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Report No. : |
355586 |
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Report Date : |
22.12.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG JINHONG TITANIUM DIOXIDE CHEMICALS CO., LTD. |
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Registered Office : |
Zhangzhuang Village Boshan Economy & Technology Development Zone
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 : |
12.03.2002 |
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Unified Social
Credit Code : |
91370304737201202W |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacturing and selling sulfuric acid (validity period with permit
if needed); manufacturing and selling polymeric ferric sulfate, ferrous
sulfate, titanium dioxide, importing and exporting goods and technologies
(with permit if needed) |
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No. of Employees : |
600 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. 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.
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Source
: CIA |
SHANDONG JINHONG TITANIUM DIOXIDE
CHEMICALS CO., LTD.
ZHANGZHUANG VILLAGE BOSHAN ECONOMY & TECHNOLOGY DEVELOPMENT ZONE
ZIBO, SHANDONG PROVINCE 255200 PR CHINA
TEL: 86 (0) 533-4611374/4611488
FAX: 86 (0) 533-4611693
Date of Registration : MARCH 12, 2002
Unified social credit code : 91370304737201202W
LEGAL FORM : LIMITED LIABILITY
COMPANY
CHIEF EXECUTIVE :
SUN JIACAI (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL : CNY 80,000,000
staff :
600
BUSINESS CATEGORY : manufacturing & TRADING
REVENUE :
CNY 556,150,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 124,930,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.47 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
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
SC was established as a limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under Unified social credit code: 91370304737201202W.
SC’s registered capital: CNY 80,000,000
SC’s paid-in capital: CNY 80,000,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shandong Dongjia Group Co., Ltd. |
58.5 |
|
Shandong Xianghe Group Co., Ltd. |
29 |
|
Zibo Boshan Development Zone Thermal Power Plant Co., Ltd. |
12.5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Sun Jiacai |
|
Director |
Cui Desheng |
|
Zhao Lingyan |
|
|
Li Jinliang |
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|
Zhou Zuying |
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|
Sun Peng |
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Li Dongmei |
|
|
Zhao Jichun |
|
|
Supervisor |
Sun Qiguo |
|
Liu Chuanli |
|
|
Huang Baofeng |
|
|
Wang Baichun |
No recent development was found during our checks at present.
Name %
of Shareholding
Shandong Dongjia Group Co., Ltd. 58.5
Shandong Xianghe Group Co., Ltd. 29
Zibo Boshan Development Zone Thermal Power Plant Co., Ltd. 12.5
Shandong Dongjia Group Co., Ltd.
------------------------------------------
Shandong Dongjia Group Co., Ltd. consists 5 share-holding and
wholly-owned subsidiary companies such as Shandong Jinhong Titanium Dioxide
Chemicals Co., Ltd., Sino-Japan Joint-venture Shandong Suntiox Industrial Co.,
Ltd., Shandong Pengrun Logistics Co., Ltd., covering an area of 700,000 square
meters, more than 2,000 employees, including technical stuff almost 600, with
tio2 capacity 160,000 tons, sulfuric acid capacity 500,000 tons, and ammonium
sulphate capacity 60,000 tons annually.
Until now, Shandong Dongjia Group Co., Ltd. has established sales
network in more than 20 countries and regions around the world. The retile
grade SR-236, SR-237, SR-2377, SR-239, SR-240 and SR-2400 have become the
famous brands in the world covering Europe, USA, Middle East, Southeast Asia,
Australia and Africa, widely applied on coatings, plastics, inks and
paper-makings. Adhering to the culture philosophy of “Harmony and Credibility”,
Shandong Dongjia Group has gradually developed into the leadership of Chinese
Titanium Dioxide Industry. It has been awarded No.1 titanium dioxide
manufacturer in consecutive 7 years since 2004 by titanium dioxide branch
centre of national chemical industry productivity force in terms of production
output, export earnings, market share, economic performance and comprehensive
strengthens. Dongjia is also the first tio2 manufacturer in China to be certified
by ISO9001 on management, ISO14004 on environment and OHSAS ISO18001 on
occupation health & safety. Dongjia capacity had been expanded to 160KT on
early 2011 and become the largest titanium dioxide manufacturer in Asia.
Registration No.: 370300228041166
Registered Capital: CNY 100,000,000
Legal Representative: Sun Jiacai
Legal Form: Shares Limited Company
Website: www.dongjiagroup.com
E-mail: market@dongjiagroup.com
Tel: 86-533-4161746/4167709
Fax: 86-533-4167709
Add: No. 55, Henglihe, Qiugu, Boshan District, Zibo, Shandong Province
Shandong Xianghe Group Co., Ltd.
------------------------------------------
Date of Registration:
Unified Social Credit Code: 91370000267170738F
Registered Capital: CNY 80,000,000
Legal Representative: Zhao Jichun
Legal Form: Shares Limited Company
Zibo Boshan Development Zone Thermal Power Plant Co., Ltd.
--------------------------------------------
Date of Registration:
Registration No.: 370304228020565
Registered Capital: CNY 15,315,600
Legal Representative: Chen Wanxian
Legal Form: Limited liabilities company
Sun Jiacai, Legal Representative, Chairman and General
Manager
-------------------------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Also working in Shandong Dongjia Group Co., Ltd. as legal representative
Director
------------
Cui Desheng
Zhao Lingyan
Li Jinliang
Zhou Zuying
Sun Peng
Li Dongmei
Zhao Jichun
Supervisor
--------------
Sun Qiguo
Liu Chuanli
Huang Baofeng
Wang Baichun
SC’s registered business scope includes manufacturing
and selling sulfuric acid (validity period with permit if needed);
manufacturing and selling polymeric ferric sulfate, ferrous sulfate, titanium
dioxide, importing and exporting goods and technologies (with permit if needed)
SC is mainly engaged in manufacturing and selling sulfuric acid,
polymeric ferric sulfate, ferrous sulfate, titanium dioxide.
SC’s products mainly include: sulfuric acid, polymeric ferric sulfate,
ferrous sulfate, titanium dioxide.
SC sources its materials 70% from domestic market, and 30% from overseas
market. SC sells 20% of its products in domestic market, and 80% to the
overseas markets.
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 Customer*
---------------------
Dover Sales Co. Inc
Staff &
Office:
--------------------------
SC is known to have approx. 600
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
According to the
website: www.dongjiagroup.com
Shandong Suntiox Industrial Co., Ltd.
Date of Registration:
Registration No.: 370300400003362
Registered Capital: USD 6,000,000
Legal Representative: Sun Peng
Legal Form: Chinese-foreign equity joint venture enterprise
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.
Basic Bank
Bank of China
AC#: N/a
Financial Summary
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Unit: CNY’000 |
As of Dec. 31,
2014 |
|
Cash & Bank |
70,110 |
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Total assets |
496,030 |
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Current liabilities |
358,320 |
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Long term liabilities |
12,780 |
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------------- |
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Total liabilities |
371,100 |
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Equities |
124,930 |
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As of Dec. 31,
2014 |
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Revenue |
556,150 |
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Cost of sales |
509,340 |
|
Sales expense |
14,550 |
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Management expense |
20,200 |
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Finance expense |
17,040 |
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Non-operating income |
930 |
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Non-operating expense |
750 |
|
Profit before tax |
-7,690 |
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Less: profit tax |
340 |
|
Profits |
-8,030 |
Important Ratios
=============
|
|
As of Dec. 31,
2014 |
|
*Liabilities to assets |
0.75 |
|
*Net profit margin (%) |
-1.44 |
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*Return on total assets (%) |
-1.62 |
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*Revenue/Total assets |
1.12 |
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*Cost of sales/Revenue |
0.92 |
PROFITABILITY:
FAIR
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.32 |
|
|
1 |
Rs.98.98 |
|
Euro |
1 |
Rs.72.13 |
|
CNY |
1 |
Rs.10.23 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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 |
|
|
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 |
|
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
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.