MIRA INFORM REPORT
|
Report Date : |
28.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
SUZHOU TIANMA SPECIALTY
CHEMICALS CO., LTD. |
|
|
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Registered Office : |
No. 199 East Huayuan Road, Mudu Town, Wuzhong District,
Suzhou, Jiangsu Province, 215101 PR |
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Country : |
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Financials (as on) : |
30.09.2012 |
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Date of Incorporation : |
13.01.1999 |
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Com. Reg. No.: |
320500000046770 |
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Legal Form : |
Shares Limited Co |
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Line of Business : |
Manufacturing and selling of chemical products |
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No. of Employees : |
1,363 Employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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 30th,
2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
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.
Source : CIA
COMPANY NAME & ADDRESS
SUZHOU TIANMA SPECIALTY CHEMICALS CO., LTD.
NO. 199 EAST HUAYUAN ROAD, MUDU TOWN, WUZHONG DISTRICT,
SUZHOU,
JIANGSU PROVINCE, 215101 PR CHINA
TEL: 86 (0) 512-66571019/66319537 FAX: 86 (0) 512-66571020/68080175
EXECUTIVE SUMMARY
INCORPORATION DATE :
JANUARY 13, 1999
REGISTRATION NO. :
320500000046770
REGISTERED LEGAL FORM : SHARES LIMITED CO.
STAFF STRENGTH :
1,363
REGISTERED CAPITAL : CNY 240,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 769,843,000 (CONSOLIDATED,
JAN. 1 TO SEP. 30, 2012)
EQUITIES :
CNY 748,178,000 (CONSOLIDATED, AS OF SEP. 30, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.23 = 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 shares limited co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
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 Permit Items: manufacturing bulk drug (limited for
branch); General items: importing and
exporting various kinds of commodities and technology, excluding the goods
forbidden by the government, selling octylglucamine series, A ester series,
sesamol, KBQ, protected amino acids Series, AKD series, cationic dispersed
rosin. The following items could only for branch operating: manufacturing
Portuguese zinn amine series, A ester series,
Sesamol (7 ester),
KBQ, Protect amino acids series, AKD series, cationic rosin emulsion and API.
SC is mainly
engaged in manufacturing and selling chemical products.
Mr. Xu Renhua is
the legal representative and chairman of SC at present.
SC is known to
have approx. 1,363 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 Suzhou. Our checks
reveal that SC rents the total premise about 110,000 square meters.
SC’s
another address is located in No. 122 Huqing Road, High & New District,
Suzhou
http://www.tianmachem.com The
design is professional and the content is well organized. At present the web site
is both in Chinese and English versions.
E-mail: stock@tianmachem.com
SC has got the certificate ISO9001.
SC was listed in Shenzhen Stock Exchange Market with the stock code of
002453.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2010 |
Registered capital |
CNY 90,000,000 |
CNY 120,000,000 |
|
2012 |
Registered capital |
CNY 120,000,000 |
Present amount |
Tax registration number: 320500713231212
Organization code: 71323121-2
MAIN SHAREHOLDERS: (as of June 30, 2012)
Name %
of Shareholding
Suzhou Tianma Pharma Group Co., Ltd. 48.66
Suzhou Guofa Fund Investment Co., Ltd. 6.07
Bank of China-Dacheng Wealth Management 2020
Life Cycle
Securities Investment Fund 2.74
Gu Zhiqiang 2.08
Ren Haifeng 1.70
PICC Property and Casualty Company Limited
-Traditional- General Insurance Products 1.67
Kong Xiaoming 1.67
Mo Hai 1.28
Zhong Rong International Trust Co., Ltd. 1.08
-Double Selected No. 2
Other shareholders 31.55
Suzhou Tianma Pharma Group Co., Ltd.:
=============================
Legal representative: Xu Renhua
Address: No. 199 East Huayuan Road, Mudu
Town, Suzhou, Jiangsu Province
Tel: 86 0512-68246636/68240980
Fax: 0512-66577932
E-mail: info@tianmapharma.com
Website: http://www.tianmapharma.com/
l
Legal representative and Chairman:
Mr. Xu Renhua, born in 1958, with junior college education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman;
Also working in Suzhou Tianma Pharma Group Co., Ltd., Suzhou
Sikai Investment Development Co., Ltd., andSuzhou Hanyuan International
Business Exhibition Center Co., Ltd. as legal representative and chairman.
l
Directors:
Xu Min
Yu Qiping
Yi Enjiang
Yu Rongfa
Jia Li’na
Zhang Yongnian
l
Supervisors:
Jin Baiming
Jiang Zonghu
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products
mainly include: fmoc-amino acids, boc-amino acids, cbz-amino acids, amino acid
derivates, protecting & coupling reagents, advanced intermediates, paper
making
SC sources its materials 100% from domestic
market, mainly Jiangsu. SC sells 60% of its products in domestic market, and
40% to overseas market, mainly Asian market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Shijiazhuang Tongli Chemicals Co., Ltd.
Shandong Tralin Paper Co., Ltd.
*Major Suppliers:
==============
Dongma Palm Industry (Zhangjiagang) Co.,
Ltd.
Zhangjiagang Free Trade Zone Jingfu
International Trade Co., Ltd.
Suzhou Sikai Investment Development Co., Ltd.
Legal representative: Xu Renhua
Suzhou Hanyuan International Business Exhibition Center Co., Ltd.
Legal representative: Xu Renhua
Suzhou Tianma Pharma Group Tianji Bio-Pharmaceutical Co., Ltd.
Etc.
SC
is known to have the following subsidiaries:
==================================
Tianhe
Chemicals (Suzhou) Co., Ltd.
Suzhou
Zhongke Tianma Peptide Engineering Center Co., Ltd.
Nantong
Nabaiyuan Chemical Co., Ltd.
Shandong
Tian’an Chemical Co., Ltd.
Registered
no. 371424200000492
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’s suppliers
refused to make any comments.
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.
China Construction Bank Suzhou Branch
AC#: 3220199435734
Bank of Suzhou
Mudu Sub-branch
AC#:
1102021029000576422
China
Construction Bank Suzhou Wuzhong Sub-branch Office
AC#: 322-1400-660-122-0046-942
(USD account)
Relationship:
Normal.
Consolidated
Balance Sheet
|
Unit: CNY’000 |
as of Dec. 31,
2011 |
As
of Sep. 30, 2012 |
|
Cash & bank |
154,566 |
120,622 |
|
Notes receivable |
54,178 |
32,650 |
|
Inventory |
121,923 |
149,125 |
|
Accounts
receivable |
194,609 |
211,803 |
|
Advances to
supplies |
65,069 |
94,119 |
|
Other
receivables |
23,511 |
18,724 |
|
Other current
assets |
60 |
302 |
|
|
------------------ |
------------------ |
|
Current assets |
613,916 |
627,345 |
|
Fixed assets |
326,710 |
335,407 |
|
Projects under
construction |
61,855 |
90,367 |
|
Project
materials |
5,102 |
15,216 |
|
Investment real
estate |
23,753 |
1,716 |
|
Intangible
assets |
92,713 |
94,995 |
|
Deferred
tax assets |
3,297 |
4,597 |
|
Development
expense |
0 |
9,541 |
|
Long-term
investment |
2,860 |
2,860 |
|
Goodwill |
63,479 |
63,479 |
|
Other assets |
2 |
69 |
|
|
------------------ |
------------------ |
|
Total assets |
1,193,687 |
1,245,592 |
|
|
============= |
============= |
|
Short loans |
186,703 |
312,419 |
|
Accounts payable |
98,333 |
100,021 |
|
Notes payable |
32,436 |
24,800 |
|
Advances from
customers |
3,413 |
8,055 |
|
Payroll
payable |
2,643 |
2,920 |
|
Taxes payable |
9,152 |
4,996 |
|
Dividend payable |
346 |
721 |
|
Other Accounts
payable |
3,267 |
14,324 |
|
Non-current
liabilities due within a year |
20,000 |
0 |
|
Other
current liabilities |
464 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
356,757 |
468,256 |
|
Non-current
liabilities |
4,301 |
29,158 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
361,058 |
497,414 |
|
Equities |
832,629 |
748,178 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,193,687 |
1,245,592 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
as of Dec. 31,
2011 |
Jan. 1 to Sep.
30, 2012 |
|
Turnover |
873,869 |
769,843 |
|
Cost of goods sold |
704,599 |
614,464 |
|
Sales expense |
29,258 |
25,570 |
|
Management expense |
40,636 |
47,440 |
|
Finance expense |
6,206 |
11,393 |
|
Investment
income |
20 |
151 |
|
Profit before
tax |
91,545 |
71,426 |
|
Less: profit tax |
14,160 |
14,163 |
|
Profits |
77,385 |
57,263 |
Important
Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Sep. 30, 2012 |
|
*Current ratio |
1.72 |
1.34 |
|
*Quick ratio |
1.38 |
1.02 |
|
*Liabilities
to assets |
0.30 |
0.40 |
|
*Net profit
margin (%) |
8.86 |
7.44 |
|
*Return on
total assets (%) |
6.48 |
4.60 |
|
*Inventory
/Turnover ×365 |
51 days |
/ |
|
*Accounts
receivable/Turnover ×365 |
82 days |
/ |
|
*Turnover/Total
assets |
0.73 |
0.62 |
|
* Cost of goods
sold/Turnover |
0.81 |
0.80 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
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 normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is average.
l
The accounts receivable of SC is average.
l
The short-term loan of SC appears fairly large.
l
SC’s turnover is in a fair 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 low.
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.55.70 |
|
UK Pound |
1 |
Rs.89.34 |
|
Euro |
1 |
Rs.72.35 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.