MIRA INFORM REPORT

 

 

Report No. :

323037

Report Date :

19.05.2015

 

IDENTIFICATION DETAILS

 

Name :

ENN ECOLOGICAL HOLDINGS CO., LTD.

 

 

Formerly Known As :

HEBEI VEYONG BIO-CHEMICAL CO., LTD.

 

 

Registered Office :

No. 393 Heping East Road, Shijiazhuang Hebei Province 050031 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

29.12.1992

 

 

Com. Reg. No.:

130000000008076

 

 

Legal Form :

Shares Limited Company

 

 

Line of Business :

Manufacturing and selling biocidal products, manufacturing and selling biochemical products, fine chemical products (excluding items limited or forbidden by State); wholesale and retail of chemical products (excluding items limited or forbidden by State) and daily use chemicals; wholesale, retail, importing and exporting business on pesticide, agricultural materials (including fertilizer), chemical products and its intermediates, chemical machinery equipment accessories (excluding items limited or forbidden by State); promotion and service of agricultural technology.

 

 

No. of Employees :

3,424

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

Payment Behaviour :

No Complaints

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

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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.

 

Source : CIA

Company name & address

 

ENN ECOLOGICAL HOLDINGS CO., LTD.

(FORMER NAME: HEBEI VEYONG BIO-CHEMICAL CO., LTD.)

NO. 393 HEPING EAST ROAD, SHIJIAZHUANG HEBEI PROVINCE 050031 PR CHINA

TEL: 86 (0) 311-85915898

FAX: 86 (0) 311-85915998

 

 

EXECUTIVE SUMMARY

 

Date of Registration                     : december 29, 1992

REGISTRATION NO.                              : 130000000008076

LEGAL FORM                                       : SHARES LIMITED COMPANY

CHIEF EXECUTIVE                               : WANG YUSUO (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL                         : CNY 985,785,043

staff                                                  : 3,424

BUSINESS CATEGORY                         : r & d & manufacturing & trading

Revenue                                            : CNY 4,868,705,000 (CONSOLIDATED, AS OF DEC. 31, 2014)

EQUITIES                                             : CNY 5,059,982,000 (CONSOLIDATED, AS OF DEC. 31, 2014)

WEBSITE                                              : www.veyong.com

E-MAIL                                                 : veyong@veyong.com

PAYMENT                                            : AVERAGE

MARKET CONDITION                            : competitive

FINANCIAL CONDITION                         : fairly good

OPERATIONAL TREND                         : fairly STEADY

GENERAL REPUTATION                       : average

EXCHANGE RATE                                : CNY 6.20 = USD 1

 

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 shares limited company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 130000000008076 on December 29, 1992.

 

SC’s Organization Code Certificate No.: 10774475-5

 

 

SC’s Tax No.: 130102107744755

 

SC’s registered capital: CNY 985,785,043

 

SC’s paid-in capital: CNY 985,785,043

 

Registration Change Record:-

 

Date

Change of Contents

Before the change

After the change

1999-3

Company Name

Hebei Veyong Industrial Co., Ltd.

Hebei Veyong Bio-Chemical Co., Ltd.

2008

Legal Representative

Yang Yu

Wang Yusuo

2009

Registration No.

1300001000524

130000000008076

2010-12

Registered Capital

CNY 236,443,430

CNY 311,832,403

--

Registered Capital

CNY 311,832,403

CNY 922,032,767

2014-8-18

Registered Capital

CNY 922,032,767

CNY 985,785,043

2014-12-24

Company Name

Hebei Veyong Bio-Chemical Co., Ltd.

Enn Ecological Holdings Co., Ltd.

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s) (As of March 31, 2015)

% of Shareholding

Xin'ao Holding Investment Co., Ltd.

30.97

Taoshi Energy Equity Investment Fund (Shanghai) Partnership Enterprise (Limited Partnership)

10.16

Beijing Xin’aoyin Energy Development Equity Investment Fund (Limited Partnership)

9.98

Langfang Heyuan Investment Center (Limited Partnership)

7.98

Hebei Weiyuan Group Co., Ltd.

7.22

Shenzhen Ping'an Innovation Capital Investment Co., Ltd.

4.31

Tianhong Fund-Industrial and Commercial Bank-Huarun Trust-Huarun Trust. Zengli No. 1 Single Asset Trust

3.7

Pingan Dahua Fund-Pingan Bank-Shenzhen Pingan Dahua Huitong Fortune Management Co., Ltd.

2.06

Fanhai Energy Investment Co., Ltd.

2

Legend Holdings Limited

2

Other Shareholders

19.62

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative and Chairman

Wang Yusuo

Vice Chairman

Yang Yu

General Manager

Li Xiufen

Director

Zhang Wei

Li Shan

Li Zunsheng

Fu Zhenqi

Zhao Yifeng

Xu Mengzhou

Ma Yuantong

Supervisor

Dong Yuwu

Cai Fuying

Wang Xi

 

 

RECENT DEVELOPMENT

 

SC is a listed company in Shanghai Stock Exchange Market with the code of 600803.

 

SC has been granted ISO9002: 1994 International System Quality Certificate, ISO9001: 2000 International System Quality Certificate, ISO14000 Environment Administration certificate and ISO18001 certificate, currently it is applying for the approval of FDA and COS.

 

 

SHAREHOLDER CHART & BACKGROUND

 

 

Name                                                                                                                          % of Shareholding

(As of March 31, 2015)

-----------------------------

Xin'ao Holding Investment Co., Ltd.                                                                                           30.97

           

Taoshi Energy Equity Investment Fund (Shanghai) Partnership Enterprise (Limited Partnership)     10.16

 

Beijing Xin’aoyin Energy Development Equity Investment Fund (Limited Partnership)                    9.98

 

Langfang Heyuan Investment Center (Limited Partnership)                                                           7.98

 

Hebei Weiyuan Group Co., Ltd.                                                                                                  7.22

 

Shenzhen Ping'an Innovation Capital Investment Co., Ltd.                                                           4.31

 

Tianhong Fund-Industrial and Commercial Bank-Huarun Trust-Huarun Trust. Zengli No. 1 Single Asset Trust  3.7

 

Pingan Dahua Fund-Pingan Bank-Shenzhen Pingan Dahua Huitong Fortune Management Co., Ltd. 2.06

 

Fanhai Energy Investment Co., Ltd.                                                                                            2

 

Legend Holdings Limited                                                                                                           2

 

Other Shareholders                                                                                                                    19.62

 

Xin'ao Holding Investment Co., Ltd.

-------------------------------------------

Registration No.: 131001000005249

Legal Form: Limited Liabilities Company

Registered Capital: CNY 900,000,000

Legal Representative: Wang Yusuo

 

Taoshi Energy Equity Investment Fund (Shanghai) Partnership Enterprise (Limited Partnership)

----------------------------------------------

Registration No.: 310000000100760

 

Beijing Xin’aoyin Energy Development Equity Investment Fund (Limited Partnership)

-----------------------------------------------

Registration No.: 110000014080365

 

Langfang Heyuan Investment Center (Limited Partnership)

------------------------------------------------

Registration No.: 131001200000942

 

Hebei Weiyuan Group Co., Ltd.

--------------------------------------

Registration No.: 130100000302417

Legal Form: Limited Liabilities Company

Registered Capital: CNY 130,000,000

Legal Representative: Yu Jianchao

 

Shenzhen Ping'an Innovation Capital Investment Co., Ltd.

-------------------------------------------

Registration No.: 440301103342926

Legal Form: One-person Limited Liabilities Company

Registered Capital: CNY 4,000,000,000

Legal Representative: Zhang Jinshun

 

Fanhai Energy Investment Co., Ltd.

-------------------------------------------

Registration No.: 110000011428669

Legal Form: Limited Liabilities Company

Registered Capital: CNY 2,000,000,000

Legal Representative: Qin Dingguo

 

Legend Holdings Limited

-------------------------------

Registration No.: 110000004205071

Legal Form: Limited Liabilities Company

Registered Capital: CNY 660,860,399.4

Legal Representative: Liu Chuanzhi

Web: www.legendholdings.com.cn

 

 

MANAGEMENT

 

Wang Yusuo, Legal Representative and Chairman

-----------------------------------------------------------------------------

Gender: M

Age: 51

Qualification: Doctor Degree

Working experience (s):

 

At, working in SC as legal representative and chairman

Also as director of SC, and in Xin'ao Holding Investment Co., Ltd., Xin’ao Energy Group Co., Ltd., Xin’ao Energy Supply Chain Co., Ltd., Xin’ao Energy Trading Co., Ltd. etc. as legal representative

 

Yang Yu, Vice Chairman

-----------------------------------------

Gender: M

Age: 58

Qualification: Master Degree

Working experience (s):

 

At, working in SC as vice chairman

 

Li Xiufen, General Manager

------------------------------------------------

Gender: F

Age: 53

Qualification: University

Working experience (s):

 

At, working in SC as general manager

 

Director

-----------

Zhang Wei

Li Shan

Li Zunsheng

Fu Zhenqi

Zhao Yifeng

Xu Mengzhou

Ma Yuantong

 

Supervisor

--------------

Dong Yuwu

Cai Fuying

Wang Xi

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing and selling biocidal products, manufacturing and selling biochemical products, fine chemical products (excluding items limited or forbidden by State); wholesale and retail of chemical products (excluding items limited or forbidden by State) and daily use chemicals; wholesale, retail, importing and exporting business on pesticide, agricultural materials (including fertilizer), chemical products and its intermediates, chemical machinery equipment accessories (excluding items limited or forbidden by State); promotion and service of agricultural technology.

 

SC is mainly engaged in R&D, manufacturing and selling pesticide products.

 

SC’s products mainly include: dimethyl ether, pesticide, veterinary drug.

 

SC sources its materials 95% from domestic market, mainly Shandong and Hebei Province, and 5% from the overseas market. SC sells 85% of its products in domestic market and 15% to overseas market, mainly U.S.A., etc.

 

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*

----------------------

Albaugh Inc.

 

Staff & Office:

--------------------------

SC is known to have approx. 3,424 staff at present.

 

SC owns an area as its operating office and factory, but the detailed information is unknown.

 

 

RELATED COMPANY

 

Xin’ao Energy Group Co., Ltd.

Xin’ao Energy Supply Chain Co., Ltd.

Xinneng Fenghuang (Tengzhou) Energy Co., Ltd.

Xin’ao Energy Trading Co., Ltd.

 

SC is known to invest in the following companies,

--------------------------------------------------------------

Inner Mongolia New Veyong Bio-Chemical Co., Ltd.

Registration No.: 152700400000525

Legal Representative: Liu Jishen

Date of Registration: 2004-07-16

 

Hebei Veyong Animal Pharmaceutical Co., Ltd.

Registration No.: 130000000024767

Legal Representative: Zhang Qing

Date of Registration: 2002-5-8

 

Xinneng (Zhangjiagang) Energy Co., Ltd.

 

Xinneng (Bengbu) Energy Co., Ltd.

 

Factories and branches,

------------------------------

Hebei Veyong Bio-Chemical Co., Ltd. Building Materials Factory

Hebei Veyong Bio-Chemical Co., Ltd. Jinzhou Zongshizhuang Branch

Hebei Veyong Bio-Chemical Co., Ltd. Luquan Preparation Branch

Hebei Veyong Bio-Chemical Co., Ltd. Lvfeng Agricultural Technology Service Branch

Hebei Veyong Bio-Chemical Co., Ltd. Biological Pharmaceutical 3rd Factory

Hebei Veyong Bio-Chemical Co., Ltd. Sales Branch

Hebei Veyong Bio-Chemical Co., Ltd. Zhaoxian Fanzhuang Branch

 

 

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’s suppliers declined to make any comments.

 

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 local SAIC.

 

 

FINANCIALS

 

Consolidated Balance Sheet

Unit: CNY’000

As of Dec. 31, 2013

As of Dec. 31, 2014

Cash

1,624,457

1,568,608

Notes receivable

105,006

104,992

Accounts receivable

119,382

126,910

Advances to suppliers

141,925

94,957

Interest receivable

4,408

4,461

Other receivable

24,224

26,002

Inventory

369,390

356,842

Non-current assets within one year

0

0

Other current assets

99,450

122,335

 

------------------

------------------

Current assets

2,488,242

2,405,107

Available for sale financial assets

100

100

Long-term investments

16,685

419,593

Investment real estate

0

76,345

Fixed assets

4,854,278

5,006,944

Construction in progress

327,392

207,060

Project materials

39,131

24,984

Fixed assets in liquidation

3,306

0

Intangible assets

890,590

923,000

Development expenditure

0

0

Goodwill

0

0

Long-term deferred expense

205,023

265,760

Deferred income tax assets

3,845

2,048

Other non-current assets

87,832

131,011

 

------------------

------------------

Total assets

8,916,424

9,461,952

 

=============

=============

Short-term loans

995,510

889,600

Notes payable

230,596

142,101

Accounts payable

475,461

446,035

Payroll payable

59,741

62,821

Taxes payable

59,317

82,327

Interest payable

9,997

9,316

Dividend payable

30,000

27,000

Advances from clients

185,358

155,546

Other payable

152,732

131,930

Other current liabilities

472,713

523,333

 

------------------

------------------

Current liabilities

2,671,425

2,470,009

Non-current liabilities

1,933,100

1,931,961

 

------------------

------------------

Total liabilities

4,604,525

4,401,970

Equities

4,311,899

5,059,982

 

------------------

------------------

Total liabilities & equities

8,916,424

9,461,952

 

=============

=============

 

Consolidated Income Statement

Unit: CNY’000

As of Dec. 31, 2013

As of Dec. 31, 2014

Revenue

4,893,489

4,868,705

Cost of sales

3,245,316

3,217,202

Business Taxes and Surcharges

56,187

59,316

    Sales expense

106,654

99,059

    Management expense

317,118

302,230

    Finance expense

184,329

172,265

    Asset impairment loss

7,020

-9

Investment income

111

40,204

Non-operating income

283,248

41,036

    Non-operating expense

280,176

5,512

Profit before tax

980,049

1,094,370

Less: profit tax

175,641

173,688

Profits

804,408

920,682

 

Important Ratios

=============

 

As of Dec. 31, 2013

As of Dec. 31, 2014

*Current ratio

0.93

0.97

*Quick ratio

0.79

0.83

*Liabilities to assets

0.52

0.47

*Net profit margin (%)

16.44

18.91

*Return on total assets (%)

9.02

9.73

*Inventory / Revenue ×365

28 days

27 days

*Accounts receivable/ Revenue ×365

9 days

10 days

*Revenue / Total assets

0.55

0.51

*Cost of sales / Revenue

0.66

0.66

 

 

FINANCIAL COMMENTS

 

 

PROFITABILITY: FAIRLY GOOD

The revenue of SC appears fairly good in its line.

SC’s net profit margin is fairly good.

SC’s return on total assets is fairly good.

SC’s cost of goods sold is average, comparing with its revenue.

 

LIQUIDITY: FAIR

The current ratio of SC is maintained in a fair level.

SC’s quick ratio is maintained in a normal level.

The inventory of SC appears average.

The accounts receivable of SC appears average.

The short-term loans of SC appear large.

SC’s revenue is in a fair 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 low.

 

Overall financial condition of the SC: Fairly Stable.

 

 

CONCLUSIONS

 

SC is considered large-sized in its line with fairly stable financial conditions. Taking into consideration of SC’s general performance, reputation as well as market conditions.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.55

UK Pound

1

Rs.99.86

Euro

1

Rs.72.67

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.