MIRA INFORM REPORT
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Report Date : |
19.04.2013 |
IDENTIFICATION DETAILS
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Name : |
JIANGXI SPICE CHEMICAL INDUSTRIAL CO., LTD. |
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Registered Office : |
Industrial
Park C Of Jinxi County, Jiangxi Province 344800 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
13.05.2004 |
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Com. Reg. No.: |
361000520001076 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling natural and synthetic perfume |
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No. of Employees : |
58 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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) |
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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 2012 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 under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
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
JIANGXI SPICE CHEMICAL
INDUSTRIAL CO., LTD.
industrial
park c of jinxi county, jiangxi PROVINCE 344800 PR CHINA
TEL: 86
(0) 794-5258169
FAX: 86
(0) 794-5258055
EXECUTIVE SUMMARY
Date of Registration : may 13, 2004
REGISTRATION NO. : 361000520001076
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : li xianglin (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 2,000,000
staff : 58
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue : CNY 29,570,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 7,359,000 (AS OF DEC. 31, 2012)
WEBSITE : www.jxspice.com
E-MAIL :
jxspicemarkets@gmail.com
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.17 = 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
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 361000520001076 on May 13, 2004.
SC’s Organization Code Certificate
No.: 75998295-1
SC’s registered capital: CNY 2,000,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Li Xianglin |
67 |
|
Fu Houming |
33 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman,
and General Manager |
Li
Xianglin |
|
Supervisor |
Fu Houming |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name
%
of Shareholding
Li Xianglin 67
Fu Houming 33
MANAGEMENT
Li
Xianglin, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal representative, chairman and
general manager
Fu
Houming, Supervisor
--------------------------------------------
Ø
Gender: M
Ø Qualification:
University
BUSINESS OPERATION
SC’s
registered business scope includes manufacturing and selling linalool,
eucalyptus oil, sassafras oil, citral, terpineol, other natural and synthetic
perfume.
SC is mainly
engaged in manufacturing and selling natural and synthetic perfume.
SC’s
products mainly include: linalool, eucalyptus oil, eucalyptol, camphor powder,
litsea cubeba berry oil, Citronella oil, white camphor oil, terpilenol,
α-pinene, β-pinene, wintergreen oil, anethole, anise oil, etc.
SC sources its
materials 100% from domestic market. SC sells 60% in domestic market, and 40% to
overseas market, mainly U.S.A., Southeast Asia, etc.
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.
*Major
Client*
------------------
Symrise
Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 58 staff
at present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is not known to have the 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 local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
1,494 |
6,308 |
|
|
Notes receivable |
946 |
0 |
|
Accounts
receivable |
5,820 |
1,491 |
|
Advances to
suppliers |
32,621 |
31,076 |
|
Other receivable |
6,525 |
8,365 |
|
Inventory |
5,459 |
11,097 |
|
Deferred
expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
52,865 |
58,337 |
|
Long-term
investment |
22,405 |
22,405 |
|
Fixed assets |
10,860 |
10,477 |
|
Disposal of
fixed assets |
640 |
640 |
|
Construction in
progress |
726 |
726 |
|
Intangible
assets |
4,665 |
4,666 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other non-current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
92,161 |
97,251 |
|
|
============= |
============= |
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Short-term loans |
30,558 |
20,000 |
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Notes payable |
0 |
0 |
|
Accounts payable |
0 |
0 |
|
Welfares payable |
82 |
82 |
|
Taxes payable |
96 |
-40 |
|
Advances from
clients |
417 |
527 |
|
Other payable |
52,073 |
68,191 |
|
Other current
liabilities |
282 |
282 |
|
|
------------------ |
------------------ |
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Current
liabilities |
83,508 |
89,042 |
|
Non-current liabilities |
850 |
850 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
84,358 |
89,892 |
|
Equities |
7,803 |
7,359 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
92,161 |
97,251 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
29,570 |
|
Cost of sales |
26,688 |
|
Taxes and surcharges |
68 |
|
Sales expense |
610 |
|
Management expense |
1,270 |
|
Finance expense |
2,259 |
|
Non-operating
income |
1,133 |
|
Non-operating expense |
19 |
|
Profit before
tax |
-211 |
|
Less: profit tax |
40 |
|
-251 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.63 |
0.66 |
|
*Quick ratio |
0.57 |
0.53 |
|
*Liabilities
to assets |
0.92 |
0.92 |
|
*Net profit
margin (%) |
-- |
-0.85 |
|
*Return on
total assets (%) |
-- |
-0.26 |
|
*Inventory /
Revenue ×365 |
-- |
137 days |
|
*Accounts
receivable / Revenue ×365 |
-- |
19 days |
|
* Revenue /
Total assets |
-- |
0.30 |
|
* Cost of
sales / Revenue |
-- |
0.90 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC
appears average in its line.
l SC’s net profit
margin is fair in 2012.
l SC’s return on
total assets is fair in 2012.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears large.
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 a
fair level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial
conditions. The large amount of inventory & short-term loans may be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
UK Pound |
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
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.