MIRA
INFORM REPORT
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Report Date : |
11.05.2011 |
IDENTIFICATION DETAILS
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Name : |
huzhou jichang chemical co., ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
18.12.1998 |
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Com. Reg. No.: |
330500400007480 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Manufacturing and selling chemical products. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 200,000 |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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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 – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Name and address
huzhou jichang chemical co., ltd.
TEL: 86 (0)
572-3508466/3508480 FAX: 86 (0)
572-3508468
EXECUTIVE SUMMARY
INCORPORATION DATE :
DEC. 18, 1998
REGISTRATION NO. :
330500400007480
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
STAFF STRENGTH :
95
REGISTERED CAPITAL : USD 2,500,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 59,160,000 (UNAUDITED, AS OF
DEC. 31, 2010)
EQUITIES :
CNY 43,640,000 (UNAUDITED, AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.4935 = USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
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 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
Dec. 18, 1998.
SC’s registered
business scope includes manufacturing and selling 2-ethyl anthraquinone,
tetrabutyl urea, acetic acid-2-methyl cyclohexyl and supporting products.
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Shi Ximao is
legal representative and chairman of SC at present.
SC is known to
have approx. 95 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 Huzhou. Our checks
reveal that SC owns the total premise about 40,000 square meters.
http://www.jc-chemical.com
The design is professional and the content is well organized. At present, the
web is both in Chinese and English versions.
E-mail: swmd@mail.huptt.zj.cn
Qualification:
===========
SC has passed ISO 9002.
SC was also awarded as Civilization Unit, Top 10 Technology Advanced
Enterprise, etc.
No significant changes were found during our checks with the local AIC.
MAIN SHAREHOLDERS:
Name % of Shareholding
Huzhou Linghu Jichang Chemical Co., Ltd. (in
Chinese pinyin) 75
Fuerkang Corp. (U.S.A.) (in Chinese pinyin) 25
Huzhou Linghu Jichang Chemical Co., Ltd. (in
Chinese pinyin)
----------------------------------------------------------------------------
Registration no.: 330504000012807
Registered capital: CNY 500,000
Legal representative: Shi Weifeng
Tel: 0572-3508466
l
Legal representative and chairman:
Mr.
Working Experience(s):
At present Working
in SC as legal representative and chairman
Also working in Huzhou Longmen Industry Co., Ltd. (in
Chinese pinyin) as legal representative.
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products mainly include: 2-Ethylanthraquinone, aluminium chloride, Poly Aluminum chloride,
Aluminum trichloride anhydrous, Aluminum chloride anhydrous, etc.
SC sources its materials 100% from domestic
market. SC sells its products 50% in domestic market, and 50% 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.
Note:
SC refused to release its major clients and suppliers.
Huzhou Longmen Industry Co., Ltd. (in
Chinese pinyin)
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.
Industrial and
Commercial Bank of
AC#：N/A
Relationship:
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2010 (unaudited) |
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Cash & bank |
1,380 |
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Inventory |
4,400 |
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Bills receivable |
2,750 |
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Accounts
receivable |
11,770 |
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Other Accounts
receivable |
38,060 |
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Advances to
suppliers |
9,580 |
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To be
apportioned expense |
50 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
67,990 |
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Fixed assets net
value |
10,600 |
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Projects under
construction |
2,570 |
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Long-term
investment |
0 |
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Intangible and
other assets |
3,160 |
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------------------ |
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Total assets |
84,320 |
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============= |
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Short loans |
24,180 |
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Accounts payable |
2,440 |
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Advance from
customers |
0 |
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Other Accounts
payable |
810 |
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Notes payable |
0 |
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Taxes payable |
-90 |
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Withdraw the
expenses in advance |
80 |
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Dividend payable |
13,170 |
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Surcharge
payable |
90 |
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Other current
liabilities |
0 |
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------------------ |
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40,680 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
40,680 |
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Equities |
43,640 |
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------------------ |
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84,320 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2010 (unaudited) |
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Turnover |
59,160 |
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Cost of goods sold |
/ |
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Sales expense |
/ |
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Management expense |
/ |
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Finance expense |
/ |
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Profit before
tax |
/ |
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Less: profit tax |
/ |
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Profits |
/ |
Note: SC’s management refused to release the detail of its Income
statement.
Important Ratios
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As
of Dec. 31, 2010 |
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*Current ratio |
1.67 |
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*Quick ratio |
1.56 |
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*Liabilities
to assets |
0.48 |
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*Net profit
margin (%) |
/ |
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*Return on
total assets (%) |
/ |
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*Inventory
/Turnover ×365 |
27 days |
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*Accounts
receivable/Turnover ×365 |
73 days |
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*Turnover/Total
assets |
0.70 |
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* Cost of
goods sold/Turnover |
/ |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal 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
The short-term loan of SC appears fairly large in
2010.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of short term loan could be a threat to SC’s
financial condition. A credit line up to USD 200,000
would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.73 |
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1 |
Rs.73.21 |
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Euro |
1 |
Rs.63.90 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.