MIRA INFORM REPORT
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Report No. : |
305832 |
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Report Date : |
02.02.2015 |
IDENTIFICATION DETAILS
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Name : |
GUANGDONG LIWEI CHEMICAL INDUSTRY CO., LTD. |
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Registered Office : |
Jintang Town, Maonan District, Maoming, Guangdong Province 525025 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
29.11.1993 |
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Com. Reg. No.: |
440900000015040 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing, processing and selling herbicide, pesticides, microbicides, intermediates, daily chemicals and light textiles; chemical raw materials and chemical products (excluding hazardous chemicals and flammable & explosive substances) as well as importing and exporting commodities (excluding confined items). |
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No of Employees : |
108 (Approximately) |
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 : |
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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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 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.
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Source
: CIA |
COMPANY
NAME & ADDRESS
GUANGDONG LIWEI CHEMICAL INDUSTRY CO., LTD.
JINTANG TOWN, MAONAN DISTRICT, MAOMING,
GUANGDONG PROVINCE 525025 PR CHINA
TEL: 86 (0) 668-2366226 FAX: 86 (0) 668-2366928
EXECUTIVE
SUMMARY
INCORPORATION DATE : NOV. 29, 1993
REGISTRATION NO. : 440900000015040
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
108 (Approximately)
REGISTERED CAPITAL : CNY 20,080,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 121,260,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 24,280,000 (AS OF DEC. 31, 2013)
PAYMENT : no complaints
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.2145 = USD 1
Adopted
abbreviations:
ANS - Amount not stated
NS - Not stated
SC - Subject company (the company inquired by you)
NA - Not available
CNY - China Yuan Renminbi
Note: SC is also known as
Guangdong Liwei Chemicals Co., Ltd.
SC was registered as a Limited liabilities co.
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Nov. 29, 1993.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their capital
contributions in cash or by means of tangible assets or intangible assets
such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s
registered business scope includes manufacturing, processing and selling
herbicide, pesticides, microbicides, intermediates, daily chemicals and light
textiles; chemical raw materials and chemical products (excluding hazardous
chemicals and flammable & explosive substances) as well as importing and
exporting commodities (excluding confined items).
SC is mainly
engaged in manufacturing and selling pesticide intermediates and preparations.
Mr. Dong Chaolin
is legal representative, chairman and general manager of SC at present.
SC is known to
have approx. 108 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Maoming. Our checks reveal that SC owns the total premise about
10,000 square meters.
http://www.liweichem.com/ The
design is professional and the content is well organized. At present the web
site is in Chinese and English versions.
E-mail: liwei@liweichem.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
SC has been approved ISO9000 Certificate & UKAS Certificate, honored
as "Honest Business Enterprise in Guangdong Province" for 10
consecutive years, "Top 50 Companies" in Maoming City, "Overall
Quality Management Certified Company by the Ministry of Agriculture",
"Advance enterprise of Guangdong", "Guangdong High-tech
Enterprise ", and "Guangdong Name Brand Product Enterprise".
Organization code: 195033696
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name Investment amount (CNY) % of Shareholding
Dong Chaolin 16,084,000 80.1
Dong Gang 2,008,000 10
Dong Zhu 1,988,000 9.9
l Legal
Representative, Chairman and General Manager:
Mr. Dong Chaolin, ID# 44092419500701XXXX, born in 1950. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative, chairman
and general manager.
l Supervisor:
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Dong Gang
SC is mainly
engaged in manufacturing and selling pesticide intermediates and preparations.
SC’s products mainly include hygienic insecticides & formulations
Hygienic insecticides:
Bifenthrin 92% tech min
Beta-cyfluthrin 95% tech min
Beta-cypermethrin 97% tech min
Cypermethrin 95% tech min
Deltamethrin 98% tech min
D-phenothrin 90% tech min
D-T-cyphenothrin 95% tech min
D-T-tetramethrin 94% tech min
Tetramethrin 95% tech min
Permethrin 95% tech min
Chlorempenthrin 94% tech min
Lambda-cyhalothrin 98% tech min
Alpha-cypermethrin 96% tech min
Formulations:
Glyphosate 30%AS
Profenofos 40%EC
Fenvalerate + Phoxim 50%EC
Fenvalerate + Malathion 20%EC
Abamectin + Pyridaben 5%EC
Abamectin + Triazophos 20%EC
Abamectin + Pyridaben 1.8%EC
Abamectin 1.8%EC
Cyfluthrin + Malathion 20%EC
Cyfluthrin 5.7%EC
Cypermethrin 10%EC
Cypermethrin 5%EC
Beta-cypermethrin 4.5%ME
Beta-cypermethrin 4.5%EC
Beta-cypermethrin + Malathion 20%EC
SC sources its
materials 95% from domestic market and 5% from overseas market. SC sells 50% of
its products in domestic market and 50% to overseas market, mainly Southeast
Asia 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.
Note
SC declined to release its major suppliers and clients.
Trademark &
Patents
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Registration No. |
4463459 |
7998482 |
9238209 |
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Registration Date |
2008-4-14 |
2011-2-7 |
2012-3-28 |
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Trademark Design |
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According to SC’s website:
International Trade Office:
Add.: Rm. 1002, Wuyangxincheng Plaza, No.111 Siyouxinma
Road, 510600 Guangzhou, China
Tel: +86-20-87379479
Fax: +86-20-87390751
Email: trade@liweichem.com
Overall payment appraisal:
( ) Excellent (
) Good (X) No Complaints ( )
Fair ( ) Poor
( ) Not yet 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.
SC’s accountant
refused to release the bank details.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Cash & bank |
14,690 |
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Inventory |
16,670 |
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Accounts
receivable |
2,450 |
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Advances to
suppliers |
20,190 |
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Other
receivables |
2,930 |
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Other current
assets |
5,750 |
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Current assets |
62,680 |
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Fixed assets net
value |
4,040 |
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Long term
investment |
3,630 |
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Projects under
construction |
0 |
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Intangible and
other assets |
1,560 |
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Total assets |
71,910 |
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=========== |
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Short loan |
6,430 |
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Accounts payable |
2,980 |
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Bills payable |
18,840 |
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Advances from
clients |
16,290 |
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Taxes payable |
-1,310 |
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Other Accounts
payable |
4,370 |
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Other current
liabilities |
30 |
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Current
liabilities |
47,630 |
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Long term
liabilities |
0 |
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Total
liabilities |
47,630 |
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Equities |
24,280 |
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Total
liabilities & equities |
71,910 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2013 |
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Turnover |
121,260 |
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Cost of goods sold |
108,550 |
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Sales expense |
4,220 |
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Management expense |
7,860 |
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Finance expense |
540 |
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Profit before tax |
410 |
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Less: profit tax |
100 |
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Profits |
310 |
Important
Ratios
=============
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As of Dec. 31, 2013 |
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*Current ratio |
1.32
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*Quick ratio |
0.97
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*Liabilities
to assets |
0.66
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*Net profit
margin (%) |
0.26
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*Return on total
assets (%) |
0.43
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*Inventory
/Turnover ×365 |
51
days |
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*Accounts
receivable/Turnover ×365 |
8
days |
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*Turnover/Total
assets |
1.69
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* Cost of
goods sold/Turnover |
0.90
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PROFITABILITY:
AVERAGE
l The turnover of SC
appears fairly good.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
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 appears average.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears average.
l
SC’s turnover 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.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs. 61.76 |
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1 |
Rs. 93.13 |
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Euro |
1 |
Rs. 70.03 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
MNL |
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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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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.