MIRA
INFORM REPORT
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Report Date : |
12.12.2013 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU CHUNJIANG AGROCHEMICAL CO., LTD |
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Registered Office : |
No. 84, Panjiawan, Zhixi Town, Jintan, Jiangsu Province 213251 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
25.11.2004 |
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Com. Reg. No.: |
320482000020312 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling of agrochemical products including Triphenyltin hydroxide, Fentin Acetate, Lambda-cyhalothrin, Bifenthrin, Lambda-cyhalothric Acid. |
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No. of Employees : |
200 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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) |
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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.
|
Source : CIA |
Company name & address
JIANGSU CHUNJIANG AGROCHEMICAL CO., LTD.
NO. 84, PANJIAWAN,
ZHIXI TOWN, JINTAN, JIANGSU PROVINCE 213251 PR CHINA
TEL: 86 (0) 519-82444298 FAX:
86 (0) 519-82442866
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 25, 2004
REGISTRATION NO. : 320482000020312
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
200
REGISTERED CAPITAL : CNY 10,600,000
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER :
cny 181,140,000 (AS OF DEC. 31, 2012)
EQUITIES :
cny 21,010,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1452 =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
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 Nov. 25, 2004.
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 permit business items:
wholesaling pesticide, fungicide, herbicide, plant growth regulator (excluding
highly toxic pesticides, business premises without saving); general business
items: manufacturing three phenyl ethyl tin, cyhalothrin, bifenthrin, three
fluorine chlorine acid, 2-chrysanthemum methyl-3-phenyl methanol, amino
pyrazole; importing and exporting commodities and technologies. (excluding
commodities and technologies prohibited by the state)
SC is mainly engaged in manufacturing and
selling agrochemical products.
Mr. Zhang Heping is the legal representative, chairman and general
manager of SC at present.
SC is known to have approx. 200 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 Jintan. Our
checks reveal that SC owns the total premise about 20,000 square meters.
www.chunjiangchem.com/ The design is professional and the content is
well organized. At present the web site is in Chinese and English versions.
Email: zm@chunjiangchem.com
No significant events or changes were found during our checks
with the local Administration for Industry and Commerce.
See below for SC as executive party (defendant).
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Executed
Party |
Jiangsu Chunjiang Agrochemical Co., Ltd. |
|
Court |
Jintan City People's Court |
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Date of Case |
June 17, 2013 |
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Case
Number |
(2013) 00089 |
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Claim Amount |
RMB 1,260,349.6 |
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Case Status |
Completed |
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Executed
Party |
Jiangsu Chunjiang Agrochemical Co., Ltd. |
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Court |
Jintan City People's Court |
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Date of Case |
May 17, 2010 |
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Case
Number |
(2010) 00769 |
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Claim Amount |
RMB 97,755.68 |
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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
Zhang Heping 84.91
ID#320422196403180598
Zhang Min 15.09
ID# 320482198204287339
Legal
Representative, Chairman and General Manager:
Mr. Zhang Heping, ID#320422196403180598,
born in 1964. He is currently responsible for the
overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative, chairman and general manager.
Supervisor:
Zhang Min
ID# 320482198204287339
SC is mainly engaged in manufacturing and
selling agrochemical products.
SC’s products mainly include: Triphenyltin hydroxide, Fentin Acetate, Lambda-cyhalothrin, Bifenthrin, Lambda-cyhalothric Acid.
SC
sources its materials 90% from domestic market and 10% from overseas market,
mainly India. SC sells 70% of its products in domestic market and 30% to
overseas market, mainly America, Europe, India, etc.
The buying terms of SC include Check, T/T, L/C, and Credit
of 30-60 days. The payment terms of SC include T/T, L/C, Check and Credit of
30-60 days.
Note:
SC declined to release its major suppliers and clients.
SC is not known to have the subsidiary at present.
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.
China Construction Bank Jintan Zhixi Office
AC#：32001626444059668166
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
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as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Cash & bank |
33,740 |
51,630 |
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Notes receivable |
0 |
5,000 |
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Inventory |
24,150 |
20,130 |
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Accounts
receivable |
33,890 |
49,950 |
|
Advances to
suppliers |
0 |
0 |
|
Prepaid expenses |
200 |
160 |
|
Other
receivables |
25,710 |
16,420 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
117,690 |
143,290 |
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Long-term
investments |
0 |
0 |
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Fixed assets net
value |
12,270 |
13,160 |
|
Projects under
construction |
0 |
0 |
|
Intangible
assets |
1,160 |
1,140 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
131,120 |
157,590 |
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|
============= |
============= |
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Short loans |
86,950 |
91,230 |
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Notes payable |
19,400 |
42,500 |
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Accounts payable |
4,040 |
330 |
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Advances from
customers |
0 |
0 |
|
Accrued
payroll |
570 |
1,090 |
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Taxes payable |
-7,170 |
-12,030 |
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Other accounts
payable |
9,070 |
13,460 |
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Other
current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
112,860 |
136,580 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
112,860 |
136,580 |
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Shareholders
equities |
18,260 |
21,010 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
131,120 |
157,590 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2012 |
|
Turnover |
181,140 |
|
Cost of goods
sold |
155,690 |
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Taxes
and additional of main operation |
0 |
|
Income
from other operation |
1,580 |
|
Sales expense |
1,130 |
|
Management expense |
15,210 |
|
Finance expense |
6,720 |
|
Non-operating
income |
200 |
|
Non-operating expense |
240 |
|
Profit before
tax |
3,930 |
|
Less: profit tax |
990 |
|
Net profit |
2,940 |
Important Ratios
=============
|
|
as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
|
*Current ratio |
1.04 |
1.05 |
|
*Quick ratio |
0.83 |
0.90 |
|
*Liabilities
to assets |
0.86 |
0.87 |
|
*Net profit
margin (%) |
/ |
1.62 |
|
*Return on
total assets (%) |
/ |
1.87 |
|
*Inventory
/Turnover ×365 |
/ |
41 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
101 days |
|
*Turnover/Total
assets |
/ |
1.15 |
|
* Cost of
goods sold/Turnover |
/ |
0.86 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line
in 2012.
l
SC’s net profit margin is average in 2012.
l
SC’s return on total assets is average in 2012.
l
SC’s cost of goods sold is average in 2012,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC is maintained in a
fairly large level in both years.
l
SC’s short-term loan appears large in both years.
l
SC’s turnover is in an average level in 2012,
comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
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 loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.33 |
|
|
1 |
Rs.100.79 |
|
Euro |
1 |
Rs.84.37 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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 |
|
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.