MIRA INFORM REPORT
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Report No. : |
336062 |
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Report Date : |
14.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG GAOXIN CHEMICAL CO., LTD. |
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Registered Office : |
South, West Section of Chengbei Street Binhai Economic Development
Zone, Weifang Shandong Province 262737 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
26.09.2003 |
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Com. Reg. No.: |
370700228049338 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in manufacturing and
selling of chemical products. |
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No. of Employees : |
150 |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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. In
2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world,
surpassing the US that year... 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 2014 more than 274 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. In 2014 China agreed to begin limiting
carbon dioxide emissions by 2030. China implemented several economic reforms in
2014, including passing legislation to allow local governments to issue bonds,
opening several state-owned enterprises to further private investment,
loosening the one-child policy, passing harsher pollution fines, and cutting
administrative red tape.
|
Source
: CIA |
Company
name and address
SHANDONG GAOXIN
CHEMICAL CO., LTD.
SOUTH, WEST SECTION OF CHENGBEI STREET
BINHAI ECONOMIC DEVELOPMENT ZONE, WEIFANG
SHANDONG PROVINCE 262737 PR CHINA
TEL: 86 (0) 536-8073901/2282118/5319399
FAX: 86 (0) 536-8073900/2289118
EXECUTIVE
SUMMARY
Date of Registration : september 26, 2003
REGISTRATION NO. : 370700228049338
LEGAL FORM : Shares limited company
REGISTERED CAPITAL :
CNY 30,000,000
staff : 150
BUSINESS CATEGORY :
MANUFACTURING & TRADING
Revenue : CNY 124,511,000 (AS OF
DEC. 31, 2014)
EQUITIES : CNY 63,937,000 (AS OF DEC. 31, 2014)
WEBSITE
: www.gaoxinchemical.com
E-MAIL : gaoxinchem@gaoxinchemical.com
PAYMENT : NO COMPLAINTS
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.21
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 September 26, 2003. However, SC changed to
present legal form, and was registered as shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 370700228049338 on December 27, 2014.
SC’s Organization Code Certificate
No.: 76099689-1
SC’s Tax No.: 370783760996891
SC’s registered capital: CNY 30,000,000
SC’s paid-in capital: CNY 30,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered Capital |
CNY 10,000,000 |
CNY 11,250,000 |
|
2014-9-5 |
Registered Capital |
CNY 11,250,000 |
CNY 12,582,237 |
|
2014-12-27 |
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
Registered Capital |
CNY 12,582,237 |
CNY 30,000,000 |
|
|
Company’s Name |
Weifang Gaoxin Chemical Technology Co., Ltd. |
Shandong Gaoxin Chemical Co., Ltd. |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shandong Chihong Commerce
& Trade Co., Ltd. |
8.24 |
|
Liu Chunshan |
63.30 |
|
Liu Jingjing |
7.95 |
|
Han Ziyu |
2.38 |
|
Wang Wengang |
2.35 |
|
Weifang Chunshan Investment
Center (Limited Partnership) |
2.13 |
|
Wang Shuguang |
2.00 |
|
Other Shareholders |
11.65 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Liu Chunshan |
|
General Manager |
Wang Shuguang |
|
Director |
Xu Huaifeng |
|
Ling Yuying |
|
|
Jin Shengbo |
|
|
Wang Zhen |
|
|
Qu Mingrong |
|
|
Xue Fangming |
|
|
Liu Lijun |
|
|
Supervisor |
Li Zhao |
|
Fan Yuehong |
|
|
Du Fang’ai |
|
|
Liu Minglong |
|
|
Liu Xuezhi |
RECENT
DEVELOPMENT
No recent development was found during our checks at
present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Shandong Chihong Commerce &
Trade Co., Ltd. 8.24
Liu Chunshan 63.30
Liu Jingjing 7.95
Han Ziyu 2.38
Wang Wengang 2.35
Weifang Chunshan Investment
Center (Limited Partnership) 2.13
Wang Shuguang 2.00
Other Shareholders 11.65
Shandong
Chihong Commerce & Trade Co., Ltd.
----------------------------------------------------------------
Date of Registration: March 29,
2012
Registration No.:
370523200012584
Chief Executive: Xu Huaifeng
Registered Capital: CNY
15,000,000
Weifang
Chunshan Investment Center (Limited Partnership)
-----------------------------------------------------------------------------
Date of Registration: December
27, 2013
Registration No.:
370700300001522
Principal: Liu Chunshan
MANAGEMENT
Liu
Chunshan, Legal Representative
and Chairman
------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 58
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC as legal representative and chairman,
also as principal of Weifang Chunshan Investment Center (Limited Partnership)
Wang Shuguang, General Manager
---------------------------------------------------------
Ø
Gender: M
Ø
Age: 58
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC as
general manager
Director
-----------
Xu Huaifeng
Ling Yuying
Jin Shengbo
Wang Zhen
Qu Mingrong
Xue Fangming
Liu Lijun
Supervisor
-------------
Li Zhao
Fan Yuehong
Du Fang’ai
Liu Minglong
Liu Xuezhi
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and selling
chemical products and plastic products; importing and exporting commodities.
SC is
mainly engaged in manufacturing and selling chemical products.
Brand:
GX
SC’s
products mainly include:
CPVC
AGGREGATES
CPVC
Chlorinated
rubber
CPE
Coating
type of HCPE resin
Adhesive
type of HCPE resin
SC sources
its materials 100% from domestic market. SC sells 70% in domestic market and
30% to overseas market, mainly Southeast Asia.
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.
*Major Customers:
==============
Mexichem
Compuestos SA De Cv
Spears
Coastline Plastics LLC.
Axiall
LLC.
Axiall
Corporation
Staff & Office:
--------------------------
SC is
known to have approx. 150 staff at present.
SC owns
an area as its operating office & factory of approx. 40,000 sq. meters at
the heading address.
RELATED
COMPANY
SC is known to
have a subsidiary at present.
Weifang Gaoxin New Materials Co., Ltd.
Date of Registration: October
22, 2013
Registration No.:
370727200008738
Chief Executive: Wang Zhen
Registered Capital: CNY
5,000,000
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:
Industrial and Commercial Bank of China Weifang Development
Sub-branch
AC#: 1607001919200161530
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
9,322 |
9,868 |
|
|
Notes receivable |
971 |
2,875 |
|
Accounts
receivable |
13,733 |
23,303 |
|
Advances
to suppliers |
13,508 |
3,103 |
|
Other
receivable |
3,045 |
4,058 |
|
Inventory |
13,497 |
13,879 |
|
Deferred
expenses |
0 |
0 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
54,076 |
57,086 |
|
Long-term
investment |
5,000 |
5,000 |
|
Fixed
assets |
14,982 |
29,299 |
|
Construction
in progress |
4,083 |
730 |
|
Intangible
assets |
2,944 |
2,866 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred
income tax assets |
297 |
474 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
assets |
81,382 |
95,455 |
|
|
============= |
============= |
|
Short-term
loans |
14,689 |
14,000 |
|
Notes
payable |
1,800 |
4,600 |
|
Accounts
payable |
15,079 |
11,285 |
|
Payroll
payable |
691 |
686 |
|
Taxes
payable |
2,103 |
338 |
|
Advances
from clients |
1,690 |
602 |
|
Other
payable |
9,490 |
7 |
|
Other
current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
45,542 |
31,518 |
|
Non-current
liabilities |
170 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
45,712 |
31,518 |
|
Equities |
35,670 |
63,937 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
81,382 |
95,455 |
|
|
============= |
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2014 |
|
Revenue |
124,511 |
|
Cost of sales |
96,657 |
|
Taxes and surcharges |
411 |
|
Sales expense |
5,439 |
|
Management expense |
9,511 |
|
Finance expense |
1,532 |
|
Non-business
income |
199 |
|
Non-business expenditure |
616 |
|
Profit
before tax |
10,546 |
|
Less:
profit tax |
2,537 |
|
8,009 |
Important
Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current
ratio |
1.19 |
1.81 |
|
*Quick
ratio |
0.89 |
1.37 |
|
*Liabilities
to assets |
0.56 |
0.33 |
|
*Net
profit margin (%) |
-- |
6.43 |
|
*Return
on total assets (%) |
-- |
8.39 |
|
*Inventory
/ Revenue ×365 |
-- |
41
days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
69
days |
|
*Revenue/Total
assets |
-- |
1.30 |
|
*Cost
of sales / Revenue |
-- |
0.78 |
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 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
average.
l
The short-term loans of SC appear
average.
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: Stable.
CONCLUSIONS
SC is considered medium-sized in its line with stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.92 |
|
UK Pound |
1 |
Rs.101.44 |
|
Euro |
1 |
Rs.72.26 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TRU |
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.