MIRA
INFORM REPORT
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Report Date : |
28.02.2012 |
IDENTIFICATION DETAILS
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Name : |
K & J Chemical Co., Ltd. |
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Registered Office : |
Inside Of Juhua Corporation Pharmaceutical Factory, Quzhou, Zhejiang
Province, 324004 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
18.11.2000 |
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Com. Reg. No.: |
330800400000304 |
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Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and selling chemical products |
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No. of Employees : |
52 |
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 100,000 |
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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 |
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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 |
Company name and address
K & J Chemical Co., Ltd.
INSIDE OF Juhua
Corporation Pharmaceutical Factory, quzhou,
zhejiang PROVINCE,
324004 PR CHINA
TEL: 86 (0)
570-3615080 FAX: 86 (0) 570-3098265
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV.
18, 2000
REGISTRATION NO. : 330800400000304
REGISTERED LEGAL FORM : CHINESE FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
52
REGISTERED CAPITAL : CNY 26,457,143
BUSINESS LINE : manufacturing
TURNOVER :
CNY 49,860,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 18,950,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 100,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly
STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.30 = USD 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
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 Nov. 18, 2000.
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’s registered
business scope includes Toluene sulfonation 5 tons / year, 4, 4 pairs of
benzene sulfonyl chloride, 4 oxygen, 4 - oxygen generation double benzene
sulfonyl wet goods production; production of fine chemical products, sales
(except for dangerous goods outside); the development of new products,
expansion and related products sales at home and abroad.
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Liu
Guangzhi is now acting as chairman of
SC.
SC is known to
have approx. 52 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 Quzhou. Our checks
reveal that SC owns the total premise about 10,000 square meters.
http://www.kumyangchina.cn
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Juhua Group Corp. 70
Juhua Group Import & Export Co., Ltd. 5
South Korea Jin-yang Co., Ltd. 25
Juhua Group Corp.
=============
Add: No. 849 Jiangcheng Rd, Hangzhou,
Zhejiang Province
Tel.: +86-571-87816969
Fax: +86-571-87824656
Web: http://www.juhua.com
E-Mail: juhua@juhua.com.cn
l
Chairman and General Manager:
Mr. Liu Guangzhi in his
Working Experience(s):
Now Working
in SC as chairman and general manager.
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products
mainly include:
Foaming Agent
Flame Retardants
DTC
Foaming Acclerant
Absorption Inorganic Foaming Agent
Sulfonamides Plasticizer
SC sources its materials 95% from domestic
market and 5% from the overseas market, mainly Europe. SC sells 95% of its
products in domestic market, and 5% to overseas market, mainly USA, Europe and
Southeast Asian market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
Note: SC’s management declined to release its main clients and
suppliers.
SC
is not known to have any subsidiary at present.
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.
Bank of China Quzhou Branch
AC# 880009303808091001
Relationship:
Normal.
Balance Sheet
|
Unit: CNY’000 |
as
of Dec. 31, 2010 |
|
Cash & bank |
2,650 |
|
Inventory |
8,740 |
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Accounts
receivable |
14,150 |
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Other Accounts
receivable |
1,110 |
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Advances to
suppliers |
690 |
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Other current
assets |
1,020 |
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------------------ |
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Current assets |
28,360 |
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Fixed assets net
value |
15,740 |
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Projects under
construction |
1,060 |
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Long term
investment |
0 |
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Other assets |
2,700 |
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------------------ |
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Total assets |
47,860 |
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============= |
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Short loans |
1,000 |
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Accounts payable |
12,070 |
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Other Accounts
payable |
5,360 |
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Advances from
clients |
6,570 |
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Tax payable |
1,410 |
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Other current
liabilities |
2,500 |
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------------------ |
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Current
liabilities |
28,910 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
28,910 |
|
Equities |
18,950 |
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------------------ |
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Total
liabilities & equities |
47,860 |
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============= |
Income Statement
|
Unit: CNY’000 |
as of Dec. 31,
2010 |
|
Turnover |
49,860 |
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Cost of goods
sold |
43,750 |
|
Sales expense |
2,240 |
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Management expense |
3,410 |
|
Finance expense |
130 |
|
Profit before
tax |
520 |
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Less: profit tax |
0 |
|
Profits |
520 |
Important
Ratios
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|
|
As of Dec. 31, 2010 |
|
*Current ratio |
0.98 |
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*Quick ratio |
0.68 |
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*Liabilities
to assets |
0.60 |
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*Net profit
margin (%) |
1.04 |
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*Return on
total assets (%) |
1.09 |
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*Inventory
/Turnover ×365 |
64 days |
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*Accounts
receivable/Turnover ×365 |
104 days |
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*Turnover/Total
assets |
1.04 |
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* Cost of
goods sold/Turnover |
0.88 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in 2010.
l
SC’s net profit margin is average in 2010.
l
SC’s return on total assets is average in 2010.
l
SC’s cost of goods sold is average in 2010,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is average in 2010.
l
The accounts receivable of SC is fairly large in
2010.
l
The short-term loan of SC appears average in 2010.
l
SC’s turnover is in an average level in 2010,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in 2010
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 account receivable could be a threat to SC’s financial
condition. A credit line up to USD 100,000
would appear to be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.05 |
|
|
1 |
Rs.77.78 |
|
Euro |
1 |
Rs.65.89 |
RATING EXPLANATIONS
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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 |
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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 |
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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.