MIRA INFORM REPORT
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Report Date : |
07.04.2014 |
IDENTIFICATION DETAILS
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Name : |
JINGBO AGROCHEMICALS TECHNOLOGY CO., LTD. |
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Registered Office : |
Economic Development Zone, Boxing County, Binzhou, Shandong Province 256599 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
31.05.2011 |
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Com. Reg. No.: |
370000200019292 |
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
Subject is engaged in manufacturing and selling pesticide and
agrochemical products |
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No. of Employees : |
600 |
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 : |
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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 2013 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
consumption; (b) facilitating higher-wage job opportunities for the aspiring
middle class, including rural migrants and increasing numbers of college
graduates; (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. Debt overhang from
its credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future.
However, China has made only marginal progress toward these rebalancing goals.
The new government of President XI Jinping has signaled a greater willingness
to undertake reforms that focus on China's long-term economic health, including
giving the market a more decisive role in allocating resources.
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Source
: CIA |
Company
name and address
JINGBO AGROCHEMICALS TECHNOLOGY CO., LTD.
ECONOMIC DEVELOPMENT ZONE, BOXING COUNTY, BINZHOU,
SHANDONG PROVINCE 256599 PR CHINA
TEL: 86 (0) 543-2511996/2874987
FAX: 86 (0) 543-2511096EXT.855
EXECUTIVE
SUMMARY
INCORPORATION DATE : MAY 31, 2011
REGISTRATION NO. :
370000200019292
REGISTERED LEGAL FORM : SHARES LIMITED CO.
CHIEF EXECUTIVE :
MR. MA YUNSHENG (CHAIRMAN)
STAFF STRENGTH :
600
REGISTERED CAPITAL : CNY 120,000,000
BUSINESS LINE :
manufacturing AND TRADING
TURNOVER :
CNY 523,210,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 221,720,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.20 =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 name should be the heading one.
SC was registered as a shares limited co. at Shandong Provincial
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on May 31,
2011.
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 selling sideline products,
agricultural film and chemical products (excluding the hazard products);
selling plant growth regulators, trace elements and fertilizer; manufacturing
water soluble fertilizer; pesticide technology research, technical consulting
and intermediary services agency; import and export of goods and technologies;
the following business is operating by its branches: manufacturing and selling
packaging and decoration presswork, other printings and packaging materials and
package.
SC is mainly engaged in manufacturing and selling pesticide and
agrochemical products.
Mr. Ma Yunsheng is the legal representative and chairman of SC at
present.
SC is known to have approx. 600 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the development zone of Boxing
County. Our checks reveal that SC owns the total premise, but SC’s accountant
refused to release the gross area.
http://www.jbnh.cn
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: contact@jbnh.cn
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2012 |
Registered capital |
CNY 95,000,000 |
Present amount |
|
% of shareholding |
Ma Yunsheng 41.05% Shi Qingling 4.11% Yang Ruibo 4.05% Zhang Jing 3.17% Dai Ronghua 2.33% Zhang Jinru 1.68% Zhang Jing 1.68% Wei Nengchun 1.41% Other 60 shareholders 40.52% |
Present ones |
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 576601810
MAIN SHAREHOLDERS:
Name Investment amount
(CNY’000) % of Shareholding
Ma Yunsheng 64,000 53.33
Shi Qingling 3,900 3.25
Yang Ruibo 3,850 3.21
Zhang Jing
3,010 2.51
Dai Ronghua 2,210 1.84
Zhang Jinru 1,600 1.33
Zhang Jing 1,600 1.33
Wei Nengchun 1,340 1.12
Other 60 shareholders 38,490 32.08
Legal
representative and Chairman:
Mr. Ma Yunsheng, ID# 37090219621202XXXX, born in 1962 with Master’s 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 Shandong Chambroad Holding Co., Ltd., Shandong Chambroad
Petrochemicals Co., Ltd., etc. as legal representative
SC is mainly engaged in manufacturing and selling pesticide and
agrochemical products.
SC’s products mainly include weedicide, insecticide, herbicide
SC sources its materials and products 100% from domestic market. SC
sells 30% of its products to overseas market, and 70% in domestic 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.
Note: SC’s
management declined to release its major clients and Suppliers.
SC is known to have 2 branches at present:
Jingbo Agrochemicals Technology Co., Ltd. Ji’nan Branch
Registered no.: 370127300005184
Principal: Wang Dianhai
Jingbo Agrochemicals Technology Co., Ltd. Xincheng Printing Branch
Related companies:
Shandong Chambroad Holding Co., Ltd.
Registered no.: 371625228103259
Legal representative: Ma Yunsheng
Tel: 0543-2874995
Shandong Chambroad Petrochemicals Co., Ltd.
Registered no.: 371625018011320
Legal representative: Ma Yunsheng
Tel: 0543-2616341
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.
SC’s management declined to release its bank details.
Balance
Sheet
Unit: CNY’000
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as
of Dec. 31, 2012 |
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Cash & bank |
21,980 |
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Notes receivable |
9,550 |
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Inventory |
185,230 |
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Accounts receivable |
68,900 |
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Advances to suppliers |
41,530 |
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Other receivables |
6,310 |
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Other current assets |
0 |
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------------------ |
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Current assets |
333,500 |
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Fixed assets net value |
131,280 |
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Projects under construction |
16,800 |
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Long term investment |
10,500 |
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Intangible assets |
54,520 |
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Other assets |
490 |
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Total assets |
547,090 |
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============= |
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Short loans |
184,700 |
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Notes payable |
46,430 |
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Accounts payable |
40,250 |
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Other payable |
6,740 |
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Accrued payroll |
4,480 |
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Taxes payable |
-4,060 |
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Advances from clients |
44,310 |
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Other current liabilities |
0 |
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Current liabilities |
322,850 |
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Long term liabilities |
2,520 |
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Total liabilities |
325,370 |
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Equities |
221,720 |
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Total liabilities & equities |
547,090 |
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Income
Statement
Unit: CNY’000
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as
of Dec. 31, 2012 |
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Turnover |
523,210 |
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Cost of goods sold |
434,290 |
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Taxes and additional of main operation |
150 |
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Sales expense |
7,730 |
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Management expense |
40,330 |
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Finance expense |
20,110 |
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Non-operating income |
4,080 |
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Non-operating expense |
170 |
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Asset impairment loss |
550 |
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Profit before tax |
23,960 |
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Less: profit tax |
8,180 |
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Profits |
15,780 |
Important
Ratios
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as of Dec. 31,
2012 |
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*Current ratio |
1.03 |
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*Quick ratio |
0.46 |
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*Liabilities to assets |
0.59 |
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*Net profit margin (%) |
3.02 |
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*Return on total assets (%) |
2.88 |
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*Inventory /Turnover ×365 |
130 days |
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*Accounts receivable/Turnover ×365 |
49 days |
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*Turnover/Total assets |
0.96 |
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* Cost of goods sold/Turnover |
0.83 |
PROFITABILITY: AVERAGE
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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 average, comparing with
its turnover.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a normal
level.
·
SC’s quick ratio is maintained in a fair level.
·
The inventory of SC appears large in 2012.
·
The accounts receivable of SC is maintained in an
average level.
·
SC’s short-term loan appears large in 2012.
·
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
·
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory and short loans could be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.32 |
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|
1 |
Rs.100.04 |
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Euro |
1 |
Rs.82.65 |
INFORMATION DETAILS
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Analysis Done by
: |
SUM |
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Report Prepared
by : |
NNA |
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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<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.