MIRA
INFORM REPORT
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Report Date : |
10.12.2013 |
IDENTIFICATION DETAILS
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Name : |
JIANGYIN HUAHONG CHEMICAL FIBER CO., LTD. |
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Formerly Known
as: |
Jiangyin Huahong
Chemical Fiber Factory |
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Registered Office : |
Huahong Industry Park, Zhouzhuang Town, Jiangyin, Jiangsu Province
214423 Pr |
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Country : |
China |
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Date of Incorporation : |
17.01.2001 |
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Com. Reg. No.: |
320281000094956 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing, processing and selling
of PET chips and PET staple fiber. |
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No. of Employees : |
620 |
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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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.
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Source : CIA |
Company name & address
JIANGYIN HUAHONG
CHEMICAL FIBER CO., LTD.
HUAHONG INDUSTRY PARK, ZHOUZHUANG TOWN, JIANGYIN
JIANGSU PROVINCE 214423 PR CHINA
TEL: 86 (0) 510-86225818 / 86903563
FAX: 86 (0) 510-86225187
EXECUTIVE SUMMARY
Date of Registration : JANUARY 17, 2001
REGISTRATION NO. : 320281000094956
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
HU SHIQING (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 50,000,000
staff : 620
BUSINESS CATEGORY :
MANUFACTURING & processing & trading
REVENUE :
N/A (AS OF DEC. 31, 2012)
EQUITIES :
N/A (AS OF DEC. 31, 2012)
WEBSITE : www.jyhuahong.com
E-MAIL :
sales@jyhuahong.com
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : N/A
OPERATIONAL TREND :
ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.10 = 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
LEGAL
STATUS & HISTORY
SC was
established as a collective-owned enterprise of PRC on January 17, 2001.
However, SC changed to present legal form, and was registered as a limited
liabilities company of PRC with State Administration for Industry & Commerce
(SAIC) under registration No.: 320281000094956 on April 11, 2003.
SC’s Organization Code Certificate
No.: 72519578-1
SC’s Tax No.: 320281725195781
SC’s registered capital: cny 50,000,000
SC’s paid-in capital: cny 50,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After the change |
|
2003-04-11 |
Company Name |
Jiangyin Huahong
Chemical Fiber Factory |
Jiangyin Huahong
Chemical Fiber Co., Ltd. |
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Registered Capital |
CNY 500,000 |
CNY 50,000,000 |
|
|
Legal Representative |
Bian Manxing |
Hu Shiqing |
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Shareholder (s) (% of
Shareholding) |
Bian Huifang 5% Bian Manxing 24% Huang Yuxiang 10% Zhou Lixin 10% Village Committee of Huahong Village
Zhouzhuang Town Jiangyin 51% |
Bian Manxing 20% Jiangsu Huahong Industrial
Group Co., Ltd. 60% Yangzhou Huitong Polyester Technology Co.,
Ltd. 20% |
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|
Legal Form |
Collective-owned enterprise |
Limited
Liabilities Company |
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2007-03-15 |
Shareholder (s) (% of
Shareholding) |
Bian Manxing 20% Jiangsu Huahong Industrial
Group Co., Ltd. 60% Yangzhou Huitong Polyester Technology Co.,
Ltd. 20% |
Bian Manxing 20% Jiangsu Huahong Industrial
Group Co., Ltd. 80% |
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-- |
Registration No. |
3202812121324 |
320281000094956 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Jiangsu Huahong Industrial
Group Co., Ltd. |
80 |
|
Bian Manxing |
20 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Hu
Shiqing |
|
Supervisor |
Hu Dongming |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name
% of Shareholding
Jiangsu Huahong Industrial Group
Co., Ltd. 80
Bian Manxing 20
Jiangsu
Huahong Industrial Group Co., Ltd.
--------------------------------------------------------------
Registration No.: 320281000078173
Date of Registration: July 26, 1989
Legal Form: Limited Liabilities Company
Registered Capital: CNY 101,880,000
Legal Representative: Hu Shiyong
Tel: 86 (0) 510-86225880
Fax: 86 (0) 510-86222561
E-mail: hh@cn-huahong.com
Bian
Manxing
---------------------------------
Ø
Gender: M
Ø
ID# 320219196408123534
Ø
Age: 49
Ø
Qualification:
University
MANAGEMENT
Hu
Shiqing, Legal
Representative, Chairman, and General Manager
----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID#320219195709153513
Ø
Age: 56
Ø
Qualification:
University
Ø
Working
experience (s):
From 1986 to 2003, worked in Huahong Group as vice general manager
From 2003 to present, working in SC as legal representative, chairman and general manager
Also working in Jiangyin Hongkai Chemical Fiber Co., Ltd. and Jiangyin Huakai Polyester Co., Ltd. as legal representative
Hu Dongming, Supervisor
-------------------------------------- ------
Ø
Gender: M
Ø
ID#320219197911113530
Ø
Age: 34
Ø
Qualification:
University
BUSINESS
OPERATION
SC’s registered business scope includes
manufacturing and processing differential and functional PET staple fiber;
exporting its products; importing machines, components and raw materials,
excluding the items prohibited by the state.
SC is
mainly engaged in manufacturing, processing and selling PET chips and PET
staple fiber.
SC’s
products mainly include: PET chips and PET staple fiber.
SC sources its materials 80%
from domestic market, and 20% from overseas market. SC sells 65% of its
products in domestic market, and 35% to overseas market, mainly Southeast Asia
and Europe.
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.
*Major Customer:
=============
Giotex
Sa De Cv
Staff & Office:
-------------------
SC is
known to have approx. 620 staff at present.
SC
rents an area as its operating office and factory of approx. 130,000 sq. meters
at the heading address.
RELATED
COMPANY
u
Jiangsu Huahong Science and Technology Co., Ltd.
Jiangsu
Huahong Technology Stock Co., Ltd. is the key branch enterprise of Jiangsu
Huahong Industrial Group. It is a reputable enterprise in the industry of
recycling resource process equipment and a specialized manufacturer of large,
medium and small sized recycling resource process equipment.
Address:
Huahong Industrial Park, Zhouzhuang town, Jiangyin city, Jiangsu province, P.
R. China
Tel:
+86 (0) 510 8062 9680
Fax:
+86 (0) 510 8062 9681
Web:
www.hhyyjx.com
Email:
info@asiabaler.com
u
Jiangyin Huahong Synthetic Leather Material Factory Co., Ltd.
u
Jiangyin Huarui Plastic Building Material Co., Ltd.
u
Jiangyin New Huahong Copper Industry Co., Ltd.
u
Jiangyin Huahong Auto Ornaments Co., Ltd.
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
Jiangyin Rural Commercial Bank Zhouzhuang Sub-branch
AC#:
10110010083
Industrial and Commercial Bank of China Jiangyin
Sub-branch
AC#: 75-900-2341
FINANCIALS
SC’s financials are not filed in local SAIC, and SC also refused to
release the details.
CONCLUSIONS
SC is considered medium-sized in its line with 12 years business
history.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.79 |
|
UK Pound |
1 |
Rs.100.01 |
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Euro |
1 |
Rs.83.82 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.