|
|
|
MIRA
INFORM REPORT
|
Report No. : |
507888 |
|
Report Date : |
05.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
SHANDONG HUALU-HENGSHENG CHEMICAL CO., LTD. |
|
|
|
|
Registered Office : |
No. 24 Tianqu Xi Road, Decheng District,
Dezhou City, Shandong Province 253024 PR China |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2017 |
|
|
|
|
Date of Incorporation : |
26.04.2000 |
|
|
|
|
Unified
Social Credit Code: |
91370000723286858L |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Subject registered business scope includes manufacturing
and selling chemicals within permitted scope; power generation business,
heating within permitted scope (the valid term is subject to the license);
manufacturing and selling chemical fertilizer (excluding pre approval items);
import and export within the record; protocol and network power supply
business, technical promotion services (if needed with permit). |
|
|
|
|
No. of Employees : |
3,673 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low risk
of default |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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
|
COMPANY NAME |
Shandong Hualu-Hengsheng Chemical Co., Ltd. |
|
CURRENT ADDRESS/ REGISTERED
ADDRESS |
No. 24 Tianqu Xi Road, Decheng
District, Dezhou City, Shandong Province 253024 PR China |
|
TEL. NO. |
86 (0) 534-2465426 |
|
FAX NO. |
86 (0) 534-2465017 |
EXECUTIVE SUMMARY
Date of Registration : April 26, 2000
unified social credit code : 91370000723286858L
LEGAL FORM : SHARES
LIMITED COMPANY
REGISTERED CAPITAL : CNY 1,620,363,550
staff : 3,673
BUSINESS CATEGORY : manufacturing & TRADING
REVENUE : CNY 10,408,071,000 (AS OF DEC. 31, 2017)
EQUITIES : CNY
9,289,259,000 (AS OF DEC. 31, 2017)
WEBSITE : www.hl-hengsheng.com
E-MAIL : hlhs2465031@126.com
PAYMENT : REGULAR
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : fairly GOOD
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: 91370000723286858L.
SC’s Import and Export Enterprise
Code: 3700723286858
SC’s registered capital: CNY
1,620,363,550
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2006 |
Legal Representative |
Wang Chuntao |
Cheng Guanghui |
|
-- |
Registered Capital |
CNY 330,500,000 |
CNY 495,750,000 |
|
Registered Capital |
CNY 495,750,000 |
CNY 953,625,000 |
|
|
Registered No. |
3700001806025 |
370000018060251 |
|
|
2012 |
Legal Representative |
Cheng Guanghui |
Chang Huaichun |
|
2016-4-14 |
Registered Capital |
CNY 953,625,000 |
CNY 958,865,000 |
|
Registration No./ Unified Social Credit Code |
370000018060251 |
91370000723286858L |
|
|
2016-8-9 |
Registered Capital |
CNY 958,865,000 |
CNY 1,246,524,500 |
|
2017-7-14 |
Registered Capital |
CNY 1,246,524,500 |
CNY 1,620,481,850 |
|
2018-1-8 |
Registered Capital |
CNY 1,620,481,850 |
CNY 1,620,363,550 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (As of December 31, 2017) |
% of Shareholding |
|
Shandong Hualu Hengsheng Group Co., Ltd. |
32.22 |
|
Central Huijin Asset Management Co., Ltd. |
4.17 |
|
National Social Security Fund Combination 106 |
2.69 |
|
New China Life Insurance Company Ltd.-Bonus-Team Bonus |
2.11 |
|
National Social Security Fund Combination 117 |
1.98 |
|
Dongfang Hongrui Huahugang Flexible Configuration Hybrid
Securities Investment Fund |
1.25 |
|
National Social Security Fund Combination 109 |
0.99 |
|
Macao Financial Authority-Own Assets |
0.98 |
|
China Life Insurance (Group) Company- Dividend-Individual
Dividend |
0.96 |
|
Dongfanghong China Advanced Flexible Configuration Hybrid
Securities Investment Fund |
0.9 |
|
Other Shareholders |
51.75 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, General Manager and Director |
Chang
Huaichun |
|
Vice Chairman, Deputy General
Manager and Director |
Dong
Yan |
|
Deputy General Manager and
Director |
Gao
Jinghong |
|
Deputy General Manager |
Pan
Desheng |
|
Zhang Xinsheng |
|
|
Zhuang Guangshan |
|
|
Yu Fuhong |
RECENT DEVELOPMENT
SC was listed in Shanghai Stock Exchange Market with the
code of 600426.
SHAREHOLDER CHART
& BACKGROUND
Name %
of Shareholding
(As of December 31, 2017)
----------------------------------
Shandong Hualu Hengsheng Group
Co., Ltd. 32.22
Central Huijin Asset Management
Co., Ltd. 4.17
National Social Security Fund
Combination 106 2.69
New China Life Insurance Company
Ltd.-Bonus-Team Bonus
National Social Security Fund
Combination 117 1.98
Dongfang Hongrui Huahugang
Flexible Configuration Hybrid
Securities Investment Fund 1.25
National Social Security Fund
Combination 109 0.99
Macao Financial Authority-Own
Assets 0.98
China Life Insurance (Group)
Company- Dividend-Individual
Dividend
Dongfanghong China Advanced
Flexible
Configuration Hybrid Securities
Investment Fund 0.9
Other Shareholders 51.75
Shandong Hualu Hengsheng Group
Co., Ltd.
-------------------------------------------------------
Shandong Hualu-Hengsheng Group Co., Ltd. is one of China’s
top 100 petroleum and chemical industry enterprises in terms of overall
performance and one of 200 key enterprise groups in Shandong Province, with a
total asset of over 5 billion RMB and a workforce of 3,300 employees. Its
products include four series, namely, chemical fertilizers, chemical products,
thermoelectricity and industrial gases, with an annual production capacity of 1
million tons of carbamide, 1 million tons of carbinol, 230,000 tons of DMF,
20,000 tons of mixed methylamine, 200 megawatts of electricity, 20 million GJ
heat supply and 100,000 tons of industrial gases. It is one of the national
large-scale chemical fertilizer manufacturers and the largest DMF suppliers
worldwide. Its leading product, “Youyi” Brand carbamide, is named a China Top
Brand and a national inspection-free product.
Date of Registration: June 4, 1996
Unified Social Credit Code: 913714001672791702
Registered Capital: CNY 101,170,000
Central Huijin Asset Management
Co., Ltd.
----------------------------------------------------
Unified Social Credit Code: 91110101MA001QTAX2
Registered Capital: CNY 5,000,000,000
MANAGEMENT
Chang Huaichun , Legal Representative, Chairman, General Manager and Director
----------------------------------------------------------------------------------------------------------------------
Ø Gender:
M
Ø Qualification: University
Ø Working experience (s):
From 2003
to 2009, worked in SC as director and vice general manager
From 2009
to 2010, worked in SC as director and routine vice general manager
From 2010
to 2012, worked in SC as general manager
From 2012 to present,
working in SC as legal representative, chairman, general manager and director
Dong Yan , Vice Chairman, Deputy General Manager
and Director
-----------------------------------------------------------------------------------------------
Ø Gender:
M
Ø Qualification: University
Ø Working experience (s):
At
present, working in SC as vice chairman, deputy general manager and director
Gao Jinghong , Deputy General Manager and Director
----------------------------------------------------------------------------------
Ø Gender:
M
Ø Qualification: University
Ø Working experience (s):
At
present, working in SC as deputy general manager and director
Deputy General Manager
----------------------------------
Pan
Desheng
Zhang
Xinsheng
Zhuang
Guangshan
Yu Fuhong
BUSINESS OPERATION
SC’s
registered business scope includes manufacturing and selling chemicals within
permitted scope; power generation business, heating within permitted scope (the
valid term is subject to the license); manufacturing and selling chemical
fertilizer (excluding pre approval items); import and export within the record;
protocol and network power supply business, technical promotion services (if
needed with permit).
SC is mainly engaged in manufacturing and selling chemical
fertilizer and chemical products.
Brand:
YOUYI
SC’s
products mainly include:
N,
N-Dimethylformamide
Trimethylamine
Formaldehyde
High
Purity Liquid Argon
Monomethylamine
Liquid
Nitrogen
Liquid
Oxygen
Carbamide
Etc.
SC
sources its materials 100% from domestic market. SC sells 60% of its products
in domestic market, and 40% to overseas market.
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*
-----------------------
State
Grid Shandong Electric Power Company
Mckinn
International Pte Ltd.
Dortgen
Gayrimenkul Yatirim Ve Turi
Expanded
Polymer Systems Pvt Ltd.
Sojitz(Malaysia)Sdn
Bhd
Staff & Office:
--------------------------
SC is
known to have approx. 3,673 staff
at present.
SC
owns an area as its operating office and factory, 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
Basic Bank:
China Construction Bank Dezhou Branch
AC#: 37001849001050153361
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2015 |
As of Dec. 31, 2016 |
As of Dec. 31, 2017 |
|
424,039 |
621,490 |
753,576 |
|
|
Notes receivable |
503,496 |
573,884 |
656,166 |
|
Accounts
receivable |
29,720 |
17,271 |
41,373 |
|
Advances
to suppliers |
132,703 |
136,326 |
130,425 |
|
Other
receivable |
626 |
584 |
586 |
|
Inventory |
245,922 |
519,404 |
401,626 |
|
Non-current
assets due within one year |
0 |
15,713 |
0 |
|
Other
current assets |
135,606 |
113,060 |
263,376 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
assets |
1,472,112 |
1,997,732 |
2,247,128 |
|
Long
term equity investment |
0 |
0 |
0 |
|
Fixed
assets |
8,709,768 |
8,230,837 |
10,720,292 |
|
Construction
in progress |
341,827 |
1,336,043 |
1,411,507 |
|
Engineering
materials |
0 |
145,829 |
73,334 |
|
Fixed
assets in liquidation |
0 |
11,156 |
0 |
|
Intangible
assets |
336,726 |
522,679 |
518,092 |
|
Development
expenditure |
0 |
0 |
0 |
|
Long-term
prepaid expenses |
83,333 |
77,926 |
77,926 |
|
Deferred
income tax assets |
8,639 |
8,996 |
4,549 |
|
Other
non-current assets |
656,192 |
874,346 |
968,942 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
assets |
11,608,597 |
13,205,544 |
16,021,770 |
|
|
============= |
============= |
============= |
|
Short-term
loans |
30,000 |
740,000 |
660,000 |
|
Notes
payable |
0 |
0 |
0 |
|
Accounts
payable |
678,767 |
725,798 |
1,330,256 |
|
Advances
from clients |
196,386 |
203,526 |
366,056 |
|
Payroll
payable |
37,458 |
45,214 |
56,451 |
|
Taxes
payable |
42,844 |
71,461 |
89,503 |
|
Interest
payable |
4,191 |
6,339 |
8,047 |
|
Other
payable |
48,421 |
43,370 |
29,055 |
|
Non-current
liabilities maturing within one year |
0 |
1,117,387 |
1,060,042 |
|
Other
current liabilities |
1,343,261 |
303 |
1,109 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
2,381,328 |
2,953,398 |
3,600,519 |
|
Non-current
liabilities |
1,852,741 |
2,091,000 |
3,131,992 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
4,234,069 |
5,044,398 |
6,732,511 |
|
Equities |
7,374,528 |
8,161,146 |
9,289,259 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
11,608,597 |
13,205,544 |
16,021,770 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2015 |
As
of Dec. 31, 2016 |
As
of Dec. 31, 2017 |
|
Revenue |
8,651,296 |
7,701,060 |
10,408,071 |
|
Cost of sales |
6,885,548 |
6,142,982 |
8,366,572 |
|
Business Taxes and Surcharges |
27,490 |
60,773 |
76,145 |
|
Sales expense |
184,509 |
167,092 |
188,919 |
|
Management expense |
232,916 |
153,689 |
170,404 |
|
Finance expense |
244,792 |
140,638 |
151,670 |
|
Assets Devaluation |
12,695 |
462 |
5,780 |
|
Investment
income |
0 |
0 |
0 |
|
Non-operating
income |
6,207 |
3,647 |
1,496 |
|
Non-operating expense |
2,128 |
5,275 |
12,571 |
|
Profit
before tax |
1,067,424 |
1,033,794 |
1,438,414 |
|
Less:
profit tax |
162,775 |
158,304 |
216,362 |
|
904,649 |
875,490 |
1,222,052 |
Important
Ratios
=============
|
|
As of Dec.
31, 2015 |
As of Dec.
31, 2016 |
As of Dec.
31, 2017 |
|
*Current ratio |
0.62 |
0.68 |
0.62 |
|
*Quick ratio |
0.51 |
0.50 |
0.51 |
|
*Liabilities to assets |
0.36 |
0.38 |
0.42 |
|
*Net profit margin (%) |
10.46 |
11.37 |
11.74 |
|
*Return on total assets
(%) |
7.79 |
6.63 |
7.63 |
|
*Inventory / Revenue ×365 |
11
days |
25
days |
15
days |
|
*Accounts receivable/
Revenue ×365 |
2
days |
1
day |
2
days |
|
*Revenue / Total assets |
0.75 |
0.58 |
0.65 |
|
*Cost of sales / Revenue |
0.80 |
0.80 |
0.80 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The
revenue of SC appears fairly good in its line.
l SC’s
net profit margin is fairly good.
l SC’s
return on total assets is fairly good.
l
SC’s cost of goods sold is average,
comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained
in a fair level.
l
SC’s quick ratio is maintained in a fair
level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears
average.
l
The short-term loans of SC appear
average.
l
SC’s revenue is in a fair level,
comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall
financial condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered large-sized in its line with fairly stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 66.76 |
|
|
1 |
INR 90.58 |
|
Euro |
1 |
INR 79.97 |
|
CNY |
1 |
INR 10.50 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
|
|
|
|
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.