MIRA
INFORM REPORT
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Report Date : |
25.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
TIANJIN CHANGJIE CHEMICAL CO., LTD. |
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Registered Office : |
South Fengchan River, Jinwei Road, Beichen
District, Tianjin, 300402 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
03.07.1993 |
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Com. Reg. No.: |
005325 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and Selling Sodium Saccharin |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
usd 350,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
TIANJIN CHANGJIE CHEMICAL CO., LTD.
SOUTH FENGCHAN RIVER, JINWEI ROAD, BEICHEN
DISTRICT,
TIANJIN, 300402 PR CHINA
TEL: 86 (0)
22-26998092 FAX:
86 (0) 22-26998071
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL.
3, 1993
REGISTRATION NO. : 005325
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
281
REGISTERED CAPITAL : USD 1,500,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
cny 95,800,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 29,000,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 350,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.88= US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Jul. 3, 1993.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR China
is defined as a legal person. It is a limited co. jointly invested by one
or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition position
in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing sodium saccharin;
selling its products.
SC is mainly
engaged in manufacturing and selling sodium saccharin.
Mr. Yang Fulong
has been chairman of SC since 1993.
SC is known
to have approx. 281 employees at present.
SC is
currently operating at the above stated address, and this address houses its operating
office and factory in the industrial zone of Tianjin. Our checks reveal that SC
owns the total premise about 40,000 square meters.
http://www.tjchangjie.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: cjsales@public.tpt.tj.cn
SC’s predecessor was Tianjin Great Wall Saccharin Factory founded in
1988.
“Tianhuan” Sodium Saccharin was awarded the honorable title of Famous
Good Product in Tianjin.
SC’s quality system meets the international standards of ISO9002 in 2003
SC’s former registered capital was USD 800,000, and at the end of 2007
it was changed to the present amount.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Tianjin Sanqian Science & Technology
Group 75
Hong Kong Jielian Trading Co., Ltd. 25
Tianjin Sanqian Science & Technology
Group
Tianjin Sanqian Science & Technology
Group, a large group of its kind, was set up with the approval of the Municipal
Institutional Reform Committee and the Agriculture Office of Tianjin Municipal
Government. As a hi-tech enterprise, it is also a member of the High-Tension
Switch Sub-committee of the National Electricity Transmission Equipment Manufacturers'
Guild. It was recommended by the State Economic and Trade Commission as a
manufacturer of the equipment for construction and renovation of the national
electric grid and a Key Protection & Service Unit named by the Disciplinary
Inspection Committee of Tianjin Municipal Party Committee and the Municipal
Supervision Bureau.
Add: Beichen Science &Technology Park,
Tianjin
Tel: 86 22-26994019
Fax: 86 22-26994019
E-mail: TJ3000@2911.net
l
Chairman and General Manager:
Mr. Yang Fulong, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1993 to present Working
in SC as chairman and general manager.
l
Vice General Manager:
Mr. Zhao Xiangzheng, in his 40’s with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to present
Working in SC as vice general
manager.
SC is mainly
engaged in manufacturing and selling sodium saccharin
SC’s products
mainly include: sodium saccharin.
SC’s annual output
can reach 3,500 tons.
“Tianhuan” Sodium Saccharin has met the National
Standard(GB) on Food additive, the Standard of British pharmacopoeia
(BP88,BP93,BP98,BP99,BP2000), the Standard of the United States pharmacopoeia
(USP23,USP22,USP24), and the Standard of Deutschland (DAB10), European
pharmacopoeia (EP1997). It has been extensively applied in food, cosmetics,
forage and electroplates industry, etc.
SC sources its
materials 80% from domestic market, and 20% from the overseas market, mainly
European countries. SC sells 60% of its products in domestic market, and 40% to
the overseas market, mainly Southeast Asia, American and European countries.
SC’s total export
amount from Jan. to Aug. in 2006 reached 1,754 tons.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Client:
============
Tianjin Wansong Natural Food and Drink Co.,
Ltd
SC is not
known to have any subsidiary at present.
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 refused to release any information of its
suppliers and the trade reference was not available.
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.
Industrial and Commercial Bank of China Shuishangcun Sub-branch
AC#
0302070409101453157
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
4,950 |
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Advances to
suppliers |
0 |
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Accounts
receivable |
3,370 |
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Inventory |
3,550 |
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Other
receivables |
5,360 |
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Other current
assets |
5,770 |
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------------------ |
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Current assets |
23,000 |
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Fixed assets net
value |
29,000 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
300 |
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------------------ |
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Total assets |
52,300 |
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============= |
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Short loans |
18,000 |
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Accounts payable |
9,150 |
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Advances from clients |
0 |
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Taxes payable |
-4,210 |
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Salaries payable |
0 |
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Other payable |
360 |
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Other current
liabilities |
0 |
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Current
liabilities |
23,300 |
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Long term
liabilities |
0 |
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Total
liabilities |
23,300 |
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Equities |
29,000 |
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------------------ |
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Total
liabilities & equities |
52,300 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
95,800 |
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Profit before
tax |
7,310 |
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Less: profit tax |
240 |
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Profits |
7,070 |
Important Ratios
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2006 |
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*Current ratio |
0.99 |
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*Quick ratio |
0.83 |
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*Liabilities
to assets |
0.45 |
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*Net profit
margin (%) |
7.38 |
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*Return on
total assets (%) |
13.52 |
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*Inventory
/Turnover ×365 |
14days |
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*Accounts
receivable/Turnover ×365 |
13days |
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*Turnover/Total
assets |
1.83 |
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* Cost of
goods sold/Turnover |
/ |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in 2006.
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SC’s net profit margin is fairly good in 2006.
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SC’s return on total assets is fairly good in 2006.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a fair level in 2006.
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SC’s quick ratio is maintained in a normal level in 2006.
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The accounts receivable of SC is average in 2006.
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The inventory of SC is average in 2006.
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SC’s short loans are fairly large in 2006.
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SC’s turnover is in an average level in 2006, comparing with the size of
its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in 2006.
l
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. A credit line up to USD 350,000 would appear to be within SC’s
capacities.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)