MIRA
INFORM REPORT
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Report Date : |
22.04.2013 |
IDENTIFICATION DETAILS
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Name : |
CHINA JIANGSU INTERNATIONAL ECONOMIC AND TECHNICAL COOPERATION GROUP, LTD. |
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Registered Office : |
No. 5 Beijing West Road, Nanjing City Jiangsu Province 210005
Pr |
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Country : |
China |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
07.11. 1981 |
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Com. Reg. No.: |
320000000013210 |
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Legal Form : |
Sole State-Owned Enterprise |
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Line of Business : |
Subject engaged in contracting international and domestic projects, labor cooperation, import and export, real estate development and international trade. |
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No. of Employees : |
700 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 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.
Source
: CIA
Company name and address
CHINA JIANGSU INTERNATIONAL ECONOMIC AND TECHNICAL COOPERATION GROUP, LTD.
NO. 5 BEIJING WEST ROAD, NANJING CITY
JIANGSU PROVINCE 210005 PR CHINA
TEL: 86 (0) 25-83273990/83277609
FAX: 86 (0) 25-83310881/83304526
EXECUTIVE SUMMARY
Date of Registration : NOVEMBER 7, 1981
REGISTRATION NO. : 320000000013210
LEGAL FORM : SOLE STATE-OWNED
ENTERPRISE
REGISTERED CAPITAL : CNY 500,000,000
staff :
700
BUSINESS CATEGORY : CONSTRUCTION
REVENUE :
CNY 205,034,000 (JAN. 1, 2013 TO MAR. 31, 2013)
EQUITIES :
CNY 779,462,000 (AS OF MAR. 31, 2013)
WEBSITE : www.zjgj.com
E-MAIL :
cjietcc@jinteco.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
CNY 6.18 = 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
Not yet be determined
LEGAL STATUS & HISTORY
***Note: The (No 1 Hanzhongmen Street NAnjing
210029) was SC’s former one, while SC is operating in the heading address at
present.
SC was established
as a sole state-owned enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 320000000013210.
SC’s Organization Code Certificate No.:
13485002-7
SC’s Tax No.: 320102134850027
SC’s registered capital: CNY 500,000,000
SC’s paid-in capital: CNY 500,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2003-6-20 |
Legal Representative |
Zhang Guisheng |
Kong Xinning |
|
2008 |
Registration No. |
3200001104501 |
320000000013210 |
|
-- |
Registered Capital |
CNY 300,000,000 |
CNY 500,000,000 |
|
Company Name |
China Jiangsu International Economic Technical Cooperation Corp. |
China Jiangsu International Economic And Technical Cooperation Group,
Ltd. |
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|
Legal Form |
State-owned enterprise |
Sole State-Owned Enterprise |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Jiangsu Province People’s Government |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Kong Xinning |
|
General Manager |
Xue Lequn |
|
Deputy General Manager |
Guo Huadong |
|
Li Youchun |
|
|
Zhang Jun |
|
|
Gu Yongheng |
|
|
Zou Yunxiang |
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|
Gu Yuesheng |
|
|
Ding Kang |
RECENT DEVELOPMENT
SC is one of the Top 500 important enterprises in China, and it has got
the ISO9001 Quality Management System Certification and the ISO14001
Environmental Management System Certification.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Jiangsu Province People’s Government
100
MANAGEMENT
Kong Xinning ,
Legal Representative and Chairman
------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 58
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Xue Lequn ,
General Manager
---------------------------------------------------
Ø
Gender: M
Ø
Age:
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
BUSINESS OPERATION
SC’s registered
business scope includes contracting various internal and overseas projects; undertaking
external economic assistance projects; consultation, exploration, design and
supervision of various industrial and civil projects; development and
management of real estate; exporting equipment and materials need by contracted
projects; dispatching engineering labor, manufacture and service business;
incorporating non-trading enterprises abroad; domestic trade; restaurant
services; import and export; designing, constructing and consulting services of
environmental engineering; designing, manufacturing, and installing steel
structure and wire table projects, and supplying relative technical services;
manufacturing and selling electronic products and telecommunication equipment,
supplying relative services of technology and consultation; designing and
installing computer network engineering; selling and providing technological
services of computers and peripheral equipment; selling automobiles (including
cars); designing, installing and repairing air-conditioning and refrigerating
equipment.
SC is mainly engaged in contracting international and domestic projects,
labor cooperation, import and export, real estate development and international
trade.
SC’s contracted projects including: Shanghai Yangming Hill City, Nanjing
Hilton International Hotel, Singapore Red Hill City, etc.
SC’s products mainly include: chemical products, pesticides, garments
and medicines.
SC sources its merchandises 20% from the overseas market and 80% from
domestic market. SC sells 20% of its merchandises in domestic market, and 80%
to overseas market.
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.
Staff & Office:
--------------------------
SC is known
to have approx. 700 staff at present.
SC owns an area as
its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is known to have
following branches at present:
China
Jiangsu International Economic and Technical Cooperation Group, Ltd. Hengtai International
Trade Branch
China
Jiangsu International Economic and Technical Cooperation Group, Ltd. Light
Textile Import and Export Branch
China
Jiangsu International Economic and Technical Cooperation Group, Ltd. Overseas
Import and Export Branch
China
Jiangsu International Economic and Technical Cooperation Group, Ltd. Foreign
Trade Branch
China
Jiangsu International Economic and Technical Cooperation Group, Ltd. Changzhou
Construction Branch
China
Jiangsu International Economic and Technical Cooperation Group, Ltd. Shenyang
Branch
China
Jiangsu International Economic and Technical Cooperation Group, Ltd. Nanjing
Construction Branch
China
Jiangsu International Economic and Technical Cooperation Group, Ltd. Qingdao
Branch
Etc.
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:
Bank of China Jiangsu
Province Branch
AC#: 800100003908091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Mar. 31, 2013 |
|
324,078 |
336,187 |
|
|
Notes receivable |
13,235 |
16,542 |
|
Accounts
receivable |
16,664 |
15,600 |
|
Advances to
suppliers |
183,324 |
247,492 |
|
Other receivable |
846,487 |
742,861 |
|
Inventory |
81,846 |
35,586 |
|
Non-current
assets within one year |
0 |
0 |
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Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
1,465,634 |
1,394,268 |
|
Fixed assets |
63,774 |
63,761 |
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Construction in
progress |
2,570 |
5,096 |
|
Intangible
assets |
0 |
0 |
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Long-term
investment |
454,270 |
454,270 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
6,077 |
6,077 |
|
Other
non-current assets |
53,658 |
48,509 |
|
|
------------------ |
------------------ |
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Total assets |
2,045,983 |
1,971,981 |
|
|
============= |
============= |
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Short-term loans |
333,667 |
254,124 |
|
Notes payable |
35,459 |
63,809 |
|
Accounts payable |
110,044 |
65,944 |
|
Wages payable |
15,511 |
15,022 |
|
Tax payable |
12,290 |
10,229 |
|
Advances from
clients |
153,306 |
170,279 |
|
Other payable |
543,449 |
548,162 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,203,726 |
1,127,569 |
|
Non-current
liabilities |
64,950 |
64,950 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,268,676 |
1,192,519 |
|
Equities |
777,307 |
779,462 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
2,045,983 |
1,971,981 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
Jan.
1, 2013 to Mar. 31, 2013 |
|
Revenue |
205,034 |
|
Cost of sales |
198,755 |
|
Taxes and surcharges |
2,866 |
|
Sales expense |
652 |
|
Management expense |
1,305 |
|
Finance expense |
-587 |
|
Income from
investment |
0 |
|
Non-business
income |
271 |
|
Non-business expense |
0 |
|
Profit before
tax |
2,313 |
|
Less: profit tax |
0 |
|
2,313 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Mar. 31, 2013 |
|
*Current ratio |
1.22 |
1.24 |
|
*Quick ratio |
1.15 |
1.20 |
|
*Liabilities
to assets |
0.62 |
0.60 |
|
*Net profit
margin (%) |
-- |
1.13 |
|
*Return on
total assets (%) |
-- |
0.12 |
|
*Inventory /
Revenue ×90 |
-- |
16 days |
|
*Accounts
receivable/ Revenue ×90 |
-- |
7 days |
|
*
Revenue/Total assets |
-- |
0.10 |
|
* Cost of
sales / Revenue |
-- |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears 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 fairly high, 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’s short-term loan is in an average level.
l
SC’s revenue is in a fair 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: Stable.
CONCLUSIONS
SC is considered large-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
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.