MIRA INFORM REPORT
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Report No. : |
345874 |
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Report Date : |
20.10.2015 |
IDENTIFICATION DETAILS
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Name : |
DONGYING
HI-TECH SPRING CHEMICAL INDUSTRY CO., LTD. |
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Registered Office : |
Shengli Industrial
Park, Dongying, Shandong Province 257000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
18.09.2006 |
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Com. Reg. No.: |
370500400001420 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject is
mainly engaged in manufacturing and selling of chemical products. |
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No. of Employees : |
230 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
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) |
|
China |
A2 |
A2 |
|
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.
|
Source
: CIA |
Company
Name and address
DONGYING HI-TECH SPRING CHEMICAL INDUSTRY
CO., LTD.
SHENGLI INDUSTRIAL PARK, DONGYING,
SHANDONG PROVINCE 257000 PR CHINA
TEL: 86 (0)
546-8180357/8182959/7791023
FAX: 86 (0) 546-8183959/7791057
EXECUTIVE
SUMMARY
Date of Registration : september 18, 2006
REGISTRATION NO. : 370500400001420
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL : CNY
22,288,810
staff : 230
BUSINESS CATEGORY :
manufacturing & trading
Revenue : CNY 950,311,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 39,424,000 (AS OF DEC. 31, 2014)
WEBSITE : www.chinadmc.com
E-MAIL : quhao@chinadmc.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.32 = 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 Chinese-foreign equity joint venture enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 370500400001420 on September 18, 2006.
SC’s Organization Code Certificate No.:
74451785-4
SC’s Tax No.: 370502744517854
SC’s registered capital: CNY 22,288,810
SC’s paid-in capital: CNY 22,288,810
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
3705022802939 |
370500400001420 |
|
2011 |
Shareholders
(% of shareholding) |
Shandong
Hi-tech Chemical Group Co., Ltd. 32.45% HK Profit
United Investment Limited 25.00% Yang
Xiaohong 1.62% Other 46
individuals 40.93% |
Shandong Hi-tech
Chemical Group Co., Ltd. 74.87% Haike
Holding Hong Kong Limited 25.00% Zhang
Hualan 0.13% |
|
2014-6-6 |
Legal
Representative |
Zhang
Zaizhong |
Wang
Chunmei |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shandong
Hi-tech Chemical Group Co., Ltd. |
74.87 |
|
Haike
Holding Hong Kong Limited |
25.00 |
|
Zhang
Hualan |
0.13 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman and General Manager |
Wang
Chunmei |
|
Director |
Liu Dongguang |
|
Yang Xiaohong |
|
|
Zhang Zaizhong |
|
|
Liu Qingyi |
|
|
Supervisor |
Luo Qingqin |
|
Qiu Suqin |
RECENT
DEVELOPMENT
SC has got the certificate ISO9001.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Shandong Hi-tech Chemical Group Co., Ltd. 74.87
Haike Holding Hong Kong Limited 25.00
Zhang Hualan 0.13
Shandong Hi-tech Chemical Group Co., Ltd.
-----------------------------------------------------
Shandong Hi-tech Chemical Group Co., Ltd,
founded in 1988, is a petro-chemical company specialized in petroleum refining,
with the import and export rights. As the first petro-chemical enterprise of
china listed in London securities trading market, it successfully went public
on London Stock Exchange with the stock code HAIK, in 14th Feb. 2007.
Registration No.: 370500400001288
Address: Haochun Road, Dongying District,
Dongying City, Shandong Province
Tel: 86 0546-7753307/7753308
Fax: 86 0546-7753345/8596740
Web: www.haikeoil.com
Haike Holding Hong Kong Limited
------------------------------
Date of Registration: March 3, 2006
Registration No.: 1028246
Legal Form: Private
Status: Live
MANAGEMENT
Wang Chunmei,
Legal Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------------
Ø Gender: F
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Director
-----------
Liu Dongguang
Yang Xiaohong
Zhang Zaizhong
Liu Qingyi
Supervisor
-------------
Luo Qingqin
Qiu Suqin
BUSINESS
OPERATION
SC’s registered
business scope includes manufacturing and selling dimethyl carbonate, isopropyl
alcohol, diisopropyl ether, propylene carbonate, propylene glycol, propylene
glycol second reduction, and carbon dioxide; manufacturing and selling food
additive-alcohol & propylene glycol.
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products mainly include:
Dimethyl Carbonate
Propylene Glycol tech grade
Propylene Glycol pharma grade
Propylene Carbonate
Diisopropylether
SC sources its materials 100% from domestic
market, mainly Shandong. SC sells 70% of its products in domestic market, and
30% to overseas market, mainly U.S.A., Southeast Asia, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers*
-----------------------
Alcan Intern.
Network U.S.A. Inc.
Sachs Chemical,
Inc.
Staff & Office:
--------------------------
SC is known
to have approx. 230 staff at
present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
Shandong
Hi-Tech Shengli Electrochemical Industry Co., Ltd.
Registration
No.: 370500400001454
Date
of Registration: September 18, 2006
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 30,000,000
Legal
Representative: Zhang Zaizhong
Dongying
Hi-Tech Ruilin Chemical Industry Co., Ltd.
Registration
No.: 370525200000034
Date
of Registration: April 14, 2004
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 400,000,000
Legal
Representative: Liu Qingyi
Etc.
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 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
Basic Bank:
Shandong
Dongying Shengli Rural Cooperative Bank
AC#:
90502010020100096962
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
118,648 |
110,226 |
154,602 |
|
|
Notes receivable |
25,649 |
19,240 |
18,730 |
|
Accounts receivable |
71,005 |
57,549 |
71,976 |
|
Advances to suppliers |
22,274 |
28,950 |
120,111 |
|
Other receivable |
697 |
811 |
1,926 |
|
Inventory |
40,927 |
58,658 |
31,197 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
7,898 |
4,155 |
5,326 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
287,098 |
279,589 |
403,868 |
|
Fixed assets |
169,172 |
147,618 |
143,445 |
|
Construction in progress |
22 |
436 |
2,024 |
|
Intangible assets |
3,856 |
3,454 |
3,052 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Total assets |
460,148 |
431,097 |
552,389 |
|
|
============= |
============= |
============= |
|
Short-term loans |
200,000 |
190,000 |
200,000 |
|
Notes payable |
40,000 |
175,000 |
100,000 |
|
Accounts payable |
115,853 |
87,616 |
109,131 |
|
Wages payable |
938 |
338 |
601 |
|
Taxes payable |
8,012 |
-3,504 |
10,145 |
|
Dividend payable |
0 |
0 |
71,687 |
|
Advances from clients |
8,294 |
9,082 |
7,420 |
|
Other payable |
-27,998 |
-139,523 |
9,520 |
|
Other current liabilities |
4,685 |
5,190 |
3,561 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
349,784 |
324,199 |
512,065 |
|
Non-current liabilities |
500 |
0 |
900 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
350,284 |
324,199 |
512,965 |
|
Equities |
109,864 |
106,898 |
39,424 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
460,148 |
431,097 |
552,389 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Revenue |
969,073 |
950,311 |
|
Cost of sales |
863,697 |
866,832 |
|
Taxes and surcharges |
2,266 |
1,080 |
|
Sales expense |
38,854 |
40,538 |
|
Management expense |
45,583 |
22,987 |
|
Finance expense |
21,497 |
11,219 |
|
Non-business income |
593 |
81 |
|
Non-business expenditure |
629 |
125 |
|
Profit before tax |
-2,859 |
7,611 |
|
Less: profit tax |
106 |
1,141 |
|
-2,965 |
6,470 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
0.82 |
0.86 |
0.79 |
|
*Quick ratio |
0.70 |
0.68 |
0.73 |
|
*Liabilities to assets |
0.76 |
0.75 |
0.93 |
|
*Net profit margin (%) |
-- |
-0.31 |
0.68 |
|
*Return on total assets (%) |
-- |
-0.69 |
1.17 |
|
*Inventory / Revenue ×365 |
-- |
23 days |
12 days |
|
*Accounts receivable / Revenue ×365 |
-- |
22 days |
28 days |
|
*Revenue / Total assets |
-- |
2.25 |
1.72 |
|
*Cost of sales / Revenue |
-- |
0.89 |
0.91 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line.
l SC’s net profit margin
is fair in 2013, average in 2014.
l SC’s return on
total assets is fair in 2013, average in 2014.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear large.
l
SC’s revenue is in an average 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.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.82 |
|
|
1 |
Rs.100.12 |
|
Euro |
1 |
Rs.73.75 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.