MIRA INFORM REPORT
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Report No. : |
321230 |
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Report Date : |
09.05.2015 |
IDENTIFICATION DETAILS
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Name : |
Sichuan Yongxiang co., ltd. |
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Registered Office : |
No. 96, Yongxiang Road, Zhugen Town, Wutongqiao District, Leshan,
Sichuan Province, 614800 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
12.11.2002 |
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Com. Reg. No.: |
511100000016294 |
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
Manufacturing and Selling of Polyvinyl Chloride and its Series
Products. |
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No. of Employees : |
920 |
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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 |
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 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
Name and address
Sichuan Yongxiang co., ltd.
NO. 96, YONGXIANG
ROAD, ZHUGEN TOWN, WUTONGQIAO DISTRICT, LESHAN, SICHUAN PROVINCE, 614800 PR
CHINA
TEL:
86 (0) 833-3155006 FAX:
86 (0) 833-3155666
EXECUTIVE
SUMMARY
INCORPORATION
DATE : NOV. 12,
2002
REGISTRATION
NO. : 511100000016294
REGISTERED
LEGAL FORM : SHARES LIMITED CO.
STAFF
STRENGTH :
920
REGISTERED
CAPITAL : CNY 1,029,281,080
BUSINESS
LINE :
MANUFACTURING & TRADING
TURNOVER : CNY
854,070,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 2,172,200,000 (AS OF DEC. 31, 2014)
PAYMENT
:
AVERAGE
MARKET
CONDITION :
AVERAGE
FINANCIAL
CONDITION : FairLY
STABLE
OPERATIONAL
TREND : FAIRLY STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.2080= 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
SC was registered as a Shares limited co. at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Nov. 12, 2002.
Company Status:
Shares limited co. This form of business in PR China is defined as a legal
person. Its registered capital is divided into shares of equal par value
and the co. raises capital by issuing share certificates by promotion or by
public offer. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to the extent of its
total assets. The co has independent property of legal person and enjoys
property rights of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co. requires at least two
promoters and no more than 200, half
of whom shall be domiciled in China.. Natural person are allowed to
serve as promoters. The minimum registered capital of a co. is CNY The board of directors must consist of five to nineteen
directors. If the co. raises capital by public offer, the promoters
must not subscribe less than 35% of the total shares. the promoters’ shares
are restricted to transfer- within one year of the offer. A state-owned enterprise that is restructured into a
shares limited co. must comply with the conditions & requirements
specified under the law & administrative rule.
SC’s registered
business scope includes manufacturing and selling polyvinyl chloride and its
series products, caustic soda and auxiliary products, carbide slag cement and concrete;
design and service of office computer system; investing foreign projects;
researching and developing chemical products; manufacturing waste gas, waste
residue; waste water treatment; exporting self-made products; importing and
exporting raw materials, instruments, machinery equipment and technologies
needed in manufacturing (excluding commodities and technologies prohibited by
the state).
SC is mainly engaged in manufacturing and
selling polyvinyl chloride and its series products.
Mr. Feng Dezhi is legal representative and
chairman of SC at present.
SC is known to
have approx. 920 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 Leshan. The detailed premise information is unspecified.
http://www.scyxgf.com/ The design is
professional and the content is well organized. At present it is in Chinese
version.
Email: yxtx@yongx.net
No significant
events or changes were found during our checks with the local Administration
for Industry and Commerce.
Organization Code:
744651666
There is no record
of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Tongwei Group Co., Ltd.
35.47
Sichuan Giastar Group Co., Ltd. 15.84
Other shareholders 48.69
Tongwei Group Co., Ltd.
==================
Registered no.: 510000000212108
Legal representative: Guan Yamei
Establishment date:
Sichuan Giastar Group Co.,
Ltd.
========================
Registered no.: 511100000019805
Legal representative: Tang Guangyue
Establishment date:
Web: http://www.scjxjt.com.cn/
l Legal representative and chairman:
Mr. Feng Dezhi is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative and chairman.
Also working in Sichuan Yongxiang Poly-Silicon Co.,
Ltd. as legal representative.
l Supervisors:
Chen Xingyu
Wang Zhijian
l
Directors:
Liu Hanyuan
Tang Guangyue
SC is mainly engaged in manufacturing and
selling polyvinyl chloride and its series products.
Main Products: Polyvinyl chloride (PVC), chemical
hydrogen silicon and calcium carbide slag cement, etc.
SC sources its
materials 60% from domestic market and 40% from overseas market. SC sells 70%
of its products in domestic market and 30% 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.
Note: SC refused to
release its major customers and suppliers.
Trademark & Patents
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Registration No. |
7546485 |
7378312 |
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Registration Date |
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Trademark Design |
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Subsidiary:
Sichuan
Yongxiang Poly-Silicon Co., Ltd.
Registered no.: 511100000016899
Legal representative: Feng Dezhi
Establishment date:
Overall payment
appraisal :
( ) Excellent (
) Good (X) Average (
) 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.
Financial Summary
===============
Unit: CNY’000
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As of Dec. 31, 2014 |
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Total liabilities |
2,344,580 |
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Equities |
2,172,200 |
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-------------- |
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Total liabilities & equities |
4,516,780 |
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========= |
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Turnover |
854,070 |
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Profits |
-31,460 |
Note:
SC’s management refused to release its detailed financial reports.
Important Ratios
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as of Dec.
31, 2014 |
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*Liabilities to assets |
0.52 |
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*Net profit margin (%) |
-3.68 |
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*Return on total assets (%) |
-0.70 |
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*Turnover/Total assets |
0.19 |
PROFITABILITY: FAIR
l The turnover of SC appears fairly good in
its line.
l SC’s net profit margin is fair.
l SC’s return on total assets is fair.
l SC’s turnover is in a poor 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.
SC is considered
medium-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.64.05 |
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|
1 |
Rs.99.04 |
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Euro |
1 |
Rs.71.76 |
INFORMATION DETAILS
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Analysis Done by
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RAS |
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Report Prepared
by : |
NIT |
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.