MIRA
INFORM REPORT
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Report Date : |
15.06.2013 |
IDENTIFICATION DETAILS
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Name : |
TAIZHOU
MINGXIANG CHEMICAL CO., LTD. |
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Registered Office : |
Yantou
Industrial Zone, Jiaojiang District, Taizhou Zhejiang Province 318000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
02.09.1992 |
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Com. Reg. No.: |
331002000026434 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in manufacturing and selling chemical products. |
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No. of Employees : |
120 |
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 : |
Slow but Correct |
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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) |
|
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 and address
TAIZHOU MINGXIANG CHEMICAL CO., LTD.
YANTOU
INDUSTRIAL ZONE, JIAOJIANG DISTRICT, TAIZHOU ZHEJIANG PROVINCE 318000 PR CHINA
TEL: 86 (0)
576-88819778
FAX: 86 (0)
576-81818901
EXECUTIVE SUMMARY
Date of Registration : september 2, 1992
REGISTRATION NO. : 331002000026434
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE :
xu guangen (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 21,600,000
staff :
120
BUSINESS CATEGORY : MANUFACTURING
Revenue :
CNY 120,476,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 19,801,000 (AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.14 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL
STATUS & HISTORY
SC was established as a limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 331002000026434 on September 2, 1992.
SC’s Organization Code Certificate No.: 14825557-9
SC’s Tax No.: 331002148255579
SC’s registered capital: CNY 21,600,000
SC’s paid-in capital: CNY 21,600,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Rivocean Group Co., Ltd. |
51.01 |
|
Xu Guangen |
48.99 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Xu Guangen |
|
Supervisor |
Xu Linbin |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Rivocean Group Co., Ltd. 51.01
Xu Guangen 48.99
Rivocean Group Co., Ltd.
------------------------------------
Date of Registration: April 22, 2009
Registration No.: 331002000025466
Legal Form: Limited Liability
Company
Chief Executive: Xu Guangen
Registered Capital: CNY 50,000,000
MANAGEMENT
Xu Guangen, Legal Representative, Chairman and General
Manager
-----------------------------------------------------------------------------------------------------
Gender: M
Age: 46
ID# 332601196706171210
Qualification: University
Working experience (s):
From 1992 to present, working in SC as legal representative, chairman
and general manager
Also working in Rivocean Group Co., Ltd. as legal representative
Xu Linbin,
Supervisor
------------------------------------------
Gender: M
Age: 42
ID# 332601197105011216
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing 2,4
- dichloro-thiazole.
SC is mainly engaged in manufacturing and selling chemical products.
Brand: Rivocean
SC’s products mainly include:
Florfenicol
Cyclopropylamine
Cyclopropyl Acetylene
Cyclopropyl Cyanide
Cyclopropyl Methyl Ketone
Cyclopropyl Carboxylic Acid
Cyclopropane Carboxamide
Etc.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC
sells 80% of its products in domestic market, and 20% to overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Staff &
Office:
--------------------------
SC is known to have approx. 120
staff at present.
SC owns an area as its operating office & factory of approx. 15,000
sq. meters at the heading address.
RELATED
COMPANY
SC is known to
have 2 subsidiaries at present,
Linhai Hengyuan Chemical Co., Ltd.
Jiangsu Yuxiang Chemical Co., Ltd.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
Bank of China Taizhou Branch
AC#: 840030853408091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
16,995 |
19,047 |
|
|
Short-term
investment |
150 |
150 |
|
Notes receivable |
2,197 |
1,125 |
|
Accounts receivable |
26,263 |
45,269 |
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Advances to suppliers |
0 |
0 |
|
Other receivable |
62,075 |
47,097 |
|
Inventory |
18,566 |
10,834 |
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Prepaid expenses |
89 |
0 |
|
Other current assets |
0 |
0 |
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|
------------------ |
------------------ |
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Current assets |
126,335 |
123,522 |
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Long-term investment |
20,340 |
28,050 |
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Fixed assets |
10,318 |
9,404 |
|
Construction in progress |
0 |
0 |
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Intangible assets |
0 |
0 |
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Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
156,993 |
160,976 |
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|
============= |
============= |
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Short-term loans |
107,375 |
104,775 |
|
Notes payable |
9,000 |
27,000 |
|
Accounts payable |
11,461 |
8,977 |
|
Wages payable |
615 |
264 |
|
Taxes payable |
-1,256 |
68 |
|
Advances from clients |
0 |
0 |
|
Other payable |
125 |
71 |
|
Other current liabilities |
24 |
20 |
|
|
------------------ |
------------------ |
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Current liabilities |
127,344 |
141,175 |
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Non-current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
127,344 |
141,175 |
|
Equities |
29,649 |
19,801 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
156,993 |
160,976 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
150,600 |
120,476 |
|
Cost of sales |
147,975 |
117,562 |
|
Taxes and surcharges |
119 |
58 |
|
Sales expense |
720 |
428 |
|
Management expense |
6,722 |
5,436 |
|
Finance expense |
5,072 |
7,255 |
|
Investment income |
12,500 |
0 |
|
Subsidy income |
0 |
108 |
|
Non-business income |
261 |
425 |
|
Non-business expenditure |
399 |
153 |
|
Profit before tax |
2,353 |
-9,884 |
|
Less: profit tax |
0 |
0 |
|
2,353 |
-9,884 |
Important Ratios
=============
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
0.99 |
0.87 |
|
*Quick ratio |
0.85 |
0.80 |
|
*Liabilities to assets |
0.81 |
0.88 |
|
*Net profit margin (%) |
1.56 |
-8.20 |
|
*Return on total assets (%) |
1.50 |
-6.14 |
|
*Inventory / Revenue ×365 |
45 days |
33 days |
|
*Accounts receivable/ Revenue ×365 |
64 days |
138 days |
|
* Revenue/Total assets |
0.96 |
0.75 |
|
* Cost of sales / Revenue |
0.98 |
0.98 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average in 2011 and fair in 2012.
SC’s return on total assets is average in 2011 and fair in 2012.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC appears large in 2012.
The short-term loans of SC appear large in 2012.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial
conditions. The large amount of accounts receivable and short-term loans may be
a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.57.74 |
|
|
1 |
Rs.90.64 |
|
Euro |
1 |
Rs.77.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
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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.