
Bank Zibo Branch
AC#:
51010154500000276
Relationship:
Normal
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
Cash & bank |
37,492 |
56,251 |
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Notes receivable |
49,540 |
26,387 |
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Inventory |
58,835 |
42,010 |
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Accounts
receivable |
40,846 |
31,941 |
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Advances to
suppliers |
21,489 |
48,779 |
|
Other
receivables |
3,168 |
2,908 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
211,370 |
208,276 |
|
Fixed assets net
value |
162,544 |
114,346 |
|
Projects under
construction |
149,885 |
37,344 |
|
Project material |
3,613 |
2,691 |
|
Long term
investment |
8,500 |
8,500 |
|
Intangible
assets |
70,679 |
71,960 |
|
Long-term
deferred expenses |
1,504 |
0 |
|
Deferred tax
assets |
707 |
369 |
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Other assets |
0 |
0 |
|
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------------------- |
------------------ |
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Total assets |
608,802 |
443,486 |
|
|
============ |
============= |
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Short loans |
160,000 |
100,600 |
|
Note payable |
200 |
0 |
|
Accounts payable |
69,312 |
54,892 |
|
Advances from
clients |
20,630 |
14,860 |
|
Taxes payable |
-239 |
1,807 |
|
Employee pay
payable |
10,598 |
7,394 |
|
Other payable |
547 |
1,356 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
261,048 |
180,909 |
|
Long term
liabilities |
37,300 |
0 |
|
|
------------------- |
------------------ |
|
Total
liabilities |
298,348 |
180,909 |
|
Equities |
310,454 |
262,577 |
|
|
-------------------- |
------------------ |
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Total
liabilities & equities |
608,802 |
443,486 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2012 |
|
Turnover |
459,175 |
455,441 |
|
Cost of goods sold |
322,273 |
320,396 |
|
Taxes and additional of main
operation |
2,078 |
3,452 |
|
Sales expense |
19,838 |
17,714 |
|
Management expense |
34,206 |
32,451 |
|
Finance expense |
10,484 |
3,483 |
|
Assets impairment loss |
2,258 |
856 |
|
Investment
income |
760 |
760 |
|
Non-operating
income |
5,483 |
3,936 |
|
Non-operating expense |
278 |
463 |
|
Profit before
tax |
74,003 |
81,322 |
|
Less: profit tax |
11,810 |
12,282 |
|
Profits |
62,193 |
69,040 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.81 |
1.15 |
|
*Quick ratio |
0.58 |
0.92 |
|
*Liabilities
to assets |
0.49 |
0.41 |
|
*Net profit
margin (%) |
13.54 |
15.16 |
|
*Return on
total assets (%) |
10.22 |
15.57 |
|
*Inventory
/Turnover ×365 |
47 days |
34 days |
|
*Accounts
receivable/Turnover ×365 |
32 days |
26 days |
|
*Turnover/Total
assets |
0.75 |
1.03 |
|
* Cost of
goods sold/Turnover |
0.70 |
0.70 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line
in both years.
l
SC’s net profit margin is good in both years.
l
SC’s return on total assets is good in both years.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in 2012 but fair in 2013.
l
SC’s quick ratio is maintained in a normal level in
2012 but fair in 2013.
l
The inventory of SC is average in both years.
l
The accounts receivable of SC is average in both
years.
l
The short loans of SC are fairly large in both
years.
l
SC’s turnover is in a fair level in 2013, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered medium-sized in
its line with fairly stable financial conditions. The large amount of short
loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.33 |
|
|
1 |
Rs.103.43 |
|
Euro |
1 |
Rs.81.96 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
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|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
|
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 |
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|
-- |
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.