MIRA
INFORM REPORT
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Report Date : |
08.04.2013 |
IDENTIFICATION DETAILS
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Name : |
TIANJIN CHANGJIE CHEMICAL CO., LTD. |
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Registered Office : |
No. 19,
Jinwei Road, Beichen District, Tianjin 300402 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
03.07.1993 |
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Com. Reg. No.: |
120000400049621 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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Line of Business : |
manufacturing and selling sodium saccharin and related chemical products |
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No. of Employees : |
350 |
RATING & COMMENTS
|
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 (31.03.2012) |
Current Rating (30.06.2012) |
|
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.
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Source : CIA |
Company name & address
TIANJIN CHANGJIE CHEMICAL CO., LTD.
NO. 19, JINWEI
ROAD, BEICHEN DISTRICT, TIANJIN 300402 PR CHINA
TEL: 86 (0)
22-26998093/26998616
FAX: 86 (0)
22-26998071
EXECUTIVE
SUMMARY
Date of Registration : JULy 3, 1993
REGISTRATION NO. : 120000400049621
LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE : YANG FULONG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 1,800,000
staff : 350
BUSINESS CATEGORY : manufacturing
REVENUE :
CNY 93,541,000 (JAN. 1, 2012 TO
JUN. 30, 2012)
EQUITIES :
CNY 47,268,000 (AS OF JUN. 30, 2012)
WEBSITE : www.tjchangjie.com
E-MAIL :
postmaster@tjchangjie.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.21 = 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
LEGAL
STATUS & HISTORY
***Note: SC’s present address “No. 19,
Jinwei Road” was formerly named “South of Fengchan River, Jinwei Road”.
SC was
established as a Chinese-foreign equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 120000400049621
on July 3, 1993.
SC’s Organization Code Certificate
No.: 60057251-2
SC’s Tax No.: 120113600572512
SC’s registered capital: USD 1,800,000
SC’s paid-in capital: USD 1,800,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2005 |
The name of SC’s Chinese Shareholder |
Tianjin Sanqian Technology Group Co., Ltd. |
Tianjin Sanqian Group Co.,
Ltd. |
|
2007-12 |
Registered Capital |
USD 800,000 |
USD 1,500,000 |
|
2008-7 |
Registered Capital |
USD 1,500,000 |
USD 1,800,000 |
|
-- |
Registration No. |
004113 |
120000400049621 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Tianjin Sanqian Group Co.,
Ltd. |
75 |
|
Fairland Trading Co., Limited (Hong Kong) |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Yang Fulong |
RECENT
DEVELOPMENT
SC’s quality system meets the international standard of
ISO9002.
SHAREHOLDER
CHART & BACKGROUND
Name
% of
Shareholding
Tianjin Sanqian Group Co., Ltd. 75
Fairland Trading Co., Limited
(Hong Kong) 25
Tianjin Sanqian Group Co., Ltd.
--------------------------------------------
Registration No.: 1200002000863
Legal Form: Limited Liabilities Company
Registered Capital: CNY 50,000,000
Fairland Trading Co., Limited (Hong
Kong)
----------------------------------------------------------
CR No.: 1229349
Legal Form: Private
MANAGEMENT
Yang Fulong, Legal Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 61
Ø
ID# 12011019520222241X
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative,
chairman and general manager
Jiang Jinrong, Sales
Manager
--------------------------------------------------
Ø
Gender: F
Ø
Mobile: 86 (0) 13752044980
BUSINESS
OPERATION
SC’s registered
business scope includes manufacturing and selling sodium saccharin, methyl
anthranilate, O-Sulfonylbenaylsuamine, Sodium ortho-sulphobenzimide dehydrate
and anthranilic acid.
SC is mainly
engaged in manufacturing and selling sodium saccharin and related chemical
products.
SC’s
products mainly include:
l
Sodium Saccharin
l
Anhydrous Sodium Saccharin
l
Insoluble Saccharin
l
Methylanthranilate
l
Anthranilic Acid
l
Sodium Hypochlorite Solution
“Tianhuan” Sodium Saccharin has met the National
Standard (GB) on Food additive, the Standard of British pharmacopoeia
(BP88,BP93,BP98,BP99,BP2000), the Standard of the United States pharmacopoeia
(USP23,USP22,USP24), and the Standard of Deutschland (DAB10), European
pharmacopoeia (EP1997). It has been extensively applied in food, cosmetics,
forage and electroplates industry, etc.
SC sources its materials 90%
from domestic market, and 10% from overseas market, mainly Hong Kong. SC sells
20% of its products in domestic market, and 80% to overseas market, mainly Hong
Kong.
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 Customers:
=============
Guangdong
Huasheng Food Chemicals Co., Ltd.
Long
Wing International Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 350 staff at present.
SC owns an area as
its operating office & factory of approx. 40,000 sq. meters at the heading
address.
RELATED
COMPANY
SC
is not known to have any subsidiary at present.
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:
Agricultural Bank of China Tianjin Yixingfu Sub-branch
AC#:
040301040003158
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Jun. 30, 2012 |
|
24,645 |
|
|
Notes receivable |
0 |
|
Accounts
receivable |
22,415 |
|
Advances
to suppliers |
4,089 |
|
Other
receivable |
2,732 |
|
Inventory |
1,054 |
|
Non-current
assets within one year |
0 |
|
Other
current assets |
233 |
|
|
------------------ |
|
Current
assets |
55,168 |
|
Fixed
assets |
42,568 |
|
Construction
in progress |
0 |
|
Intangible
assets |
657 |
|
Long-term
prepaid expenses |
0 |
|
Deferred
income tax assets |
0 |
|
Other
non-current assets |
0 |
|
|
------------------ |
|
Total
assets |
98,393 |
|
|
============= |
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Short-term
loans |
0 |
|
Notes
payable |
0 |
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Accounts
payable |
6,434 |
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Wages
payable |
0 |
|
Notes
payable |
1,459 |
|
Interest
payable |
35,451 |
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Advances
from clients |
5,454 |
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Other
payable |
2,327 |
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Other
current liabilities |
0 |
|
|
------------------ |
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Current
liabilities |
51,125 |
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Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
51,125 |
|
Equities |
47,268 |
|
|
------------------ |
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Total
liabilities & equities |
98,393 |
|
|
============= |
Income Statement
|
Unit:
CNY’000 |
Jan. 1, 2012 to Jun. 30, 2012 |
|
Revenue |
93,541 |
|
Cost of sales |
81,703 |
|
Sales expense |
2,324 |
|
Management expense |
3,241 |
|
Finance expense |
94 |
|
Profit
before tax |
5,765 |
|
Less:
profit tax |
1,153 |
|
4,612 |
Important
Ratios
=============
|
|
As of Jun. 30, 2012 |
|
*Current
ratio |
1.08 |
|
*Quick
ratio |
1.06 |
|
*Liabilities
to assets |
0.52 |
|
*Net
profit margin (%) |
4.93 |
|
*Return
on total assets (%) |
4.69 |
|
*Inventory
/ Revenue ×180 |
3
days |
|
*Accounts
receivable/ Revenue ×180 |
44
days |
|
*
Revenue/Total assets |
0.95 |
|
*
Cost of sales / Revenue |
0.87 |
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 fairly good
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
SC has no short-term loans.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
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 Good.
CONCLUSIONS
SC is considered medium-sized in its
line with fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.88 |
|
UK Pound |
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.