MIRA INFORM REPORT
|
Report No. : |
338963 |
|
Report Date : |
05.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
DALIAN RICHON CHEM CO., LTD. |
|
|
|
|
Registered Office : |
I/10f
China Bank Plaza, No. 15 Renmin Road, Zhongshan District Dalian, Liaoning Province
116001 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
19.02.2004 |
|
|
|
|
Com. Reg. No.: |
210200000223915 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Subject is engaged in selling chemical
products. Products mainly include: Rubber Chemicals Rubber Machine Pharmaceuticals Dyestuff |
|
|
|
|
No. of Employee : |
22 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No complaints |
|
|
|
|
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 |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
CHINA ECONOMIC OVERVIEW
Since the
late 1970s China has moved from a closed, centrally planned system to a moreMARKET
-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 theDAILY 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
DALIAN RICHON CHEM CO., LTD.
I/10F CHINA
BANK PLAZA, NO. 15 RENMIN ROAD, ZHONGSHAN DISTRICT
DALIAN,
LIAONING PROVINCE 116001 PR CHINA
TEL: 86
(0) 411-82507336
FAX: 86
(0) 411-82507318
EXECUTIVE
SUMMARY
Date of Registration :
February 19, 2004
REGISTRATION NO. :
210200000223915
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 1,000,000
staff :
22
BUSINESS CATEGORY : trading
Revenue :
CNY 131,300,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 8,340,000 (AS OF DEC. 31, 2014)
WEBSITE : www.richon-chem.com
E-MAIL :
info@richon-chem.com
PAYMENT :
AVERAGE
Recommended Credit Limit : UP TO USD 50,000
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
average
EXCHANGE RATE : CNY 6.36 = USD 1 AS OF
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.: 210200000223915 on February 19, 2004.
SC’s Organization Code Certificate No.: 75608426-7
SC’s Tax No.: 210202756084267
SC’s registered capital: cny
1,000,000
SC’s paid-in capital: cny 1,000,000
Registration
Change Record:-
No significant changes of SC have been noted in SAIC
since its incorporation.
Current
Co search indicates SC’s shareholders & chief executives are as follows:-
|
Name
of Shareholder (s) |
%
of Shareholding |
|
Ge Liming |
60 |
|
Liu Xiaofeng |
40 |
SC’s
Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Ge Liming |
|
Director |
Liu Xiaofeng |
|
Sun Dehua |
|
|
Supervisor |
Sun Xiaoyi |
RECENT
DEVELOPMENT
No recent
development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name
%
of Shareholding
Ge Liming 60
Liu Xiaofeng 40
MANAGEMENT
Ge Liming , Legal Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------
Ø Gender: M
Ø Working
experience (s):
At present, working in SC as
legal representative, chairman and general manager
Director
----------
Liu Xiaofeng
Sun Dehua
Supervisor
--------------
Sun Xiaoyi
BUSINESS
OPERATION
SC’s registered business scope includes technology development, sales
& related technology consulting services for chemical products; exhibition
service; and international trade.
SC is mainly engaged in selling
chemical products.
SC’s products mainly include:
Rubber Chemicals
Rubber Machine
Pharmaceuticals
Dyestuff
SC sources its products 100% from domestic market. SC sells
70% of its products in domestic market, and 30% to overseas market, mainly
Southeast Asia
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.
*Major Customers:
==============
Vesper Sa De Cv
Ing Procesos Industriales S.A.
Micro SA De Cv
Buckman Laboratorios Ltda
Staff & Office:
--------------------------
SC is known to
have approx. 22 staff at
present.
SC rents an area as its
operating office, but the detailed information is unknown.
RELATED
COMPANY
SC is not known to have any subsidiary
at present.
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 local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
4,160 |
4,940 |
2,500 |
|
|
Notes receivable |
0 |
0 |
0 |
|
Accounts receivable |
1,620 |
3,830 |
11,750 |
|
Advances to suppliers |
0 |
0 |
0 |
|
Other receivable |
230 |
220 |
12,110 |
|
Inventory |
1,240 |
15,520 |
450 |
|
Non-current assets within one
year |
0 |
0 |
0 |
|
Other current assets |
4,260 |
-4,370 |
930 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
11,510 |
20,140 |
27,740 |
|
Fixed assets |
1,480 |
1,470 |
1,410 |
|
Construction in progress |
0 |
0 |
0 |
|
Intangible assets |
0 |
0 |
0 |
|
Long-term investment |
0 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
0 |
60 |
40 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
12,990 |
21,670 |
29,190 |
|
|
============= |
============= |
============= |
|
Short-term loans |
0 |
0 |
3,490 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
8,140 |
12,230 |
16,740 |
|
Payroll payable |
0 |
0 |
0 |
|
Taxes payable |
-240 |
0 |
0 |
|
Advances from clients |
0 |
0 |
0 |
|
Other payable |
30 |
4,940 |
260 |
|
Other current liabilities |
0 |
30 |
360 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
7,930 |
17,200 |
20,850 |
|
Non-current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
7,930 |
17,200 |
20,850 |
|
Equities |
5,060 |
4,470 |
8,340 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities &
equities |
12,990 |
21,670 |
29,190 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Revenue |
71,320 |
73,480 |
131,300 |
|
Cost of sales |
67,360 |
67,230 |
119,920 |
|
Sales expense |
1,750 |
2,550 |
3,800 |
|
Management expense |
1,900 |
2,760 |
2,520 |
|
Finance expense |
0 |
660 |
1,020 |
|
Profit before tax |
360 |
270 |
4,620 |
|
Less: profit tax |
90 |
-640 |
1,150 |
|
270 |
910 |
3,470 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current
ratio |
1.45 |
1.17 |
1.33 |
|
*Quick
ratio |
1.30 |
0.27 |
1.31 |
|
*Liabilities
to assets |
0.61 |
0.79 |
0.71 |
|
*Net
profit margin (%) |
0.38 |
1.24 |
2.64 |
|
*Return
on total assets (%) |
2.08 |
4.20 |
11.89 |
|
*Inventory
/ Revenue ×365 |
7 days |
78 days |
2 days |
|
*Accounts
receivable / Revenue ×365 |
9 days |
20 days |
33 days |
|
*Revenue
/ Total assets |
5.49 |
3.39 |
4.50 |
|
*Cost
of sales / Revenue |
0.94 |
0.91 |
0.91 |
FINANCIAL
COMMENTS
PROFITABILITY: FAIRLY GOOD
l
The revenue of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is fairly good.
l SC’s cost of sales is fairly
high, comparing with its revenue.
LIQUIDITY: AVERAGE
l The current ratio of SC is
maintained in a normal level.
l SC’s quick ratio is maintained
in a fairly good level in 2014.
l The inventory of SC appears
small in 2014.
l The accounts receivable of SC
appears average.
l SC’s short-term loans are in an
average level in 2014.
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 above average.
Overall financial condition of
the SC: Fairly Stable.
CONCLUSIONS
SC is
considered small-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.40 |
|
|
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.89 |
INFORMATION DETAILS
|
Analysis Done by
: |
TRI |
|
|
|
|
Report Prepared
by : |
ANK |
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.