MIRA INFORM REPORT
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Report No. : |
342852 |
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Report Date : |
29.09.2015 |
IDENTIFICATION DETAILS
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Name : |
QINGDAO SHIDA CHEMICAL CO., LTD. |
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Registered Office : |
Room 1802, Changjiang Centre, No. 517, Changjiang Middle Road,
Economic And Technological Development Zone, Qingdao, Shandong Province
266555 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
18.03.2010 |
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Com. Reg. No.: |
370220230007562 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Wholesaling class 3 low, medium and high flash point flammable
liquids; Class 4.2 spontaneous combustion; Class 8.1 corrosive acid
(excluding the above toxic chemicals, refined oil, precursor chemicals and
prohibit, restrict, monitor chemical products). General business items:
international trade, transit trade, intra-regional trade among enterprises,
trade under finishing and related business consulting agency; importing and exporting
goods and technologies. (With permit if needed). |
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No. of Employees : |
8 |
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 : |
No Complaints |
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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 |
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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 & address
QINGDAO SHIDA CHEMICAL CO., LTD.
ROOM 1802, CHANGJIANG CENTRE, NO. 517, CHANGJIANG MIDDLE ROAD
ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE, QINGDAO
SHANDONG PROVINCE 266555 PR CHINA
TEL: 86 (0) 532-68972206
FAX: 86 (0) 532-68972208
EXECUTIVE
SUMMARY
Date of Registration : March 18, 2010
REGISTRATION NO. : 370220230007562
LEGAL FORM : ONE-PERSON LIMITED
LIABILITY COMPANY
CHIEF EXECUTIVE :
Yu Haiming (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 20,000,000
staff :
8
BUSINESS CATEGORY : TRADING
Revenue :
CNY 47,047,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 19,405,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : Ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.37 = 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 one-person limited liabilities company of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 370220230007562 on March 18, 2010.
SC’s Organization Code Certificate No.:
55083310-3
SC’s registered capital: CNY 20,000,000
SC’s paid-in capital: CNY 20,000,000
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 |
|
Shandong Shida Shenghua Chemical Group Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Yu Haiming |
|
Vice Chairman |
Zheng Jun |
|
General Manager |
Li Xiandong |
|
Director |
Sun Wu |
|
Supervisor |
Zhang Zhongxiang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Shandong Shida Shenghua Chemical Group Co., Ltd. 100
------------------------------------------------
Shandong Shida Shenghua Chemical Group Co., Ltd. is a school-running
enterprise belonging to the China University of petroleum (East China), which
is a national key and “211 project” key construction university directly
subordinated to Ministry of Education. Moreover, it is national key High-tech
enterprise specialized in production and sales of organic chemical products. It
is located in the central city on the Yellow River Delta-Dongying City.
At present, the group has 13 sets of production equipments which can
produce more than 20 kinds of products, and the 100000t/per year dimethyl
carbonate plant ranks the leading position in this field. The DMC had won
silver award from 2004 Shanghai international industrial exposition and
honorary title of “perfect quality, key recommended excellent product” from
Chinese chemical society fine chemical industry professional committee
successively.
Date of Registration: December 31, 2002
Registration No.: 370000018078251
Legal Form: Shares Limited
Company
Chief Executive: Guo Tianming
Registered Capital: CNY 202,680,000
Address: No. 489, Beier Road, Dongying, Shandong Province
Tel: 86 (0) 546-8395037/2169109
Fax: 86 (0) 546-8395371
Web: www.sinodmc.com
E-mail: ceo@sinodmc.com
& sales@sinodmc.com
MANAGEMENT
Yu Haiming, Legal Representative and Chairman
---------------------------------------------------------------------------
Gender: M
Age: 45
Qualification: University
Working experience (s):
At present, working in SC as legal representative and chairman, also
working in Dongying Shida Weibo Chemicals Co., Ltd. as general manager
Zheng Jun, Vice
Chairman
-------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
Li Xiandong,
General Manager
----------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as general manager
Director
----------
Sun Wu
Supervisor
--------------
Zhang Zhongxiang
BUSINESS OPERATION
SC’s registered business scope includes permit business
items: wholesaling class 3 low, medium and high flash point flammable liquids; Class
4.2 spontaneous combustion; Class 8.1 corrosive acid (excluding the above toxic
chemicals, refined oil, precursor chemicals and prohibit, restrict, monitor
chemical products). General business items: international trade, transit trade,
intra-regional trade among enterprises, trade under finishing and related
business consulting agency; importing and exporting goods and technologies.
(with permit if needed).
SC is mainly engaged in selling chemical products.
SC’s products mainly include:
Propylene Carbonate (PC)
Ethyl Methyl Carbonate (EMC)
Diethyl Carbonate (DEC)
Methyl tert-butyl ether (MTBE)
Dimethyl Carbonate (DMC)
Propylene glycol (PG)
N-methyl-pyrrolidone
Carbohydrazide
Dichloromethane
2-Hydroxybenzyl alcohol
SC sources its products 100% from domestic market. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly Europe, U.S.A., Japan, Korea, etc.
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*
----------------------
Enviro Tech International Inc.
Quimidrol Comercio Industria Importacao Ltda.
Staff &
Office:
--------------------------
SC is known to have approx. 8
staff at present.
SC owns an area as its operating office, but the detailed information is
unknown.
RELATED COMPANY
Shinghwa Chemical Corporation
Dongying Shida Hongyi Chemical Co., Ltd.
Dongying Shida Weibo Chemicals Co., Ltd.
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:
China
Merchants Bank Qingdao Changjiang Middle Road Sub-branch
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
6,840 |
910 |
|
|
Notes receivable |
0 |
0 |
|
Accounts receivable |
0 |
2,870 |
|
Advances to suppliers |
200 |
90 |
|
Other receivable |
510 |
570 |
|
Inventory |
120 |
1,560 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
7,670 |
6,000 |
|
Long-term investment |
11,520 |
10,910 |
|
Fixed assets |
3,430 |
3,210 |
|
Construction in progress |
0 |
0 |
|
Intangible assets |
0 |
0 |
|
Long-term prepaid expenses |
0 |
20 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
22,620 |
20,140 |
|
|
============= |
============= |
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Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
360 |
370 |
|
Wages payable |
30 |
160 |
|
Taxes payable |
-230 |
-410 |
|
Advances from clients |
780 |
420 |
|
Other payable |
2,090 |
670 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
3,030 |
1,210 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
3,030 |
1,210 |
|
Equities |
19,590 |
18,930 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
22,620 |
20,140 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
35,350 |
|
Cost of sales |
33,730 |
|
Taxes and surcharges |
60 |
|
Sales expense |
1,270 |
|
Management expense |
380 |
|
Finance expense |
520 |
|
Profit before tax |
-680 |
|
Less: profit tax |
-20 |
|
-660 |
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
|
Total assets |
25,259 |
|
|
------------- |
|
Total liabilities |
5,854 |
|
Equities |
19,405 |
|
|
------------- |
|
Revenue |
47,047 |
|
Profits |
482 |
Important Ratios
=============
|
|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
*Current ratio |
2.53 |
4.96 |
-- |
|
*Quick ratio |
2.49 |
3.67 |
-- |
|
*Liabilities to assets |
0.13 |
0.06 |
0.23 |
|
*Net profit margin (%) |
-- |
-1.87 |
1.02 |
|
*Return on total assets (%) |
-- |
-3.28 |
1.91 |
|
*Inventory / Revenue ×365 |
-- |
17 days |
-- |
|
*Accounts receivable/ Revenue ×365 |
-- |
30 days |
-- |
|
*Revenue/Total assets |
-- |
1.76 |
1.86 |
|
*Cost of sales / Revenue |
-- |
0.95 |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears average in its line.
SC’s net profit margin is average in 2014.
SC’s return on total assets is average in 2014.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears average.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loans.
SC’s revenue is in an average level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is low.
The risk for SC to go bankrupt is 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.66.08 |
|
|
1 |
Rs.100.32 |
|
Euro |
1 |
Rs.73.81 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
TPT |
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.