MIRA INFORM REPORT
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Report No. : |
331983 |
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Report Date : |
15.07.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI PHICHEM MATERIAL CO., LTD. |
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Registered Office : |
No. 169 Guiqiao Road, Jinqiao Export Processing Zone Pudong New Area, Shanghai 201206 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
26.04.2002 |
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Com. Reg. No.: |
310115400094077 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in researching
and manufacturing high performance coatings, selling its owned products,
providing related technical advice and after-sales service; wholesale, import and export of above
similar products and chemical products, providing related supporting
business. |
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No. of Employees : |
339 |
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 – 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. 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
SHANGHAI PHICHEM
MATERIAL CO., LTD.
No. 169 Guiqiao Road, Jinqiao Export Processing Zone
Pudong New Area, Shanghai 201206 Pr China
TEL: 86 (0) 21-50322662/50551001-8226
FAX: 86 (0) 21-50322661
EXECUTIVE
SUMMARY
Date of Registration : april 26, 2002
REGISTRATION NO. : 310115400094077
LEGAL FORM : Shares limited company
REGISTERED CAPITAL : CNY
80,000,000
staff :
339
BUSINESS CATEGORY : MANUFACTURING
& TRADING
REVENUE :
CNY 402,418,000 (CONSOLIDATED, AS OF DEC. 31, 2014))
EQUITIES :
CNY 644,391,000 (CONSOLIDATED, AS OF DEC. 31, 2014)
WEBSITE : www.phichem.com.cn
E-MAIL :
investor@phichem.com.cn
PAYMENT : NO
COMPLAINTS
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.20 = USD 1 AS
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 April 26, 2002. 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.: 310115400094077.
SC’s Organization Code Certificate No.:
73814112-5
SC’s Tax No.: 310115738141125
SC’s registered capital: CNY 80,000,000
SC’s paid-in capital: CNY 80,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
2014 |
Registered Capital |
CNY 60,000,000 |
CNY 80,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As
of March 31, 2015) |
% of Shareholding |
|
Hong Kong Phichem Holdings, Limited |
53.8 |
|
Shanghai Kangqi Investment Co., Ltd. |
3.95 |
|
Beijing Hanhe Taixing Management
Consulting Co., Ltd. |
3.75 |
|
Rugao Boxin Enterprise Management Services
Co., Ltd. |
3 |
|
Jiangsu KK Telecom Materials Co., Ltd. |
3 |
|
Shanghai Kaijia Investment & Management Consulting Co., Ltd. |
3 |
|
Beijing Lianke Sikai Logistic Software
Co., Ltd. |
3 |
|
Beijing Hongcheng Xintuo Management
Consulting Co., Ltd. |
0.75 |
|
Beijing Dele Management Consulting Co.,
Ltd. |
0.75 |
|
Industrial and Commercial Bank of
China-Yuanxin Yongfeng Double Dividend Flexible Configuration Hybrid
Securities Investment Fund |
0.49 |
|
Other Shareholders |
24.51 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Zhang Jinshan |
|
Vice Chairman |
Jin Ding |
|
Director |
Wang Zhijin |
|
Wang Yuan |
|
|
Yu Li |
|
|
Su Bin |
|
|
Guo Wenqing |
|
|
Qian Tingshuo |
|
|
|
|
|
Supervisor |
Wang Lin |
|
Qiu Yiqun |
|
|
Wang Lin |
RECENT
DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange with the code of
300398.
SHAREHOLDER
CHART & BACKGROUND
Name (As of March 31, 2015) %
of Shareholding
Hong Kong Phichem Holdings, Limited 53.8
Shanghai Kangqi Investment Co., Ltd. 3.95
Beijing Hanhe Taixing Management Consulting
Co., Ltd. 3.75
Rugao Boxin Enterprise Management Services
Co., Ltd. 3
Jiangsu KK Telecom Materials Co., Ltd. 3
Shanghai Kaijia Investment & Management Consulting Co., Ltd 3
Beijing Lianke Sikai Logistic Software Co.,
Ltd. 3
Beijing Hongcheng Xintuo Management Consulting Co., Ltd 0.75
Beijing Dele Management Consulting Co., Ltd. 0.75
Industrial and Commercial Bank of
China-Yuanxin Yongfeng Double Dividend Flexible Configuration Hybrid Securities
Investment Fund 0.49
Other Shareholders 24.51
Hong Kong Phichem Holdings, Limited
------------------------------------------------
Registration No.: 0830489
Legal Form: Private
Shanghai Kangqi Investment Co., Ltd.
----------------------------------------------
Registration No.: 310107000492207
Legal Form: One-person Limited
Liability Company
Registered Capital: CNY 34,000,000
Beijing Hanhe Taixing Management Consulting
Co., Ltd.
-------------------------------------------
Registration No.: 110113012951353
Legal Form: One-person Limited
Liability Company
Registered Capital: CNY 100,000
Rugao Boxin Enterprise Management Services
Co., Ltd.
--------------------------------------------------------------------
Registration No.: 320682000221322
Legal Form: One-person Limited Liability Company
Legal Representative: Chen Meiyun
Registered Capital: CNY 100,000
Jiangsu KK Telecom Materials Co., Ltd.
-----------------------------------------------
Registration No.: 320000000040211
Legal Form: One-person Limited Liability Company
Legal Representative: Han Zhikai
Registered Capital: CNY 6,000,000
Shanghai Kaijia Investment & Management
Consulting Co., Ltd.
-------------------------------------------------
Registration No.: 310115001253645
Legal Form: Limited
Liability Company
Legal Representative: Zhang Yanxia
Registered Capital: CNY 3,500,000
Beijing Lianhe Sikai Logistics Software Co., Ltd.
------------------------------------------------
Registration No.: 110108010210496
Legal Form:
One-person Limited Liability Company
Chief Executive: Jin Ding
Registered Capital: CNY 500,000
Beijing Hongcheng Xintuo Management Consulting Co., Ltd.
---------------------------------------------------
Registration No.: 110113012969706
Legal Form:
One-person Limited Liability Company
Chief Executive: Li Yongcheng
Registered Capital: CNY 100,000
Beijing Dele Management Consulting Co., Ltd.
-------------------------------------------
Registration No.: 110302012915910
Legal Form:
One-person Limited Liability Company
Chief Executive: Yu Li
Registered Capital: CNY 100,000
MANAGEMENT
Zhang
Jinshan, Legal Representative, Chairman
and General Manager
-------------------------------------------------------------------------------------------------------
Ø 
Gender: M
Ø Nationality: USA
Ø Age: 52
Ø Qualification: Doctor
degree
Ø Working experience
(s):
From 2002 to present, working in SC as
legal representative, chairman and general manager, also as director of Hong
Kong Phichem Holdings, Limited
Jin
Ding , Vice Chairman
----------------------------------------
Ø Gender: M
Ø Age: 54
Ø Qualification:
Postgraduate
Ø Working experience
(s):
At present, working in SC as vice
chairman
Also working in
Beijing Lianhe Sikai Logistics Software Co., Ltd. as legal representative
Director
-----------
Wang Zhijin
Wang Yuan
Yu Li
Su Bin
Guo Wenqing
Qian Tingshuo
Supervisor
--------------
Wang Lin
Qiu Yiqun
Wang Lin
BUSINESS
OPERATION
SC’s registered business scope includes researching and manufacturing high performance coatings, selling its owned products, providing related technical advice and after-sales service; wholesale, import and export of above similar products and chemical products, providing related supporting business.
SC is mainly engaged in manufacturing and selling optoelectronic materials.
Brand: PHICHEM
SC’s products mainly include: Optical Fiber and Cable Materials, Plastic Surface Finishes UV Coatings, UV Printing Products.
SC sources its materials 100% from domestic market, mainly Shanghai. SC sells 75% of its products in domestic market, and 25% to overseas market, mainly USA, Europe, Mid-East, Southeast Asia.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Phichem America Inc.
Staff & Office:
--------------------------
SC is known to have approx. 339 staff at present.
SC owns an area as
its operating office & factory of approx. 10,000 sq. meters at the heading
address.
RELATED
COMPANY
SC is known to have a
subsidiary at present,
Anqing
Feikai Macromolecule Materials Co., Ltd.
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
77,458 |
347,549 |
|
|
Notes receivable |
4,312 |
49,784 |
|
Accounts
receivable |
91,409 |
127,809 |
|
Advances to
suppliers |
2,568 |
8,462 |
|
Interest
receivable |
0 |
0 |
|
Other receivable |
7,940 |
3,789 |
|
Inventory |
44,465 |
37,888 |
|
Other current
assets |
38,813 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
266,965 |
575,281 |
|
Long-term equity
investment |
0 |
0 |
|
Fixed assets |
70,920 |
73,245 |
|
Construction in
progress |
49,824 |
126,628 |
|
Intangible
assets |
27,173 |
56,194 |
|
Goodwill |
0 |
0 |
|
Long-term
prepaid expenses |
1,100 |
519 |
|
Deferred income
tax assets |
1,883 |
2,251 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
417,865 |
834,118 |
|
|
============= |
============= |
|
Short-term loans |
80,724 |
59,000 |
|
Held for trading
financial liabilities |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
46,034 |
68,889 |
|
Advances from
clients |
688 |
269 |
|
Payroll payable |
6,501 |
7,033 |
|
Tax payable |
3,872 |
5,449 |
|
Interest payable |
0 |
0 |
|
Other payable |
3,733 |
4,759 |
|
Other current
liabilities |
7,500 |
17,500 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
149,052 |
162,899 |
|
Non-current
liabilities |
28,536 |
26,828 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
177,588 |
189,727 |
|
Equities |
240,277 |
644,391 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
417,865 |
834,118 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
Revenue |
323,231 |
402,418 |
|
Cost of sales |
181,652 |
220,079 |
|
Taxes and surcharges |
2,487 |
2,909 |
|
Sales expense |
15,043 |
18,348 |
|
Management expense |
46,013 |
52,909 |
|
Finance expense |
5,987 |
4,461 |
|
Investment
income |
0 |
0 |
|
Non-operating
income |
2,187 |
1,789 |
|
Non-operating expense |
0 |
1 |
|
Profit before
tax |
73,912 |
104,993 |
|
Less: profit tax |
8,475 |
14,912 |
|
Profits |
65,437 |
90,081 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
1.79 |
3.53 |
|
*Quick ratio |
1.49 |
3.30 |
|
*Liabilities
to assets |
0.42 |
0.23 |
|
*Net profit
margin (%) |
20.24 |
22.38 |
|
*Return on
total assets (%) |
15.66 |
10.80 |
|
*Inventory /
Revenue ×365 |
51 days |
35 days |
|
*Accounts
receivable / Revenue ×365 |
104 days |
116 days |
|
*Revenue /
Total assets |
0.77 |
0.48 |
|
*Cost of sales
/ Revenue |
0.56 |
0.55 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears average 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 low, 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 large.
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: 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: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.50 |
|
UK Pound |
1 |
Rs.98.20 |
|
Euro |
1 |
Rs.69.73 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
VNT |
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.