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MIRA INFORM REPORT
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Report No. : |
507220 |
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Report Date : |
08.05.2018 |
IDENTIFICATION DETAILS
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Name : |
HUANGHUA XINNUOLIXING FINE CHEMICAL STOCK
COMPANY LIMITED |
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Registered Office : |
Lvqiao Town Industry Zone Huanghua Hebei
Province, Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
19.03.2004 |
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Credibility Code : |
91130900760301260H |
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
The subject’s registered business scope includes manufacturing crude
phenols, anthracene oil, coal tar pitch, separating tar, pyridine, phenol,
acenyrum, quinoline, isoquinoline, methylene (phenylephrene), para (phenyl) phenol,
o-methylbenzene, alpha methylnaphthalene, beta methylnaphthalene, anthracene,
carbazole, phthalic anhydride, xylene, 200# solvent naphtha and naphtha,
fumaric acid, light oil, oil, dephenolol oil, flash heavy oil, anthraquinone,
carbon black oil, medium temperature asphalt, medium temperature modified
bitumen, amaro, phthalic anhydride, sodium sulfate, fluorene, two cresol,
etc.; selling coal tar, crude benzene, anthracene oil (including anthracene
oil, two anthracene oil) and ethylene oxide, fuel oil, TPEG, glass, coal,
coke; importing and exporting goods (with permit if needed) |
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No. of Employees : |
1,010 |
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) |
|
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.
|
Source
: CIA |
Company name & address
Company Name : HUANGHUA XINNUOLIXING FINE CHEMICAL STOCK COMPANY LIMITED
Address : Lvqiao town
Industry Zone huanghua hebei
PROVINCE, PR CHINA
Telephone : 0086-317- 5882676
Facsimile : 0086-317- 5882676
Website : http://www.sinocoalchem.com/
Email : sales@sinocoalchem.com
Note: The given phone
number 86-21-61212663 belongs to the Shanghai Office of the subject. The given
fax number is incomplete.
REGISTRATION INFORMATION
Established Date : 2004-03-19
Credibility Code : 91130900760301260H
Legal Form : Shares
Limited Co.
Registration
Authority: Administration for Industry & Commerce (AIC) - Cangzhou
Status : Active
Registered Capital : RMB 172,800,000
Paid Up Capital : RMB 162,000,000 (as of Jun. 30, 2017)
Turnover : RMB 1,097,734,000 (Consolidated as of Jun. 30, 2017)
Equities : RMB 593,452,000
(Consolidated as of Jun. 30, 2017)
Chief Executive : Yu Jinjun
Business Line : Manufacturer
Manpower : 1,010
Tax Registration
Certificate No. : 91130900760301260H
Organization Code : 76030126-0
HS code : 1309960276
Import &
Export code: 1300760301260
Financial Condition : Fairly
Stable
Business Size : Large Enterprise
Payment : Regular
Registered Address
LVQIAO TOWN INDUSTRY ZONE HUANGHUA HEBEI
PROVINCE, PR CHINA
Company Status: Shares limited
co.
This form of business in PR China is defined as a legal person. Its registered
capital is divided into shares of equal par value and the co. raises capital by
issuing share certificates by promotion or by public offer. Shareholders bear
limited liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent property
of legal person and enjoys property rights of legal person. The characteristics
of the shares limited co. are as follows:
The establishment of the co. requires at least two promoters and no more
than 200, half of whom shall be domiciled in China. Natural person are allowed
to serve as promoters.
The minimum registered capital of a co. is RMB 5M. while that of the co.
with foreign investment is RMB 5M. The total capital of a co. which propose to
apply for publicly listed must be no less than RMB 30M.
The board of directors must consist of five to nineteen directors.
If the co. raises capital by public offer, the promoters must not
subscribe less than 35% of the total shares. the promoters’ shares are
restricted to transfer- within one year of the offer.
A state-owned enterprise that is restructured into a shares limited co.
must comply with the conditions & requirements specified under the law
& administrative rule.
Premise
The subject operates from premises located at
the heading address, and this address houses its operating office and factory
in Huanghua. Our checks reveal that the subject owns the total premise, but the
square meters are unknown.
MANAGEMENT
|
Position |
Name |
Nationality |
|
Legal representative, General Manager
Chairman |
Yu Jinjun |
Chinese |
|
Directors |
Wang Renjie Zheng Shuguo Wang Ping Yu Jiangkun Qin Deyong Qi Yong |
Chinese |
|
Supervisors |
Liu Lamei Li Ying Zhang Guohui |
Chinese |
MAJOR SHAREHOLDERS
Name (As of 2017-08-28) % Shareholding
Yu Jinjun 50.61
Yu Jiangkun 18.52
Yu Hongli 18.52
Huanghua Maoyuan Petroleum
Products Co.,Ltd. 7.41
Huanghua Chengcheng Investment
Management Center (limited partnership) 4.94
KEY EVENTS
Changes of its registered information are as
follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2017-12-25 |
Registered capital |
RMB 162,000,000 |
Present one |
|
2016-11-28 |
Registered capital |
RMB 150,000,000 |
RMB 162,000,000 |
BUSINESS OPERATIONS
The subject’s registered business scope includes manufacturing crude phenols,
anthracene oil, coal tar pitch, separating tar, pyridine, phenol, acenyrum,
quinoline, isoquinoline, methylene (phenylephrene), para (phenyl) phenol,
o-methylbenzene, alpha methylnaphthalene, beta methylnaphthalene, anthracene,
carbazole, phthalic anhydride, xylene, 200# solvent naphtha and naphtha,
fumaric acid, light oil, oil, dephenolol oil, flash heavy oil, anthraquinone,
carbon black oil, medium temperature asphalt, medium temperature modified
bitumen, amaro, phthalic anhydride, sodium sulfate, fluorene, two cresol, etc.;
selling coal tar, crude benzene, anthracene oil (including anthracene oil, two
anthracene oil) and ethylene oxide, fuel oil, TPEG, glass, coal, coke;
importing and exporting goods (with permit if needed)
The subject is mainly engaged in
manufacturing and selling fine chemicals.
Products:
Mid-temperature pitch
Hard pidch
Light oil
Washing oil
Quinoline
Flyorene
Acenaphthene
Modified pitch
Etc.
The
subject sources its materials 60% from domestic market, and 40% from overseas
market. the subject sells 30% of its products in domestic market, and 70% to
overseas market, mainly U.S.A. and Europe.
The
buying terms of the subject include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of the subject include Check, T/T, L/C and Credit of 30-60
days.
SUPPLIER & CUSTOMER
No record.
RELATED COMPANIES
Subsidiaries
Cangzhou Lingang Feng Ya Chemical Co., Ltd.
========================
Credibility Code: 91130931398892917T
Legal representative: Yu Jiangkun
Registered Capital: RMB 100,000,000
Established Date: 2014-06-25
Huanghua Jinding Transportation Co., Ltd.
========================
Credibility Code: 911309830526848702
Legal representative: Yu Jindong
Registered Capital: RMB 10,000,000
Established Date: 2012-08-31
Etc.
NEGATIVE INFORMATION
Lawsuit Record:
|
Date |
Case No. |
Petitioner |
Defendant |
Executive court |
Status |
|
2017-09-29 |
2017- 0983 |
Beijing Dongyuan
(Cangzhou) law firm |
The subject company. |
Huanghua people's
court |
Concluded |
|
2016-12-22 |
2016- 0983 |
Meng Xianchao |
The subject company. |
Huanghua people's
court |
Concluded |
Etc.
Trade payment experience: The subject 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 the subject was placed to us for collection
within the last 6 years.
Customs
administrative penalty: No record.
Equity freeze
information: No record.
Administrative Penalty: No record.
MORTGAGE
|
Registered Date |
Registration Authority |
Amount (RMB) |
|
|
2018040002 |
2018-4-17 |
Administration for Industry & Commerce (AIC)-Huanghua |
20,000,000 |
|
2018010002 |
2018-1-8 |
Administration for Industry & Commerce (AIC)-Huanghua |
20,000,000 |
Etc.
TRADEMARK
|
Registration No. |
Registration Date |
Trademark Design |
|
8527626 |
2011-8-21 |
|
|
8527627 |
2011-8-7 |
|
Etc.
PATENT
|
Patent name |
Published Application Number |
Application number |
Date of publication |
|
Bitumen flash system |
CN206986097U |
CN201720785298.0 |
2018-02-09 |
|
A naphthalene phthalic anhydride
precondenser device |
CN206989731U |
CN201720785299.5 |
2018-02-09 |
Etc.
BANKING
China Construction Bank Huanghua Sub-Branch
Account No.: 13001696308050505162
ABBREVIATED FINANCIAL STATEMENT
Consolidated
Balance Sheet
Unit: RMB’000
|
|
as of Dec. 31, 2016 |
as of Jun. 30, 2017 |
|
Cash & bank |
55,276 |
85,887 |
|
Notes receivable |
1,524 |
9,747 |
|
Inventory |
244,027 |
298,864 |
|
Accounts
receivable |
195,463 |
213,562 |
|
Advances to
suppliers |
39,944 |
11,970 |
|
Other
receivables |
11,354 |
8,176 |
|
Other current
assets |
16,739 |
23,871 |
|
|
------------------ |
------------------ |
|
Current assets |
564,327 |
652,077 |
|
Available-for-sale
financial assets |
1,375 |
1,375 |
|
Fixed assets net
value |
539,889 |
516,900 |
|
Projects under construction |
57,337 |
67,316 |
|
Project materials |
5,251 |
5,251 |
|
Intangible
assets |
96,020 |
94,946 |
|
Long-term prepaid expenses |
17,443 |
13,945 |
|
Deferred tax assets |
5,255 |
6,514 |
|
Other assets |
3 |
2 |
|
|
------------------ |
------------------ |
|
Total assets |
1,286,900 |
1,358,326 |
|
|
============= |
============= |
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Short loans |
437,010 |
467,021 |
|
Notes payable |
64,470 |
8,000 |
|
Accounts payable |
127,154 |
166,952 |
|
Advances from
customers |
8,282 |
13,143 |
|
Accrued payroll |
10,727 |
13,367 |
|
Taxes payable |
15,288 |
1,699 |
|
Interest payable |
1,764 |
2,209 |
|
Other accounts payable |
3,127 |
3,407 |
|
Non-current liabilities due within one year |
3,510 |
29,606 |
|
Other current
liabilities |
2 |
3 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
671,334 |
705,407 |
|
Non- current
liabilities |
86,372 |
59,467 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
757,706 |
764,874 |
|
Shareholders
equities |
529,194 |
593,452 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,286,900 |
1,358,326 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: RMB’000
|
|
as of Dec. 31, 2016 |
as of Jun. 30, 2017 |
|
Turnover |
859,806 |
1,097,734 |
|
Cost of goods
sold |
733,580 |
908,108 |
|
Sales expense |
34,809 |
33,744 |
|
Management expense |
31,634 |
37,139 |
|
Finance expense |
19,284 |
14,215 |
|
Impairment of assets |
5,504 |
8,742 |
|
Profit before
tax |
32,689 |
88,478 |
|
Less: profit tax |
8,674 |
26,489 |
|
Net profit |
24,015 |
61,989 |
Important Ratios
=============
|
|
as of Dec. 31, 2016 |
as
of Jun. 30, 2017 |
|
*Current ratio |
0.84 |
0.92 |
|
*Quick ratio |
0.48 |
0.50 |
|
*Liabilities to assets |
0.59 |
0.56 |
|
*Net profit margin (%) |
2.79 |
5.65 |
|
*Return on total assets (%) |
1.87 |
4.56 |
|
*Inventory /Turnover ×365 |
104 days |
-- |
|
*Accounts receivable/Turnover ×365 |
83 days |
-- |
|
*Turnover/Total assets |
0.67 |
0.81 |
|
* Cost of goods sold/Turnover |
0.85 |
0.83 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of the
subject is fairly good.
l The subject’s net
profit margin is average in 2016 and fairly good in the first half of Y2017.
l The subject’s
return on total assets is average.
l
The subject’s cost of goods sold is average,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of the subject is maintained in a
fair level.
l
The subject’s quick ratio is maintained in a fair
level.
l
The inventory of the subject is fairly large.
l
The accounts receivable of the subject is average.
l
The short-term loan of the subject is fairly large.
l
The subject’s turnover is in a fair level,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of the subject is average.
l
The risk for the subject to go bankrupt is average.
TREND ANALYSIS
===========
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|
2014 |
2015 |
2016 |
|
Sales Trend |
-- |
-- |
-- |
|
Profit margin |
-- |
-- |
-- |
|
Debt to assets ratio |
-- |
-- |
-- |
|
Overall Financial Condition |
□Good □Fairly Good □Stable ■Fairly Stable □Fair □Poor |
||
COMMENT
The subject was registered as a Shares limited co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license). The subject is considered
large-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 67.11 |
|
|
1 |
INR 90.85 |
|
Euro |
1 |
INR 80.12 |
|
CNY |
1 |
INR 10.54 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.