MIRA INFORM REPORT
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Report Date : |
30.10.2014 |
IDENTIFICATION DETAILS
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Name : |
Liaoyang Liaodong Fine Chemical co., ltd. |
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Registered Office : |
No. 6, Gaoshan Street, Qingyang Industrial Park, Wensheng District, Liaoyang City, Liaoning Province, 111000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
29.03.2005 |
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Com. Reg. No.: |
211000004027540 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling of Chemical Products. |
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No. of Employees : |
40 |
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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China |
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
Liaoyang Liaodong Fine Chemical co., ltd.
NO. 6, GAOSHAN
STREET, QINGYANG INDUSTRIAL PARK, WENSHENG DISTRICT, LIAOYANG CITY, LIAONING PROVINCE,
111000 PR CHINA
TEL: 86 (0)
419-3711017/3711015 FAX: 86 (0)
419-3711013
EXECUTIVE
SUMMARY
INCORPORATION DATE : MAR. 29, 2005
REGISTRATION NO. : 211000004027540
REGISTERED LEGAL
FORM : Limited
liabilities co.
STAFF STRENGTH : 40
REGISTERED CAPITAL :
CNY 10,000,000
BUSINESS LINE :
manufacturing and trading
TURNOVER : CNY 64,080,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 42,290,000
(AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION
: fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.1195 = 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 company at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Mar. 29, 2005.
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 permit business items: wholesaling
(no storage) compressed gas and liquefied gas, flammable liquid, flammable
solid, natural materials and flammable when wet, corrosive substances (license
is valid until February 20, 2016); manufacturing chemical products (excluding
permitted items).
SC is mainly engaged in manufacturing and selling chemical products.
Ms. Chen Lirong is legal representative, chairman and general manager of SC at present.
SC is known to have approx. 40 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial park of Liaoyang. Our checks reveal that SC owns the total premise, but the gross area of the premise is unspecific.
SC has another address located in No. 234-5, Zhonghua
Street, Wensheng District, Liaoyang, Liaoning Province
http://www.liaodongchem.com The design is professional and the content is
well organized. At present it is in Chinese and English versions.
E-mail: sales@liaodongchem.com
Changes of its registered information are as
follows:
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Date of change |
Item |
Before the change |
After the change |
|
2010-1-26 |
Registration no. |
2110002600311 |
Present one |
|
2011-8-2 |
Registered capital |
CNY 1,000,000 |
Present amount |
Certificates:
Etc.
Paid-up capital: CNY 7,000,000
Organization code: 771430404
For the past two years there is no record of
litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Lirong 98
Chen Jialong 2
l Legal
Representative, Chairman and General Manager:
Ms. Chen Lirong is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working in SC as chairman,
legal representative and general manager
SC is mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include: sulfolane, cetane number improver,
polymerization inhibitor, antifoaming agent and other.
SC sources its
merchandise 100% from domestic market. SC sells 80% of its products in domestic
market, and 20% to overseas market.
The buying terms of SC include Check, T/T
and Credit of 30-60 days. The payment terms of SC include Check, T/T, L/C and
Credit of 30-60 days.
TRADEMARKS &
PATENTS
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Registration
No. |
10262542 |
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Registration
Date |
Mar. 14,
2013 |
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Trademark
Design |
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Note:
SC’s management declined to release its main clients and suppliers.
According to SC’s website:
Liaoyang Fine Chemical Factory
=======================
Incorporation date:
Registration no.: 211011003010032
Principal: Zhao Bo
Legal form: Sole Proprietorship enterprise
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.
SC’s management declined to release the bank
information of SC.
Balance Sheet
Unit: CNY’000
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As of Dec.
31, 2013 |
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Cash & bank |
1,110 |
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Notes receivable |
1,810 |
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Inventory |
6,300 |
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Accounts receivable |
12,120 |
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Advances to supplies |
120 |
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Other receivables |
970 |
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Other current assets |
0 |
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------------------ |
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Current assets |
22,430 |
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Fixed assets net value |
37,730 |
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Projects under construction |
90 |
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Long-term investments |
0 |
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Intangible and other assets |
10,000 |
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------------------ |
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Total assets |
70,250 |
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============= |
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Short loans |
20,000 |
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Accounts payable |
4,000 |
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Advances from customers |
0 |
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Accrued payroll |
20 |
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Taxes payable |
720 |
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Other accounts payable |
3,220 |
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Other current liabilities |
0 |
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----------------- |
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Current liabilities |
27,960 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
27,960 |
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Shareholders equities |
42,290 |
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------------------ |
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Total liabilities & equities |
70,250 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec.
31, 2013 |
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Turnover |
64,080 |
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Cost of goods sold |
53,080 |
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Taxes and additional of main operation |
130 |
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Sales expense |
1,540 |
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Management expense |
2,230 |
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Finance expense |
2,680 |
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Non-operating income |
850 |
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Non-operating expense |
270 |
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Profit before tax |
5,000 |
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Less: profit tax |
1,250 |
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Net profit |
3,750 |
Important Ratios
=============
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As of Dec.
31, 2013 |
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*Current
ratio |
0.80 |
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*Quick
ratio |
0.58 |
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*Liabilities
to assets |
0.40 |
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*Net profit
margin (%) |
5.85 |
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*Return on
total assets (%) |
5.34 |
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*Inventory
/Turnover ×365 |
36 days |
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*Accounts
receivable/Turnover ×365 |
70 days |
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*Turnover/Total
assets |
0.91 |
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* Cost of
goods sold/Turnover |
0.83 |
PROFITABILITY:
FAIRLY GOOD
l The turnover 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 goods
sold is average, comparing with its turnover.
LIQUIDITY:
FAIR
l The current ratio
of SC is maintained in a fair level.
l SC’s quick ratio
is maintained in a fair level.
l The inventory of
SC appears average.
l The accounts
receivable of SC appears average.
l The short-term
loan of SC appears fairly large in 2013.
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: Fairly stable.
SC is considered small-sized in its line
with fairly stable financial conditions. The large amount of short loans could
be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.32 |
|
|
1 |
Rs.99.00 |
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Euro |
1 |
Rs.78.14 |
INFORMATION DETAILS
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Analysis Done by
: |
SUM |
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Report Prepared
by : |
NIT |
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.