MIRA
INFORM REPORT
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Report Date : |
12.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
Jiangsu Huada Chemical Group Co., Ltd. |
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Formerly Known As : |
CHANGZHOU HUADA CHEMICAL FACTORY |
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Registered Office : |
No. 10, West of Longhutang, New North District, Changzhou, Jiangsu
Province, 213031 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
28.05.1990 |
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Com. Reg. No.: |
320407000046241 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling Intermediates, Rubber Additives and other
Chemical Products |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
Jiangsu Huada Chemical Group Co., Ltd.
NO. 10, WEST OF LONGHUTANG, NEW NORTH DISTRICT,
CHANGZHOU, JIANGSU
PROVINCE, 213031 PR CHINA.
10
TEL: 86 (0)
519-88227200 FAX: 86 (0)
519-85777826
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 28, 1990
REGISTRATION NO. : 320407000046241
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
280
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 213,480,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 117,790,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 1,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.9837 = 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 Renminbi
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 28, 1990.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered
business scope includes manufacturing alpha naphthylamine, fine
1-Naphthalenamine, alpha naphthol, fine 1-naphthol, nitronaphthalene,
1-naphthol-4-sulfonic acid (NW acid), 1- Naphthylamine-4-sulfonic acid sodium
salt (1,4 acid sodium salt), sodium thiosulfate; exporting self-made dye
intermediates, pharmaceutical intermediates, rubber additives; importing raw
materials, machines, instruments & meters and components required in
manufacture, research & development; processing with imported materials,
processing with imported samples, assemblying with imported parts, and
compensation trade in agreement; selling dyes (able to engage in items that
need permit after obtaining the permit from relative authorities).
SC is mainly
engaged in manufacturing and selling intermediates, rubber additives and other
chemical products.
Mr. Fan
Rongliang has been legal representative
and chairman of SC since May 1990.
SC is known to have approx. 280 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 Changzhou. Our checks
reveal that SC owns the total premise about 12,000 square meters.
Note: SC
also has a new factory in NO.8, North of port area, Jiangbian Chemical area,
Changzhou city, Jiangsu
http://www.huadachem.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: czkd5125680@czinfo.net
SC’s quality system meets the international standards of ISO9001 and
ISO14001.
◆In July 1990, Jiangsu Huada Chemical Factory was founded and put
into production for 1-naphthol-4-sulfonic acid, 1-aphthylamine and naphthol.
◆Sino-Japan Joint Changzhou Huadaming Chemical Co., Ltd. was
founded in December 1995 for the production of rubber aging resisting agent
products: antioxidant agent PA, antioxidant agent DNP, antioxidant agent
DP500#.
◆In January 2000, Changzhou Huada Chemical Research Institute was
founded for developing pharmaceutical intermediates.
◆In February 2000, Huada was certified to ISO9001 with UKAS
certificate obtained.
◆In 2001, 225 mu was bought in Changzhou Bingjiang Chemical Zone
and in July of 2001, Changzhou Huarong Chemical Co., Ltd. was founded.
◆ China-Japan Joint Changzhou Xinxinghuadaming Chemical Industry
Co., Ltd. was founded in Changzhou Bingjiang Chemical District in May 2002, and
it began to manufacture rubber aging resisting products antioxidant agent224,
AW.
◆NS-6 were put into production in Changzhou Bingjiang Chemical New
Factory area from July 2004 on, and their monthly outputs have reached 50 tons
respectively.
◆In October 2004, 2-naphthol and 1-naphthol were jointly put into
production.
◆In October 2004, Changzhou Huadaming Chemical Co., Ltd. and
Changzhou Xinxinghua Daming Chemical Co., Ltd. were certified to ISO9001 with
CNAB quality-accrediting certificate obtained.
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Date of change |
Item |
Before the change |
After the change |
|
2005 |
Company Name |
Changzhou Huada Chemical Factory |
Jiangsu Huada Chemical Group Co., Ltd. |
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2008 |
Registration No. |
3204072104976 |
320407000046241 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Fan Rongliang 85
Hu Jianmei 15
l
Legal representative, chairman and general
manager:
Mr. Fan Rongliang , born in 1955. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 1990 to present Working
in SC as chairman, legal representative and general manager.
l
Sales
Director:
Zheng
Wenjian
Yang
Guisheng
SC is mainly
engaged in manufacturing and selling intermediates, rubber additives and other
chemical products.
Main Products:
Intermediate:
1-naphthol (α -naphthol)(industrial grade , Refined grade)
2-Naphthol (β-naphthol)
1-Nitronaphthalene,alpha-nitronaphthalene
Meville winters acid(1-naphol-4-sulfonic Acid,Nw-Acid)
Sodium 1-naphthylamine-4-sulfonate(1,4 Sodium Naphthionate,SMA)
1-naphthylamine (α-naphthylamine)
Sodium thiosulfate (hypo soda,hypo)
2,3-dichlom-1,4-naphthaquinone
2,5-Dibromonitrobonzene
Rubber Antioxidant:
N-phenyl-1-naphthylamine
Polymerized1,2-dihydro-2,2,4-trimethylquinoline
6-Ethoxy-1,2-dihydro-2,2,4- trimethylquinoline
N,N'-m-Phenylenedimaleimide
N,N'-di-ß-naphthyl-p-phenylenediamine
2,2'-Methylenebis-(6-tert-butyl-4-methylphenol)
Etc.
Brand:
SC sources its materials 90% from domestic
market, and 10% from overseas market. SC sells 70% of its products in domestic
market, and 30% to overseas market, mainly Indian market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
SC is known to invest in the following companies:
Changzhou
Xinxing Huadaming Chemical Co., Ltd.
Changzhou
Huajie Chemicals Co., Ltd.
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.
Rural Credit Cooperative of Changzhou Longhutang
AC#8933204110601201000013061
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
12,420 |
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Notes receivable |
4,120 |
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Inventory |
13,890 |
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Accounts
receivable |
35,960 |
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Advances to
suppliers |
0 |
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Other
receivables |
24,110 |
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Other current
assets |
10 |
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------------------ |
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Current assets |
90,510 |
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Fixed assets |
41,750 |
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Fixed assets net
value |
26,560 |
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Projects under
construction |
3,740 |
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Long term
investment |
39,900 |
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Intangible
assets |
4,520 |
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Other assets |
0 |
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Total assets |
165,230 |
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============= |
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Short loans |
42,170 |
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Accounts payable |
5,420 |
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Advances from
customers |
0 |
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Accrued payroll |
890 |
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Welfare expenses
payable |
310 |
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Taxes payable |
10 |
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Surcharge
payable |
60 |
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Other payable |
-2,900 |
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Other current
liabilities |
10 |
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Current
liabilities |
45,970 |
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Long term
liabilities |
1,470 |
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Total
liabilities |
47,440 |
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Equities |
117,790 |
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Total liabilities
& equities |
165,230 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
213,480 |
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Cost of goods
sold |
192,040 |
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Taxes and
additional of main operation |
530 |
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Income from
other operations |
140 |
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Sales expense |
1,920 |
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Management expense |
6,900 |
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Finance expense |
2,840 |
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Non-operating
income |
10 |
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Non-operating
expense |
280 |
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Profit before
tax |
9,110 |
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Less: profit tax |
3,010 |
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Profits |
6,100 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
1.97 |
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*Quick ratio |
1.67 |
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*Liabilities
to assets |
0.29 |
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*Net profit
margin (%) |
2.86 |
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*Return on
total assets (%) |
3.69 |
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*Inventory
/Turnover ×365 |
24 days |
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*Accounts
receivable/Turnover ×365 |
62 days |
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*Turnover/Total
assets |
1.29 |
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* Cost of
goods sold/Turnover |
0.90 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a fairly good level.
l
The inventory of SC is maintained in an average level.
l
The accounts receivable of SC is maintained in an average level.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
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 1,000,000 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%)