MIRA INFORM REPORT
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Report Date : |
11.10.2013 |
IDENTIFICATION DETAILS
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Name : |
TIANJIN GREAT WALL CHEMICAL CO., LTD. |
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Registered Office : |
East Side Of Xiliucheng, Zhangjiawo Town, Xiqing District, Tianjin
300380 Pr |
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Country : |
China |
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Financials (as on) : |
31.08.2013 |
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Date of Incorporation : |
08.02.1990 |
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Com. Reg. No.: |
120111000005339 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling all kinds of
chemicals. |
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No. of Employees : |
223 |
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 – March, 31st, 2013
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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.
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Source
: CIA |
company name and address
tianjin great wall chemical Co., ltd.
EAST side of xiliucheng, zhangjiawo town,
xiqing district, tianjin 300380 PR CHINA
TEL: 86 (0) 22-87985971-8021 FAX: 86 (0) 22-87983835
EXECUTIVE SUMMARY
INCORPORATION DATE : feb. 8, 1990
REGISTRATION NO. : 120111000005339
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. zhang ZHI (CHAIRMAN)
STAFF STRENGTH :
223
REGISTERED CAPITAL : cny 8,000,000
BUSINESS LINE :
mANUFACTURING
TURNOVER :
CNY 131,480,000 (JAN. 1 TO AUG.
31, 2013)
EQUITIES :
CNY 88,050,000 (AS OF AUG. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : STABLE
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 RMB
- China Ren Min Bi Yuan
SC was registered as a collective-owned
enterprise at local Administration for Industry & Commerce (The
official body of issuing and renewing business license) on Feb. 8, 1990 and has
been under present ownership since April of 2005.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scopes include manufacturing and managing
2-azyl-1- naphthalene monosulfonic acid (Tobias acid), 2- naphthol, 2-
naphthylamine-1.5- disulfonic acid (Sulpho Tobias Acid), 2- azyl-5-naphthol-7-
sulfoacid(J acid), 5,5- dyhydroxy-2,2- dinaphthylurea-7,7-
Naphthalenedisulfonate (Scarlet acid sodium salt); manufacturing refined
naphthalene; importing and exporting commodities and technologies(with permit
if needed).; wholesaling and retailing hardware and electrical materials.
SC is mainly engaged in manufacturing and selling all kinds of
chemicals.
Mr. Zhang Zhi is the legal representative and chairman of SC at present.
SC is known to have approx. 223 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 Tianjin. Our
checks reveal that SC rents the total premise about 200,000 square meters.
SC is not known to host website of its own at present.
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2005-04 |
Legal form |
Collective-Owned Enterprise |
Limited Liabilities Company |
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Registered name |
Tianjin Great Wall Chemical Factory |
Tianjin Great Wall Chemicals Co., Ltd. |
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Registration No. |
1201111005359 |
1201112005453 |
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Shareholdings |
Tianjin Xiqing Zhangjiawo Industrial Company (in Chinese Pinyin) 100% |
Zhang Fugui 60% Zhang Fuqiang 15.65% Zhan Xiuchen 12.35% Zhang Yuncai 10.5% Wang Yongguo 1.5% |
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Unknown |
Legal representative |
Zhang Fugui |
Zhang Fuqiang |
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Registered capital |
CNY 1,000,000 |
CNY 8,000,000 |
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Legal representative |
Zhang Fuqiang |
Zhang Zhi |
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Registration No. |
1201112005453 |
120111000005339 |
SC has obtained the Quality Management System Certificate.
See below for SC as executive party (defendant).
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Executed Party |
Tianjin Great Wall Chemical Co., Ltd. |
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Court |
Tianjin Municipal Xiqing District People's Court |
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Date of Case |
June 5, 2012 |
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Case Number |
(2012) 01287 |
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Claim Amount |
RMB 191,090 |
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Case Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of action,
judgment or other information.
MAIN SHAREHOLDERS:
Name % of Shareholding
Zhang Fugui 60
Zhang Fuqiang 15.65
Zhan Xiuchen 12.35
Zhang Yuncai 10.5
Wang Yongguo 1.5
Legal
representative and chairman：
Mr. Zhang Zhi, with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and
chairman.
SC is mainly engaged in manufacturing and selling all kinds of
chemicals.
SC’s products mainly include:
Tobias Acid, and Sulpho Tobias Acid, etc.
SC sources its materials 70% from domestic market and 30% from overseas
market. SC sells 40% of its products in domestic market, mainly in Jiangsu
province, and 60% to overseas market, mainly to Southeast Asia.
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 15-30 days.
Note: SC’s management declined to release its customer and supplier
details.
SC’s accountant refused to disclose the information about subsidiaries.
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.
Agricultural Bank of China
AC#：020601040001886
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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As of Aug. 31,
2013 |
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Cash & bank |
9,020 |
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Bills receivable |
9,820 |
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Inventory |
27,960 |
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Accounts receivable |
11,630 |
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Advances to suppliers |
0 |
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Other receivables |
16,490 |
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Other current assets |
0 |
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------------------ |
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Current assets |
74,920 |
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Fixed assets net value |
19,150 |
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Long term investment |
15,000 |
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Other assets |
8,820 |
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------------------ |
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Total assets |
117,890 |
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============= |
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Current liabilities |
29,840 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
29,840 |
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Equities |
88,050 |
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------------------ |
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Total liabilities & equities |
117,890 |
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============= |
Note: SC’s
management declined to release its detailed Balance Sheet.
Income Statement
Unit: CNY’000
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|
Jan.
1 to Aug. 31, 2013 |
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Turnover |
131,480 |
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Cost of goods sold |
120,080 |
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Taxes and additional of main operation |
770 |
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Add: Income from other operations |
910 |
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Sales expense |
0 |
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Management expense |
9,110 |
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Finance expense |
250 |
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Non-operating income |
400 |
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Non-operating expense |
850 |
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Profit before tax |
1,730 |
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Less: profit tax |
130 |
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Profits |
1,600 |
Important Ratios
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As of Aug. 31,
2013 |
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*Current ratio |
2.51 |
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*Quick ratio |
1.57 |
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*Liabilities to assets |
0.25 |
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*Net profit margin (%) |
1.22 |
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*Return on total assets (%) |
1.36 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
1.12 |
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* Cost of goods sold/Turnover |
0.91 |
PROFITABILITY:
AVERAGE
The turnover 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 goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears fairly large.
The accounts receivable of SC appears average.
SC’s turnover is in an average 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 average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
|
|
1 |
Rs.99.02 |
|
Euro |
1 |
Rs.83.87 |
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 |
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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 |
|
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 |
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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 |
|
<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.