MIRA
INFORM REPORT
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Report Date : |
30.10.2012 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU SEVENCONTINENT GREEN CHEMICAL CO., LTD. |
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Registered Office : |
North Zone, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
28.05.1998 |
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Com. Reg. No.: |
320000000047178 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling different sorts of pesticide |
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No. of Employees : |
555 |
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
SEVENCONTINENT GREEN CHEMICAL CO., LTD.
north zone, dongsha
chemical park,
zhangjiagang city, jiangsu
PROVINCE, 215621 PR CHINA
TEL: 86 (0) 512-58609901/58986202 FAX: 86 (0) 512-58918569
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY
28, 1998
REGISTRATION NO. :
320000000047178
REGISTERED LEGAL FORM : SHARES LIMITED CO.
STAFF STRENGTH :
555
REGISTERED CAPITAL : CNY 51,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 762,320,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 242,870,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY 6.355= 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
Note: The heading address is SC’s operating address, while
the (28,
SC was registered as a shares limited co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on May 28, 1998.
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 business scope: selling,
manufacturing and processing pesticides (excluding hazardous chemicals) (with permit
if needed), manufacturing hazardous chemicals (according to < safe
production license >). General business scope: selling chemical raw
materials, technical advisory services, importing and exporting goods and
technology.
SC is mainly
engaged in manufacturing and selling different sorts of pesticide.
Mr. Zhou
Yaode has been legal representative and
chairman of SC since 1998.
SC is known
to have approx. 555 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 Zhangjiagang. Our checks
reveal that SC owns the total premise about 130,000 square meters.
SC also has another address located in 7-8/F, Block A, Guotai Times Plaza,
Renmin Middle Road, Zhangjiagang, Jiangsu Province
http://www.sevencontinent.com
The design is professional and the content is well organized. At present it is in
Chinese and English versions.
E-mail: info@sevencontinent.com
SC has launched a series of award winning products that are listed
below:
l
Runner-up of National Science &Technology
Progress Award
l
Winner of National Innovative High-Tech Products
l
Winner of Jiangsu Science & Technology Progress
Award
l
Voted Fair Play Product in Jiangsu Province
l
Winner of Agriculture Exhibition Award
l
Suzhou city Quality Brand
SC was accredited with ISO
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2008 |
Registration No. |
3200002102513 |
320000000047178 |
|
Registered capital |
CNY 42,380,000 |
CNY 51,000,000 |
|
|
Shareholders |
Jiangsu Guotai International Group
Industrial Investment Co., Ltd. 14.3% Jiangsu Huachang (Group) Co., Ltd. 16.8% Ningbo Tide Import & Export Co, Ltd.
14.3% Cai Binbin 2.5% Cai Meihua 1.53% Chen Guangzhong 2.14% Ding Tiedong 2.04% Hu Chunhong 1.79% Wang BinGxiang 1.91% Wang Qunfei 1.73% Wang Shaohua 2.04% Yu Shineng
5.10% Yuan Weiqun 1.68% Zhang Guangyao 4.59% Zhang Jianfeng 2.04% Zhou Yaode 21.4% Zhu Xunwei 1.94% Zou Linli 2.17 % 2.17 |
Present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhou Yaode
ID# 320521521102003 17.81
Jiangsu Huachang (Group) Co., Ltd. 13.95
GTIG Real Estate Co., Ltd. 11.87
Ningbo Tide Imp. & Exp. Co., Ltd. 11.87
Zhang Yanjun 4.71
Yu Shineng
ID#
320521631220005 4.24
Wu Lijuan 3.92
Zhang Guangyao
ID# 320521196504188838 3.82
Zhou Wei
ID#
320582197702108816 2.98
Cai Binbin
ID#
320582680928601 2.08
Other 17 individuals 22.75
l
Legal Representative, Chairman and General Manager:
Mr. Zhou Yaode , ID# 320521521102003, born in 1952, with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working in SC as legal
representative and chairman;
At present Also working in SC as general
manager;
Also working in Zhangjiagang Chuangxing Pesticide
Development Co., Ltd. as legal representative.
l
Directors:
Zhu Yujian ID#
320521510401003
Wu Jian ID#
360111197203200036
Zhou Bin ID#
321002196911233370
Wu Gongjian ID# 320105194208021012
Zhou Wei ID#
320582197702108816
Dong Wei ID#
330103198404071620
Yin Shuangfeng
ID# 110108197302068953
Huang Taozhen ID#
320106196403040847
l
Supervisors:
Zhang Jianfeng ID# 320521560505001
Liu Weiping ID# 330103620713133
Han Wei ID# 320521560326001
Bian Xianghua ID# 320521197007010830
SC is mainly
engaged in manufacturing and selling different sorts of pesticide.
SC’s products mainly
include: fungicides, insecticide, herbicide and plant growth regulators.
Brand: “Seven
Continent”
SC sources its
materials 100% from domestic market. SC sells 20% of its products in domestic
market, and 80% to overseas market, mainly Southeast 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.
Note: SC’s management
declined to release its major clients and suppliers.
SC is known to have the following subsidiaries at present:
Zhangjiagang Chuangxing Pesticide Development Co., Ltd.
Zhangjiagang Huarui Hazard Waste Disposal Center Co., Ltd.
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 Zhangjiagang Liangfeng Sub-branch
AC#: N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2010 |
as of Dec. 31, 2011 |
|
Cash & bank |
91,640 |
143,920 |
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Notes receivable |
2,230 |
5,510 |
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Inventory |
133,780 |
195,020 |
|
Accounts
receivable |
97,330 |
138,700 |
|
Advances to
supplies |
17,930 |
13,990 |
|
Other
receivables |
12,280 |
11,330 |
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Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
355,190 |
508,470 |
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Long-term
investments |
9,650 |
10,170 |
|
Fixed assets net
value |
135,520 |
144,880 |
|
Projects under
construction |
14,550 |
31,690 |
|
Material for
construction |
200 |
220 |
|
Long-term
deferred expenses |
40 |
1,860 |
|
Deferred income
tax assets |
1,500 |
1,470 |
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Intangible
assets |
10,560 |
11,020 |
|
Other assets |
0 |
0 |
|
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------------------ |
------------------ |
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Total assets |
527,210 |
709,780 |
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|
============= |
============= |
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Short loans |
166,710 |
217,530 |
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Notes payable |
6,630 |
50,680 |
|
Accounts payable |
70,450 |
92,560 |
|
Advances from
customers |
7,730 |
1,890 |
|
Accrued Payroll |
9,590 |
12,040 |
|
Taxes payable |
-8,670 |
-18,570 |
|
Interest payable |
290 |
420 |
|
Other accounts
payable |
3,510 |
6,500 |
|
Non-current
liabilities due within one year |
0 |
1,800 |
|
Other current
liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
256,240 |
364,850 |
|
Long term
liabilities |
76,350 |
102,060 |
|
|
------------------ |
------------------ |
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Total
liabilities |
332,590 |
466,910 |
|
Shareholders
equities |
194,620 |
242,870 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
527,210 |
709,780 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
|
Turnover |
762,320 |
|
Cost of goods
sold |
625,960 |
|
Taxes and
additional of main operation |
0 |
|
Sales expense |
21,690 |
|
Management expense |
30,290 |
|
Finance expense |
16,400 |
|
Asset impairment loss |
1,820 |
|
Investment
income |
4,520 |
|
Non-operating
income |
1,270 |
|
Non-operating expense |
930 |
|
Profit before
tax |
71,020 |
|
Less: profit tax |
10,020 |
|
Net profit |
61,000 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.39 |
1.39 |
|
*Quick ratio |
0.86 |
0.86 |
|
*Liabilities
to assets |
0.63 |
0.66 |
|
*Net profit
margin (%) |
/ |
8.00 |
|
*Return on
total assets (%) |
/ |
8.59 |
|
*Inventory
/Turnover ×365 |
/ |
94 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
67 days |
|
*Turnover/Total
assets |
/ |
1.07 |
|
* Cost of
goods sold/Turnover |
/ |
0.82 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in 2011.
l
SC’s net profit margin is fairly good in 2011.
l
SC’s return on total assets is fairly good in 2011.
l
SC’s cost of goods sold is average in 2011,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC is fairly large in both years.
l
The accounts receivable of SC is average in both
years.
l
The short loan is large in both years.
l
SC’s turnover is in an average level in 2011,
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 medium-sized in its line with fairly stable financial conditions.
The large amount of short loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.81 |
|
|
1 |
Rs.86.52 |
|
Euro |
1 |
Rs.69.50 |
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 |
|
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.