Loan Project Evaluation Of XinHua Co

As the basic industry, agriculture plays an important role in the development process of the national economy. China is a traditional agricultural country, Chinese farmer approximately composes 60% total population, however, recent data show that China's per plantation area is only 40% of the world's per plantation area. Although the government takes the agricultural development seriously, the present situation of agriculture is not optimistic. Data show that China's per capita arable land is only 40% of the world average level. In China, measures, such as conservation farming and land reclamation, cannot significantly achieve the purpose of increase arable land. With the increase of population in China, the demand for food will also increase. From the national point of view, the majority supply of our food must rely on domestic solution.In this context, how to improve the utilization of arable land and productivity becomes the key of agricultural development. Increasing the yield of arable land is a realistic and effective means through increasing the use of chemical fertilizers. Therefore, high demand of fertilizer, especially urea, must be resolve through adding related project of fertilizer and expansion of domestic urea production capacity. To solve most funding sources of construction, the construction of urea production projects relies on not only the approval of national policy, but also bank financing loan. The support from the bank is an important factor to the construction project. If the bank gives negative views to new project, it is very difficult to start the construction project. Feasibility assessment conclusion of project financing loan is a major factor in deciding whether to support the project or not.In this paper, the researched project is 600,000 tons synthetic ammonia and 1 million tons urea project of XinHua Coal Chemical Co., Ltd. in HeGang. The main content of paper is analyzing the situation of borrower credit, project finance, solvency, risk and revenue, drawing evaluation conclusion of loan projects and advising for implementation of loan projects through the historical data of XinHua Coal Chemical Co., Ltd. and shareholders, urea market research of those years and the use of evaluation index for bank.