MIRA
INFORM REPORT
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Report Date : |
25.02.2014 |
IDENTIFICATION DETAILS
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Name : |
DONGYING HI-TECH SPRING CHEMICAL INDUSTRY 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 : |
18.09.2006 |
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Com. Reg. No.: |
370500400001420 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Subject is engaged in manufacturing and selling dimethyl carbonate,
isopropyl alcohol, diisopropyl ether, propylene carbonate, propylene glycol,
propylene glycol second reduction, and carbon dioxide. |
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No of Employees : |
230 |
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 : |
Sloe 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 – december 01, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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
DONGYING HI-TECH
SPRING CHEMICAL INDUSTRY CO., LTD.
SHENGLI INDUSTRIAL
PARK, DONGYING,
SHANDONG PROVINCE 257000
PR CHINA
TEL: 86 (0)
546-8180357/8182959/7791023
FAX: 86 (0)
546-8183959/7791057
EXECUTIVE SUMMARY
Date of Registration : september 18, 2006
REGISTRATION NO. : 370500400001420
LEGAL FORM :
Chinese-foreign equity joint venture enterprise
REGISTERED CAPITAL : CNY 22,288,810
staff : 230
BUSINESS CATEGORY : manufacturing & trading
Revenue : CNY 969,073,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 106,898,000 (AS OF DEC. 31, 2013)
WEBSITE : www.chinadmc.com
E-MAIL :
quhao@chinadmc.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
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 Chinese-foreign equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 370500400001420 on September
18, 2006.
SC’s Organization Code Certificate
No.: 74451785-4
SC’s Tax No.: 370502744517854
SC’s registered capital: CNY 22,288,810
SC’s paid-in capital: CNY 22,288,810
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
3705022802939 |
370500400001420 |
|
2011 |
Shareholders (% of
shareholding) |
Shandong Hi-tech Chemical Group Co., Ltd.
32.45% HK Profit United Investment Limited 25.00% Yang Xiaohong 1.62% Other 46 individuals 46 40.93% |
Shandong Hi-tech Chemical Group Co., Ltd. 74.87% Haike Holding Hong Kong Limited 25.00% Zhang Hualan 0.13% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
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Shandong Hi-tech Chemical Group Co., Ltd. |
74.87 |
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Haike Holding Hong Kong Limited |
25.00 |
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Zhang Hualan |
0.13 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative,
Chairman, and General Manager |
Zhang Zaizhong |
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Director |
Zhang Hualan |
|
Liu Dongguang |
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|
Cheng Jinjie |
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|
Liu Qingyi |
RECENT DEVELOPMENT
SC has got the certificate ISO9001.
SHAREHOLDER CHART & BACKGROUND
Name % of
Shareholding
Shandong Hi-tech Chemical Group
Co., Ltd. 74.87
Haike Holding Hong Kong Limited 25.00
Zhang Hualan 0.13
Shandong Hi-tech Chemical Group Co., Ltd.
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Shandong Hi-tech Chemical Group Co., Ltd,
founded in 1988, is a petro-chemical company specialized in petroleum refining,
with the import and export rights. As the first petro-chemical enterprise of
china listed in London securities trading market, it successfully went public
on London Stock Exchange with the stock code HAIK, in 14th Feb. 2007.
Registration No.: 370500400001288
Address: Haochun Road, Dongying District,
Dongying City, Shandong Province
Tel: 86 0546-7753307/7753308
Fax: 86 0546-7753345/8596740
Web: www.haikeoil.com
Haike Holding Hong Kong Limited
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Date of Registration: March 3, 2006
Registration No.: 1028246
Legal Form: Private
Status: Live
MANAGEMENT
Zhang Zaizhong, Legal Representative, Chairman and General Manager
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Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
From 2006 to present, working in SC as legal representative,
chairman and general manager
Also
working in Shandong Hi-Tech Shengli Electrochemical Industry Co., Ltd. as
legal representative
Director
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Zhang Hualan
Liu Dongguang
Cheng Jinjie
Liu Qingyi
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing and selling dimethyl carbonate, isopropyl
alcohol, diisopropyl ether, propylene carbonate, propylene glycol, propylene
glycol second reduction, and carbon dioxide.
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products mainly include:
Dimethyl Carbonate
Propylene Glycol tech grade
Propylene Glycol pharma grade
Propylene Carbonate
Diisopropylether
SC sources its materials 100% from domestic
market, mainly Shandong. SC sells 70% of its products in domestic market, and 30%
to overseas market, mainly U.S.A., Southeast Asia, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers*
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Alcan Intern. Network
U.S.A. Inc.
Sachs Chemical,
Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 230 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
Shandong
Hi-Tech Shengli Electrochemical Industry Co., Ltd.
Registration
No.: 370500400001454
Date
of Registration: September 18, 2006
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 30,000,000
Legal
Representative: Zhang Zaizhong
Dongying
Hi-Tech Ruilin Chemical Industry Co., Ltd.
Registration
No.: 370525200000034
Date
of Registration: April 14, 2004
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 400,000,000
Legal
Representative: Liu Qingyi
Etc.
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:
Shandong
Dongying Shengli Rural Cooperative Bank
AC#: 90502010020100096962
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
118,648 |
110,226 |
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Notes receivable |
25,649 |
19,240 |
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Accounts
receivable |
71,005 |
57,549 |
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Advances to
suppliers |
22,274 |
28,950 |
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Other receivable |
697 |
811 |
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Inventory |
40,927 |
58,658 |
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Non-current
assets within one year |
0 |
0 |
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Other current
assets |
7,898 |
4,155 |
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------------------ |
------------------ |
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Current assets |
287,098 |
279,589 |
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Fixed assets |
169,172 |
147,618 |
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Construction in
progress |
22 |
436 |
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Intangible
assets |
3,856 |
3,454 |
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Long-term
prepaid expenses |
0 |
0 |
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Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
460,148 |
431,097 |
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============= |
============= |
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Short-term loans |
200,000 |
190,000 |
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Notes payable |
40,000 |
175,000 |
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Accounts payable |
115,853 |
87,616 |
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Wages payable |
938 |
338 |
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Taxes payable |
8,012 |
-3,504 |
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Advances from
clients |
8,294 |
9,082 |
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Other payable |
-27,998 |
-139,523 |
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Other current
liabilities |
4,685 |
5,190 |
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------------------ |
------------------ |
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Current
liabilities |
349,784 |
324,199 |
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Non-current
liabilities |
500 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
350,284 |
324,199 |
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Equities |
109,864 |
106,898 |
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------------------ |
------------------ |
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Total
liabilities & equities |
460,148 |
431,097 |
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============= |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2013 |
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Revenue |
969,073 |
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Cost of sales |
863,697 |
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Taxes and surcharges |
2,266 |
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Sales expense |
38,854 |
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Management expense |
45,583 |
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Finance expense |
21,497 |
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Non-business
income |
593 |
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Non-business expenditure |
629 |
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Profit before
tax |
-2,859 |
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Less: profit tax |
106 |
|
-2,965 |
Important Ratios
=============
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As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.82 |
0.86 |
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*Quick ratio |
0.70 |
0.68 |
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*Liabilities
to assets |
0.76 |
0.75 |
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*Net profit
margin (%) |
-- |
-0.31 |
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*Return on
total assets (%) |
-- |
-0.69 |
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*Inventory /
Revenue ×365 |
-- |
23 days |
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*Accounts
receivable / Revenue ×365 |
-- |
22 days |
|
*Revenue /
Total assets |
-- |
2.25 |
|
*Cost of sales
/ Revenue |
-- |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears fairly good in its line in
2013.
l
SC’s net profit margin is fair in 2013.
l
SC’s return on total assets is fair in 2013.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear large in both
years.
l
SC’s revenue is in an
average 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.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable 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. 62.11 |
|
|
1 |
Rs. 103.38 |
|
Euro |
1 |
Rs. 85.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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 |
-- |
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