MIRA INFORM REPORT
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Report Date : |
27.04.2013 |
IDENTIFICATION DETAILS
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Name : |
jiangsu
haiyang chemical fiber co., ltd. |
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Registered Office : |
No. 28 Haiyang Road, Hailing District, Taizhou, Jiangsu
Province, 225300 P.R. |
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Country : |
China |
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Financials (as on) : |
31.12.2008 |
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Date of Incorporation : |
05.11.1979 |
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Com. Reg. No.: |
321202000022589 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in producing and selling chemical fiber materials
and polyamide fabrics |
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No. of Employees : |
2,000 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
Unknown |
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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 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
jiangsu
haiyang chemical fiber co., ltd.
NO. 28 HAIYANG ROAD, HAILING DISTRICT, TAIZHOU,
JIANGSU PROVINCE, 225300 P.R. CHINA
TEL: 86 (0) 523-86559771/86550500
FAX: 86 (0) 523-86558655
EXECUTIVE SUMMARY
INCORPORATION DATE : november 5, 1979
REGISTRATION NO. : 321202000022589
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 2,000
REGISTERED CAPITAL : CNY 48,159,511
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 927,368,000 (AS OF DEC. 31, 2008)
EQUITIES :
CNY 212,188,000 (AS OF DEC. 31, 2008)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE (AS OF DEC. 31,
2008)
OPERATIONAL TREND :
steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.24=USD
Adopted
abbreviations:
ANS -
amount not stated
NS -
not stated
SC -
subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s
registered business scope includes manufacturing and selling organic chemical products,
chemical fiber raw materials (Caprolactam slice, thread, and wire), nylon cord
fabric, plastic product, warehousing service, management and commission of
import and export of all kinds of goods and technology.
SC is
mainly engaged in producing and selling chemical fiber materials and polyamide
fabrics.
Mr. Lu Xincai has been chairman and general manager of SC since
1999.
SC is
known to have approx. 2,000 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 Taizhou. Our
checks reveal that SC owns the premise, but SC’s accountant refused to release
the gross area of the premise.
http://www.pa6.com.cn/index.asp The website can
not be opened for some technical reasons.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
1982-04-07 |
Registered capital |
CNY 1,839,600 |
CNY 2,915,000 |
|
1988-01-21 |
Registered capital |
CNY 2,915,000 |
CNY 12,954,000 |
|
1988-05-03 |
Company name |
Taizhou Synthetic Fiber Factory (literal translation) |
Taizhou Cord Fabrics Factory (literal translation) |
|
1990-05-25 |
Legal representative |
Miu Hanzhong |
Cai Yuanyi |
|
Registered capital |
CNY 12,954,000 |
CNY 14,738,000 |
|
|
1992-03-20 |
Registered capital |
CNY 14,738,000 |
CNY 27,171,698 |
|
1992-07-29 |
Legal representative |
Cai Yuanyi |
Yang Jianhua |
|
1993-05-27 |
Company name |
Taizhou Cord Fabrics Factory (literal translation) |
Nanjing Chemical Industrial (Group) Corp. Taizhou Chemical
Fiber Limited (literal translation) |
|
1997-03-14 |
Company name |
Nanjing Chemical Industrial (Group) Corp. Taizhou Chemical
Fiber Limited (literal translation) |
Nanjing Chemical Industrial Group Taizhou Chemical Fiber
Limited (literal translation) |
|
1997-12-05 |
Legal representative |
Yang Jianhua |
Shen Jiaguang |
|
1999-03-29 |
Legal representative |
Shen Jiaguang |
Lu Xincai |
|
2006-07-20 |
Company name |
Nanjing Chemical Industrial Group Taizhou Chemical Fiber
Limited (literal translation) |
Jiangsu Haiyang Chemical Fiber
Co., Ltd. |
|
Registered capital |
CNY 27,171,698 |
CNY 48,159,511 |
|
|
2010-04-07 |
Shareholders |
Lu Xincai 2.80% Shen Jiaguang 2.80% Wang Sufeng 2.80% Xu Youlan 2.77% Zhang Keyin
2.80% Other Shareholders 86.03% |
Lu Xincai 6.19% Shen Jiaguang 4.96% Ji Shibiao 4.95% Zhang Zhigang 4.95% Chen Jianxin 4.94% Wang Sufeng
3.58% Xia Hua( 2.12% Cui Shunying 2.12% Zhang Ruijuan 2.11% Huanghua 2.10% Kong Linggen 2.10% Zhu
Huilin2.08% Other 36 individuals57.80% |
|
Unknown |
Registered number |
3212022102924 |
321202000022589 |
SC passed through ISO 9001 quality system certification and
ISO14001 environment protection system certification. The company won the title
of “Measurement and Guarantee Confirmation Enterprise”, “Provincial Quality
Honesty Enterprise”, “Product Except from Inspection”, “Jiangsu Water Saving
Enterprise”.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Lu Xincai
6.19
Shen Jiaguang
4.96
Ji Shibiao
4.95
Zhang Zhigang
4.95
Chen Jianxin
4.94
Wang Sufeng
3.58
Xia Hua
2.12
Cui Shunying
2.12
Zhang Ruijuan
2.11
Huang Hua
2.10
Kong Linggen
2.10
Zhu Huilin
2.08
Other 36 individuals 57.80
l Legal
representative, chairman and general manager:
Mr. Lu Xincai, ID# 320112520416161, born in 1952, with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 1999 to present Working in SC as legal representative,
chairman and general manager
l Directors:
Zhang Zhigang ID#
320112521105163
Ji Shibiao ID# 320112521111001
Wang Sufeng ID#
321020651106158
Shen Jiaguang ID#
320705640821101
Chen Jianxin ID# 320120650127151
Geng Zhengxian ID# 321020600414151
l Supervisors:
Zhang Heping ID#
321020195704210617
Miu Jinsong ID# 321020560725093
Zhu Huilin ID# 321020661024094
Jiang Baohua ID#
321020196001090633
Zhou Jianxun ID#
321020630921151
SC is mainly
engaged in producing and selling chemical fiber materials and polyamide
fabrics.
SC’s
products mainly include: nylon tire cord, nylon civilian-use slice,
high-strength nylon fiber, etc.
.
Brand:
Feichi
SC sources its materials 90% from domestic market and 10%
from the overseas market. SC sells 30% of its products to overseas market and 70% in domestic
market.
The buying terms of SC include Check, L/C, 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 Suppliers*
=============
Nanjing Disiman Co., Ltd.
*Major Customers*
==============
Cheng Shin
Rubber (Xiamen) Ind., Ltd.
SC is known to invest in Taizhou Haicheng Guaranty Co., Ltd.
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’s
suppliers declined to make any comments.
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 Taizhou Branch
AC#:
1115020109000044242
Relationship:
Normal
Balance
Sheet
Unit:
CNY’000
|
|
as
of Dec. 31, 2008 |
|
48,331 |
|
|
Inventory |
89,444 |
|
Notes receivable |
58,690 |
|
Accounts receivable |
57,195 |
|
Advances to supplies |
5,543 |
|
Other receivables |
40,283 |
|
Other current assets |
0 |
|
|
------------------ |
|
Current assets |
299,486 |
|
Held to maturity investments |
3,250 |
|
Fixed assets net value |
130,683 |
|
Projects under construction |
9,665 |
|
Long-term equity investments |
200 |
|
Intangible assets |
19,032 |
|
Long-term deferred expenses |
0 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
462,316 |
|
|
============= |
|
Short loans |
117,000 |
|
Notes payable |
11,250 |
|
Accounts payable |
90,538 |
|
Advances from customers |
5,010 |
|
Payroll Payable |
1,542 |
|
Taxes payable |
11,772 |
|
Dividends payable |
0 |
|
Other Accounts payable |
721 |
|
Other current liabilities |
0 |
|
|
----------------- |
|
Current liabilities |
237,833 |
|
Long term liabilities |
12,295 |
|
|
------------------ |
|
Total liabilities |
250,128 |
|
Shareholders equities |
212,188 |
|
|
------------------ |
|
Total liabilities & equities |
462,316 |
|
|
============= |
Income
Statement
Unit:
CNY’000
|
|
as
of Dec. 31, 2008 |
|
Turnover |
927,368 |
|
Cost of goods sold |
863,984 |
|
Taxes and additional of main
operation |
2,996 |
|
Other
operating Income |
47,136 |
|
Other operating expense |
42,219 |
|
Sales expense |
9,301 |
|
Management expense |
17,094 |
|
Finance expense |
11,517 |
|
Non-operating
income |
27,708 |
|
Non-operating expense |
1,182 |
|
Profit
before tax |
53,919 |
|
Less:
profit tax |
0 |
|
Net
profit |
53,919 |
Note: SC’s management declined to release the latest
financial information.
Important
Ratios
=============
|
|
as
of Dec. 31, 2008 |
|
*Current
ratio |
1.26
|
|
*Quick
ratio |
0.88
|
|
*Liabilities
to assets |
0.54
|
|
*Net
profit margin (%) |
5.81
|
|
*Return
on total assets (%) |
11.66
|
|
*Inventory/Turnover×365 |
36
days |
|
*Accounts
receivable/Turnover ×365 |
23
days |
|
*Turnover/Total
assets |
2.01
|
|
*
Cost of goods sold/Turnover |
0.93
|
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good
in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is good.
l
SC’s cost of goods sold appears fairly high,
compared with its turnover in both 2 years.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level.
l
The quick ratio of SC is maintained in
a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears
average.
l
SC’s short-term loan appears fairly
large.
l
SC’s turnover was in a fairly good
level, compared with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC appears average.
l
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with fairly stable
financial conditions. The large amount of short-term loan could be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
|
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.70.67 |
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.