MIRA
INFORM REPORT
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Report No. : |
345834 |
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Report Date : |
21.10.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG SIQIANG CHEMICAL GROUP CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
20.07.2000 |
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Com. Reg. No.: |
371522228000865 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in manufacturing and
selling chemicals. |
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No. of Employees : |
160 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow and delayed |
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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 and address
SHANDONG SIQIANG
CHEMICAL GROUP CO., LTD.
GUYUN TOWN INDUSTRIAL PARK, SHENXIAN COUNTY
SHANDONG PROVINCE 061000 PR CHINA
TEL: 86 (0) 635-7889999
FAX: 86 (0) 635 7887199
EXECUTIVE SUMMARY
Date of Registration :
July 20, 2000
REGISTRATION NO. :
371522228000865
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE :
huang shenglang (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY
136,800,000
staff :
160
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 100,390,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY -95,625,000 (AS OF DEC. 31, 2014)
WEBSITE : www.siqianggroup.cn
E-MAIL :
13863517999@163.com
PAYMENT :
SLOW AND DELAYED
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
poor
OPERATIONAL TREND : FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.36 = 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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 371522228000865 on July
20, 2000.
SC’s Organization Code Certificate No.: 724296708
SC’s Tax No.: 372523724296708
SC’s registered capital: CNY 136,800,000
SC’s paid-in capital: CNY 136,800,000
Registration
Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2014-4-30 |
Legal
Representative |
Liu Jinfa |
Huang
Shenglang |
Current Co
search indicates SC’s shareholders & chief executives are as follows:-
|
Name of
Shareholder (s) |
% of
Shareholding |
|
Huang
Shenglang |
87.66 |
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Fu
Guangpeng |
12.34 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman and General Manager |
Huang
Shenglang |
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Supervisor |
Fu
Guangpeng |
RECENT DEVELOPMENT
No recent
development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Huang Shenglang 87.66
Fu Guangpeng 12.34
MANAGEMENT
Huang Shenglang, Legal
Representative, Chairman and General Manager
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Gender: M
Age: 40
ID#
33032719751120289X
Qualification:
University
Working
experience (s):
At present,
working in SC as legal representative, chairman and general manager
Supervisor
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Fu Guangpeng
BUSINESS OPERATION
SC’s registered business scope includes selling propylene; manufacturing,
selling and exporting sebacic acid,
plasticizers, glycerin, fatty acid, octanol, castor oil, castor cake, nylon
610, nylon 1010, sebacic acid derivatives, active organic fertilizer, petroleum
resin; selling and exporting polypropylene, sodium sulfate, polystyrene,
propane, butadiene; importing materials, instrument, machinery and equipment,
and parts needed for its production;
SC is mainly
engaged in manufacturing and selling chemicals.
SC’s products
mainly include:
DCPD resins
C5/C9
copolymerizes resins
C9 resins
C5 resins
Dioctyl
Sebacate
Dibutyl
Sebacate
Glycerine
Capryl
Alcohol
Sebacicacid
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.
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
Customer:
=============
Fdl(USA) Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 160
staff at present.
SC owns an
area as its operating office and factory, but the detailed information is
unknown.
RELATED COMPANY
SC is known to have 2 subsidiaries at
present:
Shandong Shenxian
Shengkaida Biotechnology Co., Ltd.
---------------------------------------------
Date of
Registration: April 2, 2008
Registration
No.: 371522200000626
Chief
Executive : Bao Kexing
Registered
Capital: CNY 50,000,000
Shandong Shen
County Siqiang Industry & Trade Co., Ltd.
------------------------------------
Date of
Registration: August 24, 2005
Registration
No.: 371522228005298
Chief
Executive : Wang Liangchen
Registered
Capital: CNY 3,060,000
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Financial
Summary
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Unit:
CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
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Total
assets |
639,860 |
500,072 |
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------------- |
------------- |
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Total
liabilities |
697,265 |
595,697 |
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Equities |
-57,405 |
-95,625 |
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------------- |
------------- |
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Revenue |
188,985 |
100,390 |
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Profit
before tax |
-50,738 |
-33,618 |
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Less:
profit tax |
0 |
0 |
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Profits |
-50,738 |
-33,618 |
Important Ratios
=============
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As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
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*Liabilities
to assets |
1.09 |
1.19 |
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*Net profit
margin (%) |
-26.85 |
-33.49 |
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*Return on
total assets (%) |
-7.93 |
-6.72 |
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*Revenue/Total
assets |
0.30 |
0.20 |
FINANCIAL COMMENTS
PROFITABILITY: FAIR
The revenue
of SC appears fairly good, but it was decreasing in 2014.
SC’s net
profit margin is poor.
SC’s return
on total assets is fair.
LIQUIDITY: FAIR
SC’s revenue
is in a fair level, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt
ratio of SC is high.
The risk for
SC to go bankrupt is fairly high.
Overall financial condition of the SC:
Poor.
CONCLUSIONS
SC is
considered medium-sized in its line with poor financial conditions. Great
caution is required in providing credit to SC and C.O.D. is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.89 |
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UK Pound |
1 |
Rs.100.39 |
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Euro |
1 |
Rs.73.52 |
INFORMATION DETAILS
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Analysis Done by
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KAS |
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Report Prepared
by : |
TRU |
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.