MIRA
INFORM REPORT
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Report Date : |
14.12.2013 |
IDENTIFICATION DETAILS
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Name : |
NORCHEM JIANGSU CORPORATION |
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Registered Office : |
Room 703, Bldg. B, Wanda Plaza, No. 106, Middle Jiangdong Road, Jianye
District, Nanjing, Jiangsu Province, 210017 PR |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
09.06.2009 |
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Com. Reg. No.: |
320000000080374 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in exporting pesticide intermediates. products
mainly include: herbicides, fungicides, insecticides, planter growth
regulators, pesticide intermediates |
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No. of Employees : |
21 |
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
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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.
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Source
: CIA |
Company name & address
NORCHEM JIANGSU CORPORATION
ROOM 703, BLDG. B, WANDA PLAZA, NO. 106, MIDDLE JIANGDONG ROAD,
JIANYE DISTRICT, NANJING, JIANGSU PROVINCE, 210017 PR CHINA
TEL: 86
(0) 25-58055134
FAX: 86 (0) 25-58055142
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUNE 9, 2009
REGISTRATION NO. :
320000000080374
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. ZHU QINSHENG (CHAIRMAN)
STAFF STRENGTH : 21
REGISTERED CAPITAL :
CNY 10,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 213,920,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 12,410,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.07=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 Ren Min Bi
Note: the was SC’s former one, while SC is currently operating at the
heading address.
SC was registered as a limited liabilities
co. at provincial Administration for Industry & Commerce (AIC-The
official body of issuing and renewing business license) on June 9, 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 permitted
operating items: selling dangerous chemical products. General operating items:
selling chemical products, chemical raw material and products, importing and
exporting goods and technology, domestic trade.
SC is mainly engaged in exporting pesticide intermediates.
Mr. Zhu Qinsheng has been legal representative and chairman of SC since
2009.
SC is known to have approx. 21 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Nanjing. The detailed
information of the premise is unspecified.
http://www.norchem.com.cn
The design is professional and the content is well organized. At present it is only
in English version.
Email: info@norchem.com.cn
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of shareholdings
High Hope Int’l Group Jiangsu Native Produce Imp. & Exp. Corp. Ltd. 25
Tong Xiao 2.5
Xu Hui 24.5
Yang Meifang 24
Zhu Hong 24
High Hope Int’l Group Jiangsu Native Produce Imp. & Exp. Corp. Ltd.
Incorporation Date : Dec. 21, 1992
Registration No. : 320000000004670
Registered Legal Form : Shares
Limited Company
Chief Executive : Mr. Li Jinliang (Chairman)
Registered Capital : CNY 270,000,000
Add: 5-9/F,
High Hope Mansion, No. 91 Baixia Road, Nanjing, Jiangsu Province, 210001 PR
China
Tel: 86
(0) 25-84691940
Fax: 86
(0) 25-84691984
Legal Representative and Chairman:
Mr. Zhu Qinsheng, born in 1965, he is currently responsible for the
overall management of SC.
Working
Experience(s):
From 2009 to present
Working in SC as legal representative and chairman
Also working in Jiangsu Juhe Industrial Co., Ltd. and Nanjing Huajin
Biological Products Co., Ltd. as legal representative, and in High Hope Int’l
Group Jiangsu Native Produce Imp. & Exp. Corp. Ltd. as general manager
General Manager:
Mr. Xu Hui, ID# 32068319791004XXXX, born in 1979, he is currently
responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC
as general manager
Supervisor:
Tong Xiao
Directors:
Zhang Xiaojuan
Jin Haoyang
SC is mainly engaged in exporting pesticide intermediates.
SC’s products mainly include: herbicides, fungicides, insecticides,
planter growth regulators, pesticide intermediates
SC sources its materials 100% from domestic market. SC sells 100% of its
products to overseas market, mainly Brazil and India.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, L/C, T/T, and Credit of 30-60 days.
Note: SC declined
to release its major suppliers and clients.
Jiangsu Juhe Industrial Co., Ltd.
Legal representative: Zhu Qinsheng
Nanjing Huajin Biological Products Co., Ltd.
Legal representative: Zhu Qinsheng
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.
Shanghai Pudong Development Bank Nanjing Branch Gulou Sub-Branch
AC#: 93030158000009155
Relationship: Normal
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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Cash & bank |
7,940 |
14,070 |
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Inventory |
6,810 |
10,900 |
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Accounts receivable |
23,850 |
48,300 |
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Advances to suppliers |
4,620 |
2,040 |
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Other accounts receivable |
10 |
10 |
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Export drawback receivable |
5,570 |
4,660 |
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Other current assets |
20 |
0 |
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------------------ |
------------------ |
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Current assets |
48,820 |
79,980 |
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Fixed assets net value |
280 |
370 |
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Project under construction |
0 |
0 |
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Long term investment |
0 |
0 |
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Intangible and other assets |
0 |
0 |
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------------------ |
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Total assets |
49,100 |
80,350 |
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============= |
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Short loans |
12,940 |
19,200 |
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Accounts payable |
25,450 |
34,750 |
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Advances from clients |
1,330 |
4,670 |
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Taxes payable |
-920 |
-1,060 |
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Other accounts payable |
0 |
10,030 |
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Other current liabilities |
160 |
350 |
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------------------ |
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Current liabilities |
38,960 |
67,940 |
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Long-term liabilities |
0 |
0 |
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Total liabilities |
38,960 |
67,940 |
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Equities |
10,140 |
12,410 |
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Total liabilities & equities |
49,100 |
80,350 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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Turnover |
179,620 |
213,920 |
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Cost of goods sold |
170,020 |
203,250 |
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Sales expense |
4,950 |
4,450 |
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Management expense |
1,000 |
1,440 |
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Finance expense |
1,170 |
1,700 |
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Profit before tax |
2,470 |
3,060 |
|
260 |
810 |
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Profits |
2,210 |
2,250 |
Important Ratios
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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*Current ratio |
1.25 |
1.18 |
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*Quick ratio |
1.08 |
1.02 |
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*Liabilities to assets |
0.79 |
0.85 |
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*Net profit margin (%) |
1.23 |
1.05 |
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*Return on total assets (%) |
4.50 |
2.80 |
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*Inventory /Turnover ×365 |
14 days |
19 days |
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*Accounts receivable/Turnover ×365 |
49 days |
83 days |
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*Turnover/Total assets |
3.66 |
2.66 |
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* Cost of goods sold/Turnover |
0.95 |
0.95 |
PROFITABILITY:
AVERAGE
·
The turnover of SC appears fairly good in both
years.
·
SC’s net profit margin appears average in both
years.
·
SC’s return on total assets appears average in both
years.
·
SC’s cost of goods sold is high in both years,
comparing with its turnover.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal
level in both years.
·
SC’s quick ratio is maintained in a normal level in
both years.
·
The inventory of SC appears average.
·
The accounts receivable of SC appears fairly large
in both years.
·
The short-term loan of SC appears fairly large in
both years.
·
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is fairly high in both years.
·
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 accounts receivable and short-term loan could be
a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.13 |
|
|
1 |
Rs.101.53 |
|
Euro |
1 |
Rs.85.41 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
|
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 |
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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 |
|
<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.