MIRA
INFORM REPORT
|
Report Date : |
19.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
sishui jinyi paper
co., ltd. |
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|
|
|
Registered Office : |
Jinzhuang Town, Sishui County, Jining City, Shandong
Province, 273201 pr |
|
|
|
|
Country : |
China |
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|
|
Financials (as on) : |
31.12.2012 |
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|
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Date of Incorporation : |
28.12.1995 |
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Com. Reg. No.: |
370800400000765 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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|
|
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Line of Business : |
Manufacturing
and selling CF carbonless copy paper. |
|
|
|
|
No. of Employees : |
480 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
|
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 and address
sishui jinyi paper co., ltd.
JINZHUANG TOWN,
SISHUI COUNTY, JINING CITY,
SHANDONG province,
273201 pr china
TEL: 86 (0)
537-4036983 / 4036823
FAX: 86 (0)
537-4031210
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 28, 1995
REGISTRATION NO. :
370800400000765
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. KONG FAN’GANG (CHAIRMAN)
STAFF STRENGTH :
480
REGISTERED CAPITAL :
USD 8,400,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 945,220,000 (UNaudited, AS OF DEC. 31, 2012)
EQUITIES :
CNY 100,090,000 (UNaudited, AS OF
DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.10 =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 Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Dec.
28, 1995.
Company
Status: Chinese-foreign equity joint venture enterprise This form of business in PR China
is defined as a legal person. It is a limited co. jointly invested by one
or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition position
in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing and selling CF carbonless
copy paper.
SC is mainly engaged in manufacturing and selling CF carbonless copy paper.
Mr. Kong Fan’gang has been legal representative, chairman and general manager of SC since 1995.
SC is known to have approx. 480 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 Sishui county. Our checks reveal that SC owns the total premise about 35,000 square meters.
SC is not known to host website of its own at present.
Changes of its registered
information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2008 |
Registration No. |
000580 |
370800400000765 |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Shandong Huajin Group Co., Ltd. 71.43
Britain Yida (Asia) Technology Limited 28.57
Shandong Huajin Group Co., Ltd.
=========================
Shandong Huajin Group Co., Ltd. is a cross-industry, cross-regional national large-scale modern enterprise group mainly engaged in processing, researching and trading paper and paper products. It has 4,200 staffs, 3.3 billion yuan total assets and 6 subsidiaries. It also owns 23 domestic advanced level paper production line, and 9 specialty paper production line. The production its capacity is 850,000 tons. The main products are: high-end industrial paper used; high-end office automation, printing and writing paper; carbonless paper, thermal paper; high-grade coated paperboard, packaging paper five series. Over 120 varieties of products are exported to the sea inside and out.
Registration No.: 370000228031741
Legal representative: Xing Dongshang
Registered capital: CNY 389,000,000
Address: No. 818, Jinzhuang Town, Sishui County, Jining, Shandong Province
Tel: 86-537-4036979
Web: http://www.huajinpaper.com
E-mail: huajinlbz@126.com
Legal Representative,
Chairman and General Manager:
Mr. Kong Fan’gang in his
Working Experience(s):
From 1995 to present Working in SC as legal representative, chairman and general manager
SC is mainly engaged in manufacturing and selling CF carbonless copy paper.
SC’s products mainly include: CF carbonless copy paper.
SC’s brands: “Jinyi “Jinxin “Jindong ”.
SC sources its materials 20% from domestic market, mainly Shandong, and 80% from overseas market, mainly America, France, and Switzerland. SC sells 40% in domestic market, mainly Shandong, and 60% to overseas market, mainly Southeast Asia.
The buying terms of SC include T/T, Check, L/C, and Credit of 30-60 days. The payment terms of SC include T/T, Check, L/C, and Credit of 30-60 days.
Note: SC’s management declined to release its customer and supplier details.
According to the website: http://www.huajinpaper.com
Qingdao Dongli Paper Co., Ltd.
Incorporation Date:
Registration No.: 370200400044787
Registered Legal Form: Chinese-Foreign Equity Joint Venture Enterprise
Chief Executive: Wang Xinli
Registered Capital: USD 735,000
Jilin Huajin Paper Co., Ltd.
Legal representative: Xing Limin
Huajin Group Chaohu Jinhe Paper Co., Ltd.
Registration No.: 341424000003083
Legal representative: Xing Dongshang
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.
China Construction Bank Jining Sishui Sub-branch
AC#：37001687108050001809
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Cash & bank |
125,040 |
136,560 |
|
Trading financial assets |
1,100 |
1,250 |
|
Inventory |
576,680 |
426,180 |
|
Accounts receivable |
58,810 |
44,950 |
|
Advances to suppliers |
85,490 |
0 |
|
Other receivables |
269,120 |
492,360 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
1,116,240 |
1,101,300 |
|
Long-term investments |
0 |
0 |
|
Fixed assets net value |
86,010 |
72,530 |
|
Projects under construction |
3,910 |
4,170 |
|
Intangible assets |
0 |
0 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
1,206,160 |
1,178,000 |
|
|
============= |
============= |
|
Short loans |
279,120 |
326,800 |
|
Notes payable |
90,000 |
101,320 |
|
Accounts payable |
63,780 |
-29,400 |
|
Advances from customers |
37,820 |
0 |
|
Taxes payable |
-41,130 |
-29,800 |
|
Other accounts payable |
526,430 |
568,990 |
|
Other current liabilities |
0 |
0 |
|
|
----------------- |
------------------ |
|
Current liabilities |
956,020 |
937,910 |
|
Long term liabilities |
140,000 |
140,000 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,096,020 |
1,077,910 |
|
Shareholders equities |
110,140 |
100,090 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
1,206,160 |
1,178,000 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Turnover |
633,510 |
945,220 |
|
Cost of goods sold |
554,890 |
832,840 |
|
Taxes and additional of main operation |
60 |
850 |
|
Sales expense |
17,850 |
22,240 |
|
Management expense |
860 |
1,070 |
|
Finance expense |
70,620 |
98,320 |
|
The profits on the changes in fair value |
-150 |
0 |
|
Investment income |
0 |
40 |
|
Non-operating income |
20 |
0 |
|
Non-operating expense |
40 |
120 |
|
Profit before tax |
-10,940 |
-10,180 |
|
Less: profit tax |
0 |
0 |
|
Net profit |
-10,940 |
-10,180 |
Note: The above financial have not been audited.
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
*Current ratio |
1.17 |
1.17 |
|
*Quick ratio |
0.56 |
0.72 |
|
*Liabilities to assets |
0.91 |
0.92 |
|
*Net profit margin (%) |
-1.73 |
-1.08 |
|
*Return on total assets (%) |
-0.91 |
-0.86 |
|
*Inventory /Turnover ×365 |
333 days |
165 days |
|
*Accounts receivable/Turnover ×365 |
34 days |
18 days |
|
*Turnover/Total assets |
0.53 |
0.80 |
|
* Cost of goods sold/Turnover |
0.88 |
0.88 |
PROFITABILITY: FAIR
The turnover of SC appears fairly good in its line, and it increasing in 2012.
SC’s net profit margin is fair in both years.
SC’s return on total assets is fair in both years.
SC’s cost of goods sold is average in both years, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level in both years.
SC’s quick ratio is maintained in a fair level in both years.
The inventory of SC appears large in both years.
The accounts receivable of SC is maintained in an average level in both years.
The short-term loan of SC appears large in both years.
SC’s turnover is in a fair level, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial conditions. The large amount of inventory and short loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.92 |
|
|
1 |
Rs.100.83 |
|
Euro |
1 |
Rs.85.27 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.