MIRA
INFORM REPORT
|
Report Date : |
02.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHIJIAZHUANG JACKCHEM CO.,
LTD. |
|
|
|
|
Registered Office : |
Douyu Industrial Park, Luancheng County, Shijiazhuang City, Hebei Province, 051430 Pr |
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|
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Country : |
China |
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|
|
Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
17.08.2001 |
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Com. Reg. No.: |
130124000007278 |
|
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|
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Legal Form : |
One-Person Limited Liability Company |
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|
|
|
Line of Business : |
Manufacturing and selling ethylenediamine tetraacetic acid
(EDTA) and its related products. |
|
|
|
|
No. of Employees : |
550 |
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 : |
Satisfactory |
|
Payment Behaviour : |
Usually Correct |
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
SHIJIAZHUANG
JACKCHEM CO., LTD.
DOUYU INDUSTRIAL PARK, LUANCHENG COUNTY, SHIJIAZHUANG
CITY,
HEBEI PROVINCE, 051430 PR CHINA
TEL: 86 (0) 311-85469515/84632743/85468388 FAX: 86 (0) 311-85468798
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUGUST 17, 2001
REGISTRATION NO. :
130124000007278
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH : 550
REGISTERED CAPITAL : CNY 10,489,422
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 622,530,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 172,660,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.2143 =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: SC is also known as “Shijiazhuang Jack Chemical Co.,
Ltd.”.
SC was registered as a One-person Limited Liability Company at local Administration for
Industry & Commerce (AIC-The official body of issuing and renewing business
license).
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes manufacturing
carbinol, ethanol and formaldehyde (valid until Dec. 31, 2013); manufacturing
and selling N-Phenylglycinonitrile, phenylglycine potassium salt, ethylenediamine
tetraacetic acid (EDTA), EDTA disodium, EDTA tetrasodium, EDTA ferrisodium,
EDTA zinc, EDTA manganese, EDTA calcium, EDTA copper, EDTA magnesium, three
sodium ethylenediamine tetraacetic acid, liquid three sodium ethylenediamine
tetraacetic acid, nitrilotriacetic acid,
nitrilotriacetic acid sodium sal, liquid nitrilotriacetic acid sodium
sal, liquid manganese disodium EDTA trihydrate, thiocyanate, liquid
thiocyanate, trimethylenedinitrilo-tetraacetic acid, barbituric acid, EMME
(Ethoxy Methylene Malonic Diethyl Ester), 4, 6-dihydroxy-pyrimidine; selling
organic chemical products, inorganic chemical products, fine chemical products,
exporting self-made chemical products, importing raw materials, machines,
instrument and meter and components required in manufacturing, research &
development.
SC
is mainly engaged in manufacturing and selling ethylenediamine tetraacetic acid
(EDTA) and its related products.
Mr.
Zhi Qunshen has been the legal
representative and chairman of SC since 2011.
SC is known
to have approx. 550 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 Shijiazhuang. Our checks
reveal that SC owns the total premise about 46,000 square meters.
www.jackchem.com.cn
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
Email: jackchem@jackchem.com.cn
SC has passed the certification of ISO9002 Quality Management System.
Changes
of its registered information:
|
Date |
Item |
Before the change |
After the change |
|
Unknown |
Registered No. |
1301242000518 |
130124000007278 |
|
2011 |
Legal rep. |
Dong Junjie |
Present one |
|
Unknown |
Legal form |
Limited Liabilities Company |
Present one |
|
Shareholders & % of shareholding |
Shen Yinshan 1.66% Dong Junjie 1.49% Hu Zhenlin0.94% Liu Wenjian 4.82% Li Yiru 22.10% Zhi Qunshen 3.18% |
Present one |
MAIN SHAREHOLDERS:
Name
%
of shareholdings
Hebei Chengxin Co., Ltd. 100
Reg. No.: 130132000002039
Legal representative: Zhi Qunshen
Registered capital: CNY 139,000,000
Legal form: One-person Limited Liability
Company
Incorporation date: April 4, 1994
Web: http://www.hebeichengxin.com/
Email: chengxin@hebeichengxin.com
Tel.: 0311-84635784 84637322
Fax: 0311-84635794
Add.: South of Yuanzhao Road, Yuanshi County,
Shijiazhuang City, Hebei, 051130 PR China
l
Legal representative and Chairman:
Mr. Zhi Qunshen , ID# 132331700506019, born in 1970, is currently
responsible for the overall management of SC.
Working Experience(s):
From 2011 to present Working in SC as legal representative
and chairman
Also working in
Hebei Chengxin Co., Ltd. as legal representative
l
General Manager:
Ms. Cheng Lihua , in her
Working Experience(s):
At present
Working in SC as general manager.
SC
is mainly engaged in manufacturing and selling ethylenediamine tetraacetic acid
(EDTA) and its related products.
SC’s products
mainly include: EDTA (Ethylene Diamine Tetraacetic Acid), EDTA disodium, EDTA
tetrasodium, triglycolamic acid, barbituric acid, EDTA ferrisoduim, EDTA zinc
salt, EDTA calcium salt, and etc.
SC sources its
materials 70% from domestic market, and 30% from overseas markets, mainly
Japan. SC sells 65% of its products in domestic market, and 35% to overseas
market, mainly Japan, America and Europe.
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, L/C, T/T, and Credit of 30-60 days.
Note: SC’s management declined to release
SC’s main clients and suppliers.
SC is not known to have any subsidiary at
present.
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#：121365465431
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
Cash & bank |
7,230 |
14,740 |
|
Inventory |
51,920 |
64,050 |
|
Accounts
receivable |
37,980 |
42,280 |
|
Notes receivable |
35,270 |
32,410 |
|
Advances to
suppliers |
0 |
4,370 |
|
Other accounts
receivable |
4,040 |
13,660 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
136,440 |
171,510 |
|
Fixed assets net
value |
58,270 |
61,120 |
|
Project under
construction |
80 |
0 |
|
Long term
investment |
0 |
0 |
|
Intangible and
other assets |
4,490 |
4,240 |
|
|
------------------ |
------------------ |
|
Total assets |
199,280 |
236,870 |
|
|
============= |
============= |
|
Short loans |
0 |
0 |
|
Accounts payable |
69,970 |
58,770 |
|
Advances from
clients |
0 |
0 |
|
Welfare payable |
50 |
410 |
|
Taxes payable |
810 |
1,140 |
|
Surcharge payable |
10 |
0 |
|
Other accounts
payable |
1,370 |
3,890 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
72,210 |
64,210 |
|
Long-term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
72,210 |
64,210 |
|
Equities |
127,070 |
172,660 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
199,280 |
236,870 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Turnover |
550,480 |
622,530 |
|
Cost of goods sold |
491,700 |
557,400 |
|
Sales expense |
40 |
180 |
|
Management expense |
20,330 |
22,560 |
|
Finance expense |
1,530 |
1,840 |
|
Profit before
tax |
42,280 |
58,910 |
|
10,580 |
13,290 |
|
|
Profits |
31,700 |
45,620 |
Note: SC’s
management refused to release its latest financial statements.
Important
Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
1.89 |
2.67 |
|
*Quick ratio |
1.17 |
1.67 |
|
*Liabilities
to assets |
0.36 |
0.27 |
|
*Net profit
margin (%) |
5.76 |
7.33 |
|
*Return on
total assets (%) |
15.91 |
19.26 |
|
*Inventory
/Turnover ×365 |
35 days |
38 days |
|
*Accounts
receivable/Turnover ×365 |
26 days |
25 days |
|
*Turnover/Total
assets |
2.76 |
2.63 |
|
* Cost of
goods sold/Turnover |
0.89 |
0.90 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line
in 2009, and it increased in 2010.
l
SC’s net profit margin appears fairly good in both
years.
l
SC’s return on total assets appears good in its
line in both years.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level in 2010.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC appears average in
both years.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a fairly good level in both
years, comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.39 |
|
|
1 |
Rs.82.32 |
|
Euro |
1 |
Rs.69.54 |
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.