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MIRA
INFORM REPORT
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Report No. : |
505608 |
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Report Date : |
25.04.2018 |
IDENTIFICATION DETAILS
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Name : |
HUBEI BLUE SKY NEW MATERIAL INCORPORATION |
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Registered Office : |
No. 8 Chemical Industry Park, Economic Development
Zone, Xiantao, Hubei Province 433003 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
09.07.1999 |
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Unified Social
Credit Code : |
914290047070742499 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject registered business scope includes manufacturing
and selling silicone chemical products; importing and exporting goods and
technology. |
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No. of Employees : |
657 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
|
Country Name |
Previous
Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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. China has
implemented reforms in a gradualist fashion, resulting in efficiency gains that
have contributed to a more than tenfold increase in GDP since 1978. Reforms
began with the phaseout 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 continues to pursue an industrial policy, state support of
key sectors, and a restrictive investment regime. Measured on a purchasing
power parity (PPP) basis that adjusts for price differences, China in 2016 stood
as the largest economy in the world, surpassing the US in 2014 for the first
time in modern history. China became the world's largest exporter in 2010, and
the largest trading nation in 2013. Still, China's per capita income is below
the world average.
After keeping its currency tightly linked to the US dollar for years,
China in July 2005 moved to an exchange rate system that references a basket of
currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20%
against the US dollar, but the exchange rate remained virtually pegged to the
dollar from the onset of the global financial crisis until June 2010, when
Beijing announced it would allow a resumption of gradual liberalization. From
2013 until early 2015, the renminbi (RMB) appreciated roughly 2% against the
dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong
capital outflows in part stemming from the August 2015 official devaluation; in
2017 the RMB resumed appreciating against the dollar – roughly 7% from
end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest
growing economies in the world, averaging slightly more than 7% real growth per
year. In 2015, the People’s Bank of China announced it would continue to
carefully push for full convertibility of the renminbi, after the currency was
accepted as part of the IMF’s special drawing rights basket. However, since
late 2015 the Chinese Government has strengthened capital controls and
oversight of overseas investments to better manage the exchange rate and
maintain financial stability.
The Chinese Government faces numerous economic challenges including: (a)
reducing its high domestic savings rate and correspondingly low domestic
household consumption; (b) managing its high corporate debt burden to maintain
financial stability; (c) controlling off-balance sheet local government debt
used to finance infrastructure stimulus; (d) facilitating higher-wage job
opportunities for the aspiring middle class, including rural migrants and
college graduates, while maintaining competitiveness; (e) dampening speculative
investment in the real estate sector without sharply slowing the economy; (f)
reducing industrial overcapacity; and (g) raising productivity growth rates
through the more efficient allocation of capital and state-support for
innovation. Economic development has progressed further in coastal provinces
than in the interior, and by 2016 more than 169.3 million migrant workers and
their dependents had relocated to urban areas to find work. One consequence of
China’s population control policy known as the “one-child policy” - which was
relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese
Government is seeking to add energy production capacity from sources other than
coal and oil, focusing on natural gas, nuclear, and clean energy development.
In 2016, China ratified the Paris Agreement, a multilateral agreement to combat
climate change, and committed to peak its carbon dioxide emissions between 2025
and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes
the need to increase innovation and boost domestic consumption to make the
economy less dependent on government investment, exports, and heavy industry.
However, China has made more progress on subsidizing innovation than
rebalancing the economy. Beijing has committed to giving the market a more
decisive role in allocating resources, but the Chinese Government’s policies
continue to favor state-owned enterprises and emphasize stability. Chinese
leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year
Plan includes annual economic growth targets of at least 6.5% through 2020 to
achieve that goal. 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.
Chinese leaders also have undermined some market-oriented reforms by reaffirming
the “dominant” role of the state in the economy, a stance that threatens to
discourage private initiative and make the economy less efficient over time.
The slight acceleration in economic growth in 2017—the first such uptick since
2010—gives Beijing more latitude to pursue its economic reforms, focusing on
financial sector deleveraging and its Supply-Side Structural Reform agenda,
first announced in late 2015.
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Source
: CIA |
Company name & address
|
COMPANY NAME |
HUBEI BLUE SKY NEW MATERIAL INCORPORATION |
|
CURRENT ADDRESS/ REGISTERED
ADDRESS |
NO. 8 CHEMICAL INDUSTRY PARK, ECONOMIC
DEVELOPMENT ZONE, XIANTAO, HUBEI PROVINCE 433003 PR CHINA |
|
TEL. NO. |
86 (0) 728-3254088/3254088*8822 |
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FAX NO. |
86 (0) 728-3253808 |
EXECUTIVE SUMMARY
Date of Registration : july 9,
1999
UNIFIED SOCIAL CREDIT CODE : 914290047070742499
LEGAL FORM : SHARES LIMITED
COMPANY
CHIEF EXECUTIVE :
feng caihu (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny
100,000,000
staff :
657
BUSINESS CATEGORY : manufacturing & TRADING
Revenue :
CNY 895,000,000 (AS OF DEC. 31,
2017)
EQUITIES :
CNY 554,404,000 (AS OF DEC. 31, 2017)
WEBSITE : www.blueskychemical.com
E-MAIL :
postmaster@blueskychemical.com
PAYMENT :
regular
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
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 shares
limited company of PRC with State Administration of Industry &
Commerce (SAIC) under unified social credit code: 914290047070742499.
SC’s Import and Export Enterprise Code: 4200707074249
SC’s registered capital: CNY 100,000,000
SC’s paid-in capital: CNY 100,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2016-4-1 |
Registration No./Unified Social Credit Code |
429004000020345 |
914290047070742499 |
|
Registered Capital |
cny 50,000,000 |
CNY 100,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Feng Caihu |
38.2148 |
|
Feng Qionghua |
28.1010 |
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Xinjiang Caihua Equity Investment Limited Partnership Enterprise |
8.0526 |
|
Peng Xingni |
7.4448 |
|
Zou Hong |
6.3158 |
|
Changsha Hejun Investment Co., Ltd. |
5.5552 |
|
Peng Hanhua |
3.9474 |
|
Xiao Junping |
2.3684 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Feng Caihu |
|
Vice Chairman and Director |
Feng Qionghua |
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Director |
Xiao Junping |
|
Peng Hanhua |
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|
Zou Hong |
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Supervisor |
Qu Yucheng |
|
Liang Chengkai |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Feng Caihu 38.2148
Feng Qionghua 28.1010
Xinjiang Caihua Equity Investment Limited Partnership Enterprise 8.0526
Peng Xingni 7.4448
Zou Hong 6.3158
Changsha Hejun Investment Co., Ltd. 5.5552
Peng Hanhua 3.9474
Xiao Junping 2.3684
Xinjiang Caihua Equity Investment Limited Partnership Enterprise
--------------------------------------------------------------------------------------
Registration No.: 659001071000251
Changsha Hejun Investment Co., Ltd.
---------------------------------------------------
Unified Social Credit Code: 914301006641554275
Legal Form: Limited Liabilities Company
Registered Capital: CNY 200,000,000
Legal Representative: Zhu Wenshan
MANAGEMENT
Feng Caihu, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Gender: M
Nationality: China
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Feng Qionghua,
Vice Chairman and Director
----------------------------------------------------------------------
Gender: M
Nationality: China
Qualification: University
Working experience (s):
At present, working in SC as vice chairman and director
Director
----------
Xiao Junping
Peng Hanhua
Zou Hong
Supervisor
-------------
Qu Yucheng
Liang Chengkai
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling silicone chemical products; importing and exporting goods and
technology.
SC is mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include:
Crosslinking agent series
Coupling agent series
Catalytic agent
Organic silicon water-proof agent
Silicate ester series
Acetyl chloride (D-40)
Etc.
SC sources its materials 100% from domestic market, mainly Hubei. SC
sells 65% of its products in domestic market, and 35% to overseas market,
mainly Southeast Asia, etc.
The buying terms of SC include 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 Customers*
----------------------
Anderson And Associates LLC.
AB Specialty Silicones LLC.
Staff &
Office:
--------------------------
SC is known to have approx. 657
staff at present.
SC owns an area as its operating office & factory of approx. 30,000
sq. meters at the heading address.
RELATED COMPANY
SC is known to
have 3 subsidiaries at present,
Guangdong Changhongsheng Special Organosilicon Materials Technology Co.,
Ltd.
------------------------------------------------------
Date of Registration: June 24, 2016
Unified Social Credit Code: 91440101MA59DFW
Chief Executive : Deng Zaizhou
Registered Capital: CNY 10,000,000
Xiantao Bluechem Silicone Ltd
------------------------------------
Date of Registration: May 5, 2015
Unified Social Credit Code: 914290043433709516
Chief Executive : Xiao Junping
Registered Capital: CNY 3,000,000
Hubei Ruitong Pawn Co., Ltd.
------------------------------
Date of Registration: April 21, 2014
Unified Social Credit Code: 914290040976554403
Chief Executive : Jia Haiyang
Registered Capital: CNY 40,000,000
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
Basic Bank:
Agricultural Bank of China Xiantao Jinlong Office
AC#: 312301040001989
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2015 |
As of Dec. 31,
2016 |
As of Dec. 31,
2017 |
|
61,503 |
114,293 |
7,369 |
|
|
Accounts receivable |
141,761 |
64,789 |
54,010 |
|
Advances to suppliers |
0 |
0 |
0 |
|
Other receivable |
102,452 |
10,869 |
27,341 |
|
Inventory |
15,252 |
60,437 |
91,947 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
992 |
90,219 |
196,072 |
|
|
------------------ |
------------------ |
------------------ |
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Current assets |
321,960 |
340,607 |
376,739 |
|
Fixed assets |
198,330 |
204,802 |
249,862 |
|
Construction in progress |
26,216 |
64,971 |
21,662 |
|
Intangible assets |
32,973 |
34,848 |
45,733 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
488 |
488 |
2,086 |
|
Other non-current assets |
7,684 |
9,624 |
10,624 |
|
|
------------------ |
------------------ |
------------------ |
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Total assets |
587,651 |
655,340 |
706,706 |
|
|
============= |
============= |
============= |
|
Short-term loans |
0 |
30,000 |
20,000 |
|
Notes payable |
40,000 |
98,562 |
65,679 |
|
Accounts payable |
128,142 |
69,876 |
45,380 |
|
Wages payable |
0 |
2,821 |
3,400 |
|
Advances from clients |
0 |
0 |
0 |
|
Other payable |
81,812 |
1,948 |
2,619 |
|
Other current liabilities |
4,120 |
11,376 |
7,653 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
254,074 |
214,583 |
144,731 |
|
Non-current liabilities |
0 |
0 |
7,571 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
254,074 |
214,583 |
152,302 |
|
Equities |
333,577 |
440,757 |
554,404 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
587,651 |
655,340 |
706,706 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2015 |
As of Dec. 31,
2016 |
As of Dec. 31,
2017 |
|
Revenue |
586,442 |
749,578 |
895,000 |
|
Cost of sales |
477,401 |
570,081 |
660,114 |
|
Sales expense |
18,288 |
27,158 |
34,010 |
|
Management expense |
40,616 |
55,187 |
61,175 |
|
Finance expense |
-350 |
-3,638 |
2,514 |
|
Profit before tax |
46,793 |
98,895 |
135,307 |
|
Less: profit tax |
6,532 |
9,019 |
13,150 |
|
40,261 |
89,876 |
122,157 |
Important Ratios
=============
|
|
As of Dec. 31,
2015 |
As of Dec. 31, 2016 |
As of Dec. 31,
2017 |
|
*Current ratio |
1.27 |
1.59 |
2.60 |
|
*Quick ratio |
1.21 |
1.31 |
1.97 |
|
*Liabilities to assets |
0.43 |
0.33 |
0.22 |
|
*Net profit margin (%) |
6.87 |
11.99 |
13.65 |
|
*Return on total assets (%) |
6.85 |
13.71 |
17.29 |
|
*Inventory / Revenue ×365 |
10 days |
30 days |
38 days |
|
*Accounts receivable / Revenue ×365 |
89 days |
32 days |
23 days |
|
*Revenue / Total assets |
1.00 |
1.14 |
1.27 |
|
*Cost of sales / Revenue |
0.81 |
0.76 |
0.74 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of sales is average, 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 is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
The short-term loans of SC appear large.
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: Stable.
CONCLUSIONS
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 66.36 |
|
|
1 |
INR 92.50 |
|
Euro |
1 |
INR 81.05 |
|
CNY |
1 |
INR 10.57 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.