MIRA
INFORM REPORT
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Report Date : |
15.02.2014 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG HUAYUN NEW MATERIAL CO., LTD. |
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Registered Office : |
Boxing
Economic Development Zone, Boxing County, Shandong Province 256505 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
21.04.2003 |
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Com. Reg. No.: |
371625228005300 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in the manufacturing and
selling polymeric materials, rolling coating precision metal plate and products, steel structure design and installation |
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No. of Employees : |
350 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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, 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 2012 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
demand; (b) sustaining adequate job growth for tens of millions of migrants and
new entrants to the work force; (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. In 2010-11, China
faced high inflation resulting largely from its credit-fueled stimulus program.
Some tightening measures appear to have controlled inflation, but GDP growth
consequently slowed to under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
Debt overhang from the stimulus program, particularly among local governments,
and a property price bubble challenge policy makers currently. 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 exports in the future. However, China has made only marginal
progress toward these rebalancing goals.
|
Source
: CIA |
Company name & address
SHANDONG HUAYUN NEW MATERIAL CO., LTD.
BOXING ECONOMIC
DEVELOPMENT ZONE
BOXING COUNTY,
SHANDONG PROVINCE 256505 PR CHINA
TEL: 86 (0)
543-2874538/2874995/2511782
FAX: 86 (0)
543-2874581
EXECUTIVE SUMMARY
Date of Registration : april 21, 2003
REGISTRATION NO. : 371625228005300
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
WANG LIANQIAO (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 116,660,000
staff :
350
BUSINESS CATEGORY : manufacturing
& trading
Revenue :
CNY 832,820,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY -55,950,000 (AS OF DEC. 31, 2013)
WEBSITE : www.sdhyxcl.com
E-MAIL :
huayunxcl@huayunxcl.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : poor
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.06 = 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.:
371625228005300 on April 21, 2003.
SC’s Organization Code Certificate No.:
74899241-7
SC’s Tax No.: 372328748992417
SC’s registered capital: CNY 116,660,000
SC’s paid-in capital: CNY 116,660,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010 |
Registered capital |
CNY 43,510,000 |
CNY 116,660,000 |
|
|
Shareholder (s) (% of Shareholding) |
Wang Lianqiao 71.64% Wang Qingwei 25.75% Liu Xiugang 0.28% Liu Jianquan 2.33% |
Wang Lianqiao 71.64% Wang Qingwei 28.36% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wang Lianqiao |
71.64 |
|
Wang Qingwei |
28.36 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Wang Lianqiao |
|
Deputy General Manager |
Wang Lianqin |
|
Wang Zengping |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Wang Lianqiao 71.64
Wang Qingwei 28.36
MANAGEMENT
Wang Lianqiao,
Legal Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------------
Gender: M
Age:
Qualification: University
Working experience
(s):
From 2003 to present, working in SC as legal representative, chairman
and general manager
Wang Lianqin,
Deputy General Manager
------------------------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
At present, working in SC as deputy general manager
Wang Zengping,
Deputy General Manager
------------------------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
At present, working in SC as deputy general manager
BUSINESS
OPERATION
SC’s registered business scope includes
manufacturing and selling polymeric materials, rolling coating precision metal plate and products, steel structure design and installation.
SC is mainly engaged in manufacturing and selling rolling coating precision metal plate.
Brand: JINGBO
SC’s products mainly include: galvanized steel plate, color coating
plate
.
SC sources its materials 80% from domestic market, mainly Shanghai, 20%
from overseas market, mainly Taiwan and Japan. SC sells 90% of its products in
domestic market, and 10% to overseas market, mainly Southeast Asia, etc.
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Suppliers*
---------------------
Sinosteel Xingtai Machinery & Mill Roll Co., Ltd.
Shanghai Baosteel
Staff &
Office:
--------------------------
SC is known to have approx. 350
staff at present.
SC owns an area as its operating office & factory of approx. 30,000
sq. meters at the heading address.
RELATED
COMPANY
SC is not known to have any 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’s suppliers declined to make any
comments.
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
The bank information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
Cash |
241,750 |
|
Notes receivable |
0 |
|
Accounts receivable |
13,700 |
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Advances to suppliers |
0 |
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Other receivable |
11,930 |
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Inventory |
83,790 |
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Non-current assets within one year |
0 |
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Other current assets |
221,700 |
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|
------------------ |
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Current assets |
572,870 |
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Fixed assets |
220,640 |
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Construction in progress |
0 |
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Intangible assets |
0 |
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Long-term investment |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
46,560 |
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|
------------------ |
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Total assets |
840,070 |
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|
============= |
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Short-term loans |
283,100 |
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Notes payable |
374,590 |
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Accounts payable |
125,140 |
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Welfares payable |
0 |
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Taxes payable |
0 |
|
Advances from clients |
0 |
|
Other payable |
-12,200 |
|
Other current liabilities |
41,880 |
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|
------------------ |
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Current liabilities |
812,510 |
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Non-current liabilities |
83,510 |
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|
------------------ |
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Total liabilities |
896,020 |
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Equities |
-55,950 |
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------------------ |
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Total liabilities & equities |
840,070 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
Revenue |
832,820 |
|
Cost of sales |
831,790 |
|
Sales expense |
11,170 |
|
Management expense |
42,380 |
|
Finance expense |
32,420 |
|
Profit before tax |
-76,130 |
|
Less: profit tax |
0 |
|
Profits |
-76,130 |
Important Ratios
|
|
As of Dec. 31, 2013 |
|
*Current ratio |
0.71 |
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*Quick ratio |
0.60 |
|
*Liabilities to assets |
1.07 |
|
*Net profit margin (%) |
-9.14 |
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*Return on total assets (%) |
-9.06 |
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*Inventory / Revenue ×365 |
37 days |
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*Accounts receivable / Revenue ×365 |
7 days |
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*Revenue / Total assets |
0.99 |
|
*Cost of sales / Revenue |
1.00 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
·
The revenue of SC appears fairly good in its line.
·
SC’s net profit margin is fair.
·
SC’s return on total assets is fair.
·
SC’s cost of goods sold is high, 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 is maintained in an average level.
· The accounts receivable of SC is maintained in an average level.
· The short-term loans of SC appear large.
· SC’s revenue is in an average level, comparing with the size of its total assets.
LEVERAGE: POOR
·
The debt ratio of SC is high.
·
The risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: Poor.
CONCLUSIONS
SC is considered medium-sized in its line with poor financial conditions.
The large amount of short-term loans may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.28 |
|
|
1 |
Rs.103.67 |
|
Euro |
1 |
Rs.85.18 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
|
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.