MIRA INFORM REPORT
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Report No. : |
321197 |
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Report Date : |
11.05.2015 |
IDENTIFICATION DETAILS
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Name : |
DO-FLUORIDE CHEMICALS CO., LTD. |
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Registered Office : |
Jiaoke Road, Zhongzhan District, Jiaozuo City, Henan Province, 454006 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
21.12.1999 |
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Com. Reg. No.: |
410000100017198 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in manufacturing inorganic salt, inorganic acid,
additives, alloy materials and products; manufacturing LED energy-saving
products; technology development and sales of electronic digital products,
lithium-ion batteries and materials; computer software development and
services; streetlight installation works; digital printing of publications,
packaging materials and other printed matter of business; import and export
business (excluding the items prohibited by laws and regulations; and shall
not operate without approval) |
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No. of Employees : |
1,224 |
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 – 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
DO-FLUORIDE
CHEMICALS CO., LTD.
JIAOKE ROAD, ZHONGZHAN DISTRICT, JIAOZUO
CITY,
HENAN PROVINCE, 454006 PR CHINA
TEL: 86 (0) 391-2956992 FAX: 86 (0) 391-2956956
EXECUTIVE
SUMMARY
INCORPORATION DATE :
DEC. 21, 1999
REGISTRATION NO. :
410000100017198
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 1,224
REGISTERED CAPITAL :
CNY 231,120,000
BUSINESS LINE :
R&D, MANUFACTURING AND TRADING
TURNOVER :
CNY 2,131,897,000 (CONSOLIDATED,
AS OF DEC. 31, 2014)
EQUITIES :
CNY 1,655,409,000 (CONSOLIDATED, AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.2080=USD 1
HISTORY
SC was registered as a Limited liabilities co. at Jiaozuo Municipal Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Dec. 21, 1999, and has been under the present legal form since 2004.
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
inorganic salt, inorganic acid, additives, alloy materials and products;
manufacturing LED energy-saving products; technology development and sales of
electronic digital products, lithium-ion batteries and materials; computer
software development and services; streetlight installation works; digital
printing of publications, packaging materials and other printed matter of
business; import and export business (excluding the items prohibited by laws
and regulations; and shall not operate without approval)
SC is mainly engaged in researching, developing, manufacturing and selling high-performance fluoride products
Mr. Li Shijiang is the legal representative and chairman of SC at present.
SC is known to have approx. 1,224 employees at present, including 832 production staff, 78 sales staff, 222 technical staff, 27 financial staff, 53 administration staff and 12 support staff.
The subject operates from premises located at the heading address, and this address houses its operating office and factory in Jiaozuo. SC’s management declined to release detailed information of the premise.
WEB
SITE
http://www.dfdchem.com The design is professional and the content is well organized. At present it is in Chinese and English versions.
E-mail: dfd@dfdchem.com
KEY
EVENTS/RECENT DEVELOPMENT
SC listed in Shenzhen stock exchange with code 002407.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration no. |
4108001000784 |
Present one |
|
2004-12 |
Company name |
Jiaozuo Do-Fluoride Chemicals Co., Ltd |
Present one |
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Legal form |
Limited liabilities co. |
Present one |
Tax registration number: 410803719115730
Organization code: 719115730
Honors:
OWNERSHIP/MANAGEMENT
MAIN SHAREHOLDERS: (As of March 31, 2015)
Name
%
of shareholdings
Li Shijiang 15.57
Li Xin 2.95
Zhou Tuanzhang 2.82
Agricultural Bank of China-Yimin Innovation Advantage Mixed Securities Investment Fund 2.42
Wang Jinlin 2.16
Gao Qiang 1.65
Hou Hongjun 1.61
Li Lingyun 1.22
Industrial and Commercial Bank of China
-Rongtong Power Pioneer Stock Securities
Investment Fund 0.94
Zhao Shuangcheng 0.91
Other shareholders 67.75
MANAGEMENT
l Legal
representative and Chairman:
Working Experience(s):
At present Working in SC as legal representative and chairman.
l General manager:
Mr. Hou Hongjun, born in 1968, with university education, professor level senior engineer. He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager
Also working in Do-Fluoride (Jiaozuo) New Energy Technology Co., Ltd. as legal representative.
Vice General managers:
Ms. Li Lingyun born in 1976, with master’s degree;
Mr. Li Yunfeng born in 1980, with master’s degree;
Mr. Chen Xiangju born in 1974, with university education, lawyer, economist;
Mr. Cheng Lijing born in 1973, with university education, accountant;
Mr. Hao Jiantang born in 1971, with university education, engineer;
Mr. Yang Huachun born in 1970, with university education, senior engineer;
Mr. Han Shijun born in 1967, with university education, senior technician;
Mr. Gu Zhengyan born in 1972, with university education, assistant engineer;
They are currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as vice
general managers.
Ms. Li Lingyun is
also working in Jiaozuo Fluochem Industry Co., Ltd. and Shenzhen Do-Fluoride
New Energy Technology Co., Ltd. as legal representative.
Directors:
Zhang Dong
Luo Binyuan
Li Yingjiang
Supervisors:
Zhao Shuangcheng
Ma Baoqun
Tian Feiyan
Xu Suijun
BUSINESS
OPERATIONS
SC is mainly engaged
in researching, developing, manufacturing and selling high-performance fluoride
products.
Products/Services
description:
*Fluoride for
electrolytic aluminum
Synthetic Cryolite
Granulated Synthetic
Cryolite
Anhydrous Aluminum
Fluoride
*Other Fluorides
Sodium Fluoride
Sodium Fluosilicate
Potassium
Fluoaluminate
Potassium
Borofluoride
SC sources its
materials 100% from domestic market. SC sells 80% of its products in domestic
market, and 20% to overseas market.
The buying terms of
SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include
Check, T/T, L/C and Credit of 30-60 days.
Trademark & Patents
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Registration No. |
6578815 |
6578812 |
6578819 |
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Registration Date |
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Trademark Design |
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Note: SC refused to
release its major suppliers and clients.
RELATED
COMPANIES
SC is known to
invest in the following companies:
Jiaozuo Fluochem Industry Co., Ltd.
============================
Incorporation date:
Registration no.: 410800400000466
Registered capital: USD 2,500,000
Legal representative: Li Lingyun
Legal form: Chinese-foreign contractual joint venture enterprise
Do-Fluoride (Jiaozuo) New Energy Technology Co., Ltd.
===========================================
Incorporation date:
Registration no.: 410803000005822
Registered capital: CNY 110,000,000
Legal representative: Hou Hongjun
Legal form: One-person Limited Liability Company
E-mail: dfdxny@dfdchem.com
Tel: 0391-2956299
Fax: 0391-2956986-608
Shenzhen Do-Fluoride New Energy Technology Co., Ltd.
========================================
Incorporation date:
Registration no.: 440301105733318
Registered capital: CNY 10,000,000
Legal representative: Li Lingyun
E-mail: dfd-led@dfdchem.com
Tel: 0755-28300273
Fax: 0755-28300872
PAYMENT
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.
BANKING
SC’s accountant
refused to release the bank details.
FINANCIAL
HIGHLIGHTS
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2014 |
As of Dec. 31,
2013 |
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Cash & bank |
290,793 |
183,386 |
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Inventory |
338,048 |
284,819 |
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Notes receivable |
108,839 |
68,936 |
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Accounts receivable |
383,321 |
280,315 |
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Advances to suppliers |
89,393 |
114,434 |
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Interest receivable |
2,962 |
3,325 |
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Other receivables |
22,460 |
21,202 |
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Non-current assets due within one year |
25,000 |
0 |
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Other current assets |
125,435 |
79,816 |
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------------------ |
------------------ |
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Current assets |
1,386,251 |
1,036,233 |
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Entrusted loans and advances |
81,717 |
0 |
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Financial assets available for sale |
8,053 |
8,053 |
|
Fixed assets net value |
1,192,946 |
966,104 |
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Investment property |
2,212 |
2,309 |
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Long term investment |
46,970 |
38,390 |
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Projects under construction |
227,826 |
364,244 |
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Construction material |
17,397 |
15,734 |
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Long term deferred expenses |
6,443 |
6,212 |
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Deferred income tax assets |
24,437 |
16,805 |
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Goodwill |
639 |
639 |
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Intangible assets |
53,767 |
55,853 |
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Other assets |
115,204 |
202,304 |
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------------------ |
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Total assets |
3,163,862 |
2,712,880 |
|
|
=========== |
=========== |
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Short loan |
585,500 |
464,200 |
|
Accounts payable |
211,035 |
201,494 |
|
Notes payable |
390,684 |
26,945 |
|
Advances from clients |
7,795 |
15,340 |
|
Employee pay payable |
16,469 |
16,712 |
|
Taxes payable |
-63,732 |
-70,644 |
|
Interest payable |
28 |
0 |
|
Dividends payable |
2,014 |
1,042 |
|
Other Accounts payable |
59,943 |
32,603 |
|
Non-current liabilities due within one year |
0 |
231,000 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current liabilities |
1,209,736 |
918,692 |
|
Non-current liabilities |
298,717 |
157,636 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,508,453 |
1,076,328 |
|
Equities |
1,655,409 |
1,636,552 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
3,163,862 |
2,712,880 |
|
|
=========== |
=========== |
Consolidated
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2014 |
As of Dec. 31,
2013 |
|
Turnover |
2,131,897 |
1,559,551 |
|
Cost of goods sold |
1,861,787 |
1,300,506 |
|
Taxes and
additional of main operation |
5,308 |
3,145 |
|
Sales expense |
91,770 |
85,620 |
|
Management expense |
121,209 |
118,504 |
|
Finance expense |
44,499 |
36,575 |
|
Impairment of assets |
20,014 |
-2,678 |
|
Investment income |
6,542 |
4,761 |
|
Non-operating income |
21,823 |
12,062 |
|
Non-operating
expenses |
19,878 |
17,149 |
|
Other income |
7,828 |
0 |
|
Profit before tax |
3,625 |
17,553 |
|
Less: profit tax |
-4,073 |
1,136 |
|
Profits |
7,698 |
16,417 |
Important Ratios
=============
|
|
As
of Dec. 31, 2014 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.15 |
1.13 |
|
*Quick ratio |
0.87 |
0.82 |
|
*Liabilities
to assets |
0.48 |
0.40 |
|
*Net profit
margin (%) |
0.36 |
1.05 |
|
*Return on
total assets (%) |
0.24 |
0.61 |
|
*Inventory
/Turnover ×365 |
58 days |
67 days |
|
*Accounts
receivable/Turnover ×365 |
66 days |
66 days |
|
*Turnover/Total
assets |
0.67 |
0.57 |
|
* Cost of
goods sold/Turnover |
0.87 |
0.83 |
FINANCIAL
COMMENTS
PROFITABILITY: AVERAGE
The turnover of SC appears good in its line in both years.
l
SC’s
net profit margin is average in both years.
SC’s return on total assets is average in both years.
SC’s cost of goods sold is average in both years, comparing with its
turnover.
LIQUIDITY: AVERAGE
l The current ratio
of SC is maintained in a normal level in both years.
l SC’s quick ratio
is maintained in a normal level in both years.
l The inventory of
SC appears average in both years.
l The accounts
receivable of SC appears average in both years.
l
SC’s short-term loan appears average in both years.
l SC’s turnover is
in a fair level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
l The debt ratio of
SC is low.
l The risk for SC to
go bankrupt is low.
Overall financial condition of the SC:
Stable.
REMARKS
SC is considered large-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.05 |
|
|
1 |
Rs.99.04 |
|
Euro |
1 |
Rs.71.76 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
VNT |
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 |
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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.