MIRA
INFORM REPORT
|
Report Date : |
17.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
SHANGHAI PHICHEM
MATERIAL CO., LTD. |
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Registered Office : |
No.
169 Guiqiao Road, Jinqiao Export Processing Zone Pudong New Area, Shanghai 201206 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
26.04.2002 |
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Com. Reg. No.: |
310115400094077 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject includes researching and
manufacturing high performance coatings, selling its owned products,
providing related technical advice and after-sales service; wholesale, import and export of above
similar products and chemical products, providing related supporting
business. |
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No. of Employees : |
300 |
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 : |
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
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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.
|
Source
: CIA |
Company Name and address
SHANGHAI PHICHEM MATERIAL CO., LTD.
no. 169 guiqiao road, jinqiao Export processing
zone
pudong new area, shanghai 201206 PR CHINA
TEL: 86 (0) 21-50322662/50551001-8226
FAX: 86 (0) 21-50322661
EXECUTIVE SUMMARY
Date of Registration : april 26, 2002
REGISTRATION NO. : 310115400094077
LEGAL FORM : Shares limited company
REGISTERED CAPITAL : CNY 80,000,000
staff : 300
BUSINESS CATEGORY : MANUFACTURING & TRADING
REVENUE : CNY 174,229,000
(JAN. 1, 2014 TO JUN. 30, 2014)
EQUITIES : CNY 277,915,000
(AS OF JUN. 30, 2014)
WEBSITE : www.phichem.com.cn
E-MAIL : investor@phichem.com.cn
PAYMENT : No Complaints
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : fairly 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 a limited liabilities company
of PRC on April 26, 2002.
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.:
310115400094077.
SC’s Organization Code Certificate No.:
73814112-5
SC’s Tax No.: 310115738141125
SC’s registered capital: CNY 80,000,000
SC’s paid-in capital: CNY 80,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Legal Form |
Limited
Liabilities Company |
Shares Limited
Company |
|
Company Chinese
Name |
|
|
|
|
2014 |
Registered
Capital |
CNY 60,000,000 |
CNY 80,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (as of October 8, 2014) |
% of Shareholding |
|
Hong Kong
Phichem Holdings, Limited |
53.8 |
|
Shanghai
Kangqi Investment Co., Ltd. |
3.95 |
|
Beijing
Hanhe Taixing Management Consulting Co., Ltd. |
3.75 |
|
Beijing
Lianke Sikai Logistics Software Co., Ltd. |
3.00 |
|
Shanghai Kaijia Investment &
Management Consulting Co., Ltd. |
3 |
|
Rugao Boxin
Enterprise Management Services Co., Ltd. |
3 |
|
Jiangsu KK Telecom
Materials Co., Ltd. |
3 |
|
Beijing
Hongcheng Xintuo Management Consulting Co., Ltd. |
0.75 |
|
Beijing
Dele Management Consulting Co., Ltd. |
0.75 |
|
Huatai
Securities Limited-Customer Credit Collateral Securities Trading Account |
0.07 |
|
Other
Shareholders |
24.93 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman, and General Manager |
Zhang Jinshan |
|
Vice
Chairman |
Jin Ding |
|
Director |
Wang Zhijin |
|
Jiang Jisen |
|
|
Guo Wenqing |
|
|
Supervisor |
Wang Lin |
|
Qiu Yiqun |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange with the code of
300398.
SHAREHOLDER CHART & BACKGROUND
Name (As of October 8,
2014) % of Shareholding
Hong Kong Phichem Holdings, Limited 53.8
Shanghai Kangqi Investment Co., Ltd. 3.95
Beijing Hanhe Taixing Management Consulting
Co., Ltd. 3.75
Beijing Lianke Sikai Logistics Software Co.,
Ltd. 3.00
Shanghai Kaijia Investment & Management
Consulting Co., Ltd. 3
Rugao Boxin Enterprise Management Services
Co., Ltd. 3
Jiangsu KK Telecom Materials Co., Ltd. 3
Beijing Hongcheng Xintuo Management
Consulting Co., Ltd. 0.75
Beijing Dele Management Consulting Co., Ltd. 0.75
Huatai Securities Limited-Customer Credit
Collateral Securities Trading Account 0.07
Other shareholders 24.93
Beijing Hongcheng
Xintuo Management Consulting Co., Ltd.
===============================================
Registration No.: 110113012969706
Legal Form: One-person Limited
Liability Company
Registered Capital: CNY 100,000
Beijing Hanhe
Taixing Management Consulting Co., Ltd.
============================================
Registration No.: 110113012951353
Legal Form: One-person Limited
Liability Company
Registered Capital: CNY 100,000
Shanghai Kaijia
Investment & Management Consulting Co., Ltd.
=================================================
Registration No.: 310115001253645
Legal Form: Limited Liability
Company
Registered Capital: CNY 3,500,000
Beijing Dele Management
Consulting Co., Ltd.
=====================================
Registration No.: 110302012915910
Legal Form: One-person Limited
Liability Company
Registered Capital: CNY 100,000
Shanghai Kangqi
Investment Co., Ltd.
===============================
Registration No.: 310107000492207
Legal Form: One-person Limited
Liability Company
Registered Capital: CNY 34,000,000
Beijing Lianhe
Sikai Logistics Software Co., Ltd.
=======================================
Registration No.: 110108010210496
Legal Form: One-person Limited
Liability Company
Registered Capital: CNY 500,000
Hong Kong Phichem
Holdings, Limited
================================
Registration No.: 0830489
Legal Form: Private
MANAGEMENT
Zhang Jinshan, Legal Representative, Chairman and General
Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: USA
Ø
Age: 51
Ø Qualification: Doctor
degree
Ø Working experience
(s):
From 2002 to present, working in SC as
legal representative, chairman and general manager, also as director of Hong
Kong Phichem Holdings, Limited
Jin
Ding, Vice Chairman
----------------------------------------
Ø Gender: M
Ø
Age: 53
Ø Qualification:
Postgraduate
Ø Working experience
(s):
At present, working in SC as vice
chairman
Director
-----------
Wang Zhijin
Jiang Jisen
Guo Wenqing
Supervisor
--------------
Wang Lin
Qiu Yiqun
BUSINESS OPERATION
SC’s registered business scope includes researching and
manufacturing high performance coatings, selling its owned products, providing
related technical advice and after-sales service; wholesale, import and export of above similar
products and chemical products, providing related supporting business.
SC is mainly
engaged in manufacturing and selling optoelectronic materials.
Brand: PHICHEM
SC’s products
mainly include: Optical Fiber and Cable Materials, Plastic Surface Finishes UV
Coatings, UV Printing Products, etc.
SC sources its materials 100% from domestic
market, mainly Shanghai. SC sells 75% of its products in domestic market, and
25% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
The buying terms
of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Phichem America
Inc.
Staff & Office:
--------------------------
SC is known
to have approx. 300 staff at
present.
SC owns an area as
its operating office & factory of approx. 10,000 sq. meters at the heading
address.
RELATED COMPANY
SC is known to have a
subsidiary at present,
Anqing
Feikai Macromolecule Materials Co., Ltd.
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 SAIC.
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Jun. 30, 2014 |
|
77,458 |
71,002 |
|
|
Notes receivable |
4,312 |
4,575 |
|
Accounts receivable |
91,409 |
103,655 |
|
Advances to suppliers |
2,568 |
12,812 |
|
Interest receivable |
0 |
0 |
|
Other receivable |
7,940 |
8,873 |
|
Inventory |
44,465 |
39,622 |
|
Other current assets |
38,813 |
41,175 |
|
|
------------------ |
------------------ |
|
Current assets |
266,965 |
281,714 |
|
Long-term equity investment |
0 |
0 |
|
Fixed assets |
70,920 |
71,895 |
|
Construction in progress |
49,824 |
78,924 |
|
Intangible assets |
27,173 |
26,783 |
|
Goodwill |
0 |
0 |
|
Long-term prepaid expenses |
1,100 |
823 |
|
Deferred income tax assets |
1,883 |
2,099 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
417,865 |
462,238 |
|
|
============= |
============= |
|
Short-term loans |
80,724 |
75,000 |
|
Held for trading financial liabilities |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
46,034 |
49,809 |
|
Advances from clients |
688 |
430 |
|
Payroll payable |
6,501 |
3,225 |
|
Tax payable |
3,872 |
7,202 |
|
Interest payable |
0 |
0 |
|
Other payable |
3,733 |
4,291 |
|
Other current liabilities |
7,500 |
12,501 |
|
|
------------------ |
------------------ |
|
Current liabilities |
149,052 |
152,458 |
|
Non-current liabilities |
28,536 |
31,865 |
|
|
------------------ |
------------------ |
|
Total liabilities |
177,588 |
184,323 |
|
Equities |
240,277 |
277,915 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
417,865 |
462,238 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
Jan. 1, 2014 to Jun. 30, 2014 |
|
Revenue |
323,231 |
174,229 |
|
Cost of
sales |
181,652 |
98,056 |
|
Taxes and
surcharges |
2,487 |
1,330 |
|
Sales expense |
15,043 |
7,679 |
|
Management expense |
46,013 |
21,793 |
|
Finance expense |
5,987 |
2,139 |
|
Investment income |
0 |
0 |
|
Non-operating income |
2,187 |
1,125 |
|
Non-operating expense |
0 |
0 |
|
Profit before tax |
73,912 |
43,992 |
|
Less: profit tax |
8,475 |
6,372 |
|
Profits |
65,437 |
37,620 |
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
As of Jun. 30,
2014 |
|
*Current ratio |
1.79 |
1.85 |
|
*Quick ratio |
1.49 |
1.59 |
|
*Liabilities to assets |
0.42 |
0.40 |
|
*Net profit margin (%) |
20.24 |
21.59 |
|
*Return on total assets (%) |
15.66 |
8.14 |
|
*Inventory / Revenue ×365/180 |
51 days |
41 days |
|
*Accounts receivable / Revenue ×365/180 |
104 days |
108 days |
|
*Revenue / Total assets |
0.77 |
0.38 |
|
*Cost of sales / Revenue |
0.56 |
0.56 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears average 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 low, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
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 appears large.
l
The short-term loans of SC appear large.
l
SC’s revenue 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.
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.61.48 |
|
|
1 |
Rs.98.24 |
|
Euro |
1 |
Rs.78.66 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
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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.