MIRA INFORM REPORT
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Report No. : |
343418 |
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Report Date : |
02.10.2015 |
IDENTIFICATION DETAILS
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Name : |
YINGKOU KANGHUI
PETROCHEMICAL co., ltd. |
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Registered Office : |
Energy Chemical Zone, Xianren Island, Yingkou,
Liaoning Province, 115200 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
29.08.2011 |
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Com. Reg. No.: |
210800400026816 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and selling chemical products. |
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No. of Employee : |
1,900 |
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 – March 31, 2015
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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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 also 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.
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Source
: CIA |
Company
name
YINGKOU KANGHUI PETROCHEMICAL co., ltd.
ENERGY CHEMICAL ZONE, XIANREN ISLAND,
YINGKOU,
LIAONING PROVINCE, 115200 PR CHINA
TEL: 86 (0)
417-6579390 FAX: 86 (0) 417-7198030
EXECUTIVE
SUMMARY
INCORPORATION DATE :
AUG. 29, 2011
REGISTRATION NO. :
210800400026816
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF STRENGTH :
1,900
REGISTERED CAPITAL : USD 131,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 1,234,100,000 (AS OF DEC.
31, 2014)
EQUITIES :
CNY 1,290,000,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.203 = usd
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 Chinese-foreign equity joint venture
enterprise at local Administration for Industry & Commerce (AIC-The
official body of issuing and renewing business license) on Aug. 29, 2011.
Company Status:
Chinese-foreign equity joint venture enterprise
This form of business in PR China is defined as a legal person. It is a
limited co. jointly invested by one or more foreign companies and one or more
PR China controlled companies within the territories of PR China according to a
certain proportion of capital investment. The investing parties exercise
business management, share profits and bear all risks and liabilities of the
co. together. The equity joint venture law requires that foreign party
contribute not less than 25% of the registered capital, with no maximum. The
investing parties are free to agree on method of profit distribution and liabilities
bearing according to the proportion of capital investment. Each investing
parties contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a limited
duration of 10 to 50 years. Enterprise with large investment, long construction
periods, low investment returns, introducing of advanced technology &
advanced technology products that have good competition position in
international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing Polybutylene terephthalate engineering
plastics, new type polyester biaxially oriented polyester film, polyester
chips, tetrahydrofuran.
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Liu Jian has
been legal representative and chairman of SC since Dec. of 2011.
SC is known to
have approx. 1,900 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 Yingkou. Detailed
premise information is not available at present.
The
other address: No. 1 Hengli Rd., Economic Development Zone of Nanma, Shengze
Town, Wujiang, Jiangsu Province, China
Tel:
0086-512-63057738
Fax:
0086-512-63057998
http://www.ykkhsh.com/ The design is professional and the content is
well organized. At present, the web is both in Chinese and English versions.
E-mail: khhr@ykkhsh.com
Changes
of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2011-12-23 |
Registered capital
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USD 34,000,000 |
USD 67,000,000 |
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2011-12-31 |
Legal representative
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Chen Jianhua陈建华 |
Present one |
|
2012-03-16 |
Registered capital
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USD 67,000,000 |
USD 100,000,000 |
|
2012-08-21 |
Registered capital
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USD 100,000,000 |
Present amount |
Organization Code: 580717031
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Yingkou Kanghui Investment Co., Ltd. 75
Hongfeng Ltd. (in Chinese pinyin) (Britain) 25
Yingkou Kanghui Investment Co., Ltd.
=========================
Registration no.: 210881004049215
Registered capital: CNY 794,000,000
Legal representative: Chen Jianhua
l Legal representative
and chairman:
Mr. Liu Jian
is currently responsible for the overall management of SC.
Working Experience(s):
From Dec. of 2011 to present Working in SC as legal
representative and chairman.
l Vice-chairman:
Cao Xuke
is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as vice-chairman.
l Director:
Shen Jianfen
l Supervisor:
Chen Jianguo
SC is mainly engaged
in manufacturing and selling chemical products.
SC’s products mainly include:
BOPET
PBT
Semi-dull PET Chips
Solar base film
Heat sealable film
High transparency film
SC sources its materials 90% from domestic market,
and 10% from overseas market. SC sells its products 100% 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 clients and suppliers.
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TRADEMARKS & PATENTS |
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Registration No. |
11924809 |
11925854 |
11925811 |
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Registration Date |
June
7, 2014 |
June 7, 2014 |
June 7, 2014 |
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Trademark Design |
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Hengli Group Co., Ltd.
==================
Registration no.: 320584000029235
Legal representative: Chen Jianhua
Registered capital: CNY 2,002,000,000
Incorporation date:
Tel: 0512-63838999
Fax: 0512-63838877
Subsidiary:
Lijin (Suzhou) Trading Co., Ltd.
==========================
Registration no.: 320584000355134
Legal representative: Liu Qianhan 刘千涵
Registered capital: CNY 5,000,000
Incorporation date:
Add: No.1 Hengli Rd., Economic Development
Zone of Nanma, Shengze Town, Wujiang, Jiangsu Province
Tel: +86-0512-63057738
Fax: +86-0512-63057998
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 declined to
release its banking details.
Financial Summary
===============
Unit: CNY’000
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As of Dec. 31, 2014 |
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Total assets |
4,932,370 |
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========= |
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Total liabilities |
3,642,370 |
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Equities |
1,290,000 |
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-------------- |
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Total liabilities & equities |
4,932,370 |
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========= |
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Turnover |
1,234,100 |
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Profits |
-102,190 |
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 |
0.74 |
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*Net profit
margin (%) |
-8.28 |
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*Return on
total assets (%) |
-2.07 |
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*Turnover/Total
assets |
0.25 |
PROFITABILITY:
FAIR
l The turnover of SC
appears good in its line.
l SC’s net profit
margin appears fair.
l SC’s return on total
assets appears fair.
l
SC’s turnover 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
SC is considered large-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.55 |
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UK Pound |
1 |
Rs.99.17 |
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Euro |
1 |
Rs.73.08 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
ASH |
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 |
-- |
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.