MIRA
INFORM REPORT
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Report Date : |
20.11.2014 |
IDENTIFICATION DETAILS
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Name : |
HOLITECH TECHNOLOGY CO. LTD |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
30.04.2003 |
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Com. Reg. No.: |
370000228057564 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling chemical products, manufacturing, selling, researching and developing display, touch screen, |
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No. of Employees : |
2192 (Including Subsidiaries) |
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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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, 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.
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Source
: CIA |
Company name
and address
HOLITECH TECHNOLOGY CO., LTD.
NO. 36 DONGFENG ROAD, YIYUAN COUNTY, ZIBO,
SHANDONG PROVINCE, 256120 PR CHINA
TEL: 86 (0) 533-2343917/2343787
FAX: 86 (0) 533-2343989
EXECUTIVE
SUMMARY
INCORPORATION DATE : APR. 30, 2003
REGISTRATION NO. : 370000228057564
REGISTERED LEGAL
FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE : MR. WEN
KAIFU (CHAIRMAN)
STAFF STRENGTH : 2,192 (INCLUDING
SUBSIDIARIES)
REGISTERED CAPITAL :
CNY 1,078,428,000
BUSINESS LINE :
R&D, MANUFACTURING AND TRADING
TURNOVER : CNY
1,254,104,000 (CONSOLIDATED, JAN. 1 TO JUN. 30, 2014)
EQUITIES :
CNY 1,797,122,000 (CONSOLIDATED, AS OF JUN. 30, 2014)
PAYMENT : NO COMPLAINTS
MARKET
CONDITION :
COMPETITIVE
FINANCIAL
CONDITION :
STABLE
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION :
well-known
EXCHANGE RATE : CNY 6.13=USD
1 AS OF 2014-11-17
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - Subject Company (the company inquired by you)
NA - not available
CNY – China Yuan Ren Min Bi
HISTORY
SC was registered as a limited liabilities company at local Administration
for Industry & Commerce (AIC-The official body of issuing and renewing
business license) on Apr. 30, 2003 and has been under present legal
form since 2006.
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 co
has independent property of legal person and enjoys property rights of
legal person. The characteristics of the shares limited co. are as follows: The
establishment of the co. requires at least two promoters and no more than
200, half of whom shall be domiciled in The
minimum registered capital of a co. is CNY The
board of directors must consist 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 one year of the
offer. 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 manufacturing
and selling ammonia, nitric acid, ammonium nitrate, sodium nitrate, sodium
nitrite, nitro compound fertilizer and methanol; designing, manufacturing, selling,
researching and developing new flat panel display, touch screen, camera and its
surrounding derivative products (including modules, motherboards, programs,
backlight, outer case, electronic components), intelligent control systems,
intelligent wearable device, appliance control equipment and accessories,
industrial automation equipment and accessories, etc., and technology
development, technology consulting, technology services of the above related
business; manufacturing and selling soda ash, ammonium sulfide, sulfurized
isobutylene, isooctyl nitrate, melamine, ammonia (≤10%) and urea;
importing and exporting goods and technology; selling agricultural ammonium
bicarbonate.
SC
is mainly engaged in manufacturing and selling chemical products, manufacturing,
selling, researching and developing display, touch screen, etc.
Mr.
Wen Kaifu has been the legal
representative and chairman of SC since 2014.
SC is known
to have approx. 2,192 employees (including its
subsidiaries) at present, including 1,660
production staff, 104 salesman, 197 technical staff, 40 financial staff, and
191 management staff.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Zibo. Our checks reveal
that SC owns the total premise about 110,000
square meters.
Other addresses:
================
No.
89 Nanwaihuan, Yiyuan County, Shandong Province
Taihe
Industrial Park, Jiangxi Province
WEB SITE
http://www.lianhechem.com.cn
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: jinbo@holitech.net
KEY
EVENTS/RECENT DEVELOPMENT
SC has passed ISO9001, ISO14001, OHSAS18001, etc.
And also honored as Hi-tech Enterprise, Shandong Famous Brand, etc.
SC is a listed company in Shenzhen Stock Exchange Market
with the code of 002217.
SC's predecessor was the state-owned
Shandong Dongfeng Chemical Fertilizer Plant.
Changes of its
registered information:
|
Date |
Item |
Before the change |
After the change |
|
2006 |
Registered legal form |
Limited liabilities company |
Present one |
|
2008 |
Registration No. |
3700002805756 |
Present one |
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2009 |
Registered capital |
CNY 148,656,000 |
CNY 222,984,000 |
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2012 |
Registered capital |
CNY 222,984,000 |
CNY 334,476,000 |
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|
Registered capital |
CNY 334,476,000 |
CNY 1,003,428,000 |
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Company’s name |
Shandong Liaherd Chemical Industry Co., Ltd. |
Present one |
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|
Legal representative |
Wang Yiming |
||
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Registered capital |
CNY 1,003,428,000 |
Present amount |
Note: SC changed its Chinese name in 2006, while its English name
remains the same.
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Tax Registration Certificate No.: 370323749881110
Organization Code: 749881110
LITIGATION
See below for SC as executive party (defendant).
|
Executed Party |
SC |
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Court |
Zibo Intermediate People's Court |
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Date
of Case |
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Case Number |
(2012) 00095 |
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Claim
Amount |
RMB 14,496,990 |
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Case
Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
OWNERSHIP/MANAGEMENT
MAIN SHAREHOLDERS: (As of June 30, 2014)
Name %
of shareholdings
Wen Kaifu 30.66
Wang Yiming 7.28
Zeng Li 5.69
Chen Yun 5.22
Shenzhen Capital Group Co., Ltd. 4.5
Taihe County Xingjian Investment Co., Ltd.
(in Chinese pinyin 3.97
Ma Juan’e 3.32
Taihe County Yitai Investment Co., Ltd. (in
Chinese pinyin 2.83
Zhang Yongming 2.67
Everbright Capital Investment Co., Ltd. 2
Other shareholders 31.86
MANAGEMENT
l
Legal
representative and Chairman:
Mr. Wen Kaifu, born in 1966, with master’s
degree, he is currently responsible for the overall management of SC.
Working Experience(s):
From 2014 to present Working in SC as legal
representative and chairman.
Also working in Jiangxi Holitech Technology
Co., Ltd. as legal representative.
l
Vice
chairman and president:
Mr. Wang Yiming (王宜明), born in 1965, with university
education, senior engineer, he is currently responsible for the daily
management of SC.
Working Experience(s):
Before Worked in SC as legal representative and
chairman
From 2014 to present Working in SC as vice
chairman and president.
Directors
………….
Xie Ling
Wu Yuhui
Li Youchen
Supervisors
…………….
Tang Meijiao
Wang Chongde
Wang Linghong
BUSINESS
OPERATIONS
SC is mainly engaged in
manufacturing and selling chemical products, manufacturing, selling, researching
and developing display, touch screen, etc.
SC’s products mainly
include: new flat panel display, touch screen, camera and its surrounding
derivative products, nitric acid, ammonium nitrate, sodium nitrate, sodium
nitrite, soda ash, ammonium chloride, methanol, melamine, nitro-compound
fertilizer, urea, ammonia bicarbonate and etc.
SC
sources its materials 95% from domestic market, and 5% from overseas market. SC
sells 74% of its products in domestic market, and 26% to overseas market,
mainly Southeast Asian countries and Europe.
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’s management declined to release
its main suppliers and clients.
TRADEMARKS
& PATENTS
|
Registration No. |
3646566 |
5192951 |
5192949 |
|
Registration Date |
May
21, 2005 |
Aug. 7, 2009 |
Aug. 7, 2009 |
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Trademark Design |
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RELATED
COMPANIES
SC is
known to invest in the following companies:
Shandong Liaherd Fengyuan Chemical Industry
Co., Ltd.
……………………………………………………………
Incorporation date: May 22, 2008
Registration No.: 370400200002028
Legal representative: Zhang Shouhe
Shandong Xintai Liaherd Chemical Industry
Co., Ltd.
………………………………………………………..
Incorporation date: Jan. 4, 2009
Registration No.: 370982200003397
Legal representative: Zhang Shouhe
Zibo Xinlianhua Logistics Co., Ltd.
………………………………………
Legal representative: Yu Lijun
Registration No.: 370323228009440
Incorporation date: Dec. 8, 2005
Jiangxi Holitech Technology Co., Ltd.
………………………………………
Registration No.: 360826210000627
Legal representative: Wen Kaifu
Incorporation date:
PAYMENT
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.
BANKING
SC declined to
release its bank information.
FINANCIAL
HIGHLIGHTS
Consolidated Balance Sheet
Unit: CNY’000
|
|
As of Jun. 30, 2014 |
|
Cash & bank |
482,314 |
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Bills receivable |
118,165 |
|
Inventory |
303,308 |
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Accounts
receivable |
564,747 |
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Advances to
suppliers |
160,240 |
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Other accounts
receivable |
16,666 |
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Non-current assets
due within one year |
264 |
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Other current
assets |
0 |
|
|
------------------ |
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Current assets |
1,645,704 |
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Long-term
accounts receivable |
4,024 |
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Investment real
estate |
6,661 |
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Fixed assets net
value |
1,124,677 |
|
Projects
materials |
4,063 |
|
Projects under
construction |
17,358 |
|
Long term
investment |
0 |
|
Intangible
assets |
245,339 |
|
Goodwill |
10,973 |
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Long-term
deferred expense |
20,028 |
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Deferred tax
assets |
18,695 |
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Other assets |
0 |
|
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------------------ |
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Total assets |
3,097,522 |
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|
============= |
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Short loans |
520,520 |
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Bills payable |
59,293 |
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Accounts payable |
550,583 |
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Salaries and
welfare payable |
39,179 |
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Taxes payable |
15,940 |
|
Advances from
clients |
24,694 |
|
Other accounts
payable |
26,161 |
|
Non-current
liabilities due within one year |
23,621 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
1,259,991 |
|
Long term
liabilities |
40,409 |
|
|
------------------ |
|
Total
liabilities |
1,300,400 |
|
Equities |
1,797,122 |
|
|
------------------ |
|
Total
liabilities & equities |
3,097,522 |
|
|
============= |
Consolidated Income Statement
Unit: CNY’000
|
|
Jan. 1 to Jun. 30, 2014 |
|
Turnover |
1,254,104 |
|
Cost of goods
sold |
1,052,248 |
|
Taxes
and additional of main operation |
4,703 |
|
Sales expense |
18,411 |
|
Management expense |
75,514 |
|
Finance expense |
14,569 |
|
Assets devaluation |
11,676 |
|
Investment
income |
70 |
|
Non-operating
income |
23,456 |
|
Non-operating expense |
283 |
|
Profit before
tax |
100,226 |
|
Less: profit tax |
16,927 |
|
Profits |
83,299 |
Important Ratios
|
|
As
of Jun. 30, 2014 |
|
*Current ratio |
1.31 |
|
*Quick ratio |
1.07 |
|
*Liabilities
to assets |
0.42 |
|
*Net profit
margin (%) |
6.64 |
|
*Return on
total assets (%) |
2.69 |
|
*Inventory
/Turnover ×365 |
/ |
|
*Accounts
receivable/Turnover ×365 |
/ |
|
*Turnover/Total
assets |
0.40 |
|
* Cost of
goods sold/Turnover |
0.84 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears 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 appears
average.
l
The short-term loan of SC appears
average.
l
SC’s turnover is in a fair level,
comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Stable.
REMARKS
SC is considered large-sized in its line with stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.55 |
|
UK Pound |
1 |
Rs.97.52 |
|
Euro |
1 |
Rs.76.48 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
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Report Prepared
by : |
VNT |
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 |
|
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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 |
|
|
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 |
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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.