MIRA
INFORM REPORT
|
Report Date : |
02.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
JIANGSU SINORGCHEM TECHNOLOGY CO., LTD. |
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Registered Office : |
No. 1 China Medical City Avenue, Taizhou City Jiangsu Province 225300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
14.05.2008 |
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Com. Reg. No.: |
321200000014478 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Selling Chemical Products |
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No. of Employees : |
388 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
CHINA |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
JIANGSU SINORGCHEM TECHNOLOGY CO., LTD.
NO. 1 CHINA MEDICAL CITY AVENUE, TAIZHOU CITY
JIANGSU PROVINCE 225300 PR CHINA
TEL: 86 (0) 523-86200330
FAX: 86 (0) 523-86200662
EXECUTIVE SUMMARY
Date of Registration : may 14, 2008
REGISTRATION NO. : 321200000014478
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL : CNY 585,000,000
staff :
388
BUSINESS CATEGORY : trading
Revenue :
CNY 2,521,217,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 1,479,267,000 (AS OF DEC. 31,
2012)
WEBSITE : www.sinorgchem.com
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE :
CNY 6.13 = 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
SC was established
as a Chinese-foreign equity joint venture enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 321200000014478 on may
14, 2008.
SC’s Organization Code Certificate No.:
67545808-7
SC’s registered capital: CNY 585,000,000
SC’s paid-in capital: CNY 585,000,000
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 |
|
HK Carlyle Sinorgchem Industrial Company
Limited |
40.00 |
|
Cheng Qianwen |
2.69 |
|
Du Zibin |
2.69 |
|
Feng Xiaogen |
2.69 |
|
Li Guoliang |
0.90 |
|
Mao Xiaohui |
1.79 |
|
Tang Zhimin |
0.75 |
|
Wang Nongyue |
7.68 |
|
Wang Hao |
39.02 |
|
Yu Ruibiao |
1.79 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Wang Hao |
|
Vice Chairman |
Luo Yi |
|
Directors |
ROBERT COXON |
|
Cai Zhengqi |
|
|
Wang Nongyue |
|
|
Du Zibin |
|
|
Liu Jing |
|
|
Supervisors |
JANINE JUNYUAN
FENG |
|
Liu Jing |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Carlyle Sinorgchem Industrial Company
Limited (Hong Kong) 40.00
Cheng Qianwen 2.69
Du Zibin 2.69
Feng Xiaogen 2.69
Li Guoliang 0.90
Mao Xiaohui 1.79
Tang Zhimin 0.75
Wang Nongyue 7.68
Wang Hao 39.02
Yu Ruibiao 1.79
Carlyle Sinorgchem Industrial Company Limited (Hong
Kong)
------------------------------------------------------------
Date of Registration :
January 3, 2008
Registration No. :
1200436
Legal Form : Private
Status : Live
MANAGEMENT
Wang Hao , Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 35
Ø
ID# 220104197810231315
Ø Qualification:
University
Ø Working experience
(s):
From 2008 to present, working in SC as legal
representative, chairman and general manager
Luo Yi, Vice Chairman
---------------------------------------
Ø
Gender: M
Ø
Certificate No. HA9060386
Ø Working experience
(s):
At present, working in SC as vice chairman
Directors:
--------------
ROBERT COXON Certificate
No. 085151307
Cai Zhengqi Certificate
No. HA9086360
Wang Nongyue ID#
120113195809210414
Du Zibin ID#
330106196207292432
Liu Jing ID#
372928197105165825
Supervisors:
==========
JANINE JUNYUAN FENG Certificate No. 112510072
Liu Jing ID#
372928197105165825
BUSINESS OPERATION
SC’s registered
business scope includes technology development, technology transfer, technical advisory
and technical services of rubber additives, chemical compound medicine, selling
chemical raw materials, chemical products, chemical equipment and parts,
technology import and export.
SC is mainly
engaged in selling chemical products.
SC’s products
mainly include:
Antioxidant
6PPD
Antioxidant
IPPD
Antioxidant
TMQ
Intermediate
4-ADPA
Antioxidant
7PPD
Antioxidant
8PPD
Antioxidant
OPPD
Antioxidant
H-TMQ
Antioxidant
S-TMQ
SC sources its materials 100% from domestic
market, mainly Shandong. SC sells 10% of its products in domestic market, and
90% to overseas market, mainly Southeast Asian market.
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.
*Major Supplier:
============
Shandong Sinorgchem Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 388 staff at
present.
SC rents an area
as its operating office of approx. 1,000 sq. meters at the heading address.
RELATED COMPANY
Subsidiaries & Branch:
-----------------------------
u
Shandong Sinorgchem International Chemical Industry Co., Ltd.
u
Sinorgchem Co., Tai’An
u
Anhui Sinorgchem Technology Co., Ltd
u
Lanxi Qiantang Synthetic New Materials Co., Ltd.
u
Shiyan Kuipeng Chemical Industry Co., Ltd.
u
Sinorgchem Europe B.V.
u
ENVIRCHEM, INC.
u
Jiangsu Sinorgchem Technology Co., Ltd. Shanghai Shengbo Chemical Branch
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’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.
BANKING
Basic Bank:
China
Construction Bank
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
553,751 |
820,442 |
|
|
Notes receivable |
161,198 |
70,861 |
|
Dividend receivable |
69,000 |
319,000 |
|
Accounts
receivable |
432,706 |
490,968 |
|
Advances to
suppliers |
158,952 |
112,449 |
|
Other receivable |
24,091 |
195,017 |
|
Inventory |
27,833 |
39,837 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
26,025 |
9,204 |
|
|
------------------ |
------------------ |
|
Current assets |
1,453,556 |
2,057,778 |
|
Fixed assets |
3,954 |
2,808 |
|
Construction in
progress |
1,942 |
2,780 |
|
Intangible
assets |
9,559 |
9,006 |
|
Long-term
investments |
304,126 |
304,126 |
|
Deferred income
tax assets |
7,429 |
10,690 |
|
Long-term
deferred expenses |
2,594 |
1,404 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
1,783,160 |
2,388,592 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
90,000 |
150,000 |
|
Accounts payable |
190,801 |
287,572 |
|
Payroll payable |
20,591 |
8,786 |
|
Welfares payable |
6,640 |
6,579 |
|
Dividends
payable |
421,728 |
252,485 |
|
Taxes payable |
-61,136 |
-47,265 |
|
Advances from
clients |
11,410 |
6,292 |
|
Other payable |
32,349 |
244,876 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
712,383 |
909,325 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
712,383 |
909,325 |
|
Equities |
1,070,777 |
1,479,267 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,783,160 |
2,388,592 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
2,521,217 |
|
Cost of sales |
2,131,703 |
|
Tax and associate charge |
3,514 |
|
Sales expense |
112,713 |
|
Management expense |
93,775 |
|
Finance expense |
-9,454 |
|
Investment
income |
250,000 |
|
Non-operating
income |
22,581 |
|
Non-operating expense |
227 |
|
Profit before
tax |
461,320 |
|
Less: profit tax |
52,830 |
|
408,490 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
2.04 |
2.26 |
|
*Quick ratio |
2.00 |
2.22 |
|
*Liabilities
to assets |
0.40 |
0.38 |
|
*Net profit
margin (%) |
-- |
16.20 |
|
*Return on
total assets (%) |
-- |
17.10 |
|
*Inventory /
Revenue ×365 |
-- |
6 days |
|
*Accounts receivable
/ Revenue ×365 |
-- |
72 days |
|
*Revenue /
Total assets |
-- |
1.06 |
|
*Cost of sales
/ Revenue |
-- |
0.85 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue 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 fairly good.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good 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 appears average.
l
SC has no short-term loan in both years.
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 low.
l
The risk for SC to go bankrupt is low.
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.60.74 |
|
|
1 |
Rs.92.05 |
|
Euro |
1 |
Rs.80.60 |
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.