MIRA
INFORM REPORT
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Report Date : |
04.12.2014 |
IDENTIFICATION DETAILS
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Name : |
shandong fuer Co.,
Ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
28.04.1994 |
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Com. Reg. No.: |
370681018017559 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is
mainly engaged in processing and selling chemical intermediates. |
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No of Employees : |
700 |
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 – June 1, 2014
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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 |
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, 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 & ADDRESS
shandong fuer Co., Ltd.
rulinzhuang village, xufu town,
longkou, shandong PROVINCE, 265713 PR CHINA
TEL: 86 (0) 535-8591116/8595016
FAX: 86 (0) 535-8591116
EXECUTIVE SUMMARY
INCORPORATION DATE : apr. 28, 1994
REGISTRATION NO. : 370681018017559
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH :
700
REGISTERED CAPITAL : CNY 226,000,000
BUSINESS LINE :
PROCESSING & TRADING
TURNOVER :
CNY 367,780,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 431,100,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE :
CNY 6.15 = 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
SC was registered as a One-person Limited Liability Company at local
Administration for industry & commerce (AIC - the official body of issuing
and renewing business license).
Company Status: One-person
Limited Liability Company
Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The
shareholder’s capital contributes, as set out by the articles of
associations should be a lump-sum payment in full. One natural person can only
invest in and set up one limited liability company,
which is not permitted to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The
regulation of Single person LLC has no shareholder meeting.
SC’s registered business scope includes processing, selling, importing and exporting chemical intermediates (excluding the goods forbidden by the government). (Any project that needs to be approved by law can only be carried out after getting approval by relevant authorities).
SC is mainly engaged in processing and selling chemical intermediates.
Mr. Miao Haifeng has been legal representative of SC since 2014.
SC is known to have approx. 700 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Longkou. The detailed information of the premise is unspecified.
http://www.sdfuer.com/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: yxb@sdfuer.com
Changes of its registered
information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2014-4 |
Legal form |
Shares limited co. |
Present one |
|
Chinese company name |
山东福尔股份有限公司 |
Present one |
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|
Legal representative |
Yu Juntian |
Present one |
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|
2014-10 |
Registered capital |
CNY 96,000,000 |
Present amount |
Note: SC changed its Chinese name in 2014, while its English name
remains the same.
Organization Code: 169456249
SC’s quality system meets the international standards of ISO 9001 and
ISO 14001.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Huapont-nutrichem Co., Ltd. 100
Reg. no.: 500000000002774
Legal representative: Zhang Songshan
Incorporation date:
The company is a listed company in Shenzhen
Stock Exchange Market with the code of 002004.
Tel: 023-67886900, 023-67886985
Fax: 023-67886986
E-mail: huapont@163.com
l
Legal
representative:
Mr. Miao Haifeng is
currently responsible for the overall management of SC.
Working Experience(s):
From Apr. of 2014 to present Working
in SC as legal representative
l
Directors:
Zhang Yimei
Sun Lijuan
Zhang Shuzhong
l
Supervisors:
Chen Lu
Tian Zhaojun
Yu Zhaojun
SC is mainly
engaged in processing and selling chemical intermediates.
SC’s products
mainly include: 6-chloro-2-nitrotoluene, 4-chloro-2-nitrotoluene,
3-chloro-2-methylaniline, 5-chloro-2-methylaniline
Trademarks & patens
Registration
no.: 10313398
Registration date:
Trademark design: 
Registration
no.: 8065780
Registration date:
Trademark design: 
SC sources its materials 100% from domestic
market. SC sells 80% of its products in domestic market, and 20% to overseas
market.
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.
Note: SC’s management declined to release its customer and supplier
details.
SC
is known to have a subsidiary at present:
Yantai Boruite
Biotechnology Co., Ltd.
---------------------------------------
Registered no.: 370681228007295
Legal representative: Li Geng
Date of incorporation: 2002-11-18
Related company:
Chongqing Huapont Pharm Co., Ltd.
------------------------------------
Registered no.: 500000000010378
Legal representative: Lv Liming
Date of incorporation:
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
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as
of Dec. 31, 2013 |
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Cash & bank |
6,480 |
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Notes receivable |
108,840 |
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Inventory |
79,900 |
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Accounts
receivable |
69,090 |
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Advances to
suppliers |
29,530 |
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Other
receivables |
15,730 |
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Other current
assets |
7,360 |
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------------------ |
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Current assets |
316,930 |
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Fixed assets net
value |
380,040 |
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Projects under
construction |
126,070 |
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Project
materials |
11,790 |
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Long term
investment |
15,200 |
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Intangible
assets |
50,000 |
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Other assets |
30 |
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------------------ |
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Total assets |
900,060 |
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============= |
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Short loans |
222,000 |
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Notes payable |
6,020 |
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Accounts payable |
12,720 |
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Other payable |
20 |
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Taxes payable |
7,480 |
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Accrued payroll |
1,520 |
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Advances from
clients |
60 |
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Interest payable |
820 |
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Other current
liabilities |
3,320 |
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------------------ |
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Current
liabilities |
253,960 |
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Long term
liabilities |
215,000 |
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------------------ |
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Total
liabilities |
468,960 |
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Equities |
431,100 |
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------------------ |
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Total
liabilities & equities |
900,060 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31,
2013 |
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Turnover |
367,780 |
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Cost of goods
sold |
242,650 |
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Taxes and
additional of main operation |
2,440 |
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Sales expense |
4,220 |
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Management expense |
22,520 |
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Finance expense |
19,790 |
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Non-operating
income |
11,670 |
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Profit before
tax |
88,150 |
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Less: profit tax |
18,000 |
|
Profits |
70,150 |
Important Ratios
=============
|
|
as
of Dec. 31, 2013 |
|
*Current ratio |
1.25 |
|
*Quick ratio |
0.93 |
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*Liabilities
to assets |
0.52 |
|
*Net profit
margin (%) |
19.07 |
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*Return on
total assets (%) |
7.79 |
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*Inventory
/Turnover ×365 |
80 days |
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*Accounts
receivable/Turnover ×365 |
69 days |
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*Turnover/Total
assets |
0.41 |
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* Cost of
goods sold/Turnover |
0.66 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loan appears large in 2013.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
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-term loan could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.89 |
|
|
1 |
Rs.96.83 |
|
Euro |
1 |
Rs.76.57 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
SMN |
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 |
|
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.