MIRA
INFORM REPORT
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Report Date : |
18.02.2012 |
IDENTIFICATION DETAILS
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Name : |
SYNTHETICS CHINA CO., LTD. |
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Registered Office : |
No. 8 Zhongdan Road, Qiwei Town, Taixing City Jiangsu
Province 225453 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
27.07.2006 |
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Com. Reg. No.: |
321200400007715 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing Chemical Products |
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No. of Employees : |
123 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 20,000 |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC Classification |
|
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 |
sc’s INFO.:
================
SYNTHETICS CHINA CO., LTD.
No. 8 Zhongdan Road, Qiwei Town, Taixing City Jiangsu
Province 225453 PR CHINA
TEL: 86 (0) 523-87980333
FAX: 86 (0) 523-87980555
EXECUTIVE SUMMARY
Date of Registration : july 27, 2006
REGISTRATION NO. : 321200400007715
LEGAL FORM : Wholly foreign-owned enterprise
CHIEF EXECUTIVE :
wu zhenghua (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : usd 8,200,000
staff :
123
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 188,658,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 11,800,000 (AS OF DEC. 31, 2010)
WEBSITE : www.synchina.com
E-MAIL :
master@synthetics-china.com
PAYMENT :
AVERAGE
Recommended Credit Limit : UP TO USD 20,000 (PERIODICAL REVIEW)
MARKET CONDITION : fair
FINANCIAL CONDITION : fair
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.30 = 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
SC was established as a Chinese-foreign equity joint venture enterprise
of PRC on July 27, 2006. However, SC changed to present legal form, and was
registered as a wholly foreign-owned enterprise of PRC with State
Administration for Industry & Commerce (SAIC) under registration No.:
321200400007715 in 2012.
SC’s Organization Code Certificate No.:
78993998-9
SC’s Tax No.: 321283789939989
SC’s Customers No.: 3212931859
SC’s registered capital: USD 8,200,000
SC’s paid-in capital: USD 8,200,000
Registration Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
|
2011 |
Legal Representative |
Thomas Jorn Schulz |
Wu Zhenghua |
|
Registered Capital |
USD 6,000,000 |
USD 8,200,000 |
|
|
Shareholder (s) (% of Shareholding) |
Jiangsu Zhongdan Group Co., Ltd. 10% Synthetics International. Ltd. (Switzerland)
90% |
Jiangsu Zhongdan Group Co., Ltd. 7.5% Yufeng Asia-Pacific Investment Co., Ltd.
(B.V.I.) 92.5% |
|
|
2012 |
Legal Form |
Chinese-foreign equity joint venture enterprise |
wholly foreign-owned enterprise |
|
Shareholder (s) (% of Shareholding) |
Jiangsu Zhongdan Group Co., Ltd. 7.5% Yufeng Asia-Pacific Investment Co., Ltd.
(B.V.I.) 92.5% |
Ruihong International Holding Co., Ltd. 100% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Ruihong International Holding Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Wu Zhenghua |
|
Director |
Gu Xinghua |
|
Feng Suzhen |
|
|
Supervisor |
Li Anpai |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Ruihong International Holding Co., Ltd. 100%
MANAGEMENT
Wu Zhenghua, Legal Representative, Chairman and General
Manager
-------------------------------------------------------------------------------------------------------
Gender: M
ID# 321025196904056614
Age: 43
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Gu Xinghua, Director
---------------------------------------
Gender: M
ID# 321025196809036615
Age: 44
Qualification: University
Feng Suzhen, Director
---------------------------------------
Gender: F
Qualification: University
Li Anpai,
Supervisor
--------------------------------------
Gender: M
ID# 620102197609145337
Age: 36
Qualification: University
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
chemical products (2 - ( hydroxy - ( 4 - methoxy - 3 - ( 3 - methoxy - propoxy
) phenyl ) - methyl ) - 3 - methyl butyric acid methyl ester, 3 - amino - 2, 2
- two methyl acrylic amide, 4 - bromo - 1 - methoxy - 2 - ( 3 - a methoxy -
propoxy ) - benzene, E-1, 4 - butene dibromide, 3 - ( 4 - methylimidazole ) - 5
- three - methyl aniline, fluorine ( S ) - 4 - benzyl - 2 - oxazolidinone, 2, 5
- two hydroxy - 1, 4 - two, 2 - thiophene alkyl ethoxy carboxyl - 3 - methyl -
5 - methyl ethyl hexanoate, ( 1 - methyl cyclohexyl ) - ethyl acetate); and
providing technology services.
SC is mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include:
API
Pharmaceutical intermediates
SC sources its materials 100% from domestic market. SC sells 100% of its
products to overseas market, mainly Southeast Asia.
The buying terms of SC include T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
Staff &
Office:
--------------------------
SC is known to have approx. 123
staff at present.
SC owns an area as its operating office & factory of approx. 3,600
sq. meters at the heading address.
RELATED COMPANY
Jiangsu Synthetics Pharmaceutical & Chemical
Co., Ltd.
Synthetics (Jiangsu) Pharmaceutical Research Co.,
Ltd.
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
The bank information is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
15,257 |
4,972 |
|
|
Notes receivable |
0 |
0 |
|
Accounts receivable |
113,453 |
55,227 |
|
Advances to suppliers |
0 |
14,163 |
|
Other receivable |
5,450 |
21,550 |
|
Inventory |
40,071 |
52,715 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
356 |
424 |
|
|
------------------ |
------------------ |
|
Current assets |
174,587 |
149,051 |
|
Fixed assets |
40,069 |
76,295 |
|
Construction in progress |
6,683 |
1,805 |
|
Intangible assets |
8,100 |
8,082 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
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Other non-current assets |
40 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
229,479 |
235,233 |
|
|
============= |
============= |
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Short-term loans |
128,293 |
150,491 |
|
Notes payable |
5,000 |
4,924 |
|
Accounts payable |
91,996 |
46,779 |
|
Wages payable |
538 |
614 |
|
Taxes payable |
-11,517 |
-13,956 |
|
Interest payable |
0 |
0 |
|
Dividend payable |
0 |
0 |
|
Advances from clients |
0 |
513 |
|
Other payable |
-14,627 |
30,363 |
|
Other current liabilities |
1,058 |
3,705 |
|
|
------------------ |
------------------ |
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Current liabilities |
200,741 |
223,433 |
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Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total liabilities |
200,741 |
223,433 |
|
Equities |
28,738 |
11,800 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
229,479 |
235,233 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Revenue |
83,259 |
188,658 |
|
Cost of sales |
123,132 |
160,258 |
|
Taxes and surcharges |
384 |
238 |
|
Sales expense |
495 |
2,274 |
|
Management expense |
9,917 |
22,249 |
|
Finance expense |
4,316 |
6,914 |
|
Non-business income |
0 |
384 |
|
Non-business expense |
95 |
311 |
|
Profit before tax |
-55,079 |
-16,938 |
|
Less: profit tax |
0 |
0 |
|
-55,079 |
-16,938 |
Important Ratios
=============
|
|
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
*Current ratio |
0.87 |
0.67 |
|
*Quick ratio |
0.67 |
0.43 |
|
*Liabilities to assets |
0.87 |
0.95 |
|
*Net profit margin (%) |
-66.15 |
-8.98 |
|
*Return on total assets (%) |
-24.00 |
-7.20 |
|
*Inventory / Revenue ×365 |
176 days |
102 days |
|
*Accounts receivable/ Revenue ×365 |
498 days |
107 days |
|
* Revenue/Total assets |
0.36 |
0.80 |
|
* Cost of sales / Revenue |
1.48 |
0.85 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
·
The revenue of SC appears fair, and it was rising
significantly in 2010.
·
SC’s net profit margin is poor in 2009, and appears
fair in 2010.
·
SC’s return on total assets is poor in 2009, and
appears fair in 2010.
·
SC’s cost of goods sold is average, comparing with
its revenue in 2010.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a fair
level in both years.
·
SC’s quick ratio is maintained in a fair level in
both years.
·
The inventory of SC appears large.
·
The accounts receivable of SC appears large.
·
The short-term loan of SC appears large.
·
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is high in both years.
·
The risk for SC to go bankrupt is above average.
Overall financial condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial conditions.
The large amount of inventory & accounts receivable & short-term loans
may be a threat to SC’s financial condition. A credit line up to USD 20,000 is
recommended upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.21 |
|
|
1 |
Rs.77.75 |
|
Euro |
1 |
Rs.64.58 |
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 |
|
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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.