MIRA
INFORM REPORT
|
Report Date : |
13.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG HAILIR CHEMICAL CO., LTD. |
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Registered Office : |
Lingang Industrial Park,
Binhai Economic Development Area Weifang,
Shandong Province 262737 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
17.12.2007 |
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Com. Reg. No.: |
370700400011923 |
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Legal Form : |
One-Person Limited Liabilities Company |
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Line of Business : |
Engaged In manufacturing
and selling
2-Chloro-5-Methylpyridine, L- Release Agent, N-(Phosphonomethyl)
Iminodiacetic Acid, and Fine Chemical Products as well as engaged in
International Trade. |
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No of Employees : |
320 (approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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.
|
Source : CIA |
company name & address
SHANDONG Hailir CHEMICAL CO.,
LTD.
LINGANG
INDUSTRIAL PARK, BINHAI ECONOMIC DEVELOPMENT AREA
weifang,
shandong province 262737 PR CHINA
TEL: 86 (0)
536-5336823/5301399
FAX: 86
(0) 536-5336823
***Note: SC’s
address should be the heading one, while SC’s parent company-Hailir Pesticides & Chemicals Group Co., Ltd. locates
in the (2F, Hailir Mansion, No.216 Guocheng Road, Chengyang District,
Qingdao).
EXECUTIVE SUMMARY
Date of Registration : december 17, 2007
REGISTRATION NO. : 370700400011923
LEGAL FORM : one-person Limited liabilities company
CHIEF EXECUTIVE :
zhang yanliang (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
cny 51,660,000
staff : 320
BUSINESS CATEGORY :
manufacturing & trading
Revenue : CNY 454,614,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 141,449,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.22 = 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
LEGAL
STATUS & HISTORY
SC was established as one-person limited liabilities company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 370700400011923 on December 17, 2007.
SC’s Organization Code Certificate
No.: 66933783-6
SC’s Tax No.: 370783669337836
SC’s registered capital: cny 51,660,000
SC’s paid-in capital: cny 51,660,000
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 |
|
Hailir Pesticides &
Chemicals Group Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Zhang Yanliang |
|
Supervisor |
Hu Xiaodong |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name
%
of Shareholding
Hailir Pesticides & Chemicals Group Co.,
Ltd. 100
--------------------------------------
Registration No.: 370214228027509
Date of Registration: December 1, 1999
Legal Form: Shares Limited Company
Registered Capital: CNY 90,000,000
Legal Representative: Ge Yaolun
Hailir Pesticides & Chemicals Group Co.,
Ltd. is combined by 5 manufacture plants and 3 large production bases. More
than 1800 staffs, Fixed Assets more than 65 million USD. Annual sales volume is
over 159 million USD, Annual export volume is more than20 million USD.
Hailir Group is the undertaking enterprise
of “State 863 Project” and “the national science & technology pillar
program during the twelve five-year planperiod”, R&D center is identified
as national enterprise technical center. “Waier” brand is awarded the title of
“Well-known trademark of China”.
Address: 2nd Floor, Hailir Mansion,
No.216 Guocheng Road, Chengyang District, Qingdao, China 266109
Tel: +86-532-66961516
Fax: +86-532-66961521
Web: www.hailir.cn
Email: sales@hailir.net
MANAGEMENT
Zhang
Yanliang, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Hu
Xiaodong, Supervisor
--------------------------------------------
Ø
Gender: M
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and
selling 2-Chloro-5-methylpyridine, L- release agent, N-(phosphonomethyl)
iminodiacetic acid, and fine chemical products; as well as engaged in
international trade.
SC is
mainly engaged in manufacturing and selling chemical products.
SC’s
products mainly include: 2-Chloro-5-methylpyridine
SC sources its materials 100% from domestic
market. SC sells 60% of its products in domestic market, and 40% 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, T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 320 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
Qingdao Audis
Bio-Tech Co., Ltd.
Registration No.: 370214400021396
Legal Representative: Shi Shengxian
Date of Registration: 2001-09-14
Registered Capital: CNY 10,160,000
Qingdao KYX Chemical
Co., Ltd.
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
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Cash |
23,846 |
35,948 |
|
Notes receivable |
1,046 |
26,202 |
|
Accounts
receivable |
7,508 |
46,928 |
|
Advances to
suppliers |
7,537 |
11,740 |
|
Other receivable |
375 |
31,543 |
|
Inventory |
21,189 |
32,811 |
|
Prepaid
expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
61,501 |
185,172 |
|
Fixed assets |
104,528 |
89,725 |
|
Engineering
materials |
1,172 |
1,367 |
|
Construction in
progress |
0 |
700 |
|
Intangible
assets |
29,387 |
28,340 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
133 |
133 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
196,721 |
305,437 |
|
|
============= |
============= |
|
Short-term loans |
0 |
20,000 |
|
Notes payable |
17,850 |
38,390 |
|
Accounts payable |
21,126 |
46,884 |
|
Wages payable |
1,117 |
1,784 |
|
Taxes payable |
-7,334 |
4,480 |
|
Advances from
clients |
3,935 |
44,386 |
|
Other payable |
110,941 |
622 |
|
Accrued expenses |
0 |
2,925 |
|
Other current
liabilities |
0 |
17 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
147,635 |
159,488 |
|
Non-current
liabilities |
0 |
4,500 |
|
|
------------------ |
------------------ |
|
Total liabilities |
147,635 |
163,988 |
|
Equities |
49,086 |
141,449 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
196,721 |
305,437 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
454,614 |
|
Cost of sales |
290,919 |
|
Taxes and surcharges |
311 |
|
Sales expense |
2,547 |
|
Management expense |
30,599 |
|
Finance expense |
771 |
|
Non-operating
income |
773 |
|
Non-operating expense |
9,629 |
|
Profit before
tax |
120,629 |
|
Less: profit tax |
30,157 |
|
Profits |
90,472 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.42 |
1.16 |
|
*Quick ratio |
0.27 |
0.96 |
|
*Liabilities
to assets |
0.75 |
0.54 |
|
*Net profit
margin (%) |
-- |
19.90 |
|
*Return on
total assets (%) |
-- |
29.62 |
|
*Inventory /
Revenue ×365 |
-- |
27 days |
|
*Accounts
receivable / Revenue ×365 |
-- |
38 days |
|
*Revenue / Total
assets |
-- |
1.49 |
|
*Cost of sales
/ Revenue |
-- |
0.64 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears
fairly good in its line in 2013.
l
SC’s net profit margin is fairly good in 2013.
l
SC’s return on total assets is fairly good in 2013.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fair
level in 2012, normal in 2013.
l
SC’s quick ratio is maintained in a poor level in
2012, normal in 2013.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear average in 2013.
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 Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.73 |
|
UK Pound |
1 |
Rs.100.82 |
|
Euro |
1 |
Rs.82.22 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.