MIRA INFORM REPORT
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Report Date : |
19.11.2013 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU YUXIANG CHEMICAL CO., LTD. |
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Registered Office : |
Ninghai Road, Chemical Industrial Zone, Economic Development
District Of Binhai, Yancheng City, Jiangsu Province 224500 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
13.09.2005 |
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Com. Reg. No.: |
320922000003807 |
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Legal Form : |
Limited Liability
Company |
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Line of Business : |
Manufacturing and selling chemical products. |
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No. of Employees : |
308 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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) |
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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 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
JIANGSU YUXIANG
CHEMICAL CO., LTD.
NINGHAI ROAD,
CHEMICAL INDUSTRIAL ZONE, ECONOMIC DEVELOPMENT DISTRICT OF BINHAI, YANCHENG
CITY, JIANGSU PROVINCE 224500 PR CHINA
TEL: 86 (0)
515-84383803
FAX: 86 (0)
515-84382596
EXECUTIVE SUMMARY
Date of Registration : SEPTEMBER 13, 2005
REGISTRATION NO. : 320922000003807
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE : XU
GUANGEN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 50,950,000
staff :
308
BUSINESS CATEGORY : MANUFACTURING
Revenue :
CNY 252,230,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 58,970,000 (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 6.10 = 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.: 320922000003807.
SC’s Organization
Code Certificate No.: 77967790-3
SC’s Tax No.: 320922779677903
SC’s registered
capital: CNY 50,950,000
SC’s paid-in
capital: CNY 50,950,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2009 |
Registered Capital |
CNY 15,800,000 |
CNY 32,980,000 |
|
Legal Form |
One-person Limited Liability Company |
Limited Liabilities Company |
|
|
Shareholder (s) (% of Shareholding) |
Taizhou Mingxiang Chemical Co., Ltd. 100% |
Rivocean Group Co., Ltd. 52.09% Taizhou Mingxiang Chemical Co., Ltd. 47.91% |
|
|
2011 |
Registered Capital |
CNY 32,980,000 |
CNY 50,950,000 |
|
Shareholder (s) (% of Shareholding) |
Rivocean Group Co., Ltd. 52.09% Taizhou Mingxiang Chemical Co., Ltd. 47.91% |
Rivocean Group Co., Ltd. 33.72% Taizhou Mingxiang Chemical Co., Ltd. 31.01% Xu Guangen 35.27% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Rivocean Group Co., Ltd. |
33.72 |
|
Taizhou Mingxiang Chemical Co., Ltd. |
31.01 |
|
Xu Guangen |
35.27 |
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. 33.72
Taizhou Mingxiang Chemical Co., Ltd. 31.01
Xu Guangen 35.27
Rivocean Group Co., Ltd.
------------------------------------
Established in 1992, Rivocean Group Co., Ltd. is a leading hi-tech company in pharmaceutical and chemical field. Rivocean provides a broad and integrated portfolio of R&D and manufacturing services, focusing on advanced intermediates, active pharmaceutical ingredients (APIs), and can provide R&D for innovative pharmaceutical products according to customers’ requirements. The predecessor of Rivocean was Taizhou No. 6 Chemical Company. Since its foundation, the company has achieved rapid development. Rivocean attaches great importance to independent research and development, and own provincial-level high technology R&D center. The company is the professional manufacturer of pharmaceutical intermediates and APIs for the anti-infective drugs, anti-AIDS drugs, cardiovascular drugs and gastrointestinal agents. Rivocean has been awarded as the "Science & Technology Enterprise of Zhejiang Province" and the "High-Tech Enterprise of Zhejiang Province" and listed into "National-Level Torch Plan Industrialization Program".
Address: 10/F, Unit 3, Business Center, Jiefang South Road, Taizhou
Tel: +86-576-81818908
Web: www.rivocean.com
Registration No.: 331002000025466
Legal Form: Limited Liabilities Company
Registered Capital: CNY 50,000,000
Legal Representative: Xu Guangen
Taizhou Mingxiang Chemical Co., Ltd.
-----------------------------------------------------
Address: Yantou Chemical Zone, Taizhou
Tel: 0576-88517030
Registration No.: 331002000026434
Date of Registration: September 2, 1992
Legal Form: Limited Liabilities Company
Registered Capital: CNY 21,600,000
Legal Representative: Xu Guangen
MANAGEMENT
Xu Guangen , Legal Representative, Chairman, and General
Manager
-----------------------------------------------------------------------------------------------------
Gender: M
Age: 46
ID# 332601196706171210
Qualification: University
Working experience (s):
From 2005 to present, working in SC as legal representative, chairman, and general manager
Also working in Rivocean Group Co., Ltd. and Taizhou Mingxiang Chemical Co., Ltd. as legal representative
Xu Linbin Supervisor
----------------------------------------
Gender: F
Age: 42
ID# 332601197105011216
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing chemical products (thiampheniclo, BAH, 2-hydroxy-5- fluorobenzene butanone, DFDK, CHB, 3- p-Hydroxyacetophenone and hydrobromic acid); importing and exporting commodities and technologies.
SC is mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include: thiampheniclo, BAH, 2-hydroxy-5- fluorobenzene butanone, DFDK, CHB, 3- p-Hydroxyacetophenone and hydrobromic acid.
SC sources its materials 95% from domestic market and 5% from the overseas market. SC sells 20% of its products to overseas market and 80% 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.
Staff & Office:
--------------------------
SC is known to have approx. 308 staff at present.
SC owns an area as its operating office & factory of approx. 22,000 sq. meters at the heading address.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
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:
China Construction Bank
AC#: 32001737236059950272
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
|
20,800 |
|
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Notes receivable |
0 |
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Accounts receivable |
69,650 |
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Advances to suppliers |
0 |
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Other receivable |
360 |
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Inventory |
3,340 |
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Non-current assets within one year |
0 |
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Other current assets |
42,780 |
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------------------ |
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Current assets |
136,930 |
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Fixed assets |
55,350 |
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Long-term prepaid expenses |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
21,870 |
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------------------ |
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Total assets |
214,150 |
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============= |
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Short-term loans |
86,050 |
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Notes payable |
0 |
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Accounts payable |
36,490 |
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Other payable |
2,490 |
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Other current liabilities |
30,150 |
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------------------ |
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Current liabilities |
155,180 |
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Non-current liabilities |
0 |
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------------------ |
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Total liabilities |
155,180 |
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Equities |
58,970 |
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------------------ |
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Total liabilities & equities |
214,150 |
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============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
|
Revenue |
252,230 |
|
Cost of sales |
228,670 |
|
Sales expense |
2,700 |
|
Management expense |
11,850 |
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Finance expense |
6,750 |
|
Profit before tax |
1,450 |
|
Less: profit tax |
370 |
|
1,080 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
|
*Current ratio |
0.88 |
|
*Quick ratio |
0.86 |
|
*Liabilities to assets |
0.72 |
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*Net profit margin (%) |
0.43 |
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*Return on total assets (%) |
0.50 |
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*Inventory / Revenue ×365 |
5 days |
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*Accounts receivable/ Revenue ×365 |
101 days |
|
* Revenue/Total assets |
1.18 |
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* Cost of sales / Revenue |
0.91 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
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 is maintained in an average level.
The short-term loans of SC appear fairly large.
SC’s revenue is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
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 fairly 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.62.63 |
|
|
1 |
Rs.101.06 |
|
Euro |
1 |
Rs.84.56 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
RATING EXPLANATIONS
|
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 |
|
-- |
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.