MIRA
INFORM REPORT
|
Report Date : |
09.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
SUZHOU TIANMA SPECIALTY CHEMICALS CO., LTD. |
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Registered Office : |
No. 199-1 East Huayuan Road, Mudu Town, Wuzhong District, Suzhou, Jiangsu Province, 215101 PR |
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Country : |
China |
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Financials (as on) : |
30.06.2013 |
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Date of Incorporation : |
13.01.1999 |
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Com. Reg. No.: |
320500000046770 |
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Legal Form : |
Shares limited co.
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Line of Business : |
Manufacturing and selling chemical products |
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No. of Employees : |
1,422 |
RATING & COMMENTS
|
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 – 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
SUZHOU TIANMA
SPECIALTY CHEMICALS CO., LTD.
NO. 199-1 EAST
HUAYUAN ROAD, MUDU TOWN, WUZHONG DISTRICT,
SUZHOU, JIANGSU
PROVINCE, 215101 PR CHINA
TEL: 86 (0)
512-66571019/66319537
FAX: 86 (0) 512-66571020/68080175
EXECUTIVE SUMMARY
INCORPORATION DATE :
JANUARY 13, 1999
REGISTRATION NO. : 320500000046770
REGISTERED LEGAL FORM : SHARES LIMITED CO.
CHIEF EXECUTIVE : MR. XU RENHUA
(CHAIRMAN)
STAFF STRENGTH : 1,422
REGISTERED CAPITAL : CNY 285,650,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 500,774,000 (CONSOLIDATED,
JAN. 1 TO JUN. 30, 2013)
EQUITIES :
CNY 1,221,360,000 (CONSOLIDATED, AS OF JUN. 30, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.12 = 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’s correct address should
be the heading one.
SC was registered as a shares limited co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be
domiciled in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within one year
of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes Permit Items: manufacturing bulk drug (limited for branch); General items: importing and exporting various kinds of commodities and technology, excluding the goods forbidden by the government, selling octylglucamine series, A ester series, sesamol, KBQ, protected amino acids Series, AKD series, cationic dispersed rosin. The following items could only for branch operating: manufacturing Portuguese zinn amine series, A ester series,
Sesamol (7 ester), KBQ, Protect amino acids series, AKD series, cationic rosin emulsion and API.
SC is mainly engaged in manufacturing and selling chemical products.
Mr. Xu Renhua is the legal representative and chairman of SC at present.
SC is known to have approx. 1,422 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Suzhou. Our checks reveal that SC rents the total premise about 110,000 square meters.
SC’s another address is located in No. 122 Huqing Road, High & New District, Suzhou 122
http://www.tianmachem.com The design is professional and the content is well organized. At present the web site is both in Chinese and English versions.
E-mail: stock@tianmachem.com
SC has got the certificate ISO9001.
SC was listed in Shenzhen Stock Exchange Market with the stock code of 002453.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2010 |
Registered capital |
CNY 90,000,000 |
CNY 120,000,000 |
|
2012 |
Registered capital |
CNY 120,000,000 |
CNY 240,000,000 |
|
2013-7 |
Registered capital |
CNY 240,000,000 |
Present amount |
Tax registration number: 320500713231212
Organization code: 71323121-2
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS: (as of June 30, 2013)
Name %
of Shareholding
Suzhou Tianma Pharma Group Co., Ltd. 40.88
Shenzhen Capital Group Co., Ltd. 2.59
Xinjiang Guanxilai Equity Investment Partnership (Limited partnership 2.1
Huaihai Holding Group Co., Ltd. 2
Li Tao 1.94
Ping’an UOB Fund Company – Ping’an Bank – Ping’an Trust Ping’an
Wealth Chuangying Stage I, No. 26, Jihe
Capital Trust Plan 1.89
Century Wealth Investment Co., Ltd. 1.86
Shanghai Zhengda Investment Management Co., Ltd. 1.86
China Galaxy Securities Co., Ltd. 1.84
Ren Haifeng 1.21
Other shareholders 41.83
Suzhou Tianma Pharma Group Co., Ltd.
=============================
Legal representative: Xu Renhua
Tel: 86 0512-68246636/68240980
Fax: 86 0512-66577932
E-mail: info@tianmapharma.com
Website: http://www.tianmapharma.com/
Shenzhen Capital Group Co., Ltd.
========================
Registered no.: 440301103269709
Legal representative: Jin Haitao
Registered capital: CNY 3,501,874,600
Tel: 0755-82912888
Fax: 0755-82912880
Huaihai Holding Group Co., Ltd.
========================
Web: http://www.huaihaigroup.com/
Shanghai Zhengda Investment Management Co., Ltd.
======================================
Registered no.: 310115000205147
Legal representative: Zhu Nansong
Registered capital: CNY 300,000,000
Date of incorporation:
Web: http://www.zendai.com.cn/
Tel: 021-61682888
Fax: 021-61682999
China Galaxy Securities Co., Ltd.
========================
Registered no.: 100000000040694
Legal representative:
Chen Youan
Registered capital: CNY 7,537,250,000
Web: http://www.chinastock.com.cn/
Legal representative and Chairman:
Mr. Xu Renhua, born in 1958, with junior college education. He is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman;
Also working in Suzhou Tianma Pharma
Group Co., Ltd., Suzhou Sikai Investment Development Co., Ltd., and Suzhou
Hanyuan International Business Exhibition Center Co., Ltd. as legal
representative and chairman.
General Manager:
Mr. Ren Haifeng, born in 1975, with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager
Directors:
Xu Min
Yu Qiping
Yi Enjiang
Yu Rongfa
Zhang Yongnian
Supervisors:
Jin Baiming
Jiang Zonghu
SC is mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include: fmoc-amino acids, boc-amino acids, cbz-amino acids, amino acid derivates, protecting & coupling reagents, advanced intermediates, paper making
SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 60% of its products in domestic market, and 40% to overseas market, mainly Asian market.
The buying terms of SC include Check, 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.
*Major Customers:
==============
PT.Eka Chemicals Indonesia
MARES.P.A
Zhejiang Rongcheng Paper Co., Ltd.
Note: SC’s management declined to release its supplier details.
Suzhou Sikai Investment
Development Co., Ltd.
Legal representative: Xu Renhua
Suzhou Hanyuan International
Business Exhibition Center Co., Ltd.
Legal representative: Xu Renhua
Suzhou Tianma Pharma Group Tianji
Bio-Pharmaceutical Co., Ltd.
Etc.
SC is known to have the following
subsidiaries:
==================================
Tianhe Chemicals (Suzhou) Co.,
Ltd.
Suzhou Zhongke Tianma Peptide
Engineering Center Co., Ltd.
Nantong Nabaiyuan Chemical Co.,
Ltd.
Shandong Tian’an Chemical Co.,
Ltd.
Registered no.: 371424200000492
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.
China Construction Bank Suzhou Branch
AC#: 3220199435734
Bank of Suzhou Mudu Sub-branch
AC#: 1102021029000576422
China Construction Bank Suzhou Wuzhong Sub-branch Office
AC#: 322-1400-660-122-0046-942 (USD account)
Relationship: Normal.
Consolidated Balance Sheet
|
Unit: CNY’000 |
as of Dec. 31, 2012 |
As of Jun. 30, 2013 |
|
Cash & bank |
75,407 |
551,186 |
|
Notes receivable |
49,848 |
62,077 |
|
Inventory |
142,884 |
161,433 |
|
Accounts receivable |
226,221 |
236,581 |
|
Advances to supplies |
47,715 |
57,249 |
|
Other receivables |
17,625 |
100,041 |
|
Other current assets |
903 |
369 |
|
|
------------------ |
------------------ |
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Current assets |
560,603 |
1,168,936 |
|
Fixed assets |
418,796 |
401,180 |
|
Projects under construction |
90,946 |
143,500 |
|
Project materials |
8,788 |
6,068 |
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Investment real estate |
1,684 |
1,618 |
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Intangible assets |
94,927 |
103,124 |
|
Deferred tax assets |
4,846 |
4,850 |
|
Development expense |
10,222 |
15,179 |
|
Long-term investment |
2,860 |
2,860 |
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Goodwill |
63,479 |
63,479 |
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Other assets |
0 |
0 |
|
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------------------ |
------------------ |
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Total assets |
1,257,151 |
1,910,794 |
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============= |
============= |
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Short loans |
288,500 |
413,500 |
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Accounts payable |
136,685 |
174,939 |
|
Notes payable |
15,500 |
62,500 |
|
Advances from customers |
3,230 |
14,443 |
|
Payroll payable |
3,072 |
2,756 |
|
Taxes payable |
12,380 |
7,791 |
|
Dividend payable |
419 |
3,112 |
|
Interest payable |
355 |
0 |
|
Other Accounts payable |
2,842 |
6,548 |
|
Other current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
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Current liabilities |
462,983 |
685,589 |
|
Non-current liabilities |
29,014 |
3,845 |
|
|
------------------ |
------------------ |
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Total liabilities |
491,997 |
689,434 |
|
Equities |
765,154 |
1,221,360 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
1,257,151 |
1,910,794 |
|
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============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
as of Dec. 31, 2012 |
Jan. 1 to Jun. 30,
2013 |
|
Turnover |
1,044,015 |
500,774 |
|
Cost of goods sold |
824,546 |
406,383 |
|
Taxes and additional of main operation |
3,215 |
1,624 |
|
Sales expense |
38,085 |
16,627 |
|
Management expense |
70,044 |
33,812 |
|
Finance expense |
15,964 |
7,665 |
|
Asset impairment loss |
6,831 |
670 |
|
Investment income |
163 |
180 |
|
Non-operating income |
8,549 |
3,361 |
|
Non-operating expense |
1,244 |
810 |
|
Profit before tax |
92,798 |
36,724 |
|
Less: profit tax |
17,828 |
7,943 |
|
Profits |
74,970 |
28,781 |
Important Ratios
=============
|
|
as of Dec. 31, 2012 |
As of Jun. 30, 2013 |
|
*Current ratio |
1.21 |
1.71 |
|
*Quick ratio |
0.90 |
1.47 |
|
*Liabilities to assets |
0.39 |
0.36 |
|
*Net profit margin (%) |
7.18 |
5.75 |
|
*Return on total assets (%) |
5.96 |
1.51 |
|
*Inventory /Turnover ×365 |
50 days |
/ |
|
*Accounts receivable/Turnover ×365 |
80 days |
/ |
|
*Turnover/Total assets |
0.83 |
0.26 |
|
* Cost of goods sold/Turnover |
0.79 |
0.81 |
PROFITABILITY: FAIRLY
GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good in 2012, but average in the 1st half of 2013.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC is average.
The accounts receivable of SC appears average.
The short-term loan of SC appears fairly large.
SC’s turnover is in a fair level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is low.
Overall financial condition of the SC: Fairly Good.
SC is considered large-sized in its line with fairly good financial conditions. The large amount of short-term loan could be a threat to SC’s financial condition. A credit line up to USD 8,000,000 would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.69 |
|
|
1 |
Rs.99.20 |
|
Euro |
1 |
Rs.83.69 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.