MIRA
INFORM REPORT
|
Report Date : |
09.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG DONGYUE
CHEMICAL CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
27.12.1996 |
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Com. Reg. No.: |
370000400000440 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Manufacturing and
selling organic fluorine, green refrigerant, and series of chemical products.
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No. of Employees : |
1,400 |
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 |
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Status : |
Good |
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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
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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.
|
Source
: CIA |
Company Name and Address
SHANDONG DONGYUE CHEMICAL CO., LTD.
TANGSHAN TOWN,
HUANTAI COUNTY, ZIBO CITY
SHANDONG PROVINCE
256401 PR CHINA
TEL: 86 (0) 533-8210070/8520539/8520223
FAX: 86 (0)
533-8220509/8518666/8220509
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 27, 1996
REGISTRATION NO. : 370000400000440
LEGAL FORM : One-person Limited Liability Company
REGISTERED CAPITAL : CNY 340,000,000
staff :
1,400
BUSINESS CATEGORY :
manufacturing & TRADING
Revenue : CNY 3,095,590,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY
2,116,400,000 (AS OF DEC. 31,
2013)
WEBSITE : www.dongyuechem.com
E-MAIL :
info@dongyuechem.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.13 = 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 one-person limited liabilities company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 370000400000440.
SC’s Organization Code Certificate No.:
61328754-2
SC’s Tax No.: 370321613287542
SC’s registered capital: CNY 340,000,000
SC’s paid-in capital: CNY 340,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
003969 |
370000400000440 |
|
Chinese Name |
|
|
|
|
Legal Form |
Shares Limited Company |
Chinese-Foreign Equity Joint Venture
Enterprise |
|
|
2009-04-22 |
Legal Form |
Chinese-Foreign Equity Joint Venture
Enterprise |
One-Person Limited Liability Company |
|
Legal Representative |
Zhang Jianhong |
Pang Feng |
|
|
Shareholder (s) % of Shareholding |
Shandong Guanlun Property Development Co.,
Ltd. 3.18% Dongyue Group Ltd. (Cayman Islands) 96.82% |
Shandong
Dongyue Polymer Material Co., Ltd. 100% |
|
|
2012-01-11 |
Legal Representative |
Pang Feng |
Zhang Jianhong |
|
-- |
Legal Representative |
Zhang Jianhong |
Pang Feng |
|
2014-03-27 |
Legal Representative |
Pang Feng |
Wang Weidong |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shandong
Dongyue Polymer Material Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman, and General Manager |
Wang Weidong |
RECENT DEVELOPMENT
SC has got the certificate of ISO9001: 2000.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Shandong Dongyue Polymer Material Co., Ltd. 100
---------------------------------------
Registration No.: 370300400001891
Legal Form: Wholly
Foreign-Owned Enterprise
Registered Capital: CNY 641,360,000
Tel:
86 (0) 533-8518958
Fax:
86 (0) 533-8510456
Add: Tangshan Town, Huantai County, Zibo,
Shandong Province
MANAGEMENT
Wang Weidong, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At
present, working in SC as legal representative, chairman and general manager
Also
working in Shandong Dongyue Siliconee Materials Co., Ltd. as legal
representative
BUSINESS OPERATION
SC’s registered
business scope includes general items: importing and exporting commodities
(excluding items limited or forbidden by State, with permit if needed). Permit
items: manufacturing and selling green refrigerants series products (R22, R32,
R142b, R
SC is mainly
engaged in manufacturing and selling organic fluorine, green refrigerant, and
series of chemical products.
Brand: DONGYUE
SC’s products
mainly include: refrigerant series, PTFE series, fluoride series, PFSA resin
series, chloroalkali and Chloride Methane series.
SC sources its materials 90% from domestic market, mainly Shandong province and Beijing, and 10% from overseas market, mainly Japan and America. SC sells 85% of its products in domestic market, mainly Shandong province, and 15% to overseas market, mainly Japan and European countries.
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:
----------------------
Ace Polar
Technology
Aw Distributing
Inc.
Brenntag Pacific
Inc.
Cascade Columbia
Distribution
Staff & Office:
--------------------------
SC is known
to have approx. 1,400 staff at present.
SC owns an area as
its operating office & factory of approx. 300,000 sq. meters at the heading
address.
RELATED COMPANY
According to the
website: http://www.dongyuechem.com
n
Zibo Dongyue Chlorine Co., Ltd.
------------------------------
Date of Registration: Aug. 14, 2003
Registration No.: 370321028013225
Registered Capital: CNY 200,000,000
Legal Representative: Hu Qingli
Legal Form: One-person Limited Liability Company
n
Dongying Dongyue Salt Co., Ltd.
------------------------------
Date of Registration: June 14, 2005
Registration No.: 370503228011474
Registered Capital: CNY 80,000,000
Legal Representative: Li Yuwen
n
Dongying Dongyue Fine Chemical Co., Ltd.
------------------------------------
Date of Registration: Feb. 8, 2007
Registration No.: 370500400001622
Registered Capital: CNY 10,000,000
Legal Representative: Li Yuwen
Etc.
SC is known to have the following
subsidiaries at present:
n
Shandong Dongyue Fluorine Silicon Material Co., Ltd.
-------------------------------------
Date of Registration: March 5, 2004
Registration No.: 370300400000691
Registered Capital: CNY 400,000,000
Legal Representative: Rong Qingjin
Legal Form: Chinese-Foreign Equity Joint Venture Enterprise
n
Chifeng North Dongyue New Materials Development Co., Ltd.
---------------------------------------
Date
of Registration: March 18, 2011
Registration
No.: 150428000011625
Registered Capital: CNY 3,000,000
Legal Representative: He Tonglong
Legal Form: Limited Liabilities Company
n
Shandong Dongyue Siliconee Materials Co., Ltd.
---------------------------------------------
Date
of Registration: December 28, 2006
Registration
No.: 370000400003284
Registered
Capital: CNY 650,000,000
Legal
Representative: Wang Weidong
Legal
Form: Chinese-Foreign Equity Joint Venture Enterprise
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:
China Construction Bank Zibo Branch
AC#:
637141010233003906
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31, 2010 |
|
Long term investment |
288,170 |
|
Total assets |
2,601,140 |
|
|
------------- |
|
Long term liabilities |
558,410 |
|
Total liabilities |
1,490,570 |
|
Equities |
1,110,570 |
|
|
------------- |
|
Revenue |
3,890,230 |
|
Profit before tax |
423,440 |
|
Less: profit tax |
106,380 |
|
Profits |
317,060 |
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
|
495,430 |
|
|
Notes receivable |
151,180 |
|
Accounts receivable |
141,040 |
|
Advances to suppliers |
161,450 |
|
Other receivable |
464,630 |
|
Inventory |
169,740 |
|
Non-current assets within one year |
0 |
|
Other current assets |
237,270 |
|
|
------------------ |
|
Current assets |
1,820,740 |
|
Long term investment |
404,250 |
|
Fixed assets |
953,030 |
|
Construction in progress |
15,780 |
|
Intangible assets |
50,430 |
|
Long-term prepaid expenses |
6,080 |
|
Deferred income tax assets |
32,560 |
|
Other non-current assets |
0 |
|
|
------------------ |
|
Total assets |
3,282,870 |
|
|
============= |
|
Short-term loans |
75,000 |
|
Notes payable |
5,000 |
|
Accounts payable |
189,590 |
|
Wages payable |
123,920 |
|
Taxes payable |
44,140 |
|
Advances from clients |
29,810 |
|
Other payable |
110,620 |
|
Non-current liabilities within one year |
170,000 |
|
Other current liabilities |
18,750 |
|
|
------------------ |
|
Current liabilities |
766,830 |
|
Non-current liabilities |
456,240 |
|
|
------------------ |
|
Total liabilities |
1,223,070 |
|
Equities |
2,059,800 |
|
|
------------------ |
|
Total liabilities & equities |
3,282,870 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
|
Revenue |
6,023,510 |
|
Cost of sales |
4,427,550 |
|
Taxes and surcharges |
31,680 |
|
Sales expense |
99,460 |
|
Management expense |
135,540 |
|
Finance expense |
28,110 |
|
Impairment of assets |
-60 |
|
Investment income |
19,670 |
|
Non-business income |
7,750 |
|
Non-business expenditure |
26,690 |
|
Profit before tax |
1,301,960 |
|
Less: profit tax |
277,740 |
|
1,024,220 |
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
|
Long term investment |
249,189 |
|
Total assets |
3,326,639 |
|
|
------------- |
|
Long term liabilities |
245,850 |
|
Total liabilities |
1,234,423 |
|
Equities |
2,092,216 |
|
|
------------- |
|
Revenue |
3,590,265 |
|
Profit before tax |
360,159 |
|
Less: profit tax |
91,826 |
|
Profits |
268,333 |
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
|
Cash |
586,270 |
|
Notes receivable |
127,210 |
|
Accounts receivable |
127,410 |
|
Advances to suppliers |
0 |
|
Other receivable |
376,460 |
|
Inventory |
119,160 |
|
Non-current assets within one year |
0 |
|
Other current assets |
38,720 |
|
|
------------------ |
|
Current assets |
1,375,230 |
|
Fixed assets |
930,090 |
|
Construction in progress |
57,910 |
|
Intangible assets |
0 |
|
Long-term investment |
534,700 |
|
Deferred income tax assets |
0 |
|
Other non-current assets |
73,310 |
|
|
------------------ |
|
Total assets |
2,971,240 |
|
|
============= |
|
Short-term loans |
0 |
|
Notes payable |
0 |
|
Accounts payable |
200,270 |
|
Payroll payable |
74,650 |
|
Taxes payable |
4,990 |
|
Advances from clients |
16,800 |
|
Other payable |
10,630 |
|
Other current liabilities |
102,430 |
|
|
------------------ |
|
Current liabilities |
409,770 |
|
Non-current liabilities |
445,070 |
|
|
------------------ |
|
Total liabilities |
854,840 |
|
Equities |
2,116,400 |
|
|
------------------ |
|
Total liabilities & equities |
2,971,240 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
|
Revenue |
3,095,590 |
|
Cost of sales |
2,766,630 |
|
Sales expense |
99,470 |
|
Management expense |
66,470 |
|
Finance expense |
-25,230 |
|
Profit before tax |
186,800 |
|
Less: profit tax |
43,170 |
|
Profits |
143,630 |
Important Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
*Current ratio |
-- |
2.37 |
-- |
3.36 |
|
*Quick ratio |
-- |
2.15 |
-- |
3.07 |
|
*Liabilities to assets |
0.57 |
0.37 |
0.37 |
0.29 |
|
*Net profit margin (%) |
8.15 |
17.00 |
7.47 |
4.64 |
|
*Return on total assets (%) |
12.19 |
31.20 |
8.07 |
4.83 |
|
*Inventory / Revenue ×365 |
-- |
11 days |
-- |
15 days |
|
*Accounts receivable / Revenue ×365 |
-- |
9 days |
-- |
16 days |
|
*Revenue / Total assets |
1.50 |
1.83 |
1.08 |
1.04 |
|
*Cost of sales / Revenue |
-- |
0.74 |
-- |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue 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 fairly good.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans 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 Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.46 |
|
|
1 |
Rs.98.77 |
|
Euro |
1 |
Rs.77.65 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
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|
Report Prepared
by : |
NIT |
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.