MIRA
INFORM REPORT
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Report Date : |
02.09.2014 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG
BAOYUAN 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 : |
17.06.1998 |
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Com. Reg. No.: |
370321228000702 |
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Legal Form : |
Shares limited company |
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Line of Business : |
manufacturing and selling chemical products. |
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No. of Employees : |
340 |
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 : |
Slow but correct |
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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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate 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
SHANDONG BAOYUAN CHEMICAL CO., LTD.
tangshan
town, huantai county, zibo
shandong
PROVINCE 256401 PR CHINA
TEL: 86
(0) 533-8514368
FAX: 86
(0) 533-8514528
EXECUTIVE SUMMARY
Date of Registration : JUNe 17, 1998
REGISTRATION NO. : 370321228000702
LEGAL FORM : Shares limited company
REGISTERED CAPITAL :
CNY 15,000,000
staff : 340
BUSINESS CATEGORY :
MANUFACTURING & TRADING
REVENUE :
CNY 147,145,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 58,543,000 (AS OF DEC. 31, 2013)
WEBSITE : www.baoyuanchem.com
E-MAIL :
axbxcx@baoyuanchem.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.15 = USD
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 shares limited company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 370321228000702 on June 17, 1998.
SC’s Organization Code Certificate
No.: 70604506-7
SC’s Tax No.: 370321706045067
SC’s registered capital: CNY 15,000,000
SC’s paid-in capital: CNY 15,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2012 |
Legal Representative |
Gong Zilian |
Rong Xuanwen |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Gong Zilian |
20.622 |
|
Rong Xuanwen |
9.5239 |
|
Wang
Fengxiang |
8.5992 |
|
Rong Xiuyan |
3.752 |
|
Wang Kerong |
3.5468 |
|
Dou Qiang |
3.4372 |
|
Chen Guoyun |
2.5 |
|
Zhang Yuanguang |
2.4933 |
|
Rong Youxi |
2.376 |
|
Rong Xingnan |
1.932 |
|
Other Shareholders |
41.2176 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and General
Manager |
Rong
Xuanwen |
|
Chairman |
Gong
Zilian |
|
Deputy General Manager |
Dou
Qiang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Gong Zilian 20.622
Rong Xuanwen 9.5239
Wang Fengxiang 8.5992
Rong Xiuyan 3.752
Wang Kerong 3.5468
Dou Qiang 3.4372
Chen Guoyun 2.5
Zhang Yuanguang 2.4933
Rong Youxi 2.376
Rong Xingna 1.932
Other Shareholders 41.2176
MANAGEMENT
Rong
Xuanwen, Legal
Representative and General Manager
-----------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 52
Ø
Qualification:
University
Ø
Working
experience (s):
Before, worked in SC as general manager
At present, working in SC as legal representative and
general manager
Gong
Zilian, Chairman
------------------------------------------
Ø
Gender: M
Ø
Age: 61
Ø
Qualification:
University
Ø
Working
experience (s):
Before 2012, worked in SC as legal representative
From 2012 to present, working in SC as chairman
Dou Qiang
(窦强), Deputy General Manager
---------------------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø
Qualification:
University
Ø
Working
experience (s):
From 1998 to present, working in SC as deputy general
manager
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling hydroxylamine hydrochloride, calcium formate, nitromethane; exporting
its products and technology; importing materials, instrument, machinery and
equipment, parts and technology needed for its production; processing with
imported materials, processing with imported samples, assembling with imported
parts, and compensation trade in agreement; selling hydroxylamine sulfate,
carbonyl iron powder.
SC is
mainly engaged in manufacturing and selling chemical products.
SC’s
products mainly include: hydroxylamine
hydrochloride, nitromethane, calcium formate, formic acid.
SC sources its materials 100% from domestic market, mainly Shandong. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly U.S.A., 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 Customers:
==============
S.C. North America
Boehringer
Ingelheim Chemicals Inc.
Vp Racing Fuels
Inc.
Shenyang
Kechuang Chemicals Co. Ltd.
Binhai
Weijia Chemical Co., Ltd.
Weifang
Xianda Chemical Co., Ltd.
Lianyungang
Tianchen Chemical Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 340
staff at present.
SC owns an area as
its operating office & factory of approx. 50,000 sq. meters at the heading
address.
RELATED COMPANY
SC is known to have 2
subsidiaries at present,
Zibo
Eyuan Import & Export Co., Ltd.
Shandong
Boyuan Lithium Technology 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
Basic Bank:
Agricultural
Bank of China Huantai County Sub-branch
AC#:
15-238801040003142
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
29,970 |
16,484 |
11,211 |
|
|
Notes receivable |
9,552 |
19,324 |
16,999 |
|
Accounts
receivable |
19,413 |
17,840 |
17,614 |
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Advances to
suppliers |
801 |
3,816 |
2,039 |
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Other receivable |
8,578 |
10,005 |
8,581 |
|
Inventory |
6,355 |
7,403 |
7,480 |
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Non-current
assets within one year |
0 |
0 |
0 |
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Other current
assets |
0 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Current assets |
74,669 |
74,872 |
63,924 |
|
Long-term
investment |
267 |
267 |
9,797 |
|
Fixed assets |
30,549 |
34,497 |
27,897 |
|
Construction in
progress |
1,039 |
3,462 |
57 |
|
Intangible
assets |
1,312 |
4,891 |
1,219 |
|
Long-term
prepaid expenses |
0 |
0 |
0 |
|
Deferred income
tax assets |
114 |
88 |
87 |
|
Other
non-current assets |
0 |
0 |
0 |
|
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------------------ |
------------------ |
------------------ |
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Total assets |
107,950 |
118,077 |
102,981 |
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============= |
============= |
============= |
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Short-term loans |
23,000 |
33,000 |
28,000 |
|
Notes payable |
12,020 |
5,600 |
3,200 |
|
Accounts payable |
4,057 |
3,853 |
3,699 |
|
Wages payable |
1,735 |
1,993 |
2,005 |
|
Taxes payable |
2,094 |
812 |
1,258 |
|
Advances from
clients |
3,065 |
1,379 |
3,012 |
|
Other payable |
4,106 |
8,101 |
3,205 |
|
Other current
liabilities |
0 |
0 |
59 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
50,077 |
54,738 |
44,438 |
|
Non-current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Total
liabilities |
50,077 |
54,738 |
44,438 |
|
Equities |
57,873 |
63,339 |
58,543 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
107,950 |
118,077 |
102,981 |
|
|
============= |
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
142,354 |
174,889 |
147,145 |
|
Cost of sales |
115,984 |
139,330 |
123,352 |
|
Taxes and surcharges |
597 |
983 |
757 |
|
Sales expense |
6,467 |
8,279 |
7,078 |
|
Management expense |
7,679 |
8,598 |
6,200 |
|
Finance expense |
1,734 |
2,544 |
3,113 |
|
Non-business
income |
363 |
18 |
82 |
|
Non-business expenditure |
2,884 |
1,040 |
563 |
|
Profit before
tax |
8,330 |
14,299 |
6,189 |
|
Less: profit tax |
2,330 |
4,333 |
1,548 |
|
6,000 |
9,966 |
4,641 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.49 |
1.37 |
1.44 |
|
*Quick ratio |
1.36 |
1.23 |
1.27 |
|
*Liabilities
to assets |
0.46 |
0.46 |
0.43 |
|
*Net profit
margin (%) |
4.21 |
5.70 |
3.15 |
|
*Return on
total assets (%) |
5.56 |
8.44 |
4.51 |
|
*Inventory /
Revenue ×365/180 |
17 days |
16 days |
19 days |
|
*Accounts
receivable/ Revenue ×365/180 |
50 days |
38 days |
44 days |
|
*
Revenue/Total assets |
1.32 |
1.48 |
1.43 |
|
* Cost of
sales / Revenue |
0.81 |
0.80 |
0.84 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is average, 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 is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level.
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.60.47 |
|
|
1 |
Rs.100.42 |
|
Euro |
1 |
Rs.79.39 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
PDT |
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.