MIRA INFORM REPORT
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Report Date : |
27.08.2013 |
IDENTIFICATION DETAILS
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Name : |
ZOUPING JUJIA CHOLINE INDUSTRIAL CO.,
LTD. |
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Registered Office : |
Handian Industrial Zone, Zouping County, Binzhou City, Shandong Province, 256209 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
24.07.2009 |
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Com. Reg. No.: |
371626200005666 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturer and seller of choline chloride. |
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No. of Employees : |
80 |
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 : |
No Complaints |
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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 – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
ZOUPING JUJIA
CHOLINE INDUSTRIAL CO., LTD.
HANDIAN INDUSTRIAL ZONE, ZOUPING COUNTY,
BINZHOU CITY,
SHANDONG PROVINCE, 256209 PR CHINA
TEL: 86 (0) 543-4867207/4866326/4287663 FAX: 86 (0) 543-4287663
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 24, 2009
REGISTRATION NO. : 371626200005666
REGISTERED LEGAL FORM : LIMITED
LIABILITIES COMPANY
CHIEF EXECUTIVE : MR. HAN BO (CHAIRMAN)
STAFF STRENGTH : 80
REGISTERED CAPITAL :
CNY 20,000,000
BUSINESS LINE : MANUFACTURING AND
SELLING
TURNOVER : CNY 256,270,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 21,350,000 (AS OF DEC. 31,
2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1214 = USD 1 AS OF 2013-8-26
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 co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business license)
on Jul. 24, 2009.
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 feed additive mechanical equipment and choline chloride (validity
period as of 25th May, 2014); selling betaine and calcium
hydrophosphate; importing raw materials and exporting its products (with
permits if needed).
SC is
mainly engaged in manufacturing and selling choline chloride.
Mr.
Han Bo has been legal representative, chairman and general manager of SC since
Dec. of 2011.
SC is known to have approx. 80 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
Zouping County. Our checks reveal that SC rents the total premise, but the
gross area of the premise is unspecified.
http://www.jujiagroup.com/
The design
is professional and the content is well organized. At present it is in both
Chinese and English versions.
E-mail: jujia@jujiagroup.com
Changes of its registered
information:
|
Date of change |
Item |
Before the
change |
After the change |
|
2011-12 |
Legal representative |
Gong Peixing |
Present one |
|
Shareholders and shareholding |
Gong Peixing 40% Song Yunhong 20% Zhang Jinghua 20% Wang Ke 10% Meng Na 10% |
Present ones |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Han Bo 40
Wang Bo 30
Liu Kai 30
Legal
representative, chairman
and general manager:
Mr. Han Bo , born in 1974. He is currently responsible for the overall management of SC.
Working
Experience(s):
From Dec. of 2011 to present Working in SC as legal representative, chairman and general manager.
Also working in Shandong Jujia Biotechnology Co., Ltd. as legal representative.
SC is
mainly engaged in manufacturing and selling choline chloride.
SC’s products mainly include: choline chloride.
SC sources its materials 100% from domestic market. SC sells
60% of its products to overseas market
and 40% in domestic market.
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.
Note:
SC declined to release its major suppliers and clients.
Shandong Jujia Choline Co., Ltd.
Incorporation Date: Jan. 6, 2005
Registration No.: 371600400001803
Shandong Jujia Biotechnology Co., Ltd.
Registration No.: 371626200003929
Legal representative: Han Bo
Etc.
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 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.
Industrial and Commercial Bank of China Zouping Sub-branch
AC#：1613002709200187873
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2012 |
|
Cash
& bank |
380 |
|
Inventory |
36,880 |
|
Accounts
receivable |
41,020 |
|
Advances to
suppliers |
90 |
|
Bills
receivable |
440 |
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Other
receivables |
15,820 |
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Prepaid expenses |
760 |
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Other
current assets |
0 |
|
|
------------------ |
|
Current
assets |
95,390 |
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Fixed
assets net value |
13,250 |
|
Projects
under construction |
6,590 |
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Intangible assets |
1,840 |
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Other
assets |
0 |
|
|
------------------ |
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Total
assets |
117,070 |
|
|
============= |
|
Short
loans |
0 |
|
Accounts
payable |
36,870 |
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Advances from
clients |
3,850 |
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Accrued
payroll |
240 |
|
Tax
payable |
-1,650 |
|
Other
payable |
56,410 |
|
Other
current liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
95,720 |
|
Long
term liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
95,720 |
|
Equities |
21,350 |
|
|
------------------ |
|
Total
liabilities & equities |
117,070 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
|
Turnover |
256,270 |
|
Cost of goods
sold |
242,250 |
|
Sales expense |
10,340 |
|
Management expense |
2,930 |
|
Finance expense |
830 |
|
Non-operating
income |
0 |
|
Non-operating expense |
20 |
|
Profit before
tax |
-100 |
|
Less: profit tax |
90 |
|
Profits |
-190 |
Important Ratios
=============
|
|
as
of Dec. 31, 2012 |
|
*Current ratio |
1.00 |
|
*Quick ratio |
0.61 |
|
*Liabilities
to assets |
0.82 |
|
*Net profit
margin (%) |
-0.07 |
|
*Return on
total assets (%) |
-0.16 |
|
*Inventory
/Turnover ×365 |
53 days |
|
*Accounts
receivable/Turnover ×365 |
58 days |
|
*Turnover/Total
assets |
2.19 |
|
* Cost of
goods sold/Turnover |
0.95 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good
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 goods sold is high,
comparing with its turnover.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level.
l
SC’s quick ratio is maintained in a
fair level.
l
The inventory
of SC appears fairly large.
l
The accounts receivable of SC appears
fairly large.
l SC has
no short-term loan in 2012.
l
SC’s turnover is in an average 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
average.
Overall
financial condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of inventory
and accounts receivable could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.23 |
|
UK Pound |
1 |
Rs.100.01 |
|
Euro |
1 |
Rs.85.93 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.