MIRA
INFORM REPORT
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Report Date : |
19.01.2013 |
IDENTIFICATION DETAILS
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Name : |
CHINA JIANGSU
INTERNATIONAL ECONOMIC TECHNICAL COOPERATION CORP. |
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Registered Office : |
No. 5 Beijing West Road, Nanjing City,
Jiangsu Province 210005 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
07.11.1981 |
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Com. Reg. No.: |
320000000013210 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Engaged in contracting international and domestic projects, labor cooperation, import and export, real estate development and international trade. |
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No. of Employees : |
610 |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 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.
Source
: CIA
Company name and address
CHINA JIANGSU
INTERNATIONAL ECONOMIC TECHNICAL COOPERATION CORP.
NO. 5 BEIJING WEST ROAD, NANJING CITY,
JIANGSU PROVINCE 210005 PR CHINA
TEL:
86 (0) 25-83276349/83310555
FAX: 86 (0) 25-83304526/85407573
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOV. 7, 1981
REGISTRATION NO. :
320000000013210
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
STAFF STRENGTH :
610
REGISTERED CAPITAL : CNY 300,000,000
BUSINESS LINE :
CONSTRUCTION AND TRADING
TURNOVER :
CNY 2,298,500,000 (UNAUDITED, AS
OF DEC. 31, 2010)
EQUITIES :
CNY 477,310,000 (UNAUDITED, AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE :
CNY 6.24 = 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
Note: SC is operating in the heading address, while the given
one belongs to SC’s branch office. SC’s correct contact number should be the
heading one.
SC was
registered as a state-owned enterprise at local Administration for Industry
& Commerce (AIC-The official body of issuing and renewing business license)
on Nov. 7, 1981.
Company Status: State-owned enterprise This form of business in PR
China is defined as a commodity production or operational unit of socialist
character in accordance with the law, has autonomy in management, takes
full responsibility for its profits and losses and practices independent
business accounting. It is a legal person established directly by central /
local government or enterprise owned by central or local government. In
theory, the liabilities of this form of enterprise are ultimately borne by
the government, since the adoption of company law in mid-1994, the Chinese
government has planned to separate the ownership from management and
liabilities bearing.
SC’s registered business
scope includes contracting various internal and overseas projects; undertaking
external economic assistance projects; consultation, exploration, design and
supervision of various industrial and civil projects; development and
management of real estate; exporting equipment and materials need by contracted
projects; dispatching engineering labor, manufacture and service business;
incorporating non-trading enterprises abroad; domestic trade; restaurant
services; import and export; designing, constructing and consulting services of
environmental engineering; designing, manufacturing, and installing steel
structure and wire table projects, and supplying relative technical services;
manufacturing and selling electronic products and telecommunication equipment,
supplying relative services of technology and consultation; designing and
installing computer network engineering; selling and providing technological
services of computers and peripheral equipment; selling automobiles (including
cars); designing, installing and repairing air-conditioning and refrigerating
equipment.
SC is mainly engaged in contracting international and domestic projects,
labor cooperation, import and export, real estate development and international
trade.
Mr. Kong
Xinning is legal representative and
chairman of SC at present.
SC is known to
have approx. 610 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Nanjing. Our checks reveal that SC owns the total premise
about 5,000 square meters.
http://www.zjgj.com The design is professional and the content is
well organized. At present, the web is in both Chinese and English versions.
E-mail: cjietcc@jinteco.com
SC is one of the Top 500 important enterprises in China, and it has got
the ISO9001 Quality Management System Certification and the ISO14001
Environmental Management System Certification.
Changes of its
registration information:
|
Date of change |
Item |
Before the change |
After the change |
|
2008 |
Registration No. |
3200001104501 |
320000000013210 |
MAIN SHAREHOLDERS:
Name
% of Shareholding
Jiangsu Province People’s Government
100
l
Legal representative and chairman:
Mr. Kong Xinning , about 57 years old with
university education. He is currently responsible for the overall management of
SC.
Working
Experience(s):
At present Working
in SC as chairman and legal representative.
l
Assistant
Manager:
Mr. Bu Zhenyang ,
in his
Working Experience(s):
At present Working
in SC as assistant manager.
SC is mainly engaged in contracting international and domestic projects,
labor cooperation, import and export, real estate development and international
trade.
SC’s contracted projects including: Shanghai Yangming Hill City, Nanjing
Hilton International Hotel, Singapore Red Hill City, etc.
SC’s products mainly include: chemical products, pesticides, garments
and medicines.
SC sources its merchandises 20% from the overseas market and 80% from
domestic market. SC sells 20% of its merchandises in domestic market, and 80%
to overseas market.
The buying terms of SC include Check, L/C, T/T 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’s management declined to release
its main clients and suppliers.
SC is known to have the following subsidiaries at present:
Overseas Development Co.
Add:
Tel: 025- 86569810
China Jiangsu Int’l Economic Technical Cooperation Corp., Overseas Development Co. is mainly engaged in self import and export on various commodities and agent services. Its business covers agrochemicals, pharmaceutics, intermediate, health protection products and so on. Its business has expanded rapidly recently and it has established business relationship with more than 30 countries and regions.
International Engineering Construction Co.
Highway & Bridge Engineering Co.
Decoration Engineering Co.
Continental Engineering Co.
Asia-Pacific Regional Engineering Co.
Tianjia Engineering Construction Co.
Construction Co.
Nanjing Construction Co.
Nantong Co.
Nanjing No.1 Co.
Zhongjiang (S) Shanghai Co.
International Human Resources Co.
Overseas Economic & Technical Co.
Foreign Trade Co.
Hengtai International Trade Co.
Import & Export Trading Co.
Overseas Trading Co.
Chemicals Import & Export Co.
Shanghai Pudong Co.
Light Industrial Products & Textiles Import & Export Co.
East Africa Co.
Congo Republic Co.
Angola Co.
Zimbabwe Co.
Namibia Co.
Zambia Co.
Guinea Co.
Sudan Co.
Botswana Co.
Malawi Co.
Mauritius Co.
Singapore Co.
Middle East Co.
U.A.E Co.
Iran Co.
Russia Co.
Papua New Guinea Co.
Peru Co.
Japan Office Co.
South Korea Co.
Jiangsu International Economic Cooperation Co.
Jiangsu Mindu Construction Enterprise Development Co., Ltd.
Jiangsu Zhongjiang Overseas Economic & Technical Co., Ltd.
Jiangsu Shopping Center for Chinese Expatriates
Jiangsu Jintaco International Trading Co., Ltd.
China Jiangsu (Mauritius) International Co., Ltd.
JIC (Cal.) Inc.
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.
Bank of China
Jiangsu Province Branch
AC#：800100003908091001
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
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Cash & bank |
403,890 |
385,740 |
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Bills receivable |
8,550 |
35,470 |
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Inventory |
368,390 |
478,230 |
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Accounts
receivable |
208,250 |
187,520 |
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Other Accounts
receivable |
816,340 |
744,820 |
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Advances to
suppliers |
249,660 |
305,690 |
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Other current
assets |
200,990 |
178,330 |
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Current assets |
2,256,070 |
2,315,800 |
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Fixed assets |
39,590 |
41,170 |
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Long term
investment |
261,990 |
264,420 |
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Other assets |
760 |
12,230 |
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Total assets |
2,558,410 |
2,633,620 |
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Short loans |
109,450 |
124,490 |
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Bills payable |
146,770 |
166,890 |
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Accounts payable |
184,690 |
201,190 |
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Advances from
clients |
659,960 |
488,720 |
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Other Accounts
payable |
925,630 |
1,085,500 |
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Salaries payable |
16,610 |
14,470 |
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Taxes payable |
-19,170 |
-15,540 |
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Other current
liabilities |
18,790 |
32,070 |
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Current
liabilities |
2,042,730 |
2,097,790 |
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Long term
liabilities |
64,950 |
58,520 |
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Other
liabilities |
0 |
0 |
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Total
liabilities |
2,107,680 |
2,156,310 |
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Equities |
450,730 |
477,310 |
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Total
liabilities & equities |
2,558,410 |
2,633,620 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
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Turnover |
2,081,200 |
2,298,500 |
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Cost of goods
sold |
1,960,610 |
2,190,440 |
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Sales expense |
55,520 |
63,540 |
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Management expense |
45,930 |
51,120 |
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Finance expense |
3,100 |
4,520 |
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Other expense |
640 |
0 |
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Other income |
0 |
34,660 |
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Profit before
tax |
15,400 |
23,540 |
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Less: profit tax |
0 |
5,370 |
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Profits |
15,400 |
18,170 |
Note: The above financial
for Yr2010 have not been audited. SC’s management declined to release the
latest financial information.
Important Ratios
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As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
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*Current ratio |
1.10 |
1.10 |
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*Quick ratio |
0.92 |
0.88 |
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*Liabilities
to assets |
0.82 |
0.82 |
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*Net profit
margin (%) |
0.74 |
0.79 |
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*Return on
total assets (%) |
0.60 |
0.69 |
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*Inventory
/Turnover ×365 |
65 days |
76 days |
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*Accounts
receivable/Turnover ×365 |
37 days |
30 days |
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*Turnover/Total
assets |
0.81 |
0.87 |
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* Cost of
goods sold/Turnover |
0.94 |
0.95 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in 2009, and
it increased in 2010.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of goods sold is fairly high in both
years, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears fairly large in both
years.
l
The accounts receivable of SC appears average in
both years.
l
The short-term loan of SC is maintained in an
average level in both years.
l
SC’s turnover is in an average level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high in both years.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
SC is well-known in its industry with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.94 |
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|
1 |
Rs.86.24 |
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Euro |
1 |
Rs.72.20 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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 |
-- |
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.