MIRA INFORM REPORT
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Report Date : |
16.12.2014 |
IDENTIFICATION DETAILS
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Name : |
Shandong Binnong
Technology 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 : |
28.10.2003 |
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Com. Reg. No.: |
371602228008647 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Developing, researching, manufacturing and selling precision chemicals
and pesticides (production name and production type by pesticide production
approval certificate and the national industrial production permit, dangerous
chemicals by safety production license) (with permit if needed), exporting
self-made products and technology, importing machinery, parts, materials and
technology needed for its produce. (with permit if needed) |
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No of Employees : |
1,400 |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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 Binnong Technology Co., Ltd.
NO. 518 YONGXIN ROAD, INDUSTRIAL ECONOMIC DEVELOPMENT
ZONE,
BINZHOU, SHANDONG PROVINCE, 256651 PR CHINA.
TEL: 86 (0) 543-5087590
FAX: 86 (0) 543-5087560
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 28, 2003
REGISTRATION NO. : 371602228008647
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. huang yanchang (CHAIRMAN)
STAFF STRENGTH :
1,400
REGISTERED CAPITAL : CNY 125,000,000
BUSINESS LINE :
RESEARCHING, developing, MANUFACTURING and trading
TURNOVER :
CNY 1,807,820,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 375,280,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.1841 = 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 limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Oct. 28, 2003.
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 developing, researching,
manufacturing and selling precision chemicals and pesticides (production name
and production type by pesticide production approval certificate and the
national industrial production permit, dangerous chemicals by safety production
license) (with permit if needed), exporting self-made products and technology,
importing machinery, parts, materials and technology needed for its produce.
(with permit if needed)
SC is mainly engaged in researching, developing, manufacturing and
selling pesticide chemicals.
Mr. Huang Yanchang has been the legal representative, chairman and
general manager of SC since 2003.
SC is known to have approx. 1,400 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial economic development
zone of Binzhou. SC’s accountant Ms. Liu released that SC owns the total
premise about 150,000 square meters.
Note: The was the former address of SC’s sales department, and its
present one should be No. 1166, Huanghe 12 Road, Binzhou City, Shandong
Province (山东滨州黄河十二路1166号)
http://www.binnong.com/
The design is professional and the content is well organized. At present it is in
Chinese and English versions.
E-mail: bnswh2009@163.com
; bnsxzm@163.com
SC has passed ISO9001 Quality Management System Certification, ISO14001
Environment Management System Certification, GB/T28001 Occupational Health and
Safety Management System Certification and SA8000 Social Responsibility
Management System Certification
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-12 |
Registered capital |
CNY 60,000,000 |
CNY 100,000,000 |
|
2009 |
Shareholders |
Huang Yanchang 51.40% Yin Kejing 6% Zhang Yurui 1.6% Wang Yongqiang 20.5% Ye Aimin 20.5% |
Huang Yanchang 59% Ye Aimin 20.5% Wang Yongqiang 20.5% |
|
2010 |
Registered capital |
CNY 100,000,000 |
Present amount |
|
Shareholders and shareholding |
Huang Yanchang 59% Ye Aimin 20.5% Wang Yongqiang 20.5% |
Huang Yanchang 70.5% Binzhou Meiya Building Materials Technology Co., Ltd. 5.05% Shandong Binzhou Xinnong Investment Co., Ltd. 4.95% Zhang Yurui 4% Li Hua 3% Yin Kejing 0.5% Other 7 individuals 12% |
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|
Unknown |
Huang Yanchang 70.5% Binzhou Meiya Building Materials Technology Co., Ltd. 5.05% Shandong Binzhou Xinnong Investment Co., Ltd. 4.95% Zhang Yurui 4% Li Hua 3% Yin Kejing 0.5% Other 7 individuals 12% |
Present ones |
Tax registration no.: 372301756367187
Organization code: 756367187
See below for SC as executive party (defendant).
|
Executed Party |
Shandong Binnong Technology Co., Ltd. |
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Court |
Dao |
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Date of Case |
Mar. 18, 2010 |
|
Case Number |
(2010) 00043 |
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Claim Amount |
RMB 11,200 |
|
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
Huang Yanchang 66
Binzhou Meiya Building Materials Technology Co., Ltd. 0.048
Shandong Binzhou Xinnong Investment Co., Ltd. 4.952
Zhang Yurui 4
Li Hua 3
Yin Kejing 0.5
Other 6 individuals 11.5
Binzhou Meiya Building Materials Technology Co., Ltd.
========================================
Registration No.: 371600200005043
Registered capital: CNY 10,000,000
Legal rep.: Zhang Jianyong
Shandong Binzhou Xinnong Investment Co., Ltd.
===================================
Registration No.: 371600200019438
Registered capital: CNY 12,380,000
Legal rep.: Hou Liguo
Legal Representative, Chairman and General Manager:
Mr.
Working Experience(s):
From 2003 to present Working
in SC as legal representative, chairman and general manager.
Directors:
Yan Yong
Zhang Maogui
Wang Hongliang
Zhang Yurui
Supervisors:
Li Hua
Ren Liyan
Xu Jiajun
SC is mainly engaged in researching, developing, manufacturing and
selling pesticide chemicals.
SC’s products mainly include:
AMIDES SERIES
Alachlor
Acetochlor
Pretilachlor
Butachlor
Propisochlor
Metolachlor
S-Metolachlor
DINITROANILINES SERIES
Pendimethalin
Trifluralin
Butralin
PHENOXYALKANOIC ACIDS SERIES
Fluazifop-P-Butyl
Haloxyfop-R-Methyl
ORGANOPHOSPHORUS SERIES
Glyphosate
TRIAZINES SERIES
Atrazine
Ametryn
Terbuthylazine
Terbutryne
Cyanazine
Simazine
Prometryne
OTHERS
Bentazone
Fomesafen
Nicosulfuron
Paraquat
2,4D
MCPA
Mesotrion
Oxyfluorfen
Quizalofop-P-Ethyl
SC sources its materials 100% from domestic market. SC sells 70% of its
products in domestic market, and 30% to overseas market, mainly to South Africa
and USA.
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.
Trademark & Patents
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Registration No. |
3592551 |
3592553 |
3763662 |
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Registration Date |
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Trademark Design |
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Note: SC’s
management declined to release its major clients and suppliers.
SC is known to have the following branch:
Shandong Binnong Technology Co., Ltd. Bincheng Branch
===========================================
Incorporation date:
Registration no.: 371602300003572
Principal: Wang Hongliang
SC is known to invest in the following companies:
Zhanhua Guochang Fine Chemical Co., Ltd. (in Chinese Pinyin)
============================================
Incorporation date:
Registration no.: 371624200008166
Registered capital: CNY 30,000,000
Legal rep.: Chen Yan’gang
Legal form: One-person Limited Liability Company
Shandong Zhongnong Minchang Chemical Industry Co., Ltd.
============================================
Incorporation date:
Registration no.: 371602228010109
Registered capital: CNY 100,000,000
Legal rep.: Meng Lingtao
Legal form: One-person Limited Liability Company
E-mail: hanzhy197169@163.com
Tel: 0543-3356831
Shandong Sinomey Chemicals Co., Ltd.
==============================
Incorporation date:
Registration no.: 371602228010272
Registered capital: CNY 80,000,000
Legal rep.: Li Hua
Legal form: One-person Limited Liability Company
Web: http://www.zhonghehuaxue.com/
E-mail: zhongheshichangbu@126.com
Tel: 0543-3363398
Fax: 0543-3357097
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.
China Construction Bank Binzhou Branch Bincheng District Sub-branch
AC#: 37001836808050002934
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2013 |
|
Cash & bank |
392,580 |
379,170 |
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Trading financial assets |
200 |
0 |
|
Inventory |
436,650 |
359,420 |
|
Accounts receivable |
368,390 |
327,600 |
|
Notes receivable |
12,990 |
33,170 |
|
Other receivables |
106,170 |
103,980 |
|
Advances to suppliers |
53,960 |
23,320 |
|
Other current assets |
0 |
27,000 |
|
|
------------------ |
------------------ |
|
Current assets |
1,370,940 |
1,253,660 |
|
Fixed assets net value |
173,650 |
185,730 |
|
Projects under construction |
47,750 |
39,430 |
|
Long term investment |
185,180 |
217,160 |
|
Long-term prepaid expenses |
350 |
1,790 |
|
Deferred income tax assets |
/ |
220 |
|
Intangible assets |
53,610 |
53,080 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
1,831,480 |
1,751,070 |
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============= |
============= |
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Short loans |
658,980 |
665,790 |
|
Accounts payable |
299,640 |
133,240 |
|
Advances from customers |
164,780 |
65,050 |
|
Notes payable |
419,500 |
439,600 |
|
Other payable |
9,240 |
9,130 |
|
Taxes payable |
-35,870 |
-35,080 |
|
Employee pay payable |
7,870 |
6,060 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
1,524,140 |
1,283,790 |
|
Long term liabilities |
0 |
92,000 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,524,140 |
1,375,790 |
|
Equities |
307,340 |
375,280 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
1,831,480 |
1,751,070 |
|
|
============= |
============= |
Income
Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2012 |
as
of Dec. 31, 2013 |
|
Turnover |
1,931,240 |
1,807,820 |
|
Cost of goods sold |
1,648,650 |
1,527,470 |
|
Taxes and additional of main operation |
600 |
110 |
|
Sales expense |
44,320 |
56,090 |
|
Management expense |
100,790 |
100,660 |
|
Finance expense |
42,870 |
54,210 |
|
Non-operating income |
3,950 |
5,110 |
|
Non-operating expense |
1,510 |
650 |
|
Investment income |
430 |
440 |
|
Other incomes |
0 |
0 |
|
Profit before tax |
96,880 |
74,180 |
|
Less: profit tax |
15,690 |
11,120 |
|
Profits |
81,190 |
63,060 |
Important
Ratios
=============
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2013 |
|
*Current ratio |
0.90 |
0.98 |
|
*Quick ratio |
0.61 |
0.70 |
|
*Liabilities to assets |
0.83 |
0.79 |
|
*Net profit margin (%) |
4.20 |
3.49 |
|
*Return on total assets (%) |
4.43 |
3.60 |
|
*Inventory /Turnover ×365 |
83 days |
73 days |
|
*Accounts receivable/Turnover ×365 |
70 days |
67 days |
|
*Turnover/Total assets |
1.05 |
1.03 |
|
* Cost of goods sold/Turnover |
0.85 |
0.84 |
PROFITABILITY:
AVERAGE
The turnover of SC appears good in its line in both years, but it
declined in 2013.
SC’s net profit margin is average in both years.
SC’s return on total assets is average in both years.
SC’s cost of goods sold is average in both years, comparing with its
turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level in both years.
SC’s quick ratio is maintained in a fair level in both years.
The inventory of SC appears average in both years.
The accounts receivable of SC is maintained in an average level in both
years.
SC’s short-term loan appears large in both years.
SC’s turnover is in an average level in both years, comparing with the
size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high in both years.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered large-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.62.65 |
|
|
1 |
Rs.98.53 |
|
Euro |
1 |
Rs.78.02 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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.