MIRA
INFORM REPORT
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Report Date : |
06.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
Jiangsu
Huada Chemical Group Co., Ltd. |
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Registered Office : |
No. 8, North Of Port Area, Jiangbian Chemical Area, |
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Country : |
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Financials (as on) : |
31.12.2008 |
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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 |
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No. of Employees : |
280 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
Company name and address
Jiangsu Huada Chemical Group Co.,
Ltd.
NO. 8, NORTH OF PORT AREA, JIANGBIAN CHEMICAL AREA,
CHANGZHOU CITY, JIANGSU PROVINCE, 213022 PR CHINA
TEL: 86 (0) 519-85777292/88227200 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 223,250,000 (AS OF DEC. 31, 2008)
EQUITIES : CNY 123,610,000 (AS OF DEC. 31,
2008)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.30 = 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
Note: The given address was SC’s former
address, while the heading one is its currently address.
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
was registered as a limited liabilities company at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing
business license).
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 (limited to
branches); (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, but SC’s accountant refused to release the gross area.
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.
|
Date of change |
Item |
Before the change |
After the change |
|
2005 |
Company Name |
Changzhou Huada Chemical Factory |
Jiangsu Huada Chemical Group Co., Ltd. |
|
2008 |
Registration No. |
3204072104976 |
320407000046241 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Fan Rongliang 85
ID#320421550219643
Hu Jianmei 15
ID#320421540707644
l
Legal representative and
chairman:
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 and legal representative;
Also working in
Changzhou Xinxing Huadaming Chemical Co., Ltd.-, and Changzhou Huajie Chemicals
Co., Ltd.- as legal representative.
Sales
Director:
Zheng Wenjian
Yang Guisheng
Supervisor:
Hu
Jianmei
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 95%
from domestic market, and 5% from overseas market. SC sells 75% of its products
in domestic market, and 25% to overseas 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.
Etc.
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.
Note:
SC’s accountant Ms. Tan released that SC has an account in the Bank of
Communications, but she declined to release the account number.
Balance
Sheet
Unit:
CNY’000
|
|
as
of Dec. 31, 2007 |
as
of Dec. 31, 2008 |
|
Cash
& bank |
12,420 |
22,000 |
|
Notes
receivable |
4,120 |
27,640 |
|
Inventory |
13,890 |
11,400 |
|
Accounts
receivable |
35,960 |
23,850 |
|
Advances
to supplies |
0 |
0 |
|
Other
receivables |
24,110 |
3,140 |
|
Prepaid
expenses |
0 |
100 |
|
Other
current assets |
10 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
90,510 |
88,130 |
|
Fixed
assets net value |
26,560 |
42,280 |
|
Projects
under construction |
3,740 |
1,210 |
|
Long-term
investments |
39,900 |
41,960 |
|
Intangible
assets |
4,520 |
4,410 |
|
Other
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
assets |
165,230 |
177,990 |
|
|
============= |
============= |
|
Short
loans |
42,170 |
27,500 |
|
Notes
payable |
0 |
5,000 |
|
Accounts
payable |
5,420 |
17,410 |
|
Advances
from customers |
0 |
0 |
|
Accrued
payroll |
890 |
1,940 |
|
Welfares
payable |
310 |
0 |
|
Taxes
payable |
10 |
300 |
|
Surcharge
payable |
60 |
120 |
|
Other
Accounts payable |
-2,900 |
630 |
|
Other
current liabilities |
10 |
10 |
|
|
----------------- |
----------------- |
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Current
liabilities |
45,970 |
52,910 |
|
Long
term liabilities |
1,470 |
1,470 |
|
|
------------------ |
------------------ |
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Total
liabilities |
47,440 |
54,380 |
|
Shareholders
equities |
117,790 |
123,610 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
165,230 |
177,990 |
|
|
============= |
============= |
Income
Statement
Unit:
CNY’000
|
|
as
of Dec. 31, 2007 |
as
of Dec. 31, 2008 |
|
Turnover |
213,480 |
223,250 |
|
Cost of goods sold |
192,040 |
193,380 |
|
Taxes and additional of main
operation |
530 |
980 |
|
Income
from other operations |
140 |
160 |
|
Sales expense |
1,920 |
1,530 |
|
Management expense |
6,900 |
10,950 |
|
Finance expense |
2,840 |
4,270 |
|
Subsidy
income |
0 |
500 |
|
Non-operating
income |
10 |
0 |
|
Non-operating expense |
280 |
750 |
|
Operation
Profit |
9,110 |
12,060 |
|
Less:
profit tax |
3,010 |
1,370 |
|
Net
profit |
6,100 |
10,690 |
Note:
SC has not lodged the latest annual returns in local registry, hence no up-to
date detailed financial information available.
Important
Ratios
=============
|
|
as of
Dec. 31, 2007 |
as
of Dec. 31, 2008 |
|
*Current
ratio |
1.97 |
1.67 |
|
*Quick
ratio |
1.67 |
1.45 |
|
*Liabilities
to assets |
0.29 |
0.31 |
|
*Net
profit margin (%) |
2.86 |
4.79 |
|
*Return
on total assets (%) |
3.69 |
6.01 |
|
*Inventory
/Turnover ×365 |
24 days |
19 days |
|
*Accounts
receivable/Turnover ×365 |
62 days |
39 days |
|
*Turnover/Total
assets |
1.29 |
1.25 |
|
*
Cost of goods sold/Turnover |
0.90 |
0.87 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good
in its line, and it was rising in 2008.
l
SC’s net profit margin is average in
both two years.
l
SC’s return on total assets is average
in 2007, and it is fairly good in 2008.
l
SC’s cost of goods sold is average,
comparing with its turnover in both two years.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level in both two years.
l
SC’s quick ratio is maintained in a
normal level in both two years.
l
The inventory of SC is maintained in an
average level in both two years.
l
The accounts receivable of SC appears
fairly large in 2007 and average in 2008.
l
SC’s short-term loan is in an average
level in both two years.
l
SC’s turnover is in an average level,
comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Fairly good.
SC is considered medium-sized in its line with fairly good
financial conditions. A credit line up to USD 1,500,000 would appear to be
within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.04 |
|
|
1 |
Rs.81.08 |
|
Euro |
1 |
Rs.67.39 |
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.