MIRA
INFORM REPORT
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Report Date : |
06.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
JINJIANG JINFU CHEMICAL FIBER AND POLYMER
CO., LTD. |
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Registered Office : |
Jinjiang Industrial Zone, Yinglin Town, Jinjiang, Fujian Province,
362256 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
18.01.2002 |
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Com. Reg. No.: |
350500400034530 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
producing and selling of chemical fiber and knitted fabric |
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No. of Employees : |
1,000 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
TATUS |
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 but Correct |
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Litigation : |
--- |
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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
China |
A2 |
A2 |
|
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 & address
JINJIANG JINFU CHEMICAL FIBER AND POLYMER CO., LTD.
JINJIANG INDUSTRIAL ZONE, YINGLIN TOWN, JINJIANG,
FUJIAN PROVINCE, 362256 PR CHINA
TEL: 86 (0) 595-85416999 /
85416666 FAX: 86 (0) 595-85416555
/ 85416104
EXECUTIVE SUMMARY
INCORPORATION DATE :
JAN. 18, 2002
REGISTRATION NO. :
350500400034530
REGISTERED LEGAL FORM : WHOLLY
FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. HONG TIANPAI (CHAIRMAN)
STAFF STRENGTH :
1,000
REGISTERED CAPITAL : USD 58,880,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 1,405,190,000 (AS OF DEC.
31, 2012)
EQUITIES :
CNY 281,330,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.093 = USD 1
Adopted
abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
Note: SC is also
known as Jinjiang Jinfu Chemical Fiber Polymerization Co., Ltd.
SC was registered as
a wholly foreign-owned enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Jan. 18, 2002.
Company Status:
Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered business scope includes producing differential chemical
fiber, clothing, composite superfine fiber, chemical fiber cloth and fine
pre-processing chemical fiber (excluding dyeing and national restrictions
varieties), wholesaling special industrial chips, chemical products (excluding
precursor, dangerous chemicals), clothing and textiles. (with permit if needed)
SC is mainly
engaged in producing and selling chemical fiber.
Mr. Hong
Tianpai has been legal representative
and chairman of SC since 2002.
SC is known to have approx. 1,000 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 Jinjiang. Our checks
reveal that SC owns the total premise about 180,000 square meters.
http://www.jxccf.cn/ The website
belongs to Fujian Jin Xing Fiber, and it includes the information on SC and its
related companies. The design is professional and the content is well organized.
At present it is both in Chinese and English versions.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2006-08-24 |
Registered capital |
USD 29,800,000 |
USD 35,000,000 |
|
Unspecified |
Registered no. |
007380 |
350500400034530 |
|
2010 |
Registered capital |
USD 35,000,000 |
The present amount |
|
Shareholder |
Shon Tai Industrial Company Limited (Hong Kong)
100% |
The present one |
See below for SC as executive party (defendant).
|
Executed Party |
Jinjiang Jinfu Chemical Fiber And Polymer Co., Ltd. |
|
Court |
Jinjiang City People's Court |
|
Date
of Case |
Dec. 31, 2010 |
|
Case Number |
(2007) 00055 |
|
Claim
Amount |
RMB 2,000,000 |
|
Case
Status |
Completed |
|
Executed Party |
Jinjiang Jinfu Chemical Fiber And Polymer Co., Ltd. |
|
Court |
Jinjiang City People's Court |
|
Date
of Case |
Dec. 31, 2010 |
|
Case Number |
(2007) 00056 |
|
Claim
Amount |
RMB 1,900,000 |
|
Case
Status |
Completed |
|
Executed Party |
Jinjiang Jinfu Chemical Fiber And Polymer Co., Ltd. |
|
Court |
Jinjiang City People's Court |
|
Date
of Case |
Dec. 30, 2009 |
|
Case Number |
(2008) 04827 |
|
Claim
Amount |
RMB 309,623 |
|
Case
Status |
Completed |
|
Executed Party |
Jinjiang Jinfu Chemical Fiber And Polymer Co., Ltd. |
|
Court |
Quanzhou City Intermediate People's Court |
|
Date
of Case |
Sep. 25, 2007 |
|
Case Number |
(2007) 00328 |
|
Claim
Amount |
RMB 1,100,000 |
|
Case
Status |
Completed |
|
Executed Party |
Jinjiang Jinfu Chemical Fiber And Polymer Co., Ltd. |
|
Court |
Quanzhou City Intermediate People's Court |
|
Date
of Case |
Dec. 22, 2006 |
|
Case Number |
(2007) 00016 |
|
Claim
Amount |
RMB 5,000,000 |
|
Case
Status |
Completed |
|
Executed Party |
Jinjiang Jinfu Chemical Fiber And Polymer Co., Ltd. |
|
Court |
Jinjiang City People's Court |
|
Date
of Case |
Dec. 14, 2006 |
|
Case Number |
(2007) 00053 |
|
Claim
Amount |
RMB 2,300,000 |
|
Case
Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Well China International Limited (Hong Kong) 100
Registration No.: 1049780
Company Status: Private
Active Status: Live
Legal
representative and chairman:
Mr. Hong Tianpai, # 141961598, with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as chairman and legal representative
General manager:
Mr. Liu Hongchun , in his 40’s, he is
currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager
SC is mainly
engaged in producing and selling chemical fiber.
SC’s products mainly include: chemical fiber and knitted fabric.
SC sources its materials 80% from domestic
market, and 20% from overseas market, mainly Taiwan. SC sells 80% of its
products in domestic market, and 20% to overseas market, mainly Hungary,
Southeast Asia, etc.
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.
Note:
SC’s management declined to release its major clients and suppliers.
Related company: (website sources)
Jin Xing (Fujian) Chemical Fiber & Textiles Industrial Co., Ltd.
============================================
Legal rep.: Ke Wengui
Web: http://www.jxccf.cn
Tel: 86-595-85416666
Fax: 86-595-85416555
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 records 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.
China
Construction Bank Jinjiang Sub-Branch Yinglin Office
AC#：35001656241050000061
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Cash & bank |
394,790 |
389,120 |
|
Inventory |
248,130 |
235,000 |
|
Accounts
receivable |
312,290 |
284,960 |
|
Advances to
suppliers |
303,240 |
332,220 |
|
Prepaid expenses |
/ |
38,020 |
|
Other accounts
receivable |
240 |
340 |
|
Other current
assets |
37,760 |
0 |
|
|
----------------- |
----------------- |
|
Current assets |
1,296,450 |
1,279,660 |
|
Fixed assets net
value |
287,020 |
240,230 |
|
Project under
construction |
84,590 |
70,980 |
|
Long term
investment |
56,290 |
58,790 |
|
Intangible and
other assets |
16,140 |
15,790 |
|
|
------------------ |
------------------ |
|
Total assets |
1,740,490 |
1,665,450 |
|
|
============= |
============= |
|
Short loans |
362,470 |
485,430 |
|
Notes payable |
205,530 |
346,570 |
|
Accounts payable
|
734,080 |
393,200 |
|
Advances from
clients |
31,310 |
93,560 |
|
Employee pay
payable |
1,060 |
3,430 |
|
Taxes payable |
-60 |
-40 |
|
Accrued expenses |
0 |
6,550 |
|
Other accounts
payable |
-17,570 |
11,740 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,316,820 |
1,340,440 |
|
Long-term
liabilities |
69,520 |
43,680 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,386,340 |
1,384,120 |
|
Equities |
354,150 |
281,330 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,740,490 |
1,665,450 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2011 |
As of Dec. 31, 2012 |
|
Turnover |
1,477,900 |
1,405,190 |
|
Cost of goods sold |
1,383,650 |
1,364,550 |
|
Taxes and
additional of main operations |
700 |
730 |
|
Other business
profit |
-7,090 |
9,080 |
|
Sales expense |
8,340 |
12,140 |
|
Management expense |
57,080 |
63,270 |
|
Finance expense |
52,080 |
53,330 |
|
Investment
income |
3,380 |
2,500 |
|
Subsidy Income |
630 |
1,680 |
|
Non-operating
income |
790 |
80 |
|
Non-operating expense |
0 |
10 |
|
Income
Adjustment |
-12,560 |
180 |
|
Profit before
tax |
-38,800 |
-75,320 |
|
700 |
0 |
|
|
Profits |
-39,500 |
-75,320 |
Important Ratios
=============
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
*Current ratio |
0.98 |
0.95 |
|
*Quick ratio |
0.80 |
0.78 |
|
*Liabilities
to assets |
0.80 |
0.83 |
|
*Net profit
margin (%) |
-2.67 |
-5.36 |
|
*Return on
total assets (%) |
-2.27 |
-4.52 |
|
*Inventory /Turnover
×365 |
62 days |
62 days |
|
*Accounts
receivable/Turnover ×365 |
78 days |
75 days |
|
*Turnover/Total
assets |
0.85 |
0.84 |
|
* Cost of
goods sold/Turnover |
0.94 |
0.97 |
PROFITABILITY:
FAIR
l
The turnover of SC appears good in its line in both
years, but it declined in 2012.
l
SC’s net profit margin is fair in both years.
l
SC’s return on total assets is fair in both years.
l
SC’s cost of goods sold is fairly high in 2011 but
high in 2012, comparing with its turnover.
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 normal level in
2011 but fair in 2012.
l
The inventory of SC is maintained in an average
level in both years.
l
The accounts receivable of SC is maintained in an
average level in both years.
l
SC’s short-term loan appears large in 2011 and
2012.
l
SC’s turnover is in a fair level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high in both years.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered large-sized in its line with fair financial conditions.
The large amount of short loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.69 |
|
UK Pound |
1 |
Rs.101.08 |
|
Euro |
1 |
Rs.84.07 |
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.