MIRA
INFORM REPORT
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Report Date : |
24.05.2014 |
IDENTIFICATION DETAILS
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Name : |
SANMENXIA AOKE
CHEMICAL INDUSTRY CO., LTD. |
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Registered Office : |
Chemical Industry Cluster Area Of Shanxian (Guanyintang), Sanmenxia,
Henan Province 472143 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
04.02.2002 |
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Com. Reg. No.: |
411222100002352 |
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Legal Form : |
Limited Liabilities Co |
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Line of Business : |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 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
SANMENXIA AOKE
CHEMICAL INDUSTRY CO., LTD.
CHEMICAL INDUSTRY
CLUSTER AREA OF SHANXIAN (GUANYINTANG), SANMENXIA, HENAN PROVINCE 472143 PR
CHINA
TEL: 86 (0)
398-2530006
FAX: 86 (0)
398-2530001
EXECUTIVE SUMMARY
INCORPORATION DATE : feb. 4, 2002
REGISTRATION NO. : 411222100002352
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
200
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 100,960,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 66,160,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.2389= 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 Limited liabilities co. at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Feb. 4, 2002.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s
registered business scope includes developing, manufacturing and selling
isooctyl thioglycolate, mercaptan series products, bromine generation of isooctane,
bromoalkane, chloro-iso-octane, chlorinated paraffin, di-sec-butyl disulfide,
dimethyl sulfur sec-nucleotide, 2- thionaphthol, octyl phosphate, eighteen
alkyl phosphate, 3,4-two oxygen ethylene thiophene, zinc chloride; importing
and exporting commodities and technologies (excluding commodities and
technologies prohibited by the state).
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Wu Jikang is
legal representative, general manager and chairman of SC at present.
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 industrial zone of Shanxian. The detailed premise information is unspecified.
http://www.aokeby.com/ The design is professional and the content is
well organized. At present the web site is in Chinese and English versions.
E-mail: Aokechem@aokeby.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
Subject
passed the annual inspection of 2012 with Administration for Industry &
Commerce.
Organization
Code: 174893339
Honor
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of Shareholding
He Jianhui 11.7
Liu Jian 1.8
Zhang Liping 2.5
He Baosen 1.3
Zhang Shuqiang 9.4
Fan Zhanyin 1.5
Qu Hengchun 3.1
Qu Shengting 5.5
Wu Suixing 1.5
Cheng Xinkang 1.0
Wu Jikang 13.8
Gao Shangyong 1.0
Qu Shubao 4.7
Song Baoyin 4.0
Fu Yanchao 1.0
He Jinzhong 4.9
Wei Xiaofei 2.5
Zhao Songfang 7.1
Wu Jianzhong 5.2
Wei Xiaomin 1.5
Xue Jianhua 6.5
Chao Mingyun 8.5
l
Legal representative, General Manager and chairman:
Mr. Wu Jikang is currently responsible for the overall and daily
management of SC.
Working Experience(s):
At present Working
in SC as legal representative, general manager and chairman.
l
Supervisor:
Wu Taiping
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products mainly include 2-Ethylhexyl Thioglycolate, Hydrochloric
Ether Series, Bromization Series and Sulfhydyl (thio-alcohol) Series, 2,
SC sources its
materials 90% from domestic market and 10% from overseas market. SC sells 5% of
its products in domestic market and 95% to overseas 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.
Note:
SC declined to release its major suppliers and clients.
SC is not known to have any subsidiary at present.
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.
Industrial and Commercial Bank
AC#:
1713020709200024613
Relationship:
Normal
Note: SC’s accountant could not confirm the given account no. (2611 0498
1164).
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Cash & bank |
5,370 |
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Inventory |
8,360 |
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Accounts
receivable |
11,700 |
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Other
receivables |
64,990 |
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Notes receivable |
6,420 |
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------------------ |
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Current assets |
96,840 |
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Fixed assets net
value |
56,340 |
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Engineering
materials |
150 |
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Projects under
construction |
2,000 |
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Intangible and
other assets |
7,560 |
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------------------ |
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Total assets |
162,890 |
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=========== |
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Short loan |
76,980 |
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Accounts payable |
2,490 |
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Other Accounts
payable |
5,080 |
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Taxes payable |
160 |
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------------------ |
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Current
liabilities |
84,710 |
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Long term
liabilities |
12,020 |
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------------------ |
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Total
liabilities |
96,730 |
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Equities |
66,160 |
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------------------ |
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Total
liabilities & equities |
162,890 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2013 |
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Turnover |
100,960 |
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Cost of goods sold |
83,290 |
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Taxes and additional of main operation |
180 |
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Sales expense |
4,350 |
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Management expense |
7,610 |
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Finance expense |
2,260 |
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Non-operating income |
2,370 |
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Non-operating
expense |
100 |
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Profit before tax |
5,540 |
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Less: profit tax |
430 |
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Profits |
5,110 |
Important
Ratios
=============
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As of Dec. 31, 2013 |
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*Current ratio |
1.14 |
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*Quick ratio |
1.04 |
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*Liabilities
to assets |
0.59 |
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*Net profit
margin (%) |
5.06 |
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*Return on
total assets (%) |
3.14 |
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*Inventory
/Turnover ×365 |
31 days |
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*Accounts
receivable/Turnover ×365 |
43 days |
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*Turnover/Total
assets |
0.62 |
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* Cost of
goods sold/Turnover |
0.83 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short loans are large in 2013.
l
SC’s turnover is in a fair 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.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.48 |
|
|
1 |
Rs.98.67 |
|
Euro |
1 |
Rs.79.80 |
INFORMATION DETAILS
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Analysis Done by
: |
SUM |
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Report Prepared
by : |
PDT |
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 |
-- |
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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.