MIRA
INFORM REPORT
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Report Date : |
19.02.2013 |
IDENTIFICATION DETAILS
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Name : |
SINOCHEM JIANGSU CO., LTD. |
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Registered Office : |
Floors 21& 22 Jincheng Tower, No. 216 Middle Longpan Road,
Baixia District, Nanjing City, Jiangsu Province, 210005 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
30.12.1992 |
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Com. Reg. No.: |
320000000004080 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Engaged in importing and exporting pharmaceutical
intermediates, APIs, formulations and other pharmaceutical products. |
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No. of Employees : |
150 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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 2010 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 near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. 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 and address
SINOCHEM JIANGSU CO., LTD.
FLOORS 21& 22 JINCHENG TOWER, NO. 216 MIDDLE LONGPAN
ROAD,
BAIXIA DISTRICT, NANJING CITY, JIANGSU PROVINCE, 210005 PR
CHINA
TEL: 86 (0) 25-51817888/51817967
FAX: 86 (0) 25-51817799
EXECUTIVE SUMMARY
INCORPORATION DATE :
DECEMBER 30, 1992
REGISTRATION NO. :
320000000004080
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH :
150
REGISTERED CAPITAL : CNY 162,478,576
BUSINESS LINE :
TRADING
TURNOVER :
CNY 1,438,040,000 (UNAUDITED, AS OF DEC. 31, 2012)
EQUITIES :
CNY 178,910,000 (UNAUDITED, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE :
CNY 6.23 = 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 state-owned
enterprise at Jiangsu provincial Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on december 30, 1992 and has been under present legal form since Oct. of
2009.
Company Status: One-person Limited
Liability Company Single
person LLC refers to a limited liability company set up by only one natural
person or legal person as the single shareholder of it. The
minimum registered capital of Single person LLC is CNY 100,000. The
shareholder’s capital contributes, as set out by the articles of
associations should be a lump-sum payment in full. One
natural person can only invest in and set up one limited liability company,
which is not permitted to invest in and set up a new Single person LLC. As
to any one-person limited liability company, the sole-investor nature of
the natural person or legal person shall be indicated in the registration
documents of the company and shall be indicated in the business license
thereof as well. The
regulation of Single person LLC should be set up by the shareholder. The
regulation of Single person LLC has no shareholder meeting.
SC’s registered business scope includes wholesale of
hazardous chemicals, importing and exporting various kinds of commodities and
technology, domestic trade, technology development, transferring and consulting
of chemical pharmaceuticals.
SC is
mainly engaged in importing and exporting pharmaceutical intermediates, APIs,
formulations and other pharmaceutical products.
Mr.
Dong Jianhua has been legal representative, chairman and general manager of SC
since 2009.
SC is known to have approx. 150 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. Our
checks reveal that SC owns an area of 2,000 square meters.
http://www.sinochemjiangsu.com The design is
professional and the content is well organized. At present the web site is in
both Chinese and English versions.
E-mail: info@sinochem.com
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2004-6 |
Legal representative |
He Shujun |
Gu Linmin |
|
2004-11 |
Registered capital |
CNY 33,076,000 |
CNY 50,000,000 |
|
2008 |
Registration No. |
3200001100945 |
320000000004080 |
|
2009-10 |
Legal Form |
State-Owned Enterprise |
One-Person Limited Liability Company |
|
Shareholders |
Sinochem Corporation 100% |
Sinochem Co., Ltd. 100% |
|
|
Company name |
Sinochem Jiangsu Corporation |
Sinochem Jiangsu Co., Ltd. |
|
|
Registered Capital |
CNY 50,000,000 |
CNY 102,218,576 |
|
|
Legal representative |
Gu Linmin |
Dong Jianhua |
|
|
2012 |
Registered Capital |
CNY 102,218,576 |
Present amount |
On 24-25th June 1999, the ISO9002:1994 quality management
system of SC was successfully accredited by SGS Yarsley International
Certification Services Limited for the first time on the spot, and it acquired the
Certificate of ISO9002:1994 quality management system issued by SGS Yarsley on
20th July, 1999.
On 14-45th January, SC’s ISO9001:2000 quality management
system was successfully audited by SGS Systems and Services Certification
again, and SC obtained the certificate of ISO9001:2000 issued by SGS United
Kingdom Ltd. Systems & Services Certification on 8th April,
2003.
On 19th April, 2006, SGS Systems & Services
Certification audited SC’s quality management system at the expiration of the
Certificate on the basis of renewal. SC has got new Certificate by SGS United
Kingdom Ltd. Systems & Services Certification.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Sinochem Co., Ltd. 100
Sinochem Co., Ltd. is one of the largest companies in the
"Fortune 500" and under the supervision of SASAC (State-owned Assets
Supervision and Administration Commission of the State Council).
Legal representative: Liu Deshu 刘德树
Registration No.: 100000000042135
Add.: No. 28 Fuxingmennei
Street, Xicheng District, Beijing
Tel: 0086-10-59568888
l
Legal representative,
chairman and
general manager:
Mr. Dong Jianhua, born in 1967, with Master's degree. He is
currently responsible for the overall and daily management of SC.
Working Experience(s):
From 2009 to present Working in SC as legal representative, chairman and general
manager;
Also working in Sinochem Jiangsu Pharmaceutical Co., Ltd. as legal
representative.
l
Supervisor:
Xu Yuhong, born in 1970.
Also working in Shanghai Suhua International Trade
Co., Ltd. as legal representative.
SC is
mainly engaged in importing and exporting pharmaceutical intermediates, APIs, formulations
and other pharmaceutical products.
SC’s
products mainly include:
SC
sources its materials 70% from domestic market, mainly Jiangsu and Sichuan, and
30% from overseas market. SC sells 80% of its products to overseas market,
mainly India, America and Europe, and 20% in domestic market.
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.
Note:
SC refused to release its major suppliers and customers.
SC is known to invest in the following companies:
Sinochem Jiangsu Pharmaceutical Co., Ltd.
Shanghai Suhua International Trade Co., Ltd.
================================
Registration No.:
310115000934861
Incorporation Date:
Chairman: Xu Yuhong
Registered Capital: CNY
2,000,000
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.
Bank of China Jiangsu Branch
AC#: 044138090010000202
Relationship:
Normal.
Balance
Sheet
Unit:
CNY’000
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Cash
& bank |
21,060 |
55,710 |
|
Notes
receivable |
7,650 |
3,120 |
|
Inventory |
84,660 |
157,420 |
|
Accounts
receivable |
132,000 |
166,090 |
|
Other
Accounts receivable |
48,960 |
72,360 |
|
Advances
to suppliers |
46,190 |
90,000 |
|
Other
current assets |
20 |
10 |
|
|
------------------ |
------------------ |
|
Current
assets |
340,540 |
544,710 |
|
Fixed
assets |
7,500 |
6,740 |
|
Long
term investment |
17,020 |
17,020 |
|
Deferred
tax assets |
2,000 |
850 |
|
Intangible
assets |
0 |
0 |
|
Long-term
deferred expenses |
770 |
520 |
|
Other
assets |
3,320 |
3,320 |
|
|
------------------ |
------------------ |
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Total
assets |
371,150 |
573,160 |
|
|
============= |
============= |
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Short
loans |
141,880 |
172,010 |
|
Notes
payable |
29,610 |
52,130 |
|
Accounts
payable |
48,250 |
96,050 |
|
Other
Accounts payable |
6,720 |
14,100 |
|
Salaries
payable |
7,330 |
7,140 |
|
Welfares
payable |
0 |
0 |
|
Taxes
payable |
-4,330 |
-10,820 |
|
Advance
from clients |
28,670 |
62,580 |
|
Other
current liabilities |
500 |
340 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
258,630 |
393,530 |
|
Long
term liabilities |
0 |
0 |
|
Anticipation
liabilities |
0 |
0 |
|
Other
liabilities |
2,720 |
720 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
261,350 |
394,250 |
|
Equities |
109,800 |
178,910 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
371,150 |
573,160 |
|
|
============= |
============= |
Income
Statement
Unit:
CNY’000
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Turnover |
914,630 |
1,438,040 |
|
Cost of goods sold |
865,870 |
1,361,770 |
|
Taxes and additional of main
operation |
390 |
710 |
|
Other
income |
150 |
0 |
|
Sales expense |
24,060 |
32,140 |
|
Management expense |
25,070 |
23,440 |
|
Finance expense |
-620 |
8,680 |
|
Asset
impairment loss |
-300 |
-1,040 |
|
Investment
income |
0 |
110 |
|
Non-operating
income |
3,470 |
3,230 |
|
Non-operating expense |
70 |
100 |
|
Profit
before tax |
3,710 |
15,580 |
|
Less: profit tax |
1,060 |
3,900 |
|
Profits |
2,650 |
11,680 |
Note: The
financial reports for Yr2012 have not been audited.
Important
Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current
ratio |
1.32
|
1.38
|
|
*Quick
ratio |
0.99
|
0.98
|
|
*Liabilities
to assets |
0.70
|
0.69
|
|
*Net
profit margin (%) |
0.29
|
0.81
|
|
*Return
on total assets (%) |
0.71
|
2.04
|
|
*Inventory
/Turnover ×365 |
34
days |
40
days |
|
*Accounts
receivable/Turnover ×365 |
53
days |
43
days |
|
*Turnover/Total
assets |
2.46
|
2.51
|
|
* Cost
of goods sold/Turnover |
0.95
|
0.95
|
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good
in 2011, and good in 2012.
l
SC’s net profit margin is average in
both 2 years.
l
SC’s return on total assets is average
in both 2 years.
l
SC’s cost of goods sold is fairly high
in both 2 years, comparing with its turnover.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level in both 2 years.
l
SC’s quick ratio is maintained in a
normal level in both 2 years.
l
The inventory of SC is average in both
2 years.
l
The accounts receivable of SC appears
average in both 2 years.
l
SC’s short-term loan appears fairly
large in both 2 years.
l
SC’s turnover is in an average level in
both 2 years, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average in both
2 years.
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 favorable
background and fairly stable financial conditions. The large amount of short
term loan could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.28 |
|
|
1 |
Rs.84.09 |
|
Euro |
1 |
Rs.72.44 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.