MIRA
INFORM REPORT
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Report Date : |
20.01.2014 |
IDENTIFICATION DETAILS
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Name : |
shandong shida shenghua chemical group co., ltd. |
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Registered Office : |
No. 489, Beier Road, Dongying, Shandong Province, 257061
PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
31.12.2002 |
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Com. Reg. No.: |
370000018078251 |
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Legal Form : |
Shares Limited
Company |
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Line of Business : |
Manufacturing and selling propylene epoxide,
dichloropropane, propylene, liquefied petroleum gas, MTBE, methyl-carbonate,
diethyl carbonate, propylene carbonate, mineral spirits, methyl ethyl
carbonate, dimethylbenzene, benzene mixed, dead oil, mixed carbon 5, fuel
oil, liquid hydrocarbon, BTX aromatics, ethylene and propylene glycol |
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No. of Employees : |
1,100 |
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 – 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
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Source
: CIA |
Company name and address
shandong shida shenghua
chemical group co., ltd.
NO. 489, beier road,
dongying, shandong province, 257061 PR CHINA
TEL: 86 (0)
546-8395037/2169109
FAX: 86 (0)
546-8395371
EXECUTIVE SUMMARY
INCORPORATION DATE :
DECEMBER 31, 2002
REGISTRATION NO. :
370000018078251
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
MR. GUO TIANMING (CHAIRMAN)
STAFF STRENGTH :
1,100
REGISTERED CAPITAL : CNY 152,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 3,915,810,000 (Consolidated, AS OF DEC. 31, 2012)
EQUITIES :
CNY 861,830,000 (Consolidated, AS
OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE : CNY 6.04 = 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 shares limited company at Shandong provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on December 31, 2002.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The characteristics of the
shares limited co. are as follows: The establishment of the co.
requires at least five promoters and at least three of them must be PR-
China controlled legal persons. Natural person can not be allowed to serve
as promoters. The minimum registered capital
of a co. is CNY 10M. while that of the co. with foreign investment is CNY
30M. The total capital of a co. which propose to apply for publicly listed
must not less than CNY 50M. The board of directors must
consist of an odd number of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within three
years of the offer. Directors can not transfer the shares they hold in the
co. during their terms of office. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes researching, developing and technology services for new technology, materials and products of petrochemicals. Manufacturing and selling propylene epoxide, dichloropropane, propylene, liquefied petroleum gas, MTBE, methyl-carbonate, diethyl carbonate, propylene carbonate, mineral spirits, methyl ethyl carbonate, dimethylbenzene, benzene mixed, dead oil, mixed carbon 5, fuel oil, liquid hydrocarbon, BTX aromatics, ethylene and propylene glycol (valid as of May 22, 2014).
SC is mainly engaged in manufacturing and selling chemical products.
Mr. Guo Tianming has been legal representative, chairman and general manager of SC since 2009.
SC is known to have approx. 1,100 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 Dongying. Detailed information of the premise is unknown.
http://www.sinodmc.com The design is professional and the content is well organized. At present the web site is both in Chinese and English versions.
E-mail: ceo@sinodmc.com ; sales@sinodmc.com
Honors
======
Changes of its registered information:
|
Date of change |
Items |
Before the change |
After the change |
|
2005-1-12 |
Legal representative |
Ye Zhigang |
Du Shoukao |
|
2005-6-30 |
Registered Capital |
CNY 20,000,000 |
CNY 100,480,104 |
|
2009-6-1 |
Legal representative |
Du Shoukao |
Present one |
|
2009-10-23 |
Registered name |
Shandong Shida
Shenghua Chemical Co., Ltd. |
Present one |
|
2010-3-16 |
Registered Capital |
CNY 100,480,104 |
Present amount |
|
Unknown |
Registration No. |
3700001807825 |
Present one |
|
Shareholders |
Shandong Shtar Science & Technology Group Co., Ltd. 24.85% Yingda International Trust & Investment Co., Ltd. 68.97% Dongying Ruifeng Petroleum Technology Co., Ltd. 1.00% Ye Zhigang 0.50% Guo Tianming 0.95% Du Shoukao .95% Huang Luwei 0.62% Yu Haiming 0.63% Li Taojiang 0.65% Hu Baozhi 0.50% Hu Chengyang 0.38% |
Shandong Shtar Science & Technology Group Co., Ltd. 29% Yingda International Trust & Investment Co., Ltd. 68.98% Dongying Ruifeng Petroleum Technology Co., Ltd. 1.00% Ye Zhigang 0.10% Guo Tianming 0.19% Du Shoukao 0.19% Huang Luwei 0.12% Yu Haiming 0.12% Li Taojiang 0.13% Hu Baozhi 0.10% Hu Chengyang 0.07% |
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Shareholders (Shareholding) |
Shandong Shtar Science & Technology Group Co., Ltd. 29% Yingda International Trust & Investment Co., Ltd. 68.98% Dongying Ruifeng Petroleum Technology Co., Ltd. 1.00% Ye Zhigang 0.10% Guo Tianming 0.19% Du Shoukao 0.19% Huang Luwei 0.12% Yu Haiming 0.12% Li Taojiang0.13% Hu Baozhi0.10% Hu Chengyang 0.07% |
Present ones |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Dongying Ruifeng Petroleum Technology Co., Ltd. 0.66
Guo Tianming 1.07
Du Shoukao 1.07
Yu Haiming 0.86
Hu Chengyang 1.43
Qingdao Zhongshida Holding Co., Ltd. 40.96
Shanghai Purun Equity Investment Enterprise (Limited Partnership 7.96
Shanghai Fuxing Purun Equity Investment Enterprise (Limited Partnership) 13.81
Shandong Jindayuan Group Co., Ltd. 4.61
Beijing Real Stone Scientific Development Co., Ltd. 1.59
Other 71 individuals 25.98
Dongying Ruifeng Petroleum Technology Co., Ltd.
=====================================
Registration no.: 370500228000282
Incorporation Date:
Legal representative: Kong Lisheng
Registered Capital: CNY 10,000,000
Tel: +86 (0) 546-8099919
Email: ruifengpetroleum@163.com
Shandong Jindayuan Group Co., Ltd.
==========================
Registration no.: 370500200005514
Legal representative: Zhao Hongxiu
Tel: 0546-7363068
Fax: 0546-7363068
Beijing Real Stone Scientific Development Co., Ltd.
=======================================
Registration no.: 110108009273544
Legal representative: Chen Zheng
Registered Capital: CNY 20,800,000
Tel: 010-82600075
Qingdao Zhongshida Holding Co., Ltd.
============================
Registration No.: 370200018086556
Legal representative: Sun Haifeng
Registered Capital: CNY 320,000,000
Legal Representative, Chairman and General Manager:
Mr. Guo Tianming, ID # 110108196408191875, born in 1964, with university education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2009 to present Working in SC as legal representative, chairman and general manager;
Also working in Shandong Shida Shenghua Chemical Group Co., Ltd. Kenli Branch as principal
*Officials:
=======
Name Title
Yu Haiming Director
Hu Chengyang Director
Du Shoukao Director
Cai Sheng Director
Zhou Linlin Director
Dai Yande Director
Wan Guohua Director
Gao Ruyan Director
Hu Baozhi Supervisor
Gao Jianhong Supervisor
Zhang Zhongxiang Supervisor
SC is mainly engaged in manufacturing and selling chemical products
SC’s products mainly include: Propylene oxide, Propylene dichloride, Solvent oil products, Liquefied gas, MTBE, Propylene, Dimethyl Carbonate, Diethyl carbonate, Ethyl methyl carbonate, Propylene Carbonate, Ethylene carbonate, Propylene glycol, Acetonitrile, etc.
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 India.
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 major clients and suppliers.
According to SC’s website:
Dongying UPC Industry & Trade Co., Ltd.
==============================
Registration No.: 370500018048403
Incorporation Date:
Legal representative: Zhang Zhongxiang
Registered Capital: CNY 6,084,000
Shinghwa Chemical Corporation
======================
Registration No.: 370500400002070
Incorporation Date:
Legal representative: Hu Chengyang
Registered Capital: CNY 50,000,000
Web: http://www.shinghwachem.com/
Dongying Shida Hongyi Chemical Co., Ltd. (in Chinese pinyin)
=============================================
Registration No.: 370500000000544
Incorporation Date:
Legal representative: Yu Jingdong
Registered Capital: CNY 22,000,000
Etc.
Branch:
Shandong Shida Shenghua Chemical Group Co., Ltd. Kenli Branch
================================================
Principal: Guo Tianming
Registration No.: 370521119012019
Incorporation date:
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.
Dongying Bank
AC#：4003300001956
Relationship: Normal.
Consolidated Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
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Cash & bank |
207,280 |
154,660 |
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Inventory |
325,890 |
528,890 |
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Accounts receivable |
51,400 |
82,650 |
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Notes receivable |
31,810 |
70,560 |
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Advances to supplies |
94,320 |
124,150 |
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Other receivables |
1,670 |
1,650 |
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Other current assets |
630 |
340 |
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------------------ |
------------------ |
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Current assets |
713,000 |
962,900 |
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Fixed assets net value |
969,820 |
944,950 |
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Projects under construction |
40,060 |
228,790 |
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Long-term investments |
16,750 |
11,180 |
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Deferred assets |
280 |
290 |
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Intangible assets |
101,920 |
99,670 |
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Investment real estate |
12,120 |
11,510 |
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Long-term deferred expenses |
1,400 |
9,070 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
1,855,350 |
2,268,360 |
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============= |
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Short loans |
807,480 |
875,500 |
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Accounts payable |
233,140 |
199,410 |
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Other Accounts payable |
10,230 |
9,490 |
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Notes payable |
4,590 |
56,510 |
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Advances from clients |
36,360 |
25,970 |
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Taxes payable |
-25,710 |
-18,660 |
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Accrued payroll |
8,800 |
11,200 |
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Non-current assets due with in one year |
30,000 |
52,980 |
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Other current liabilities |
630 |
460 |
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----------------- |
----------------- |
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Current liabilities |
1,105,520 |
1,212,860 |
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Long term liabilities |
2,860 |
193,670 |
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------------------ |
------------------ |
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Total liabilities |
1,108,380 |
1,406,530 |
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Shareholders equities |
746,970 |
861,830 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
1,855,350 |
2,268,360 |
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============= |
============= |
Consolidated Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Turnover |
2,309,950 |
3,915,810 |
|
Cost of goods sold |
2,036,050 |
3,585,520 |
|
Taxes and additional of main operations |
5,600 |
5,580 |
|
Sales expense |
35,700 |
49,210 |
|
Management expense |
41,300 |
45,960 |
|
Finance expense |
40,880 |
74,040 |
|
Asset impairment loss |
2,470 |
2,000 |
|
Investment income |
-3,070 |
-3,520 |
|
Non-operating income |
3,240 |
2,720 |
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Non-operating expense |
580 |
3,340 |
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Operation Profit |
147,540 |
149,310 |
|
Less: profit tax |
26,360 |
23,200 |
|
Net profit |
121,180 |
126,110 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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*Current ratio |
0.64 |
0.79 |
|
*Quick ratio |
0.35 |
0.36 |
|
*Liabilities to assets |
0.60 |
0.62 |
|
*Net profit margin (%) |
5.25 |
3.22 |
|
*Return on total assets (%) |
6.53 |
5.56 |
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*Inventory /Turnover ×365 |
52 days |
50 days |
|
*Accounts receivable/Turnover ×365 |
9 days |
8 days |
|
*Turnover/Total assets |
1.25 |
1.73 |
|
* Cost of goods sold/Turnover |
0.88 |
0.92 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears good in its line, and it increased greatly in 2012.
SC’s net profit margin is fairly good in both years.
SC’s return on total assets is fairly good in both years.
SC’s cost of goods sold is average in 2011 but fairly high in 2012, comparing with its turnover.
LEVERAGE: FAIR
The current ratio of SC is maintained in a fair level in both years.
SC’s quick ratio is maintained in a poor level in both years.
SC’s inventory of SC appears fairly large in both years.
The accounts receivable of SC appears average in both years.
SC’s short-term loan appears large in both years.
SC’s turnover is in an average level, comparing with the size of its total assets in both years.
LEVERAGE: AVERAEG
The debt ratio of SC is average in both years.
The risk for SC to go bankrupt is low.
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 inventory and short-term could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.35 |
|
|
1 |
Rs.100.21 |
|
Euro |
1 |
Rs.83.52 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.