MIRA INFORM REPORT
|
Report Date : |
19.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
JIANGYIN HUAHONG CHEMICAL FIBER CO., LTD. |
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|
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Registered Office : |
Huahong Industry Park, Zhouzhuang Town,
Jiangyin, Jiangsu Province
214423 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
17.01.2001 |
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Com. Reg. No.: |
320281000094956 |
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Legal Form : |
Limited Liabilities Company |
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|
|
Line of Business : |
Manufacturing,
Processing and selling PET chips and PET staple fiber |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment
Behaviour : |
Usually Correct |
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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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name & address
JIANGYIN HUAHONG CHEMICAL FIBER CO., LTD.
HUAHONG INDUSTRY
PARK, ZHOUZHUANG TOWN, JIANGYIN
JIANGSU PROVINCE
214423 PR CHINA
TEL: 86 (0)
510-86225818
FAX: 86 (0)
510-86225187
EXECUTIVE SUMMARY
Date of Registration : JANUARY 17, 2001
REGISTRATION NO. : 320281000094956
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
CNY 50,000,000
staff : 749
BUSINESS CATEGORY :
MANUFACTURING & processing & trading
Revenue : CNY 3,053,725,000 (AS OF DEC. 31, 2010)
EQUITIES : CNY -85,712,000 (AS OF DEC. 31, 2010)
WEBSITE : www.jyhuahong.com
E-MAIL :
sales@jyhuahong.com
PAYMENT : AVERAGE
Recommended Credit Limit: C.O.D.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.39 = USD 1
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
Note: SC’s correct name should be the
heading one, instead of the given name-Jiangyin Huanong Chemical Fiber Co., Ltd.
SC was
established as a collective-owned enterprise of PRC on January 17, 2001.
However, SC changed to present legal form, and was registered as a limited
liabilities company of PRC with State Administration for Industry & Commerce
(SAIC) under registration No.: 320281000094956 on April 11, 2003.
SC’s Organization Code Certificate
No.: 725195781
SC’s registered capital: cny 50,000,000
SC’s paid-in capital: cny 50,000,000
Registration Change Record:
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
|
Company Name |
Jiangyin Huahong
Chemical Fiber Factory |
Jiangyin Huahong
Chemical Fiber Co., Ltd. |
|
Registered Capital |
CNY 500,000 |
CNY 50,000,000 |
|
|
Legal Representative |
Bian Manxing |
Hu Shiqing |
|
|
Shareholder
(s) (% of Shareholding) |
Bian Huifang 5% Bian Manxing 24% Huang Yuxiang 0% Zhou Lixin 10% Village Committee of Huahong Village
Zhouzhuang Town Jiangyin 51% |
Bian Manxing20% Jiangsu Huahong Industrial
Group Co., Ltd. 60% Yangzhou Huitong Polyester Technology Co.,
Ltd. 20% |
|
|
Legal Form |
Collective-owned enterprise |
Limited Liabilities Company |
|
|
|
Shareholder (s) (% of
Shareholding) |
Bian Manxing 20% Jiangsu Huahong Industrial
Group Co., Ltd. 60% Yangzhou Huitong Polyester Technology Co.,
Ltd. 20% |
Bian Manxing 20% Jiangsu Huahong Industrial
Group Co., Ltd. 80% |
|
-- |
Registration No. |
3202812121324 |
320281000094956 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Jiangsu Huahong Industrial
Group Co., Ltd. |
80 |
|
Bian Manxing |
20 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Hu
Shiqing |
|
Supervisor |
Hu Dongming |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Jiangsu Huahong Industrial Group
Co., Ltd. 80
Bian Manxing 20
Jiangsu
Huahong Industrial Group Co., Ltd.
=====================================
Tel: 86 (0) 510-86225880
Fax: 86 (0) 510-86222561
E-mail: hh@cn-huahong.com
Bian
Manxing
================
Ø
Gender: M
Ø
ID# 320219196408123534
Ø
Age: 47
Ø
Qualification:
University
Ø
Working
experience (s):
From 2001 to 2003, worked in SC as legal representative
MANAGEMENT
Hu
Shiqing, Legal
Representative, Chairman, and General Manager
----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID#320219195709153513
Ø
Age: 54
Ø
Qualification:
University
Ø
Working
experience (s):
From 1986 to 2003, worked in Huahong Group as vice general
manager
From 2003 to present, working in SC as legal representative, chairman and general manager
Also working in Jiangyin Hongkai Chemical Fiber Co., Ltd. and Jiangyin Huakai Polyester Co., Ltd. as legal representative
Hu Dongming, Supervisor
-------------------------------------- ------
Ø
Gender: M
Ø
ID#320219197911113530
Ø
Age: 32
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes
manufacturing and processing differential and functional PET staple fiber;
exporting its products; importing machines, components and raw materials,
excluding the items prohibited by the state.
SC is
mainly engaged in manufacturing, processing and selling PET chips and PET
staple fiber.
SC’s
products mainly include: PET chips and PET staple fiber.
SC sources its materials 80% from
domestic market, and 20% from overseas market. SC sells 70% of its products in
domestic market, and 30% to overseas market, mainly Southeast Asia and Europe.
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.
Staff & Office:
-------------------
SC is
known to have approx. 749 staff at present.
SC
rents an area as its operating office and factory of approx. 130,000 sq. meters
at the heading address.
RELATED COMPANY
u
Jiangsu
Huahong Science and Technology Co., Ltd.
Jiangsu
Huahong Technology Stock Co., Ltd. is the key branch enterprise of Jiangsu
Huahong Industrial Group. It is a reputable enterprise in the industry of
recycling resource process equipment and a specialized manufacturer of large,
medium and small sized recycling resource process equipment.
Address:
Huahong Industrial Park, Zhouzhuang town, Jiangyin city, Jiangsu province, P.
R. China
Tel: +86
(0) 510 8062 9680
Fax: +86
(0) 510 8062 9681
Web: www.hhyyjx.com
Email: info@asiabaler.com
u
Jiangyin
Huahong Synthetic Leather Material Factory Co., Ltd.
u
Jiangyin
Huarui Plastic Building Material Co., Ltd.
u
Jiangyin
New Huahong Copper Industry Co., Ltd.
u
Jiangyin
Huahong Auto Ornaments Co., Ltd.
Etc.
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
Jiangyin Rural Commercial Bank Zhouzhuang Sub-branch
AC#：10110010083
Industrial and Commercial Bank of China Jiangyin
Sub-branch
AC#：75-900-2341
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2008 |
As
of Dec. 31, 2009 |
|
100,017 |
531,997 |
|
|
Accounts
receivable |
638,722 |
-22,584 |
|
Advances to suppliers |
0 |
0 |
|
Other receivable |
-575,226 |
207,672 |
|
Inventory |
178,003 |
221,691 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
3 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
341,519 |
938,776 |
|
Fixed assets |
175,621 |
177,207 |
|
Construction in
progress |
12,178 |
371 |
|
Intangible
assets |
0 |
0 |
|
Long-term equity
investment |
42,711 |
42,711 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
17,972 |
17,942 |
|
|
------------------ |
------------------ |
|
Total assets |
590,001 |
1,177,007 |
|
|
============= |
============= |
|
Short-term loans |
452,850 |
270,000 |
|
Notes payable |
0 |
645,000 |
|
Accounts payable |
255,927 |
385,814 |
|
Wage payable |
0 |
32 |
|
Welfare payable |
412 |
0 |
|
Tax payable |
106 |
-5,901 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
380 |
-3,620 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
709,675 |
1,291,325 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
709,675 |
1,291,325 |
|
Equities |
-119,674 |
-114,318 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
590,001 |
1,177,007 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2008 |
As
of Dec. 31, 2009 |
|
Revenue |
1,245,050 |
1,020,334 |
|
Cost of sales |
1,251,323 |
970,407 |
|
Sales expense |
11,346 |
10,175 |
|
Management expense |
5,474 |
8,706 |
|
Finance expense |
37,546 |
26,476 |
|
Profit before
tax |
-61,271 |
5,412 |
|
Less: profit tax |
0 |
0 |
|
-61,271 |
5,412 |
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
|
Total assets |
1,311,007 |
|
|
------------- |
|
Long term
liabilities |
0 |
|
Total
liabilities |
1,396,719 |
|
Equities |
-85,712 |
|
|
------------- |
|
Revenue |
3,053,725 |
|
Profit before
tax |
30,494 |
|
Less: profit tax |
0 |
|
Profits |
30,494 |
Note: The detailed financials for Y2010 of SC are not filed in SAIC.
Important Ratios
=============
|
|
As
of Dec. 31, 2008 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
0.48 |
0.73 |
-- |
|
*Quick ratio |
0.23 |
0.56 |
-- |
|
*Liabilities
to assets |
1.20 |
1.10 |
1.07 |
|
*Net profit
margin (%) |
-4.92 |
0.53 |
1.00 |
|
*Return on
total assets (%) |
-10.38 |
0.46 |
2.33 |
|
*Inventory /
Revenue ×365 |
53 days |
80 days |
-- |
|
*Accounts
receivable/ Revenue ×365 |
188 days |
-- |
-- |
|
*
Revenue/Total assets |
2.11 |
0.87 |
2.33 |
|
* Cost of
sales / Revenue |
1.01 |
0.95 |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
fairly good in its line, and it increased greatly in 2010.
l
SC’s net profit margin is average in 2009 &
2010.
l
SC’s return on total assets is average in 2009
& 2010.
l
SC’s cost of goods sold is fairly high, comparing
with its revenue in 2008 & 2009.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fair
level in 2008 & 2009.
l
SC’s quick ratio is maintained in a fair level in
2008 & 2009.
l
The inventory of SC is maintained in an average
level.
l
The short-term loans of SC appear average in 2009.
l
SC’s revenue is in a
fairly good level, comparing with the size of its total assets in 2010.
LEVERAGE:
POOR
l
The debt ratio of SC is high in three years.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial
conditions. Great caution is required in providing credit to SC & C.O.D. is
recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.61 |
|
UK Pound |
1 |
Rs.75.32 |
|
Euro |
1 |
Rs.65.68 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.