MIRA
INFORM REPORT
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Report Date : |
23.10.2012 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU ALCHA ALUMINUM CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
27.12.2002 |
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Com. Reg. No.: |
320000400002793 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing aluminum foil, coated aluminum foil for air-condition, aluminum materials, aluminum sheet, and aluminum strip |
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No. of Employees : |
684 |
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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 : |
Satisfactory |
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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
|
Country Name |
Previous Rating (31.03.2011) |
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 and address
JIANGSU ALCHA ALUMINUM CO., LTD.
WEST BAIMAO TOWN, CHANGSHU, JIANGSU PROVINCE 215532 PR CHINA
TEL: 86 (0) 512-52359028
FAX: 86 (0) 512-52892675
EXECUTIVE SUMMARY
Date of Registration : december 27, 2002
REGISTRATION NO. : 320000400002793
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : CNY 340,000,000
staff :
684
BUSINESS CATEGORY : manufacturing & TRADING
REVENUE :
CNY 1,049,755,000 (CONSOLIDATED, JAN. 1, 2012 TO JUN. 30,
2012)
EQUITIES :
CNY 661,954,000 (CONSOLIDATED, AS
OF JUN. 30, 2012)
WEBSITE : www.alcha.com
E-MAIL :
office@alcha.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.25 = 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 Shares limited company of PRC with State Administration for Industry &
Commerce (SAIC) under registration No.: 320000400002793
on December 27, 2002.
SC’s Organization Code Certificate No.: 74558674-7
SC’s Tax No.: 320581745586747
SC’s registered capital: CNY 340,000,000
SC’s paid-in capital: CNY 340,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2011 |
Registered
Capital |
CNY 170,000,000 |
CNY 340,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
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Name of Shareholder (s) (As of June 30, 2012) |
% of Shareholding |
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Changshu Aluminium Foil Factory |
39.00 |
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Itochu Metals Corporation (Japan) |
7.00 |
|
Zhang Ping |
6.00 |
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Itochu (China) Holding Co., Ltd. |
4.00 |
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Zhongxin Suzhou Industrial Park Venture
Capital Co., Ltd. |
2.50 |
|
Chen Zhiyin |
0.13 |
|
Yang Qiuhua |
0.10 |
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Lu Yi |
0.09 |
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Chen Weiguang |
0.09 |
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Ma Ruixia |
0.09 |
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Other Shareholders |
41.00 |
SC’s Chief Executives:-
|
Position |
Name |
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Legal Representative, Chairman, and
General Manager |
Zhang Ping |
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Independent Director |
Xiao Jinsheng |
|
Wang Zebin |
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Chen Feng |
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Director |
Zhang Ping |
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Wang Qing |
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Pingshi Xingxiong |
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Lu Yun |
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Wu Guang |
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Qian Jianmin |
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|
Xiaolin Kedian |
RECENT DEVELOPMENT
SC is listed in Shenzhen Stock Exchange on August 21, 2007 (Stock name:
ALCHA, Stock No.: 002160).
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
(As of June 30, 2012)
----------------------------------
Changshu Aluminium Foil Factory 39.00
Itochu Metals Corporation (Japan) 7.00
Zhang Ping 6.00
Itochu (China) Holding Co., Ltd. 4.00
Zhongxin Suzhou Industrial Park Venture
Capital Co., Ltd. 2.50
Chen Zhiyin 0.13
Yang Qiuhua 0.10
Lu Yi 0.09
Chen Weiguang 0.09
Ma Ruixia 0.09
Other Shareholders 41.00
u
Itochu Metals Corporation (Japan)
-----------------------------------------------
Incorporated: July 1, 1996
President & CEO: MASAKI OKA
Head Office: ITOCHU Building, 5-1
Kita-Aoyama 2-chome,Minato-ku,Tokyo,107-8573
Tel: 81-3-3497-7137
Fax: 81-3-3497-8180
Capital: 700,000,000 yen
Shareholders: ITOCHU Corporation (100%)
u
Itochu (China) Holding Co., Ltd.
---------------------------------------------
Date of Registration: September 8, 1993
Registration No.: 100000400004047
Legal Form: Wholly Foreign-Owned
Enterprise
Registered Capital: USD 300,000,000
Staff: 116
Business Category: Trading & Investment & Management
Revenue: CNY 1,033,679,000 (As Of Dec. 31, 2011)
Equities: CNY 2,458,777,000 (As Of Dec. 31, 2011)
Website: www.itochu.com.cn
Address: Unit 501, 5/F, No. 2 Office
Building, China Central Place, No. 79 Jianguo Road, Chaoyang District, Beijing
100025 PR China
TEL: 86 (0) 10-65997000/65997052
FAX: 86 (0) 10-65997111
MANAGEMENT
Zhang Ping , Legal
Representative, Chairman, and General Manager
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Ø
Gender: M
Ø
Age: 66
Ø
Qualification:
University
Ø
Senior
Economist
Ø
Working
experience (s):
At present, working in SC as legal representative,
chairman, and general manager
Also as director of SC
Independent Directors
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Xiao Jinsheng
Wang Zebin
Chen Feng
Directors
------------
Wang Qing
Pingshi Xingxiong
Lu Yun
Wu Guang
Qian Jianmin
Xiaolin Kedian
BUSINESS OPERATION
SC’s registered business scope includes manufacturing aluminum foil,
coated aluminum foil for air-condition, aluminum materials, aluminum sheet, and
aluminum strip; importing and exporting commodities and technology.
SC is mainly
engaged in manufacturing and selling aluminum foil, aluminum sheet, and
aluminum strip.
SC has Al fabricating and deep-drawing process (such as Al ingot
smelting, hot rolling (continuous casting), rough and finished rolling,
accuracy treatment, heat treatment, coating and slitting) producing and testing
equipments, having producing capacity of 100,000 tons of casting and hot
rolling mother coil, 150,000 tons of kinds of Al alloy foil strip and mother
coil, 50,000 tons of hydrophilic coated Al foil.
Brand: Alcha.
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 75% of its products in domestic
market, and 25% to overseas 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.
*Major Client*
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Itochu Shanghai
Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 684 staff at
present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have the
following subsidiaries:
Baotou
Changlv North Aluminium 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
Basic Bank
China
Construction Bank Changshu Sub-branch
AC#:
32201986112059555888
FINANCIALS
Consolidated Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Jun. 30, 2012 |
|
292,646 |
152,836 |
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Trading financial assets |
0 |
0 |
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Accounts
receivable |
259,863 |
327,083 |
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Notes receivable |
112,052 |
114,608 |
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Advances to
suppliers |
7,291 |
8,564 |
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Other receivable |
1,978 |
2,212 |
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Interest
receivable |
0 |
0 |
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Inventory |
446,477 |
486,124 |
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Non-current
assets within one year |
0 |
0 |
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Other current
assets |
0 |
38 |
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------------------ |
------------------ |
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Current assets |
1,120,307 |
1,091,465 |
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Real estate
investment |
0 |
0 |
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Fixed assets |
548,672 |
515,358 |
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Construction in
progress |
49,618 |
98,919 |
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Intangible
assets |
40,944 |
40,274 |
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Long-term
investments |
5,000 |
5,000 |
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Goodwill |
0 |
0 |
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Long-term
deferred expense |
574 |
2,642 |
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Deferred income
tax assets |
2,411 |
2,659 |
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Other
non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
1,767,526 |
1,756,317 |
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============= |
============= |
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Short-term loans |
986,133 |
981,000 |
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Notes payable |
0 |
0 |
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Accounts payable |
102,588 |
103,876 |
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Payroll payable |
1,641 |
1,685 |
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Taxes payable |
-4,278 |
-7,972 |
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Interest payable |
1,642 |
1,743 |
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Dividends
payable |
0 |
0 |
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Advances from
clients |
8,155 |
2,196 |
|
Other payable |
3,113 |
3,255 |
|
Other current
liabilities |
2,287 |
397 |
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------------------ |
------------------ |
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Current
liabilities |
1,101,281 |
1,086,180 |
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Non-current
liabilities |
8,177 |
8,183 |
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|
------------------ |
------------------ |
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Total
liabilities |
1,109,458 |
1,094,363 |
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Equities |
658,068 |
661,954 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
1,767,526 |
1,756,317 |
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============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
Jan.
1, 2012 to Jun. 30, 2012 |
|
Revenue |
2,053,567 |
1,049,755 |
|
Cost of sales |
1,846,145 |
942,732 |
|
Business Taxes and Surcharges |
4,154 |
1,613 |
|
Sales expense |
34,828 |
19,009 |
|
Management expense |
95,862 |
45,148 |
|
Finance expense |
71,486 |
34,265 |
|
Asset impairment loss |
939 |
3,550 |
|
Investment
income |
0 |
0 |
|
Non-operating
income |
6,653 |
1,937 |
|
Non-operating expense |
1 |
17 |
|
Profit before
tax |
6,806 |
5,357 |
|
Less: profit tax |
836 |
-290 |
|
5,970 |
5,647 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Jun. 30, 2012 |
|
*Current ratio |
1.02 |
1.00 |
|
*Quick ratio |
0.61 |
0.56 |
|
*Liabilities
to assets |
0.63 |
0.62 |
|
*Net profit
margin (%) |
0.29 |
0.54 |
|
*Return on
total assets (%) |
0.34 |
0.32 |
|
*Inventory /
Revenue ×365/180 |
80 days |
84 days |
|
*Accounts
receivable/ Revenue ×365/180 |
47 days |
57 days |
|
*
Revenue/Total assets |
1.16 |
0.60 |
|
* Cost of
sales / Revenue |
0.90 |
0.90 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear large.
l
SC’s revenue 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.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.67 |
|
|
1 |
Rs.86.05 |
|
Euro |
1 |
Rs.70.07 |
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 |
|
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.