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MIRA INFORM REPORT
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Report No. : |
486555 |
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Report Date : |
19.01.2018 |
IDENTIFICATION DETAILS
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Name : |
WEIFANG CYNDA CHEMICAL CO., LTD. |
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Registered Office : |
No. 2 Of East Partial, Lingang Chemical Zone, Binhai Economic
Development Area, Weifang, Shandong Province, 262737 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
05.06.2006 |
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Credibility Code
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91370700789293364L |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject registered business scope includes R & D, production
(synthesis, preparation) and sales of pesticides, preparations, pesticide chemical
intermediates; production and sales: phosphorous acid, alcohol-based liquid
fuel; production and sales: sodium chloride, sodium acetate; export business
of self-produced products and technologies and the import and export business
of machinery and equipment, spare parts, raw and auxiliary materials and
technologies required by the enterprise, excluding the items prohibited or
limited by the country. |
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No. of Employees : |
350 |
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 |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 allowed resumption of a gradual liberalization.
In 2015, the People’s Bank of China announced it would continue to carefully
push for full convertibility of the renminbi (RMB) after the currency was
accepted as part of the IMF’s special drawing rights basket. After engaging in
one-way, large-scale intervention to resist appreciation of the RMB for a
decade, China’s 2016 intervention in foreign exchange markets has sought to
prevent a rapid RMB depreciation that would have negative consequences for the
United States, China, and the global economy.
China’s economic growth has slowed since 2011. The
Chinese Government faces numerous economic challenges including: (a) reducing
its high domestic savings rate and correspondingly low domestic household
consumption; (b) servicing its high corporate debt burdens to maintain
financial stability; (c) facilitating higher-wage job opportunities for the
aspiring middle class, including rural migrants and college graduates, while
maintaining competitiveness; (d) dampening speculative investment in the real
estate sector; (e) reducing industrial overcapacity; and (f) raising
productivity growth rates through the more efficient allocation of capital.
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 only marginal progress
toward these rebalancing goals. Under President XI Jinping, Beijing has
signaled its understanding that China's long-term economic health depends on
giving the market a more decisive role in allocating resources, but has moved
slowly on market-oriented reforms because of potential negative consequences
for stability and short-term economic growth. He has also increased
state-control over key sectors and Party control over state-owned enterprises.
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.
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Source
: CIA |
Company
name and address
WEIFANG CYNDA CHEMICAL CO., LTD.
NO. 2 OF EAST PARTIAL, LINGANG CHEMICAL ZONE, BINHAI ECONOMIC
DEVELOPMENT AREA, WEIFANG, SHANDONG
province, 262737 PR CHINA
TEL: 86 (0) 536-5302678 FAX:
86 (0) 536-5302680
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JUNE 5, 2006
CREDIBILITY CODE :
91370700789293364L
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE :
MR. LI ZHUANG (legal representative)
STAFF STRENGTH :
350
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
R&D, MANUFACTURING & SELLING
TURNOVER :
CNY 333,433,000 (JAN. 1 TO JUN.
30, 2017)
EQUITIES :
CNY 137,199,000 (AS OF JUN. 30, 2017)
PAYMENT :
NO COMPLAINTS
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
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 one-person limited liability company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes R & D, production
(synthesis, preparation) and sales of pesticides, preparations, pesticide
chemical intermediates; production and sales: phosphorous acid, alcohol-based
liquid fuel; production and sales: sodium chloride, sodium acetate; export
business of self-produced products and technologies and the import and export
business of machinery and equipment, spare parts, raw and auxiliary materials
and technologies required by the enterprise, excluding the items prohibited or
limited by the country.
SC is mainly engaged in R & D,
production and sales of chemical pesticides products.
Mr. Li Zhuang has been the legal representative and general manager of
SC since 2015.
SC is known to have approx. 350 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the Binhai Economic Development Area
of Weifang. SC’s employee refused to release the detailed information of the
premise.
http://www.cynda.cn/en/ The website
belongs to SC’s shareholder, and it includes the introduction about SC. The
design is professional and the content is well organized. At present it is in
Chinese and English versions.
E-mail: 493728505@qq.com
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2008-3 |
Registered capital |
CNY 8,200,000 |
CNY 10,000,000 |
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2008-12 |
Legal form |
Limited liabilities company |
Present one |
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2009-5 |
Registered capital |
CNY 10,000,000 |
Present amount |
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Company’s name |
Shandong Ruichuang
Chemical Co., Ltd. (in Chinese pinyin) |
Present one |
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2015-07-15 |
Legal representative |
Wei Guojun |
Present one |
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Unknown |
Registration no. |
3707002806854 |
370700228068540 |
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370700228068540 |
91370700789293364L |
Import/ Export License Number: 3700789293364
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shandong Cynda Chemical Co., Ltd. 100
It listed in Shanghai Stock Exchange Market with the code 603086.
Credibility code: 913700007433656097
Legal representative: Wang Xianquan
Incorporation date: 2002-09-20
Tel: 0543-2328187
Fax: 0543-2311216
Email: cynda@cynda.cn
Legal representative and general manager:
Mr. Li Zhuang , born in 1960 with university education, senior engineer.
He is currently responsible for the overall and daily management of SC.
Working Experience(s):
From 2015 to present Working
in SC as legal representative and general manager.
Also working in Shandong Cynda Chemical Co., Ltd. as vice general
manager.
Chairman:
Ms. Jia Yuling, ID# 11010419420417****, born in 1942, she is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman.
Directors:
Li Zhuang
Liu Zengxiang
Wang Xianquan
Chen Xuxiao
Supervisor:
Xu Zhiwei
SC is mainly engaged in R & D,
production and sales of chemical pesticides
products.
SC’s products mainly include: pesticides, preparations, pesticide
chemical intermediates.
SC sells its products in domestic market, and to overseas market.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
Note: SC declined to release its major suppliers and clients.
Industry code:
2600
Industry name:
Chemical Raw Materials and Chemical Products Manufacturing
The gross domestic product of China in 2016 which is 74412.72 billion
that is increased 6.7% than previous year.
In the first half of 2016, the added value of the chemical industry
increased by 9.2% year on year, and the growth rate dropped 0.2 percentage
points year on year.
Among the main products, the output of ethylene is 9.2 million tons,
increased by 8.8%;
The output of plastics in primary form is 39.76 million tons, increased
by 7.7%;
the output of Synthetic rubber is 2.57 million tons, increased by 4.1%;
the output of Synthetic fiber is 22.56 million tons, increased by 8.4%.
the output of Caustic soda is 16.19 million tons, increased by 6.4%;
the output of sodium carbonate is 12.68 million tons, increased by 0.9%;
The output of chemical fertilizers is 37.19 million tons, increased by
1.4%;
Among them, the output of nitrogen fertilizer and potash fertilizer increased
by 3.1% and 6.7% respectively, and the output of phosphate fertilizer decreased
by 2%;
the output of Pesticide is 1.88 million tons, increased by 4.3%;
the output of Rubber tire cover tire is 457.23 million, increased by
9.1%;
the output of Calcium carbide is of 12.58 million tons, increased by
2.4%.
Jinan Cynda Chemical Co., Ltd.
========================
Credibility code: 9137010078060551XL
Legal representative: Chen Mingyu
Incorporation date: 2005-09-27
Liaoning Cynda Agricultural Science Co., Ltd.
(literal translation)
=======================
Credibility code: 91211400MA0UL8H84Q
Legal representative: Wang Xianquan
Incorporation date: 2017-10-25
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.
China Construction Bank Weifang Haihua Sub-branch
AC#：37001678608050147396
Relationship: Normal
\\
Financial Summary
===============
Unit: CNY’000
Note:
we did not find SC’s detailed financial reports.
Important Ratios
=============
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As of Dec. 31,
2016 |
As of Jun. 30,
2017 |
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*Liabilities to assets |
0.68 |
0.58 |
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*Net profit margin (%) |
/ |
6.88 |
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*Return on total assets (%) |
3.70 |
7.10 |
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*Turnover/Total assets |
/ |
1.03 |
PROFITABILITY:
FAIRLY GOOD
The turnover of SC appears fairly good in the first half of 2017.
SC’s net profit margin is fairly good in the first half of 2017.
SC’s return on total assets is average in 2016 and fairly good in the
first half of 2017.
SC’s turnover is in an average level in the first half of 2017,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.84 |
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|
1 |
INR 88.28 |
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Euro |
1 |
INR 77.88 |
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CNY |
1 |
INR 9.97 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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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.