MIRA INFORM REPORT
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Report No. : |
344703 |
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Report Date : |
12.10.2015 |
IDENTIFICATION DETAILS
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Name : |
DONGYING RICH CHEMICAL CO., LTD. |
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Registered Office : |
No. 283, Dongwang Road, Dawang Town, Guangrao County, Dongying City, Shandong Province, 257335 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
29.04.2014 |
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Com. Reg. No.: |
370523200022481 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling chemicals. |
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No. of Employees : |
6 |
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
|
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.
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Source
: CIA |
Company
name & address
DONGYING RICH CHEMICAL CO., LTD.
No. 283, Dongwang road, dawang town, guangrao
county,
dongying city, shandong PROVINCE, 257335 PR
CHINA
TEL: 86 (0) 546-7763899/6877277 FAX: 86 (0) 546-6877877/7767199
EXECUTIVE
SUMMARY
INCORPORATION DATE : April 29, 2014
REGISTRATION NO. : 370523200022481
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
6
REGISTERED CAPITAL : CNY 3,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY
28,110,000 (AS OF )
EQUITIES :
CNY
2,650,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2055=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
Note:
The
supplied address “No. 270 Nanyi Rd., Dongying City” is SC’s office address.
SC was registered as a limited liabilities
company at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on April 29, 2014.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have pre-exemption right to
purchase shares of the co. offered for sale by the other shareholders and
to subscribe for the newly increased registered capital of the co.
SC’s registered business
scope includes operating without the storage facility: 1-Phenyl-2-propanone, acetone,
trichloromethane, flammable liquids: 1,2-epoxypropane,
2- chloropropene, N, N- dimethylformamide,
cyclohexanone, methyl formate, Dimethyl carbonate, poison: 3-chloro-1,2-epoxy-propane,
aniline, acrylamide, methylene chloride, trichlorethylene, tetrachlorethylene,
flammable solids, natural and flammable when wet: naphthalene;
corrosive substances: sodium hydroxide; approved the import and export
business.
SC is mainly
engaged in selling chemicals.
Ms. Liu Jinrong is
the legal representative, chairman and general manager of SC at present.
SC is known
to have approx. 6 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Dongying. Detailed premise information is not available at
present.
http://www.cnjinhao.com/en/ The design is professional and the content is well organized.
At present it is in English and Chinese versions. (Note: the
Chinese version does not belong to SC.)
E-mail: sdjhchemical@cnjinhao.com
SC started its normal operation in September of 2014.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2014-8-26 |
Registered capital |
CNY 500,000 |
The present amount |
|
Shareholding |
Liu Jinrong 60%, Diao Zailiang 40% |
The present ones |
Organization Code:
493801649
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name Amount
(CNY’0000) % of
Shareholding
Liu Jinrong 160 53.33
Diao Zailiang 140 46.67
l
Legal Representative, Chairman and
General Manager:
Ms. Liu Jinrong is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC as legal representative,
chairman and general manager.
l Supervisor:
Diao Zailiang
SC started its normal operation in September of 2014.
SC is mainly engaged
in selling chemicals.
SC’s products
mainly include:
Hydrogen silicone oil
Propylene oxide
Aniline
Propylene Glycol
Dimethyl carbonate
Propylene dichloride
Etc.
SC sources its materials 100% from domestic market.
SC sells 10% of its products in domestic markets, and 90% to overseas markets.
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.
Note: SC’s management declined to release its main clients and
suppliers.
According to the website: www.cnjinhao.com
Shandong Jinhao Chemical Co., Ltd.
============================
Incorporation date: 2006-7-6
Registration no.: 370523228012870
Registered capital: CNY 20,000,000
Legal rep.: Guo Xiuling
Tel.: 86 (0) 546-6877677
Fax:
86 (0) 546-7767199
Website:
www.cnjinhao.com
Shandong Jinhao International Trade Co., Ltd.
============================
Incorporation date: 2011-3-4
Registration no.: 370523200008475
Registered capital: CNY 3,000,000
Legal rep.: Tian Yuxiang
Dongying Gerui Precision Metal Co., Ltd.
============================
Incorporation date: 2014-3-25
Registration no.: 370524200014527
Registered capital: CNY 300,000
Legal rep.: Diao Zaisong
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 management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2014 |
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Cash & bank |
9,870 |
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Inventory |
0 |
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Accounts
receivable |
18,530 |
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Bills receivable |
0 |
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Other Accounts
receivable |
0 |
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Advances to
suppliers |
0 |
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Other current
assets |
0 |
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|
------------------ |
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Current assets |
28,400 |
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Fixed assets net
value |
0 |
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Long-term
investment |
0 |
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Intangible and
other assets |
0 |
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------------------ |
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Total assets |
28,400 |
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============= |
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Short loans |
0 |
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Accounts payable |
25,680 |
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Advance from
customers |
0 |
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Other Accounts
payable |
0 |
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Notes payable |
0 |
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Taxes payable |
0 |
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Accrued payroll |
70 |
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Other current
liabilities |
0 |
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------------------ |
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25,750 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
25,750 |
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Equities |
2,650 |
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------------------ |
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28,400 |
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============= |
Income Statement
Unit: CNY’000
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|
As of Dec. 31, 2014 |
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Turnover |
28,110 |
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Cost of goods sold |
26,600 |
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Taxes and additional of main operation |
0 |
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Sales expense |
1,700 |
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Management expense |
5 |
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Finance expense |
150 |
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Profit before
tax |
-350 |
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Less: profit tax |
0 |
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Profits |
-350 |
Important Ratios
=============
|
|
As
of Dec. 31, 2014 |
|
*Current ratio |
1.10 |
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*Quick ratio |
1.10 |
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*Liabilities
to assets |
0.91 |
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*Net profit
margin (%) |
-1.25 |
|
*Return on
total assets (%) |
-1.23 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
241 days |
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*Turnover/Total
assets |
0.99 |
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* Cost of goods
sold/Turnover |
0.95 |
PROFITABILITY:
FAIR
l The turnover of SC
appears average in its line.
l SC’s net profit
margin is fair.
l SC’s return on
total assets is fair.
l SC’s cost of goods
sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
SC has no inventory in 2014.
l
The accounts receivable of SC is large.
l
SC has no short-term loan in 2014.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.78 |
|
|
1 |
Rs.99.54 |
|
Euro |
1 |
Rs.73.08 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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.