MIRA
INFORM REPORT
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Report No. : |
355718 |
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Report Date : |
21.12.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG DOGUIDE GROUP CO.,
LTD. |
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Registered Office : |
No. 55 Henglihe, Qiugu, Boshan District, Zibo, Shandong Province 255200 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
19.12.2002 |
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Com. Reg. No.: |
370300228041166 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject includes manufacturing and
selling sulphuric acid, titanium pigment, ferrous sulfate, ammonium sulfate
and polyferric sulphate; selling titanium ore and high titanium slag;
electric power production, processing and installation mechanical equipment (except the passenger
car less than nine seats); plastic welding and maintenance; building
maintenance; anticorrosive processing of mechanical equipment (except the
passenger car less than nine seats) and pipeline, property management; import
and export of goods. |
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No. of Employees : |
1,500 |
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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 |
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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 |
Company name and address
SHANDONG DOGUIDE GROUP CO., LTD.
NO. 55 HENGLIHE, QIUGU, BOSHAN DISTRICT, ZIBO
SHANDONG PROVINCE 255200 PR CHINA
TEL: 86 (0) 533-4161746/4167709
FAX: 86 (0) 533-4167709
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 19, 2002
REGISTRATION NO. : 370300228041166
LEGAL FORM : Shares limited company
REGISTERED CAPITAL :
cny 100,000,000
staff : 1,500
BUSINESS CATEGORY :
manufacturing & trading & investing & managing
Revenue : CNY 1,180,505,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 730,766,000 (AS OF DEC. 31, 2014)
WEBSITE : www.dongjiagroup.com
E-MAIL : market@dongjiagroup.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.45 = 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 December 19, 2002. 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.: 370300228041166 in March 2007.
SC’s Organization Code Certificate
No.: 74569258-2
SC’s Tax No.: 370304745692582
SC’s registered capital: CNY 100,000,000
SC’s paid-in capital: CNY 100,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2004-3 |
Registered Capital |
CNY 10,000,000 |
CNY 36,860,000 |
|
Company Name |
Zibo
Dongjia Chemicals Co., Ltd. |
Shandong
Dongjia Group Co., Ltd. |
|
|
2005-7 |
Registered Capital |
CNY 36,860,000 |
CNY 67,180,000 |
|
2007-3 |
Company
Name |
|
|
|
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
|
2007-6 |
Registered Capital |
CNY 67,180,000 |
CNY 87,180,000 |
|
2007-9 |
Registered Capital |
CNY 87,180,000 |
CNY 100,000,000 |
|
-- |
Registration
No. |
3703002804116 |
370300228041166 |
***Note: SC changed its Chinese name in 2007, while its English name
remains the same.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Sun Jiacai |
44.1 |
|
Yan Liyuan |
12.44 |
|
Sun Peng |
5.28 |
|
Zhao Ligui |
4.91 |
|
Chen Hong |
4.82 |
|
Sun Yusheng |
1.9 |
|
Li Jinliang |
1.8 |
|
Other
individuals |
24.75 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative and Chairman |
Sun Jiacai |
|
General
Manager |
Sun Peng |
|
Director |
Li Jinliang |
|
Guo Lijun |
|
|
Zhu Qingbin |
|
|
Sun Yusheng |
|
|
Zhou Zuying |
|
|
Huang Baofeng |
|
|
Cui Hongyou |
|
|
Supervisor |
Li Tongsen |
|
Du Ying |
|
|
Cui Kuangyou |
RECENT DEVELOPMENT
SC’s services and products have been recognized with various
certifications, including “Hi-tech enterprise certificate”, “The national
excellent chemical enterprise”, “ISO14001:
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Sun Jiacai 44.1
Yan Liyuan 12.44
Sun Peng 5.28
Zhao Ligui 4.91
Chen Hong 4.82
Sun Yusheng 1.9
Li Jinliang 1.8
Other individuals 24.75
MANAGEMENT
Sun
Jiacai, Legal Representative and Chairman
-------------------------------------------------------------------------
Ø Gender: M
Ø Nationality: China
Ø ID#
370304490101131
Ø Age: 66
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Sun
Peng, General Manager
---------------------------------------------
Ø Gender: M
Ø Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general manager
Director
-----------
Li Jinliang
Guo Lijun
Zhu Qingbin
Sun Yusheng
Zhou Zuying
Huang Baofeng
Cui Hongyou
Supervisor
--------------
Li Tongsen
Du Ying
Cui Kuangyou
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
and selling sulphuric acid, titanium pigment, ferrous sulfate, ammonium sulfate
and polyferric sulphate; selling titanium ore and high titanium slag; electric
power production, processing and installation
mechanical equipment (except the passenger car less than nine seats);
plastic welding and maintenance; building maintenance; anticorrosive processing
of mechanical equipment (except the passenger car less than nine seats) and
pipeline, property management; import and export of goods (except the forbid ones;
with permit if needed)
SC is mainly
engaged in manufacturing and selling sulphuric acid and titanium pigment;
investing and managing subsidiaries.
SC’s products mainly include: titanium dioxide, cobalt salt,
sulphuric acid, ammonium bisulfite, sulphuric, copper sponge, etc.
SC sources its materials 60%
from domestic market, and 40% from overseas market. SC sells 50% of its
products in domestic market, and 50% to overseas market.
The buying terms of SC include
Check, T/T, L/C 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:
==============
Dover
Sales Co. Inc.
Aquaterra
SA
Ici
India Limited
Rzb
Finance LLC.
Staff & Office:
--------------------------
SC is
known to have approx. 1,500 staff
at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.
RELATED COMPANY
SC is known to
have the following subsidiaries:
Shandong
Suntiox Industrial Co., Ltd
Shandong
Jinhong Titanium Dioxide chemicals Co., Ltd.
Zibo
Dongjia Industry & Trade Co., Ltd.
Etc.
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 China
Zibo Boshan Sub-branch
AC#:
239005421440
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Cash |
276,552 |
298,480 |
414,826 |
|
Notes receivable |
152,777 |
161,234 |
154,467 |
|
Accounts receivable |
80,801 |
126,039 |
112,558 |
|
Advances to suppliers |
29,057 |
69,855 |
39,440 |
|
Other receivable |
3,785 |
8,463 |
369 |
|
Inventory |
142,185 |
118,646 |
135,841 |
|
Prepaid expenses |
0 |
0 |
0 |
|
Other current assets |
0 |
0 |
23 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
685,157 |
782,717 |
857,524 |
|
Long-term investment |
131,360 |
129,698 |
127,916 |
|
Fixed assets |
659,747 |
609,730 |
531,036 |
|
Construction in progress |
7,627 |
6,090 |
3,111 |
|
Engineering materials |
355 |
14 |
90 |
|
Intangible assets |
37,742 |
36,032 |
35,050 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
1,048 |
1,389 |
13,892 |
|
Other non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
1,523,036 |
1,565,670 |
1,568,619 |
|
|
============= |
============= |
============= |
|
Short-term loans |
520,500 |
607,400 |
494,978 |
|
Notes payable |
11,960 |
20,935 |
80,300 |
|
Accounts payable |
138,888 |
124,585 |
161,622 |
|
Wages payable |
3,994 |
5,550 |
7,213 |
|
Taxes payable |
1,996 |
1,502 |
1,307 |
|
Advances from clients |
6,510 |
8,126 |
17,102 |
|
Other payable |
11,700 |
25,999 |
24,865 |
|
Accrued expenses |
0 |
0 |
0 |
|
Other current liabilities |
0 |
1,121 |
9,079 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
695,548 |
795,218 |
796,466 |
|
Non-current liabilities |
55,000 |
40,000 |
41,387 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
750,548 |
835,218 |
837,853 |
|
Equities |
772,488 |
730,452 |
730,766 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
1,523,036 |
1,565,670 |
1,568,619 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Revenue |
1,428,001 |
1,244,698 |
1,180,505 |
|
Cost of sales |
1,195,562 |
1,101,516 |
1,032,516 |
|
Taxes and surcharges |
6,869 |
6,358 |
6,140 |
|
Sales expense |
50,345 |
48,907 |
41,800 |
|
Management expense |
64,034 |
51,439 |
46,657 |
|
Finance expense |
41,550 |
46,257 |
33,523 |
|
Income from investment |
544 |
-1,781 |
2,238 |
|
Non-operating income |
3,744 |
10,976 |
6,221 |
|
Non-operating expense |
683 |
952 |
1,023 |
|
Profit before tax |
96,549 |
-42,172 |
23,452 |
|
Less: profit tax |
24,856 |
0 |
5,863 |
|
Profits |
71,693 |
-42,172 |
17,589 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
0.99 |
0.98 |
1.08 |
|
*Quick ratio |
0.78 |
0.84 |
0.91 |
|
*Liabilities to assets |
0.49 |
0.53 |
0.53 |
|
*Net profit margin (%) |
5.02 |
-3.39 |
1.49 |
|
*Return on total assets (%) |
4.71 |
-2.69 |
1.12 |
|
*Inventory / Revenue ×365 |
37 days |
35 days |
43 days |
|
*Accounts receivable/ Revenue ×365 |
21 days |
37 days |
35 days |
|
* Revenue/Total assets |
0.94 |
0.79 |
0.75 |
|
* Cost of sales / Revenue |
0.84 |
0.88 |
0.87 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears fairly good in its line.
l SC’s net profit margin
is fair in 2013, and average in 2014.
l SC’s return on
total assets is fair in 2013, and average in 2014.
l
SC’s cost of goods sold 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 appears average.
l
SC’s short-term loans 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 low.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered large-sized in its line with
fairly stable financial conditions. The large amount of short-term loans
may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.42 |
|
|
1 |
Rs.99.17 |
|
Euro |
1 |
Rs.72.14 |
|
CNY |
1 |
Rs.10.22 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
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.