MIRA
INFORM REPORT
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Report Date : |
10.04.2013 |
IDENTIFICATION DETAILS
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Name : |
JIANGYIN SHUNFEI FINE CHEMICAL CO., LTD. |
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Registered Office : |
No. 152 Yingbin
West Road, Huangtu Town, Harbour New City,
Jiangyin, Jiangsu Province 214445 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
22.07.2002 |
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Com. Reg. No.: |
320281000016216 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
manufacturing and selling chemical
products |
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No. of Employees : |
125 |
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 : |
Slow but Correct |
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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.
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Source : CIA |
Company name & address
Jiangyin Shunfei Fine chemical
Co., ltd.
no. 152 yingbin west road, huangtu town, harbour new city
jiangyin, JIANGSU PROVINCE 214445 PR CHINA
TEL: 86 (0) 510-86053300
FAX: 86 (0) 510-86651302
EXECUTIVE SUMMARY
Date of Registration : JUly 22, 2002
REGISTRATION NO. : 320281000016216
LEGAL FORM : One-person Limited Liability Company
REGISTERED CAPITAL :
CNY 36,800,000
staff : 125
BUSINESS CATEGORY :
MANUFACTURING
Revenue :
CNY 253,220,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 46,130,000 (AS OF DEC. 31, 2012)
WEBSITE : www.shunfeichem.com
E-MAIL :
sales@shunfeichem.com
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIRLY
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 correct name should be the above
stated one, instead of the given name - Jiangyin
Shunfei Chemical Co Ltd.
SC was established
as a limited liabilities company of PRC on July 22, 2002. However, SC changed to
present legal form, and was registered as one-person limited liabilities
company of PRC with State Administration of Industry & Commerce (SAIC)
under registration No.: 320281000016216
in 2010.
SC’s Organization Code Certificate
No.: 74068088-1
SC’s Tax No.: 320281740680881
SC’s registered capital: CNY 36,800,000
SC’s paid-in capital: CNY 36,800,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010 |
Legal Form |
Limited liabilities company |
One-person Limited Liability
Company |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Jiangyin Feiyan Venture
Capital Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Zhang
Huaxing |
|
General Manager |
Xia
Jianhua |
|
Director |
Zhang Jianlong |
|
Liu Gang |
|
|
Supervisor |
Wang
Yong |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Jiangyin Feiyan Venture Capital Co.,
Ltd. 100
------------------------------------
Registration No.: 320281000105522
MANAGEMENT
Zhang
Huaxing, Legal
Representative and Chairman
--------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 58
Ø
ID# 320219195503180049
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and chairman, also working in Jiangyin Feiyan Venture Capital Co., Ltd. as legal representative
Xia
Jianhua, General
Manager
---------------------------------------------------
Ø
Gender: M
Ø
Age: 45
Ø
ID# 320219196802181011
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
Director
-----------
Zhang Jianlong ID#
320219196511090013
Liu Gang ID#
321002197404081813
Supervisor
--------------
Wang Yong ID#
320219197012257514
bUSINESS OPERATION
SC’s registered business scope includes manufacturing and
processing maleic anhydride, fumaric acid, operating and acting as an agent of
importing and exporting various kinds of commodities and technology, excluding
the goods forbidden by the government.
SC is
mainly engaged in manufacturing and selling chemical products.
Brand: 
SC’s
products mainly include: Maleic anhydride, Fumaric Acid, etc.
SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 125 staff
at present.
SC owns an area as
its operating office & factory of approx. 30,000 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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
|
13,510 |
|
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Notes receivable |
0 |
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Accounts
receivable |
5,740 |
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Advances to
suppliers |
0 |
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Other receivable |
70 |
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Inventory |
18,870 |
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Non-current
assets within one year |
0 |
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Other current
assets |
7,910 |
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|
------------------ |
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Current assets |
46,100 |
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Fixed assets |
62,120 |
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Construction in
progress |
10,190 |
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Intangible
assets |
28,760 |
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Deferred income tax
assets |
0 |
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Other
non-current assets |
34,590 |
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|
------------------ |
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Total assets |
181,760 |
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============= |
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Short-term loans |
50,000 |
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Notes payable |
20,000 |
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Accounts payable |
62,340 |
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Advances from
clients |
0 |
|
Other payable |
290 |
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Other current
liabilities |
3,000 |
|
|
------------------ |
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Current
liabilities |
135,630 |
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Non-current
liabilities |
0 |
|
|
------------------ |
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Total
liabilities |
135,630 |
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Equities |
46,130 |
|
|
------------------ |
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Total
liabilities & equities |
181,760 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
253,220 |
|
Cost of sales |
241,300 |
|
Sales expense |
770 |
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Management expense |
4,550 |
|
Finance expense |
5,680 |
|
Profit before
tax |
-6,220 |
|
Less: profit tax |
0 |
|
-6,220 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
|
*Current ratio |
0.34 |
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*Quick ratio |
0.20 |
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*Liabilities
to assets |
0.75 |
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*Net profit
margin (%) |
-2.46 |
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*Return on
total assets (%) |
-3.42 |
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*Inventory /
Revenue ×365 |
28 days |
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*Accounts
receivable/ Revenue ×365 |
9 days |
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*
Revenue/Total assets |
1.39 |
|
* Cost of
sales / Revenue |
0.95 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a poor
level.
l
SC’s quick ratio is maintained in a poor 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’s short-term loans appear large.
l
SC’s revenue is in an
average 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: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with
fair financial conditions. The large amount of
short-term loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.46 |
|
UK Pound |
1 |
Rs.83.13 |
|
Euro |
1 |
Rs.70.99 |
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 |
|
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 |
|
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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.