MIRA
INFORM REPORT
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Report Date : |
12.10.2012 |
IDENTIFICATION DETAILS
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Name : |
HUZHOU JICHANG CHEMICAL CO., LTD. |
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Registered Office : |
Zhongzhao Town, Huzhou, Zhejiang Province,
313026 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
18.12.1998 |
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Com. Reg. No.: |
330500400007480 |
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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 : |
95 employees |
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 : |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
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
huzhou jichang chemical co., ltd.
ZHONGZHAO TOWN, HUZHOU, ZHEJIANG PROVINCE,
313026 PR CHINA
TEL: 86 (0)
572-3508466/3508480 FAX: 86 (0)
572-3508468
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 18, 1998
REGISTRATION NO. : 330500400007480
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF STRENGTH :
95
REGISTERED CAPITAL : USD 2,500,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 59,160,000 (UNAUDITED, AS OF
DEC. 31, 2010)
EQUITIES :
CNY 43,640,000 (UNAUDITED, AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : 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
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 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. 18, 1998.
SC’s registered
business scope includes manufacturing and selling 2-ethyl anthraquinone,
tetrabutyl urea, acetic acid-2-methyl cyclohexyl and supporting products.
SC is mainly engaged
in manufacturing and selling chemical products.
Mr. Shi Ximao is
legal representative and chairman of SC at present.
SC is known to
have approx. 95 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 Huzhou. Our checks
reveal that SC owns the total premise about 40,000 square meters.
http://www.jc-chemical.com The
design is professional and the content is well organized. At present, the web
is both in Chinese and English versions.
E-mail: swmd@mail.huptt.zj.cn
Qualification:
===========
SC has passed ISO 9002.
SC was also awarded as Civilization Unit, Top 10 Technology Advanced
Enterprise, etc.
No significant changes were found during our checks with the local AIC.
MAIN SHAREHOLDERS:
Name % of Shareholding
Huzhou Linghu Jichang Chemical Co., Ltd. (in
Chinese pinyin) 75
Fuerkang Corp. (U.S.A.) (in Chinese pinyin) 25
Huzhou Linghu Jichang Chemical Co., Ltd. (in
Chinese pinyin)
----------------------------------------------------------------------------
Registration no.: 330504000012807
Registered capital: CNY 500,000
Legal representative: Shi Weifeng
Tel: 0572-3508466
Legal
representative and chairman:
Mr. Shi Ximao, ID# 330511510628441, born in 1951, 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 Huzhou Longmen Industry Co., Ltd. (in Chinese pinyin) as legal representative.
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products mainly include: 2-Ethylanthraquinone, aluminium chloride, Poly Aluminum chloride,
Aluminum trichloride anhydrous, Aluminum chloride anhydrous, etc.
SC sources its materials 100% from domestic
market. SC sells its products 50% in domestic market, and 50% to overseas
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.
Note:
SC refused to release its major clients and suppliers.
Huzhou Longmen Industry Co., Ltd. (in
Chinese pinyin)
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.
Industrial and
Commercial Bank of China
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2010 (unaudited) |
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Cash & bank |
1,380 |
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Inventory |
4,400 |
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Bills receivable |
2,750 |
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Accounts
receivable |
11,770 |
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Other Accounts
receivable |
38,060 |
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Advances to
suppliers |
9,580 |
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To be
apportioned expense |
50 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
67,990 |
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Fixed assets net
value |
10,600 |
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Projects under
construction |
2,570 |
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Long-term
investment |
0 |
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Intangible and
other assets |
3,160 |
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------------------ |
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Total assets |
84,320 |
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============= |
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Short loans |
24,180 |
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Accounts payable |
2,440 |
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Advance from
customers |
0 |
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Other Accounts
payable |
810 |
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Notes payable |
0 |
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Taxes payable |
-90 |
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Withdraw the expenses
in advance |
80 |
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Dividend payable |
13,170 |
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Surcharge
payable |
90 |
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Other current
liabilities |
0 |
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------------------ |
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40,680 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
40,680 |
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Equities |
43,640 |
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------------------ |
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84,320 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2010 (unaudited) |
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Turnover |
59,160 |
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Cost of goods sold |
/ |
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Sales expense |
/ |
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Management expense |
/ |
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Finance expense |
/ |
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Profit before
tax |
/ |
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Less: profit tax |
/ |
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Profits |
/ |
Note: SC’s management refused to release the detail of its Income
statement.
Important Ratios
=============
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As
of Dec. 31, 2010 |
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*Current ratio |
1.67 |
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*Quick ratio |
1.56 |
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*Liabilities
to assets |
0.48 |
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*Net profit
margin (%) |
/ |
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*Return on
total assets (%) |
/ |
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*Inventory
/Turnover ×365 |
27 days |
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*Accounts
receivable/Turnover ×365 |
73 days |
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*Turnover/Total
assets |
0.70 |
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* Cost of
goods sold/Turnover |
/ |
PROFITABILITY: AVERAGE
l
The turnover of SC appears average in its line.
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 maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loan of SC appears fairly large in
2010.
l
SC’s turnover is in a fair level, 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 stable
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of short term loan
could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.07 |
|
UK Pound |
1 |
Rs.84.95 |
|
Euro |
1 |
Rs.68.24 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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 |
|
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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.