MIRA INFORM REPORT
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Report No. : |
347362 |
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Report Date : |
31.10.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG BEFAR
GROUP RUICHENG CHEMICAL CO., LTD. |
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Registered Office : |
No. 858, Huanghe 5th Road, Binzhou,
Shandong Province, 256600 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
18.05.2009 |
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Com. Reg. No.: |
371600000000367 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling of Chemical Products. |
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No. of Employees : |
131 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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) |
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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
SHANDONG BEFAR
GROUP RUICHENG CHEMICAL CO., LTD.
NO. 858, HUANGHE 5TH ROAD,
BINZHOU,
SHANDONG PROVINCE, 256600 PR CHINA
TEL: 86 (0)
543-2118063/2118062/2117601 FAX:
86 (0) 543-2116678
EXECUTIVE
SUMMARY
INCORPORATION DATE : MAY 18, 2009
REGISTRATION NO. : 371600000000367
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH : 131
REGISTERED CAPITAL : CNY 90,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER : CNY 200,110,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 103,600,000
(AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
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
company at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on May 18, 2009.
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 trichlorethylene, crude tetrachlorethylene,
tetrachloroethane, by-product hydrogen chloride gas, by-product hydrochloric
acid, by-product chlorinated organic solvent type Ⅰ (mainly chloride,
trichloroethane), by-product chlorinated organic solvents typeⅡ(mainly
tetrachloroethane, pentachloroethane, hexachloroethane) (valid as of July 26,
2015) (with permit if needed). Import and export business within the scope of
the record (with permit if needed) *( with permit if needed)
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Zhang
Zhongzheng has been the legal
representative and chairman of SC since 2009.
SC is known
to have approx. 131 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 Binzhou. Detailed
information of the premise is unspecified.
SC is not known to host website of its own at present.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2011 |
Registered capital |
CNY 30,000,000 |
CNY 60,000,000 |
|
2012 |
Registered capital |
CNY 60,000,000 |
Present amount |
Organization code: 68946763-8
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Shandong Befar Group Dongrui Chemical Co.,
Ltd. 82
Ningxia Ningdian Fire Apparatus Ltd. 18
Shandong Befar Group Dongrui Chemical Co.,
Ltd.
=====================================
Incorporation date: Mar. 20, 2007
Registration no.: 371602018002210
Registered capital: CNY 1,500,000,000
Add: No. 858 Huanghe 5th Road,
Binzhou, Shandong Province
Ningxia Ningdian Fire Apparatus Ltd.
========================
Ningxia Ningdian Fire Apparatus Ltd. has passed
the ISO9001 quality system certification, GB/T24001 environmental management
system certification, GB/T28001 occupational health and safety management
system certification. The company is professional enterprise engaged in fire
protection engineering, building intelligent engineering, security engineering
and sales of products.
Incorporation date: July 7, 2000
Registration no.: 640100200037336
Registered capital: CNY 5,000,000
Web: http://www.nxndxf119.com/
Tel.: 0951-5671511 / 5677298/ 5673256
Fax: 0951-5671511 / 5677298/ 5673256
E-mail: nxndxf119@163.com
l Legal
Representative and Chairman:
Mr. Zhang Zhongzheng, ID# 37230119431106****, born in 1943, with
university education, senior engineer. He is currently responsible for the
overall management of SC.
Working Experience(s):
From
2009 to present Working in SC as legal representative and chairman.
Also working in Befar Group Co., Ltd.
and Shandong Befar Group Dongrui Chemical Co., Ltd. as legal representative,
etc.
l General Manager:
Mr. Ma Fuzhen, in his
Working Experience(s):
From 2009 to present Working in SC as
general manager.
l Directors:
Chu Zhaosheng
Li Mintang
He Yongzhi
l Supervisors:
Kong Xiangjin
Sun Weidong
Cui Jianzhen
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products
mainly include: trichloroethylene, tetrachloroethylene, tetrachloroethane, hydrogen
chloride gas, hydrochloric acid, spent sulfuric acid.
SC sources its
materials 100% from domestic market. SC sells 90% of its products in domestic
market, and 10% to the overseas market, mainly Southeast Asia and European
countries.
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 major clients and suppliers.
Befar
Group Co., Ltd.
==================
Incorporation date:
Registration no.: 370000018086955
Registered capital: CNY 660,000,000
The said company is a listed company in Shanghai Stock Exchange Market
with the code of 601678.
Address:
No. 869 Huanghe 5th Road, Binzhou, Shandong
Tel:
86 (0) 543-2118571
Fax:
86 (0) 543-2118592
Email:
befar@befar.com
Web:
http://www.befar.com
Etc.
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.
Industrial and Commercial Bank of China Binzhou Befar Sub-branch
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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as of Dec. 31,
2012 |
as of Dec. 31,
2013 |
|
Cash & bank |
3,890 |
9,090 |
|
Inventory |
10,720 |
15,220 |
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Accounts receivable |
8,890 |
1,970 |
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Advances to suppliers |
810 |
20 |
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Other receivables |
6,080 |
850 |
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Other current assets |
180 |
160 |
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------------------ |
------------------ |
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Current assets |
30,570 |
27,310 |
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Fixed assets net value |
141,880 |
120,240 |
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Projects under construction |
0 |
0 |
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Long term investment |
0 |
0 |
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Deferred income tax assets |
/ |
11,370 |
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Intangible assets |
170 |
5,170 |
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Other assets |
4,460 |
0 |
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------------------ |
------------------ |
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Total assets |
177,080 |
164,090 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
8,880 |
5,290 |
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Other accounts payable |
28,910 |
58,350 |
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Taxes payable |
-4,670 |
-5,970 |
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Advances from clients |
5,240 |
1,840 |
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Employee pay payable |
890 |
980 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
39,250 |
60,490 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
39,250 |
60,490 |
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Equities |
137,830 |
103,600 |
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------------------ |
------------------ |
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Total liabilities & equities |
177,080 |
164,090 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
as of Dec. 31, 2013 |
|
Turnover |
413,960 |
200,110 |
|
Cost of
goods sold |
376,990 |
215,410 |
|
Taxes and
additional of main operation |
1,470 |
700 |
|
Income from other operation |
/ |
180 |
|
Sales expense |
21,540 |
12,510 |
|
Management expense |
8,820 |
12,520 |
|
Finance expense |
440 |
2,250 |
|
Asset
impairment loss |
-930 |
0 |
|
Non-operating income |
70 |
0 |
|
Non-operating
expense |
370 |
2,380 |
|
Profit before tax |
5,330 |
-45,480 |
|
Less: profit tax |
1,350 |
-11,360 |
|
Profits |
3,980 |
-34,120 |
Important Ratios
=============
|
|
as of Dec. 31, 2012 |
as of Dec. 31, 2013 |
|
*Current ratio |
0.78 |
0.45 |
|
*Quick ratio |
0.51 |
0.20 |
|
*Liabilities to assets |
0.22 |
0.37 |
|
*Net profit margin (%) |
0.96 |
-17.05 |
|
*Return on total assets (%) |
2.25 |
-20.79 |
|
*Inventory /Turnover ×365 |
10 days |
28 days |
|
*Accounts receivable/Turnover ×365 |
8 days |
4 days |
|
*Turnover/Total assets |
2.34 |
1.22 |
|
* Cost of goods sold/Turnover |
0.91 |
1.08 |
Note: SC’s
management refused to release the latest financial.
PROFITABILITY:
POOR
l
The turnover of SC appears fairly good in its line
in both years, but it declined in 2013.
l
SC’s net profit margin is average in 2012 but poor
in 2013.
l
SC’s return on total assets is average in 2012 but
poor in 2013.
l
SC’s cost of goods sold is average in 2012 but high
in 2013, comparing with its turnover.
LIQUIDITY: POOR
l
The current ratio of SC is maintained in a fair
level in 2012, but poor in 2013.
l
SC’s quick ratio is maintained in a fair level in
2012 but poor in 2013.
l
The inventory of SC is average in both years.
l
The accounts receivable of SC is average in both
years.
l
SC has no short term loans in 2012 and 2013.
l
SC’s turnover is average in both years, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.22 |
|
|
1 |
Rs.99.93 |
|
Euro |
1 |
Rs.71.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
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 |
|
|
<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.