MIRA INFORM REPORT
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Report No. : |
346228 |
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Report Date : |
24.10.2015 |
IDENTIFICATION DETAILS
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Name : |
ZIBO HAIZHENG CHEMICAL CO., LTD. |
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Registered Office : |
Xichenjia Village, Fenghuang Town, Linzi
District, Zibo City, Shandong
Province, 255418 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
25.07.2005 |
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Com. Reg. No.: |
370300228082403 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling
TBA tert-butyl alcohol, SBA, Sc-butyl alcohol, n-propyl alcohol, isobutanol,
butanol and other related chemical products. |
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No. of Employees : |
35 |
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 : |
Exist |
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.
|
Source
: CIA |
Company
name and address
ZiBo Haizheng Chemical Co., Ltd.
xichenjia village, fenghuang town, linzi district,
zibo city,
shandong province, 255418 PR CHINA
TEL: 86 (0) 533-7328778/13964302686/13583368304 FAX: 86 (0) 533-7366782
EXECUTIVE
SUMMARY
INCORPORATION
DATE : JULY 25, 2005
REGISTRATION
NO. : 370300228082403
REGISTERED
LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF
EXECUTIVE : MR. LU KAI (LEGAL
REPRESENTATIVE)
STAFF
STRENGTH : 35
REGISTERED
CAPITAL : CNY 10,000,000
BUSINESS
LINE :
MANUFACTURING & TRADING
TURNOVER : CNY 150,230,000
(AS OF DEC. 31, 2014)
EQUITIES : CNY 8,650,000
(AS OF DEC. 31, 2014)
PAYMENT
: SLOW BUT CORRECT
MARKET
CONDITION : AVERAGE
FINANCIAL
CONDITION : FAIRLY STABLE
OPERATIONAL
TREND : FAIRLY STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.3387 = 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
SC
was registered as a limited liabilities co. at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing
business license) on July 25, 2005.
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 manufacturing and selling TBA tert-butyl
alcohol, SBA, Sc-butyl alcohol, Isobutanol, n-propyl alcohol (the storage of
the following products are prohibited), Ethylene [compression], propylene, LPG
[liquefied], isobutene, 1,3-butadiene [suppressed], N [compression], N [liquefied],
oxygen [compression], oxygen [liquefied], carbon dioxide [compression], carbon
dioxide [liquefied], methanol, benzene, toluene, ethylbenzene, 1,2-xylene,
naphtha, 2-methyl-2-propanol, 2-alcohol, 1-propanol, 2-methyl-1-propanol,
n-butanol, 2-propanol, dichloromethane, chloroform, styrene [suppressed],
sodium methoxide, N, N- two dimethylformamide, petroleum ether, methyl
tert-butyl ether, acetonitrile, aniline, phenol, cyclohexanone, phthalic
anhydride, 3-chloro-1,2-propylene oxide, propylene oxide [suppressed],
tert-amyl alcohol, propionaldehyde, tetrahydrofuran, ethanol [anhydrous],
tert-butylamine, 2-butanone, sulfur, hydrogen peroxide [20% ≤ content ≤60%],
over t-butyl hydroperoxide [content ≤80%, with hydrogen peroxide, t-butyl
and / or diluent type A], sodium hydroxide, sulfuric acid, hydrochloric acid,
nitric acid [containing nitric acid ≥70%], sodium hydroxide solution
sales. (Business expiration date is according to the license). Selling Chemical
additives (excluding hazardous chemicals, precursor products), plastics, rubber
and products, hardware, building materials, daily necessities, office supplies,
food, textile, coal, calcium carbonate, calcium oxide, metal, wood and auto parts. Importing and exporting goods
(except projects prohibited by Law and administration regulations, with permit
if needed)
Mr.
Lu Kai is legal representative of SC at present.
SC
is known to have approx. 35 employees at present.
SC
is currently operating at the above stated address, and this address houses its
factory in Zibo City, according to SC’s accountant Ms. Zi, SC also has an
office at No. 67, Sangpo Road, Linzi District, Zibo City. The detailed
information of the premise is unspecified.
http://www.haizhengchem.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email:
sales@haizhengchem.com
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2012-6-26 |
Shareholders & % of shareholding |
Zhou Bing 67% Lu Kai 33% |
Present ones |
Organization
code: 777449229
See
below record for SC as executive party (defendant).
|
Executed Party |
Zibo Haizheng Chemical Co., Ltd. |
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Court |
Zibo City Linzi District People's Court |
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Date of Case |
|
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Case Number |
(2010) 00027 |
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Claim Amount |
RMB 112,500 |
Remark: Due to the lack of information, we are unable to provide the
cause of action, judgment or other information.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Huang
Youping 30
Zhou
Bing 40
Lu
Kai 30
Legal Representative and manager:
Mr.
Lu Kai is currently responsible for the daily management of SC.
Working
Experience(s):
At
present
Working in SC as legal representative and manager.
Executive director:
Mr.
Zhou Bing is currently responsible for the overall management of SC.
Working
Experience(s):
At
present
Working in SC as executive director.
Supervisor:
Huang
Youping
SC
is mainly engaged in manufacturing and selling TBA tert-butyl alcohol, SBA,
Sc-butyl alcohol, n-propyl alcohol, isobutanol, butanol and other related
chemical products.
SC
sources its materials from domestic market and overseas market. SC sells its
products in domestic market and 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.
Trademark:
|
Trademark |
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Registration
No. |
12158816 |
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Registration
Date |
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SC is not known to have any subsidiary at present.
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
N/A
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2014 |
|
Cash & bank |
10,780 |
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Inventory |
15,800 |
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Notes receivable |
7,450 |
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Accounts receivable |
8,600 |
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Advanced to suppliers |
2,980 |
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Other accounts receivable |
640 |
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------------------ |
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Current assets |
46,250 |
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Fixed assets net value |
4,870 |
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Total intangible and other assets |
20 |
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------------------ |
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Total assets |
51,140 |
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=========== |
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Short loans |
8,500 |
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Accounts payable |
7,670 |
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Accounts advanced from customers |
1,130 |
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Taxes payable |
-910 |
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Other accounts payable |
16,100 |
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Notes payable |
10,000 |
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------------------ |
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Current liabilities |
42,490 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
42,490 |
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Equities |
8,650 |
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------------------ |
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Total liabilities & equities |
51,140 |
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=========== |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
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Turnover |
150,230 |
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Cost of goods sold |
141,830 |
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Taxes and additional
of main operation |
20 |
|
Sales expense |
6,130 |
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Management expense |
1,520 |
|
Finance expense |
630 |
|
Profit before tax |
100 |
|
Less: profit tax |
30 |
|
Profits |
70 |
Important Ratios
|
|
As of Dec. 31, 2014 |
|
*Current ratio |
1.09 |
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*Quick ratio |
0.72 |
|
*Liabilities to assets |
0.83 |
|
*Net profit margin (%) |
0.05 |
|
*Return on total assets (%) |
0.14 |
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*Inventory /Turnover ×365 |
39 days |
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*Accounts receivable/Turnover ×365 |
21 days |
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*Turnover/Total assets |
2.94 |
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* Cost of goods sold/Turnover |
0.94 |
PROFITABILITY: AVERAGE
The
turnover of SC appears fairly good.
SC’s
net profit margin is average.
SC’s
return on total assets is average.
SC’s
cost of goods sold is in an average level.
LIQUIDITY: FAIR
The
current ratio of SC is maintained in a fair level.
SC’s
quick ratio is maintained in a fair level.
The
inventory of SC appears average.
SC’s
accounts receivable is average.
SC’s
short term loan is fairly large.
SC’s
turnover is in an average 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 average.
Overall financial condition of the SC: Fairly Stable.
SC
is considered small-sized in its line with fairly stable financial conditions. The
fairly large amount of short-term loan could be a threat to its financial
condition
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.88 |
|
UK Pound |
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.72.06 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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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 |
|
|
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 |
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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.