MIRA INFORM REPORT
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Report Date : |
11.12.2012 |
IDENTIFICATION DETAILS
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Name : |
NORCHEM JIANGSU CORPORATION |
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Registered Office : |
Room 3101, West Tower, Fortune International Building, No. 359 Hongwu Road,
Nanjing, Jiangsu Province, 210000 Pr |
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Country : |
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Financials (as on) : |
31.12.2010 (Unaudited) |
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Date of Incorporation : |
09.06.2009 |
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Com. Reg. No.: |
320000000080374 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Exporting Pesticide Intermediates |
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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Status : |
Small Company |
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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 – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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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 |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.
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Source : CIA |
Name
and address
NORCHEM
JIANGSU CORPORATION
ROOM 3101,
TEL: 86 (0) 25-84658323/84676396 FAX: 86 (0) 25-84653123
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JUNE 9, 2009
REGISTRATION NO. :
320000000080374
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 12
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 21,430,000 (UNAUDITED, AS OF DEC. 31, 2010)
EQUITIES :
CNY 7,980,000 (UNAUDITED, AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.58700=USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY –
SC was registered as a limited liabilities co. at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on June 9, 2009.
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 permitted
operating items: selling dangerous chemical products. General operating items:
selling chemical products, chemical raw material and products, importing and
exporting goods and technology, domestic trade.
SC
is mainly engaged in exporting pesticide intermediates.
Mr.
Zhu Qinsheng has been legal representative,
chairman and general manager of SC since 2009.
SC is known
to have approx. 12 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Nanjing. Our checks reveal that SC
rents the total premise about 300 square meters.
http://www.norchem.com.cn
The design is professional and the content is well organized. At present it is only
in English version.
Email: info@norchem.com.cn
According to SC’s accountant, SC started its normal operation in 2010.
*To what extent is
your company affected by the current Credit Crisis?
SC’s management refused to answer this question.
MAIN SHAREHOLDERS:
Name
%
of shareholdings
High Hope Int’l Group
Tong Xiao ID# 320106196901250425 2.5
Xu Hui ID# 320683197910044337 24.5
Yang Meifang ID# 320624195506174325 24
Zhu Hong ID# 32010419850808042X 24
High Hope Int’l Group
==================================================
Add: 15/F,
Tel: 86 (0) 25-84691456 /84691466
Fax: 86 (0) 25-84691984
Website: http://www.jnp.com.cn
l Legal
Representative, Chairman and General Manager:
Mr. Zhu Qinsheng ID# 320114196510290913, born in 1965, he is
currently responsible for the overall management of SC.
Working Experience(s):
From 2009 to present Working in SC as legal
representative, chairman and general manager.
Also working in Jiangsu Asambly
Chemicals Co., Ltd. and Nanjing Huajin Biological Products Co., Ltd. as legal
representative.
l Supervisor:
Tong Xiao ID# 320106196901250425
According to SC’s accountant, SC started its normal operation in 2010.
SC
is mainly engaged in exporting pesticide intermediates.
SC’s products
mainly include: herbicides, fungicides, insecticides, planter growth
regulators, pesticide intermediates, and etc.
SC sources its
materials 100% from domestic market. SC sells 100% of its products to overseas
market, mainly
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, L/C, T/T, and Credit of 30-60 days.
High Hope
International Group Co., Ltd.
Jiangsu Asambly Chemicals Co., Ltd.
Nanjing Huajin Biological Products 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.
Shanghai Pudong
Development Bank
AC#: 93030158000009155
Relationship:
Balance Sheet
Unit: CNY’000
|
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As of Dec. 31, 2010 (unaudited) |
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Cash & bank |
2,090 |
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Notes receivable |
0 |
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Inventory |
2,920 |
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Accounts
receivable |
1,040 |
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Advances to
suppliers |
3,900 |
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Prepaid expenses |
0 |
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Other accounts
receivable |
610 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
10,560 |
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Fixed assets net
value |
340 |
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Project under
construction |
0 |
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Long term investment |
0 |
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Intangible and
other assets |
0 |
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------------------ |
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Total assets |
10,900 |
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============= |
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Short loans |
0 |
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Notes payable |
1,500 |
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Accounts payable |
210 |
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Advances from
clients |
1,630 |
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Accrued payroll |
0 |
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Taxes payable |
-420 |
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Other accounts
payable |
0 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
2,920 |
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Long-term
liabilities |
0 |
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------------------ |
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Total
liabilities |
2,920 |
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Equities |
7,980 |
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|
------------------ |
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Total
liabilities & equities |
10,900 |
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|
============= |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2010 (unaudited) |
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Turnover |
21,430 |
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Cost of goods sold |
18,980 |
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Sales expense |
2,190 |
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Management expense |
1,100 |
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Finance expense |
130 |
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Income from
other operations |
0 |
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Non-operating
income |
10 |
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Non-operating expense |
0 |
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Profit before
tax |
-960 |
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0 |
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Profits |
-960 |
Important
Ratios
=============
|
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As
of Dec. 31, 2010 |
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*Current ratio |
3.62 |
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*Quick ratio |
2.62 |
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*Liabilities
to assets |
0.27 |
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*Net profit
margin (%) |
-4.48 |
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*Return on
total assets (%) |
-8.81 |
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*Inventory
/Turnover ×365 |
50 days |
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*Accounts
receivable/Turnover ×365 |
18 days |
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*Turnover/Total
assets |
1.97 |
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* Cost of
goods sold/Turnover |
0.89 |
PROFITABILITY:
FAIR
l The turnover of SC
appears average in its line.
l SC’s net profit
margin appears fair.
l SC’s return on total
assets appears fair.
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 fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears average in 2010.
l
The accounts receivable of SC appears average in
2010.
l
SC has no short-term loan in 2010.
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: Fairly stable
SC is considered small-sized in its line with a short operating history.
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 |
|
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 |
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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 |
|
<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.