MIRA INFORM REPORT
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Report Date : |
02.09.2013 |
IDENTIFICATION DETAILS
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Name : |
TTCA Co., Ltd. |
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Registered Office : |
No. 27 South Xin’an Road, North District, Anqiu, Weifang, Shandong
Province, 262100 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
16.08.2000 |
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Com. Reg. No.: |
370000400001856 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and selling citric acid salts,
citric acid series products. |
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No. of Employees : |
1,500 |
RATING & COMMENTS
|
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 : |
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 |
|
Risk Category |
ECGC
Classification |
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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
TTCA Co., Ltd.
NO. 27 SOUTH XIN’AN ROAD, NORTH DISTRICT,
ANQIU, WEIFANG, SHANDONG PROVINCE, 262100 PR CHINA
TEL: 86 (0) 536-4222798/2262383/4222799 FAX: 86 (0) 536-4221818/4221500
EXECUTIVE SUMMARY
INCORPORATION DATE : AUGUST 16, 2000
REGISTRATION NO. : 370000400001856
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. LIU HAIQING (CHAIRMAN)
STAFF STRENGTH :
1,500
REGISTERED CAPITAL : USD 15,772,900
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 811,060,000 (UNAUDITED, AS OF
DEC. 31, 2012)
EQUITIES :
CNY 95,880,000 (UNAUDITED, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fairLY 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
SC was registered as a Chinese-foreign
equity joint venture enterprise at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on August 16, 2000.
Company Status: Chinese-Foreign Equity Joint Venture This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing and selling citric
acid salt, citric acid series products, fly ash (autoclave), purchasing and processing
grains; wholesaling gold.
SC is mainly engaged in manufacturing and selling citric acid salts,
citric acid series products.
Mr. Liu Haiqing has been legal representative, chairman and general
manager of SC since 2000.
SC is known to have approx. 1,500 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 Anqiu. Our
checks reveal that SC owns the total premise about 450,000 square meters.
http://www.ttca.com.cn/
The design is professional and the content is well organized. At present it is in
both English and Chinese versions.
Email: ttca@vip.163.com
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration No. |
003907 |
370000400001856 |
|
Registered capital |
CNY 32,000,000 |
Present Amount |
SC’s quality system meets the international standards of ISO 9001 and
HACCP.
Honors:
The title of "Model Enterprise of Circular Economy" was won in
Nov. 2006 over all other corporations in national fermentation industry.
The annual "Advanced Enterprise in Environmental Protection"
was one of our honorable reputations Chinese Citric Acid business world granted
us in Nov. 2006.
See below for SC as executive party (defendant).
|
Executed Party |
TTCA Co., Ltd. |
|
Court |
Anqiu City, Shandong Province People's Court |
|
Date of Case |
|
|
Case Number |
(2012) 00265 |
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Claim Amount |
RMB 15,000 |
|
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
Anqiu Tiantian Investment Co., Ltd. (In Chinese Pinyin) 75
Gain United (H.K.) Limited 25
Anqiu Tiantian Investment Co., Ltd. (In Chinese Pinyin)
=========================================
Registered no.: 370784228011840
Legal representative: Liu Haiqing
Gain United (H.K.) Limited
=================
Registration No.: 0921596
Registered Legal Form: Private
Legal representative, chairman and general manager:
Mr. Liu Haiqing, born in 1965 with university education. He is currently
responsible for the overall management of SC.
Working
Experience(s):
From 2000 to present Working
in SC as chairman, legal representative and general manager
Also working in Anqiu Tiantian Investment Co., Ltd. (In Chinese Pinyin),
Anqiu Tiantian Biochemical Co., Ltd. (In Chinese Pinyin) and Anqiu Tiantian
Gardening Engineering Co., Ltd. (In Chinese Pinyin) as legal representative
SC is mainly engaged in manufacturing and selling citric acid salts,
citric acid series products.
Main products:
Citric acid anhydrous, citric acid monohydrate, sodium citrate,
tri-potassium citrate.
SC sources its materials 98% from domestic market and 2% from overseas
market. SC sells 20% of its products in domestic market, and 80% to overseas
market, mainly European, American and Southeast Asian 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.
Note: SC’s management declined to release its customer and supplier
details.
Anqiu Tiantian Biochemical Co., Ltd. (In Chinese Pinyin)
Registered no.: 370784228009252
Legal representative: Liu Haiqing
Anqiu Tiantian Gardening Engineering Co., Ltd. (In Chinese Pinyin)
Registered no.: 370784000000799
Legal representative: Liu Haiqing
SC is said to invest in other companies, but the detail is not
available.
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.
Bank of China Anqiu Branch
AC#：207803307975
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
|
Cash & bank |
161,100 |
339,290 |
|
Short-term investments |
1,000 |
/ |
|
Notes receivable |
2,640 |
1,260 |
|
Inventory |
414,760 |
283,420 |
|
Accounts receivable |
20,210 |
47,340 |
|
Other receivables |
7,100 |
17,220 |
|
Prepaid expenses |
12,640 |
/ |
|
Other current assets |
0 |
22,760 |
|
|
------------------ |
------------------ |
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Current assets |
619,450 |
711,290 |
|
Fixed assets net value |
918,360 |
897,040 |
|
Projects under construction |
28,400 |
17,820 |
|
Project materials |
2,130 |
/ |
|
Long-term investments |
3,960 |
51,960 |
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Intangible assets and other assets |
27,800 |
27,790 |
|
|
------------------ |
------------------ |
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Total assets |
1,600,100 |
1,705,900 |
|
|
============= |
============= |
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Short loans |
744,400 |
950,650 |
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Notes payable |
165,700 |
395,120 |
|
Accounts payable |
71,460 |
69,130 |
|
Taxes payable |
-28,930 |
-5,350 |
|
Other Accounts payable |
116,410 |
-26,040 |
|
Other current liabilities |
120 |
110 |
|
|
------------------ |
------------------ |
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Current liabilities |
1,069,160 |
1,383,620 |
|
Long term liabilities |
304,930 |
226,400 |
|
|
------------------ |
------------------ |
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Total liabilities |
1,374,090 |
1,610,020 |
|
Shareholders equities |
226,010 |
95,880 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
1,600,100 |
1,705,900 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
|
Turnover |
1,194,900 |
811,060 |
|
Cost of goods sold |
1,043,030 |
841,300 |
|
Taxes and additional of main operation |
2,850 |
430 |
|
Income from other operations |
6,410 |
12,060 |
|
Sales expense |
33,740 |
30,750 |
|
Management expense |
31,220 |
38,610 |
|
Finance expense |
35,330 |
83,170 |
|
Investment income |
0 |
0 |
|
Subsidy income |
0 |
4,010 |
|
Non-operating income |
5,680 |
990 |
|
Non-operating expense |
1,030 |
7,380 |
|
Profit before tax |
59,790 |
-173,520 |
|
Less: profit tax |
8,970 |
0 |
|
Profits |
50,820 |
-173,520 |
Note: The financial reports for Yr2012 have not been audited.
Important Ratios
=============
|
|
as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
|
*Current ratio |
0.58 |
0.51 |
|
*Quick ratio |
0.19 |
0.31 |
|
*Liabilities to assets |
0.86 |
0.94 |
|
*Net profit margin (%) |
4.25 |
-21.39 |
|
*Return on total assets (%) |
3.18 |
-10.17 |
|
*Inventory /Turnover ×365 |
127 days |
128 days |
|
*Accounts receivable/Turnover ×365 |
7 days |
22 days |
|
*Turnover/Total assets |
0.75 |
0.48 |
|
* Cost of goods sold/Turnover |
0.87 |
1.04 |
PROFITABILITY:
FAIR
The turnover of SC appears fairly good but it decreased in 2012.
SC’s net profit margin is average in 2011 but poor in 2012.
SC’s return on total assets is average in 2011 but fair in 2012.
SC’s cost of goods sold is average in 2011 but high in 2012, comparing
with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a poor level.
The inventory of SC appears large in 2011, and fairly large in 2012.
The accounts receivable of SC appears average.
SC’s short-term loan appears large.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered large-sized in its line with fair financial conditions.
The large amount of short loans and inventory could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.57 |
|
|
1 |
Rs.103.34 |
|
Euro |
1 |
Rs.88.16 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.