MIRA INFORM REPORT
|
Report Date : |
25.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
ANHUI JINTUNG FINE
CHEMICAL CORPORATION LTD. |
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Registered Office : |
No.
26 Zhongxiang Avenue, Cihu Economic Development Zone Maanshan City,
Anhui Province 243000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
28.10.2009 |
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Com. Reg. No.: |
340500000083957 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is mainly engaged in manufacturing and selling chemical
products. |
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No. of Employees : |
300 |
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 |
|
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 – 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 |
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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
ANHUI JINTUNG FINE CHEMICAL CORPORATION LTD.
NO. 26 ZHONGXIANG
AVENUE, CIHU ECONOMIC DEVELOPMENT ZONE
MAANSHAN CITY, ANHUI
PROVINCE 243000 PR CHINA
TEL: 86 (0)
555-2616906/2233253
FAX: 86 (0)
555-2616906
EXECUTIVE SUMMARY
Date of Registration : OCTober 28, 2009
REGISTRATION NO. : 340500000083957
LEGAL FORM : One-person Limited Liability Company
REGISTERED CAPITAL : CNY 60,000,000
staff :
300
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue :
CNY 296,057,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 75,310,000 (AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
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 one-person limited liabilities company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 340500000083957 on
October 28, 2009.
SC’s Organization Code Certificate No.:
69413159-X
SC’s registered capital: CNY 60,000,000
SC’s paid-in capital: CNY 60,000,000
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 |
|
Jintung Petrochemical Corporation Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Zhang Dafu |
|
Director |
Chen Wuxiong |
|
Yang Youjie |
|
|
Chen Weiyu |
|
|
Zhang Tao |
|
|
Supervisor |
Lin Dasheng |
|
Deng Naxin |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Jintung Petrochemical Corporation Ltd. 100
------------------------------
Legal representative: Zhang Dafu
Registration No.: 320000400000229
Date of Registration: September 1, 1993
Website: www.jintung.com.cn
Tel: 86 025-85563140
Fax: 86 025-85563340
Address: No. 201 Yaoxin Avenue, Economic
& Technological Development Zone, Nanjing, Jiangsu Province
MANAGEMENT
Zhang Dafu, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 63
Ø
ID# 32010619500824321X
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
also working in Jintung Petrochemical
Corporation Ltd., Jintung Fine Chemical Corporation Ltd., Jiangsu Jintung
Chemical Industry Corporation Ltd., Jiangsu Jintung Surfactant Corporation
Ltd., Sichuan Jintung Fine Chemical Corporation Ltd. as legal representative.
Director
----------
Chen Wuxiong
Yang Youjie
Chen Weiyu
Zhang Tao
Supervisor
--------------
Lin Dasheng
Deng Naxin
BUSINESS OPERATION
SC’s registered business scope includes manufacturing dodecylbenzene
sulfonic acid; wholesaling Benzene sulfonic acid; manufacturing and selling
fatty alcohol polyoxyethylene ether sulfate; research and development of
chemical technology; selling chemical products (excluding hazardous chemicals
and easily made drugs); import and export of various goods and technology
(excluding the goods and technology prohibited or limited by the country.
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products
mainly include: Sulfonic acid (LAS), fatty alcohol polyoxyethylene ether
sulfates (AES), alpha-olefin sulfonate (AOS), THF (K12), etc.
SC sources its
materials 95% from domestic market, and 5% from overseas market. SC sells 70%
of its products in domestic market and 30% to overseas 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.
Staff & Office:
--------------------------
SC is known
to have approx. 300 staff at
present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
· Jintung Fine Chemical Corporation Ltd.
·
Jiangsu Jintung Chemical Industry Corporation
Ltd.
· Jiangsu Jintung Surfactant Corporation Ltd.
· Sichuan Jintung Fine Chemical Corporation 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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
13,041 |
18,120 |
|
|
Notes receivable |
3,000 |
0 |
|
Accounts
receivable |
41,787 |
35,341 |
|
Advances to
suppliers |
3,662 |
1,837 |
|
Other receivable |
48 |
36 |
|
Inventory |
15,181 |
13,823 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
-210 |
-208 |
|
|
------------------ |
------------------ |
|
Current assets |
76,509 |
68,949 |
|
Fixed assets |
53,123 |
69,354 |
|
Construction in
progress |
14,614 |
209 |
|
Intangible
assets |
5,465 |
5,343 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income tax
assets |
0 |
0 |
|
Other
non-current assets |
638 |
563 |
|
|
------------------ |
------------------ |
|
Total assets |
150,349 |
144,418 |
|
|
============= |
============= |
|
Short-term loans |
44,348 |
45,000 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
33,124 |
22,434 |
|
Wages payable |
0 |
0 |
|
Welfare expenses
payable |
69 |
107 |
|
Taxes payable |
247 |
70 |
|
Advances from
clients |
1,624 |
207 |
|
Other payable |
1,381 |
1,288 |
|
Other current
liabilities |
-2 |
2 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
80,791 |
69,108 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
80,791 |
69,108 |
|
Equities |
69,558 |
75,310 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
150,349 |
144,418 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
296,057 |
|
Cost of sales |
274,825 |
|
Taxes and surcharges |
526 |
|
Sales expense |
8,021 |
|
Management expense |
5,052 |
|
Finance expense |
2,618 |
|
Profit before
tax |
5,868 |
|
Less: profit tax |
2,017 |
|
3,851 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.95 |
1.00 |
|
*Quick ratio |
0.76 |
0.80 |
|
*Liabilities
to assets |
0.54 |
0.48 |
|
*Net profit
margin (%) |
-- |
1.30 |
|
*Return on
total assets (%) |
-- |
2.67 |
|
*Inventory /
Revenue ×365 |
-- |
18 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
44 days |
|
*
Revenue/Total assets |
-- |
2.05 |
|
* Cost of
sales / Revenue |
-- |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
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 is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear large.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.61 |
|
|
1 |
Rs.83.98 |
|
Euro |
1 |
Rs.71.94 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.