MIRA INFORM REPORT
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Report Date : |
19.12.2014 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG QIAOCHANG
CHEMICAL CO., LTD. |
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Registered Office : |
No. 1181 Huanghe 12 Road, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
29.05.1993 |
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Com. Reg. No.: |
371602228008655 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling Pesticide Chemicals |
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No of Employees : |
700 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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.
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Source
: CIA |
sc’s INFO.
SHANDONG QIAOCHANG CHEMICAL CO., LTD.
NO. 1181 HUANGHE 12 ROAD, BINZHOU
SHANDONG PROVINCE 256603 PR CHINA
TEL: 86 (0) 543-2226173/2226131/2226986/2226162
FAX: 86 (0) 543-2226171
***Note: SC’s address
should be the heading one, while SC’s related company-Shandong Yier Chemical
Co., Ltd. locates in the (West of Bohai 1 Road South of Huanghe 13 Road Shido
District, Binzhou, Shondong China)
EXECUTIVE SUMMARY
Date of Registration : MAY 29, 1993
REGISTRATION NO. : 371602228008655
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : WANG CHUNYUAN (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL : CNY 100,000,000
staff : 700
BUSINESS CATEGORY : MANUFACTURING & trading
Revenue : CNY 909,006,000 (AS OF DEC. 31,
2013)
EQUITIES : CNY 214,722,000 (AS OF DEC. 31,
2013)
WEBSITE : www.qiaochang.com
E-MAIL :
qiaochangren@qiaochang.com
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.21 = 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
with State Administration of Industry & Commerce (SAIC) under registration
No.: 371602228008655 on May 29, 1993.
SC’s Organization Code Certificate
No.: 61383034-9
SC’s Tax No.: 372301613830349
SC’s registered capital: CNY 100,000,000
SC’s paid-in capital: CNY 100,000,000
Registration Change Record:-
No significant changes of SC have been
noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wang Chunyuan |
52 |
|
Ren Lisheng |
48 |
SC’s Chief Executives:-
|
Position |
Name |
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Legal Representative and Chairman |
Wang Chunyuan |
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General Manager |
Ren Lisheng |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Wang Chunyuan 52
Ren Lisheng 48
MANAGEMENT
Wang Chunyuan, Legal
Representative and Chairman
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Gender: M
Working experience (s):
At present, working in SC as legal representative and chairman
Ren
Lisheng, General Manager
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Gender: M
Working experience (s):
At present, working in SC as general manager
BUSINESS OPERATION
SC’s registered business scope includes
self-made fine chemicals, pesticide chemistry and related technology;
materials, mechanical equipment, meters, components and technology needed for
its production; manufacturing ammonium sulphate and monoammonium phosphate.
SC is mainly engaged in manufacturing and selling pesticide chemicals.
SC’s products mainly include:
Herbicides
Fungicides
Insecticides
Others
SC sources its materials 100% from domestic market, mainly Shandong. SC sells 80% of its products in domestic market, and 20%
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. 700 staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
Shandong Yier Chemical Co., Ltd.
SC’s subsidiary information is not available 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:
China Construction Bank Binzhou Branch Bincheng
Sub-branch
AC#: 37001836808050004550
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As
of Dec. 31, 2013 |
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Total assets |
2,159,023 |
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Total liabilities |
1,944,301 |
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Equities |
214,722 |
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Revenue |
909,006 |
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Profit before tax |
1,849 |
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Less: profit tax |
277 |
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Profits |
1,572 |
Important Ratios
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As
of Dec. 31, 2013 |
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*Liabilities to assets |
0.90 |
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*Net profit margin (%) |
0.17 |
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*Return on total assets (%) |
0.07 |
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*Revenue/Total assets |
0.42 |
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.
LIQUIDITY:
FAIR
SC’s revenue is in a fair
level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
The debt ratio of SC is high.
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. Taking into consideration of SC’s general performance, reputation as
well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.31 |
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1 |
Rs.98.67 |
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Euro |
1 |
Rs.78.10 |
INFORMATION DETAILS
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Analysis Done by
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RAS |
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Report Prepared by
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SHG |
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.