MIRA
INFORM REPORT
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Report Date : |
12.05.2012 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Shengze Textile Technology Park, Wujiang City, Jiangsu Province, 215228 Pr |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
31.12.2002 |
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Com. Reg. No.: |
320000400000671 |
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Legal Form : |
Share Limited Company |
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Line of Business : |
Manufacturing and selling polyester fiber, yarn, other recycled plastics, and chemical fabrics. |
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No. of Employees : |
6,630 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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
JIANGSU SHENGHONG
SCIENCE AND TECHNOLOGY CORPORATION LIMITED
SHENGZE TEXTILE TECHNOLOGY PARK, WUJIANG
CITY,
JIANGSU PROVINCE, 215228 PR CHINA
TEL: 86 (0) 512-63517818 FAX: 86 (0) 512-63517309
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 31, 2002
REGISTRATION NO. : 320000400000671
REGISTERED LEGAL FORM : SHARE LIMITED COMPANY
STAFF STRENGTH :
6,630
REGISTERED CAPITAL : CNY 2,160,000,000
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER :
CNY 8,182,992,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 2,182,433,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
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 Ren min bi
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. 31, 2002, and has been under present
legal form since October, 2011.
Company Status: Shares
limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its debts
only to the extent of its total assets. The co has independent property of
legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered
business scope includes general business scope: R & D , manufacturing
different chemical fiber; selling chemical products and materials (hazardous
chemicals and precursor chemicals); wholesaling machinery and equipment,
commission agents(excluding auction) and international trade.
SC is mainly
engaged in manufacturing and selling polyester fiber, yarn, other recycled
plastics, and chemical fabrics.
Mr. Miu
Han’gen is legal representative,
chairman and general manager of SC since 2002.
SC is known to
have approx. 6,630 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the textile technology park of Wujiang. Our checks reveal
that SC owns the total premise about 960,399 square meters.
http://www.shenghongtec.com/ The design is professional and the content is
well organized. At present the web site is in Chinese and English versions.
E-mail: sh@shenghongcf.com ; antiking007@sina.com.cn;
Vanning1978@yahoo.com.cn
SC has passed Quality Management System Certificate and ISO 14001
Certificate. SC’s several products, such as DTY 150D/
Tax Registration no.: 320584744810452
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2007-2 |
Registered capital |
USD 25,000,000 |
USD 115,000,000 |
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2008-3 |
USD 115,000,000 |
USD 148,000,000 |
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2008-11 |
USD 148,000,000 |
USD 181,000,000 |
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2009-6 |
USD 181,000,000 |
USD 207,500,000 |
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2009-9 |
USD 207,500,000 |
USD 240,500,000 |
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2010-4 |
USD 240,500,000 |
USD 274,500,000 |
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2011-8 |
Shareholders and Shareholdings |
Shenghong Group
Company Limited 75% Best Holding
Group Co., Limited 25% |
present ones |
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2011-10 |
Registered Capital |
USD 274,500,000 |
CNY 2,160,000,000 |
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Company name |
Jiangsu Shenghong Chemical Fiber Co., Ltd. |
present one |
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Legal form |
Chinese-foreign
equity joint venture enterprise |
present one |
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Unknown |
Registration no. |
000272 |
present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiangsu Shenghong
Investment Co., Ltd. 75
(Hong Kong) Best
Holding Group Co., Limited 25
Jiangsu Shenghong
Investment Co., Ltd.
==============================
Registration no.:
320584000301154
(Hong Kong) Best
Holding Group Co., Limited
==================================
Registration No. : 1273300
Establishment Date: Sep. 17, 2008
Legal Form: Private
l
Legal representative, Chairman and General manager:
Mr.
Working Experience(s):
From 1986 to 1990 Worked
in Shenghong Silk Factory (in Chinese pinyin) as vice
factory
manager;
From 1991 to 1992 Worked
in Shenghong Silk Factory (in Chinese pinyin) as
factory
manager;
From 1993 to 1996 Worked
in Shenghong Printing Factory (in Chinese pinyin) as
factory manager;
From 1997 to present
Working in Shenghong Group Company Limited as legal
representative
and chairman;
At present Working
in SC as legal representative, chairman and general
manager, also working in Wujiang
Shenghong Investment Development Company Limited (in Chinese pinyin) as legal
representative; Jiangsu Shenghong Environmental Fiber Co., Ltd. (in Chinese
pinyin); Shenghong Group Co., Ltd. (in Chinese pinyin); Wujiang Jiayu
Industrial Development Co., Ltd. (in Chinese pinyin); Jiangsu Guowang Hi-Tech
Fiber Co., Ltd. (in Chinese pinyin); Jiangsu Zhonglu Science and Technology
Development Co., Ltd. (in Chinese pinyin); Jiangsu Shenghong Investment Co., Ltd.; Jiangsu Honggang Petrochemical
Co., Ltd. (in Chinese pinyin); Jiangsu
Sierbang Petrochemical Co., Ltd. (in Chinese pinyin); Lianyungang
Xinrongtai Terminal Co., Ltd. (in Chinese pinyin) as legal representative.
l
Vice-Chairman:
Mr. Tang Jinkui , ID#: 320525195509195616, born in 1955. He is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as vice-chairman
l
Directors:
Zhang Yexing
ID# 32052519710618353X
Zhu Xiaowei
ID# 320525197006286814
Zhu Hongmei
ID# 320525196308125667
Zhu Junying
ID# 41012619720114077X
Zhao Xudong
ID# 110108195909296339
Wang Yuping
ID# 110105196301130125
Chen Hanwen
ID# 350203196801244070
l
Supervisor:
Meng Weiyuan ID# 320525197304212610
Jing Daoquan
ID# 342225197908150595
Shen Xueliang
ID# 320525197004215318
SC is mainly engaged
in manufacturing and selling polyester fiber, yarn, other recycled plastics,
and chemical fabrics.
SC’s products mainly include: polyester chip,
POY, DTY, FDY, SCHOOL, special fiber.
The brief introduction of SC’s manufacturing
capacity:
In August 2007, SC’s second phase of chemical project is successfully
put into action in due time. With the expectation target of producing
400,000ton/year. The whole section of filature uses the latest technology EVO
(Quench radial inflow quenching system) of BARMAG. The main specification of
the second item products is 0.2`0.5DPF .As the second phase of the project put
into production, the annual output will reach to 600,000 ton per year
(600,000t/year).
(The above information is from http://www.shenghongtec.com/
)
SC sources its materials 90% from domestic
market, and 10% from overseas market, mainly South Korea, European countries,
etc. SC sells 10% of its products to overseas market, mainly Pakistan, Vietnam,
Bangladesh, etc., and 90% in domestic 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.
Note:
SC declined to release its major suppliers and clients.
Shenghong Group Company Limited
Wujiang
Shenghong Hotel Holdings Company Limited
Wujiang
Pengxiang Estate Development Company Limited (in Chinese pinyin)
=======================================================
Web:
http://www.shenghongcity.com
Tel:
0512-63508888
Jiangsu
Shenghong Environmental Fiber Co., Ltd. (in Chinese pinyin)
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.
SC refused to
release its bank information.
Balance Sheet
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Unit: CNY’000 |
as
of Dec. 31, 2009 |
|
Cash & bank |
1,274,672 |
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Inventory |
541,825 |
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Short-term
investment |
79,500 |
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Notes receivable |
57,611 |
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Accounts
receivable |
51,208 |
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Other Accounts
receivable |
57,136 |
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Advances to
suppliers |
1,676,746 |
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Other current
assets |
437 |
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------------------ |
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Current assets |
3,739,135 |
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Fixed assets net
value |
2,413,361 |
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Projects
materials |
9,993 |
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Projects under
construction |
129,363 |
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Long-term
deferred expenses |
0 |
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Intangible and
other assets |
189,017 |
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------------------ |
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Total assets |
6,480,869 |
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============= |
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Short loans |
1,633,534 |
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Accounts payable |
541,739 |
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Notes payable |
1,314,796 |
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Advances from
clients |
58,813 |
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Accrued payroll |
10,020 |
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Taxes payable |
-14,796 |
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Surcharge
payable |
0 |
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Other accounts
payable |
19,280 |
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Other current liabilities |
15,968 |
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Current
liabilities |
3,579,354 |
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Long term
liabilities |
941,461 |
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------------------ |
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Total
liabilities |
4,520,815 |
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Equities |
1,960,054 |
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------------------ |
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Total
liabilities & equities |
6,480,869 |
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============= |
Income Statement
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Unit: CNY’000 |
as of Dec. 31,
2009 |
|
Turnover |
5,506,569 |
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Cost of goods sold |
4,836,982 |
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Taxes and additional of main operation |
891 |
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Sales expense |
158,259 |
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Management expense |
43,751 |
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Finance expense |
117,428 |
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Investment
income |
5 |
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Non-operating
income |
6,742 |
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Non-operating expense |
1,233 |
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Profit before
tax |
354,772 |
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Less: profit tax |
0 |
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Profits |
354,772 |
Unit: CNY’000
|
|
as of Dec. 31,
2010 |
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Long-term
investment |
180,000 |
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Long-term
liabilities |
1,106,311 |
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Total
liabilities |
6,436,466 |
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Shareholders
equities |
2,182,433 |
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Total Assets |
8,618,899 |
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|
|
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Turnover |
8,182,992 |
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Profit before
tax |
787,682 |
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Profit tax |
100,229 |
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Net profit |
687,453 |
Note:
SC’s detailed financial reports for Yr2010 were not found in local AIC.
Important
Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
1.04 |
/ |
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*Quick ratio |
0.89 |
/ |
|
*Liabilities
to assets |
0.70 |
0.75 |
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*Net profit
margin (%) |
6.44 |
8.40 |
|
*Return on
total assets (%) |
5.47 |
7.98 |
|
*Inventory
/Turnover ×365 |
36 days |
/ |
|
*Accounts
receivable/Turnover ×365 |
3 days |
/ |
|
*Turnover/Total
assets |
0.85 |
0.95 |
|
* Cost of
goods sold/Turnover |
0.88 |
/ |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good, and it was rising
in 2010.
l
SC’s net profit margin is fairly good in both two
years.
l
SC’s return on total assets is fairly good in both
two years.
l
SC’s cost of goods sold is average in 2009,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2009.
l
SC’s quick ratio is maintained in a normal level in
2009.
l
The inventory of SC is maintained in an average
level in 2009.
l
The accounts receivable of SC is maintained in a
small level in 2009.
l
SC’s short-term loan is large in 2009.
l
SC’s turnover is in an average level in both two
years, 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 good.
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.64 |
|
|
1 |
Rs.86.42 |
|
Euro |
1 |
Rs.69.28 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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 |
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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 |
|
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 |
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<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.