MIRA INFORM REPORT
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Report Date : |
05.03.2014 |
IDENTIFICATION DETAILS
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Name : |
WEIFANG PARASIA CHEM CO., LTD. |
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Registered Office : |
No. 88 Taixiang Street, Economic Development Zone, Weifang City, Shandong Province, 261041 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
29.04.2004 |
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Com. Reg. No.: |
370700400003142 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and selling chemical products |
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No. of Employees : |
200 |
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
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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 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. Debt overhang from
its credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future.
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 |
Company
name and address
Weifang Parasia Chem cO., lTD.
no. 88 Taixiang Street, economic development
zone, Weifang City, Shandong Province, 261041 PR CHINA
TEL: 86 (0) 536-2103265/2103271
FAX: n/a
EXECUTIVE
SUMMARY
INCORPORATION DATE :
APRIL 29, 2004
REGISTRATION NO. :
370700400003142
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
GUO XITIAN (CHAIRMAN)
STAFF STRENGTH :
200
REGISTERED CAPITAL : USD 5,200,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 946,350,000 (UNAUDITED, AS
OF DEC. 31, 2013)
EQUITIES :
CNY 426,760,000 (UNAUDITED, AS
OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1463 = 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 wholly foreign-owned enterprise at local
Administration for industry & commerce (AIC - the official body of issuing
and renewing business license).
Company Status: Wholly foreign-owned
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon approval
of Examination and Approval Authorities.
SC’s registered business scope includes manufacturing and selling sodium
cyanide, ethyl cyanoacetate, cyanoacetic acid (safety production license is
valid until August 24, 2015), sodium cyanide, cyanide, methyl acetate, ethyl
malonate (A) ester, Cyanoacetate derivatives, byproduct sodium chloride (with
permit if needed).
SC is mainly engaged in manufacturing and selling chemical products.
Guo Xitian has been legal representative and chairman of SC since 2009.
SC is known to have approx. 200 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the economic development zone of
Weifang. SC’s employee refused to release the detailed information of the
premise.
The other address: No. 3877 Wolong East Road, Hi-tech Zone, Weifang 潍坊市高新区卧龙东街3877号 (formerly named as No. 187 Wolong East Road)
http://www.tdchem.com/ The website belongs to Tiande Chemical
Holdings Limited, and it includes the introduction about SC and its related
companies. The design is professional and the content is well organized. At
present it is in both Chinese and English versions.
SC has passed ISO9001, ISO14001 and GB/T 28001.
Changes
of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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Shareholders |
Hong Kong Parasia Limited 30% Weifang Tiande Chemical Co., Ltd. 70% |
Present one |
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Registered capital |
USD 2,600,000 |
Present amount |
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Legal representative |
Guo Yucheng |
Present one |
Subject passed the annual inspection of 2012 with Administration for Industry
& Commerce.
Organization Code: 760968989
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Techsmart Holdings Limited (B.V.I.) 100
Legal
Representative and Chairman:
Guo Xitian is currently responsible for the overall management of SC.
Working
Experience(s):
From 2009 to present Working
in SC as legal representative and chairman.
Also working in Weifang Common Chem Co., Ltd. and Weifang Dekel
Innovative Materials Co., Ltd. as legal representative.
General
Manager:
Mr. Zheng Mingguo is currently responsible for the daily management of
SC.
Working
Experience(s):
At present Working
in SC as general manager
Supervisor:
Wang Xiuling
SC is mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include:
Ethyl Cyanoacetate
Methyl Cyanoacetate
2-Ethoxyethyl Cyanoacetate
2-Methoxyethyl Cyanoacetate
N-Propyl Cyanoacetate
Iso-Propyl Cyanoacetate
N-Butyl Cyanoacetate
SC sources its materials 100% from domestic market. SC sells 10% of its
products in domestic market, and 90% to overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, L/C, T/T and Credit of 30-60 days.
Note: SC’s management refused to release its main suppliers and clients.
Weifang Common Chem Co., Ltd.
===========================
Registration no.: 370700400004774
Registered capital: USD 600,000
Legal representative: Guo Xitian
Weifang Dekel Innovative Materials Co., Ltd.
===========================
Registration no.: 370700400014190
Registered capital: USD 14,051,189.68
Legal representative: Guo Xitian
Tel: +86-0536-2097502
Fax: +86-0536-2205123
Email: dekel@dekel.cn
Weifang Binhai Petro-chem Co., Ltd.
===========================
Registration no.: 370700400010709
Registered capital: USD 10,800,000
Legal representative: Guo
Yucheng
Tel: 0536-2103255
Fax: 0536-5103222
Email: liuzhy@tdchem.com
Shanghai Dehong Chemical Co., Ltd.
===========================
Registration no.: 310115400080027
Registered capital: CNY 5,000,000
Legal representative: Wang Zijiang
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.
SC declined to release its banking details.
Financial
Summary
===============
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Current assets |
337,710 |
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Total assets |
519,770 |
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========= |
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Current liabilities |
93,010 |
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Long term liabilities |
0 |
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-------------- |
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Total liabilities |
93,010 |
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Equities |
426,760 |
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-------------- |
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Total liabilities & equities |
519,770 |
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========= |
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Turnover |
946,350 |
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Cost of goods sold |
794,650 |
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Profit before tax |
114,260 |
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Less: profit tax |
28,560 |
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Profits |
85,700 |
Note:
SC’s management refused to release its detailed financial reports, and the Financial Report for Year 2013 hasn’t been audited.
Important
Ratios
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As
of Dec. 31, 2013 |
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*Current ratio |
3.63 |
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*Quick ratio |
/ |
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*Liabilities to assets |
0.18 |
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*Net profit margin (%) |
9.06 |
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*Return on total assets (%) |
16.49 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
1.82 |
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* Cost of goods sold/Turnover |
0.84 |
PROFITABILITY:
FAIRLY GOOD
·
The turnover of SC appears fairly good in its line.
·
SC’s net profit margin remains in a fairly good
level.
·
SC’s return on total assets remains in a good
level.
·
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a fairly
good level.
·
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is low.
·
The risk for SC to go bankrupt is fairly low.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.61.90 |
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|
1 |
Rs.103.26 |
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Euro |
1 |
Rs.85.14 |
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 |
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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 its officials.