MIRA INFORM REPORT
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Report No. : |
352063 |
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Report Date : |
02.12.2015 |
IDENTIFICATION DETAILS
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Name : |
HUBEI ZHENHUA CHEMICAL CO., LTD. |
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Registered Office : |
No. 668 Huangshi Road, Xisaishan District Huangshi, Hubei Province 435001
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
19.06.2003 |
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Com. Reg. No.: |
420200010009667 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling chemical products; manufacturing sodium
dichromate and chromium anhydride; wholesaling and retailing B (sulfuric
acid), minerals, building materials, steel materials, machinery, and
nonferrous metals; ordinary freight; exporting its products, and importing
machinery & components, raw materials and accessories; and renting
houses. |
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No. of Employee : |
800 |
RATING & COMMENTS
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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 |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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. 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 for the first time in
modern history. Still, China's per capita income is below the world average.
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
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 also 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 |
COMAPONY
NAME AND ADDRESS
HUBEI ZHENHUA CHEMICAL CO., LTD.
NO. 668 HUANGSHI
ROAD, XISAISHAN DISTRICT
HUANGSHI, HUBEI
PROVINCE 435001 PR CHINA
TEL: 86 (0)
714-6406329/6401213/6406333
FAX: 86 (0)
714-6406448
EXECUTIVE
SUMMARY
Date
of Registration : june
19, 2003
REGISTRATION
NO. :
420200010009667
LEGAL
FORM : Shares limited company
REGISTERED
CAPITAL : CNY 165,000,000
staff :
800
BUSINESS
CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 776,700,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 598,270,000 (AS OF DEC. 31, 2014)
WEBSITE : www.hszhenhua.com
E-MAIL :
info@hszhenhua.com
PAYMENT
:
no Complants
MARKET
CONDITION :
COMPETITIVE
FINANCIAL
CONDITION : fairLY
good
OPERATIONAL
TREND : FAIRLY STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY
6.39 = 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 June 19, 2003.
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.: 420200010009667
in December 2011.
SC’s Organization Code Certificate No.: 17843576-5
SC’s registered capital: CNY 165,000,000
SC’s paid-in capital: CNY 165,000,000
Registration
Change Record:-
|
Date |
Change of
Contents |
Before the
change |
After the
change |
|
2011-12 |
Legal Form |
Limited
Liabilities Company |
Shares Limited
Company |
|
Company Name |
Huangshi Zhenhua Chemical Co., Ltd. |
Hubei Zhenhua Chemical Co., Ltd. |
Current Co
search indicates SC’s shareholders & chief executives are as follows:-
|
Name of
Shareholder (s) |
% of
Shareholding |
|
Cai Zaihua |
65.97 |
|
Mao Zhiguo |
3.59 |
|
Other Shareholders |
30.44 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Cai Zaihua |
|
General Manager and Director |
Ke Yusheng |
|
Director |
Zhan Weizai |
|
Xu Handong |
|
|
Ke Zunyou |
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|
Ruan Guobin |
|
|
Zhang Hao |
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|
Zeng Yapin |
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|
Mao Zhiguo |
|
|
Supervisor |
Duan Xiangyun |
|
Chen Chunlian |
|
|
Ke Min |
RECENT
DEVELOPMENT
No recent development
was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Cai Zaihua 65.97
Mao Zhiguo 3.59
Other Shareholders 30.44
MANAGEMENT
Cai Zaihua, Legal
Representative and Chairman
---------------------------------------------------------------------------
Ø Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal representative
and chairman
Ke Yusheng, General
Manager and Director
---------------------------------------------------------------------
Ø Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general manager and
director
Director
------------
Zhan Weizai
Xu Handong
Ke Zunyou
Ruan Guobin
Zhang Hao
Zeng Yapin
Mao Zhiguo
Supervisor
-------------
Duan Xiangyun
Chen Chunlian
Ke Min
BUSINESS
OPERATION
SC’s registered business scope
includes manufacturing and selling chemical products; manufacturing sodium
dichromate and chromium anhydride; wholesaling and retailing B (sulfuric acid),
minerals, building materials, steel materials, machinery, and nonferrous
metals; ordinary freight; exporting its products, and importing machinery &
components, raw materials and accessories; and renting houses.
SC is mainly engaged in manufacturing and
selling chemical products.
SC’s products mainly include:
Sodium Dichromate
Chromic Acid
Chrome Oxide Green
Potassium Dichromate
Basic Chromic Sulfate
Sodium Sulfate
Vitamin K3
SC sources its materials 100% from domestic
market. SC sells 60% in domestic market and 40% to overseas market, mainly
U.S.A., 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*
------------------------
Wintersun Chemical
Fondel Chemicals Limited
Staff
& Office:
--------------------------
SC is known to have approx. 800 staff at present.
SC owns an area as its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
SC is not known to have the subsidiary at present.
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:
Bank
of Huangshi
AC#:
696040100100022558
FINANCIALS
Balance
Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
1,630 |
49,720 |
|
|
Accounts receivable |
25,330 |
48,290 |
|
Advances to suppliers |
0 |
20,210 |
|
Inventory |
104,160 |
113,460 |
|
Other receivable |
0 |
18,890 |
|
Other current assets |
122,410 |
60,810 |
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|
------------------ |
------------------ |
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Current assets |
253,530 |
311,380 |
|
Long-term investment |
30,420 |
30,420 |
|
Fixed assets |
513,330 |
535,400 |
|
Construction in progress |
1,240 |
0 |
|
Intangible assets |
34,970 |
34,010 |
|
Other non-current assets |
5,110 |
3,320 |
|
|
------------------ |
------------------ |
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Total assets |
838,600 |
914,530 |
|
|
============= |
============= |
|
Short-term loans |
121,050 |
158,000 |
|
Notes payable |
0 |
20,230 |
|
Accounts payable |
39,200 |
48,840 |
|
Taxes payable |
0 |
10,150 |
|
Advances from clients |
0 |
5,560 |
|
Other payable |
0 |
5,070 |
|
Other current liabilities |
46,970 |
18,410 |
|
|
------------------ |
------------------ |
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Current liabilities |
207,220 |
266,260 |
|
Non-current liabilities |
78,000 |
50,000 |
|
|
------------------ |
------------------ |
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Total liabilities |
285,220 |
316,260 |
|
Equities |
553,380 |
598,270 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
838,600 |
914,530 |
|
|
============= |
============= |
Income
Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Revenue |
591,860 |
776,700 |
|
Cost of sales |
383,590 |
518,410 |
|
Taxes and surcharges |
3,080 |
4,900 |
|
Sales expense |
8,390 |
15,110 |
|
Management expense |
86,300 |
104,490 |
|
Finance expense |
15,570 |
18,630 |
|
Non-business income |
7,510 |
4,440 |
|
Non-business expenditure |
210 |
920 |
|
Profit before tax |
92,610 |
107,150 |
|
Less: profit tax |
12,300 |
16,070 |
|
80,310 |
91,080 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.22 |
1.17 |
|
*Quick ratio |
0.72 |
0.74 |
|
*Liabilities
to assets |
0.34 |
0.35 |
|
*Net profit
margin (%) |
13.57 |
11.73 |
|
*Return on
total assets (%) |
9.58 |
9.96 |
|
*Inventory /
Revenue ×365 |
65 days |
54 days |
|
*Accounts
receivable/ Revenue ×365 |
16 days |
23 days |
|
*Revenue/Total
assets |
0.71 |
0.85 |
|
*Cost of sales
/ Revenue |
0.65 |
0.67 |
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 normal
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 The short-term loans of SC appear average.
l SC’s revenue 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 Good.
CONCLUSIONS
SC is considered
medium-sized in its line with fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.52 |
|
|
1 |
Rs.100.43 |
|
Euro |
1 |
Rs.70.44 |
|
CNY |
1 |
Rs.10.40 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
HNA |
|
|
|
|
Report Prepared
by : |
ANK |
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.