MIRA
INFORM REPORT
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Report Date : |
14.05.2014 |
IDENTIFICATION DETAILS
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Name : |
QIFENG NEW MATERIAL CO., LTD. |
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Registered Office : |
No. 22 Zhutai Road, Zhutai Town, Linzi District Zibo, Shandong Province 255432 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
25.06.2001 |
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Com. Reg. No.: |
370300228072653 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in the researching, developing, manufacturing and
selling decorative materials, furniture and color plates,
decorative materials decoration color plates, wear-resistant decorative
surface flooring materials, new non-woven wall coverings, high performance
aramid fibers and products |
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No. of Employees : |
1,650 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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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 |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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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, growth of the
private sector, development of stock markets and a modern banking system, 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 considered important to "economic
security," explicitly looking to foster globally competitive industries.
After keeping its currency tightly linked to the US dollar for years, in July
2005 China 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 and
expanded the daily trading band within which the RMB is permitted to fluctuate.
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. Several factors are
converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and
reiterated at the Communist Party's "Third Plenum" meeting in
November 2013, emphasizes continued economic reforms and the need to increase
domestic consumption in order to make the economy less dependent in the future
on fixed investments, exports, and heavy industry. 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 and address
QIFENG NEW MATERIAL CO., LTD.
NO. 22 ZHUTAI
ROAD, ZHUTAI TOWN, LINZI DISTRICT
ZIBO, SHANDONG
PROVINCE 255432 PR CHINA
TEL: 86 (0)
533-7780161
FAX: 86 (0)
533-7788998
EXECUTIVE SUMMARY
Date of Registration : june 25, 2001
REGISTRATION NO. : 370300228072653
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
LI
XUEFENG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 420,500,000
staff :
1,650
BUSINESS CATEGORY : manufacturing
& TRADING
REVENUE :
CNY 2,108,138,000 (CONSOLIDATED, AS OF DEC. 31, 2013)
EQUITIES :
CNY 2,279,352,000 (CONSOLIDATED,
AS OF DEC. 31, 2013)
WEBSITE : www.qifeng.cn
E-MAIL :
qifengtezhi@163.com
& qifengtezhi@qifeng.cn
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
CNY 6.25 = 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 on June 25, 2001. However, SC changed to
present legal form, and was registered as a shares limited company of PRC with
State Administration for Industry & Commerce (SAIC) under registration No.:
370300228072653 in 2007.
SC’s Organization Code Certificate No.: 72927053-1
SC’s Tax No.: 370305729270531
SC’s registered capital: CNY 420,500,000
SC’s paid-in capital: CNY 420,500,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
3703002807265 |
370300228072653 |
|
2005 |
Company Name |
Zibo Ou-Hua Special Paper Co., Ltd. |
Shandong Qifeng Chemical & Light Industry Group Co., Ltd. |
|
2006 |
Company Name |
Shandong Qifeng Chemical & Light Industry Group Co., Ltd. |
Shandong Qifeng Group Co., Ltd. |
|
2007 |
Company Name |
Shandong Qifeng Group Co., Ltd. |
Shandong Qifeng Specialty Paper Ltd. |
|
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
|
2013-09 |
Company Name |
Shandong Qifeng Specialty Paper Ltd. |
Qifeng New Material Co., Ltd. |
|
2013 |
Registered Capital |
CNY 206,150,000 |
CNY 420,500,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of March 31, 2014) |
% of Shareholding |
|
Li Xuefeng |
30.58 |
|
China Life Insurance (Group) Company-Traditional -General Insurance
Products |
3.07 |
|
Shanghai Tianyi Asset Management
Co., Ltd. |
2.65 |
|
Zhou Shuling |
1.85 |
|
Industrial and Commercial Bank of China- Lion Stock Securities
Investment Fund |
1.83 |
|
China Life Insurance Company Limited - Dividend – Individual Dividend |
1.4 |
|
Agricultural Bank of China - Xinhua Preferred Dividends Hybrid
Securities Investment Fund |
0.94 |
|
Wang Lei |
0.93 |
|
Zhang Xiangzeng |
0.87 |
|
Geng Qingmin |
0.84 |
|
Other Shareholders |
55.04 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Li Xuefeng |
|
General Manager and Director |
Li Andong |
|
Deputy General Manager |
Li Wenhai |
|
Zhu Hongsheng |
|
|
Sun Wenrong |
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|
Li Bingquan |
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|
Li Anle |
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|
Li Xianming |
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Independent Director |
Fang Litang |
|
Hou Benling |
|
|
Lu Qing |
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Director |
Li Wenhai |
|
Li Xuefeng |
|
|
Zhu Hongsheng |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
002521.
SC has been focusing on quality
management and is now the only enterprise in the industry which is certified to
ISO9001 Quality Management System, ISO14001 Environment Management System and
OHSAS Occupational Safety and Health Management System. In 2005, “ShuangFeng” brand
top-grade decorative base paper was appraised as “Shandong Provincial Top Brand
Name” and “Shandong Provincial Top Brand”.
SHAREHOLDER CHART & BACKGROUND
Name % of Shareholding
(As of March 31, 2014)
-----------------------------
Li Xuefeng 30.58
China Life Insurance (Group) Company-Traditional -General Insurance
Products 3.07
Shanghai Tianyi Asset Management Co., Ltd. 2.65
Zhou Shuling 1.85
Industrial and Commercial Bank of China- Lion Stock Securities
Investment Fund 1.83
China Life Insurance Company Limited - Dividend – Individual
Dividend
Agricultural Bank of China - Xinhua Preferred Dividends Hybrid
Securities Investment Fund 0.94
Wang Lei 0.93
Zhang Xiangzeng 0.87
Geng Qingmin 0.84
Other Shareholders 55.04
MANAGEMENT
Li Xuefeng, Legal
Representative and Chairman
--------------------------------------------------------------------------
Gender: M
Age: 65
Qualification: Master Degree
Working experience
(s):
At present, working in SC as legal representative and chairman
Also working in Shandong Boxing County Ou-Hua
Special Paper Co., Ltd. as legal representative
Li Andong, General
Manager and Director
------------------------------------------------------------------
Gender: M
Age: 42
Qualification: University
Working experience
(s):
At present, working in SC as general manager and director
Also working in Zibo Ou-Mu Special Paper Co., Ltd.
as legal representative
Deputy General
Manager
---------------------------------
Li Wenhai
Zhu Hongsheng
Sun Wenrong
Li Bingquan
Li Anle
Li Xianming
Independent
Director
---------------------------
Fang Litang
Hou Benling
Lu Qing
Director
-----------
Li Wenhai
Li Xuefeng (Working in Shandong Boxing County Ou-Hua Special Paper Co., Ltd. as
legal representative)
Zhu Hongsheng
BUSINESS OPERATION
SC’s registered business scope includes researching, developing,
manufacturing and selling decorative materials,
furniture and color plates, decorative materials decoration color plates,
wear-resistant decorative surface flooring materials, new non-woven wall
coverings, high performance aramid fibers and products (production limited to
subsidiaries operate), importing and exporting goods (excluding
products prohibited by legal, administrative rules and regulations, and
operating the limited products with permit if needed)
SC is mainly engaged in manufacturing and selling top-grade
decorative base paper and other related products.
SC’s products mainly include: printable decorative base
paper, plain decorative base paper, surface wear-resistant paper, balance base
paper and wallpaper base paper.
SC sources its materials 85% from domestic market and 15% from the overseas market. SC sells 4% of its products to overseas market, and 96% in domestic market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customers:
----------------------
Zhejiang Yaqinuo Decoration Material Co., Ltd.
Henan Yongwei Security Co., Ltd.
Linan Zhongxing Decoration Materials Co., Ltd.
Zhejiang Shenglong Decoration Material Co., Ltd.
*Major Suppliers:
---------------------
Central National –Gottesman Inc.
Hebei Gill Chemical Industry Co., Ltd.
Panzhihua Dahutong Titanium Co., Ltd.
Sinocan Pulp & Paper Ltd.
Guangzhou Dingsheng Ind. and Trade Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 1,650
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is known to
invest in the following companies,
Zibo Ou-Mu Special Paper Co., Ltd.
Date of Registration:
Registration No.: 370300228073178
Registered Capital: CNY
112,500,000
Legal Representative: Li Andong
Legal Form: One-person Limited
Liability Company
Tel: 86 (0) 533-7780161
http://oumu.sdkjg.com/introduce.html
Shandong Boxing County Ou-Hua
Special Paper Co., Ltd.
Date of Registration:
Registration No.: 371625318011392
Registered Capital: CNY 2,000,000
Legal Representative: Li Xuefeng
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
Agricultural Bank of China
AC#: 232301040004543
FINANCIALS
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
933,365 |
871,094 |
|
|
Accounts receivable |
220,282 |
159,675 |
|
Notes receivable |
303,682 |
582,247 |
|
Advances to suppliers |
117,592 |
237,556 |
|
Interest receivable |
194 |
1,543 |
|
Other receivable |
567 |
382 |
|
Inventory |
515,482 |
544,179 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
2,091,164 |
2,396,676 |
|
Real estate investment |
0 |
0 |
|
Fixed assets |
684,398 |
843,192 |
|
Construction in progress |
5,080 |
86,692 |
|
Project materials |
2,064 |
4,973 |
|
Productive biological asset |
0 |
0 |
|
Intangible assets |
60,129 |
77,827 |
|
Long-term investments |
0 |
0 |
|
Goodwill |
2,320 |
2,320 |
|
Long-term deferred expense |
0 |
0 |
|
Deferred income tax assets |
4,551 |
4,686 |
|
Other non-current assets |
47,414 |
74,090 |
|
|
------------------ |
------------------ |
|
Total assets |
2,897,120 |
3,490,456 |
|
|
============= |
============= |
|
Short-term loans |
550,853 |
300,000 |
|
Notes payable |
53,900 |
10,300 |
|
Accounts payable |
146,117 |
323,443 |
|
Payroll payable |
9,471 |
18,336 |
|
Taxes payable |
-3,978 |
2,530 |
|
Interest payable |
136 |
19,801 |
|
Dividends payable |
0 |
0 |
|
Advances from clients |
17,323 |
29,105 |
|
Other payable |
4,385 |
4,989 |
|
Other current liabilities |
740 |
500,740 |
|
|
------------------ |
------------------ |
|
Current liabilities |
778,947 |
1,209,244 |
|
Non-current liabilities |
2,600 |
1,860 |
|
|
------------------ |
------------------ |
|
Total liabilities |
781,547 |
1,211,104 |
|
Equities |
2,115,573 |
2,279,352 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
2,897,120 |
3,490,456 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
1,769,999 |
2,108,138 |
|
Cost of sales |
1,440,620 |
1,662,086 |
|
Business Taxes and Surcharges |
1,711 |
4,610 |
|
Sales expense |
50,795 |
81,503 |
|
Management expense |
101,387 |
120,158 |
|
Finance expense |
2,546 |
15,803 |
|
Asset impairment loss |
5,627 |
2,232 |
|
Non-operating income |
5,338 |
2,728 |
|
Non-operating expense |
4,548 |
2,594 |
|
Profit before tax |
168,103 |
221,881 |
|
Less: profit tax |
23,995 |
33,000 |
|
144,108 |
188,881 |
Important Ratios
|
|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
*Current ratio |
2.68 |
1.98 |
|
*Quick ratio |
2.02 |
1.53 |
|
*Liabilities to assets |
0.27 |
0.35 |
|
*Net profit margin (%) |
8.14 |
8.96 |
|
*Return on total assets (%) |
4.97 |
5.41 |
|
*Inventory / Revenue ×365/270 |
107 days |
95 days |
|
*Accounts receivable / Revenue ×365/270 |
46 days |
28 days |
|
*Revenue / Total assets |
0.61 |
0.60 |
|
*Cost of sales / Revenue |
0.81 |
0.79 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
·
The revenue of SC appears fairly good in its line.
·
SC’s net profit margin is fairly good.
·
SC’s return on total assets is fairly good.
·
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY: FAIRLY
GOOD
·
The current ratio of SC is maintained in a fairly
good level.
·
SC’s quick ratio is maintained in a fairly good
level.
·
The inventory of SC appears average.
·
The accounts receivable of SC appears average.
·
The short-term loans of SC appear average.
·
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
·
The debt ratio of SC is average.
·
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.88 |
|
|
1 |
Rs.100.98 |
|
Euro |
1 |
Rs.82.40 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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|
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.