MIRA
INFORM REPORT
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Report Date : |
20.08.2014 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU
QINGQUAN CHEMICAL CO., LTD. |
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Registered Office : |
( |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
28.05.2005 |
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Com. Reg. No.: |
320922000003544 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Includes manufacturing dangerous chemicals and
chemical products; wholesaling chemical products; importing and exporting
commodities and technology. |
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No. of Employees : |
485 |
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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, growth of the
private sector, development of stock markets and a modern banking system, 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 considered important to "economic
security," explicitly looking to foster globally competitive industries.
After keeping its currency tightly linked to the US dollar for years, in July
2005 China 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 and
expanded the daily trading band within which the RMB is permitted to fluctuate.
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. Several factors are
converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and
reiterated at the Communist Party's "Third Plenum" meeting in
November 2013, emphasizes continued economic reforms and the need to increase
domestic consumption in order to make the economy less dependent in the future
on fixed investments, exports, and heavy industry. 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
|
Source
: CIA |
Company name and address
JIANGSU QINGQUAN CHEMICAL CO., LTD.
(YANCHENG CITY COASTAL CHEMICAL INDUSTRIAL
ZONE)
TOUZENG
VILLAGE, BINHUAI TOWN, BINHAI COUNTY
JIANGSU
PROVINCE 224500 PR CHINA
TEL: 86
(0) 515-82056827/68892601/68892808
FAX: 86 (0)
515-84382358
EXECUTIVE SUMMARY
Date of Registration : MAY 28, 2005
REGISTRATION NO. : 320922000003544
LEGAL FORM : shares limited company
REGISTERED CAPITAL : cny 38,000,000
staff : 485
BUSINESS CATEGORY : manufacturing & trading
Revenue : CNY 335,350,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 137,750,000 (AS OF DEC. 31, 2013)
WEBSITE : www.qqpharm.com
E-MAIL :
zjqqhr@qqpharm.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.15 = 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 shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 320922000003544.
SC’s Organization Code Certificate
No.: 77376540-0
SC’s Tax No.: 320922773765400
SC’s registered capital: cny 38,000,000
SC’s paid-in capital: cny 38,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registered Capital |
CNY 5,680,000 |
CNY 12,680,000 |
|
-- |
Registration No. |
3209221101297 |
320922000003544 |
|
2010 |
Company Name |
Jiangsu Arysta Qingquan Chemical
Co., Ltd. |
Jiangsu Qingquan Chemical Co.,
Ltd |
|
Shareholder (s) (% of
Shareholding) |
Zhejiang Taizhou Qingquan
Medical & Chemical Co., Ltd. 85% Wang Ping 10% Shao Jianhua 5% |
Zhejiang Qingquan Pharmaceutical & Chemical (Holdings) Co., Ltd. 100% |
|
|
Legal Form |
Limited Liabilities Company |
One-person Limited Liabilities
Company |
|
|
Legal Representative |
Wang Ping |
Liu Jianhua |
|
|
-- |
Legal Representative |
Liu Jianhua |
Shao Jianhua |
|
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Company Chinese Name |
|
|
|
Shareholder (s) (% of Shareholding) |
Zhejiang Qingquan Pharmaceutical & Chemical (Holdings) Co., Ltd. 100% |
Zhejiang Qingquan Pharmaceutical & Chemical (Holdings) Co., Ltd. 85% Taizhou Qingyuan Investment
& Management Partnership Enterprise (Limited Partnership) ） 15% |
|
|
Legal Form |
One-person Limited Liabilities
Company |
Shares Limited Company |
|
|
Registered Capital |
CNY 12,680,000 |
cny 38,000,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhejiang Qingquan Pharmaceutical &
Chemical (Holdings) Co., Ltd. |
85 |
|
Taizhou Qingyuan Investment
& Management Partnership Enterprise (Limited Partnership |
15 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Shao Jianhua |
|
General Manager and Director |
Zhu Zhaohuo |
|
Director |
Liu Jianhua |
|
Zhu Ji |
|
|
Pan Zhiwei |
|
|
Supervisor |
Ying Suhua |
|
Wang Sheng |
|
|
Gao Changhai |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name % of Shareholding
Zhejiang Qingquan Pharmaceutical &
Chemical (Holdings) Co., Ltd 85
Taizhou Qingyuan Investment & Management
Partnership Enterprise (Limited Partnership) 15
Zhejiang Qingquan Pharmaceutical &
Chemical (Holdings) Co., Ltd.
----------------------------------------------------------------------------------
Registration No.: 331000000019238
Legal Form: Shares Limited Company
Registered Capital: CNY 5,280,000
Legal Representative: Liu Jianhua
Tel.: 86 (0) 576-87772279
Fax: 86 (0) 576-89372277
Email: gsb@qqpharm.com
Website: www.qqpharm.com
Taizhou Qingyuan Investment & Management
Partnership Enterprise (Limited Partnership)
-----------------------------------------------
Registration No.: 331000000059143
MANAGEMENT
Shao
Jianhua, Legal
Representative and Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 51
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Zhu
Zhaohuo, General Manager
and Director
-----------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 52
Ø
Working
experience (s):
At present, working in SC as general manager and director
Director
-----------
Liu Jianhua (Also
working in Zhejiang Qingquan Pharmaceutical & Chemical (Holdings) Co., Ltd.
and Zhejiang Taizhou Qingquan Medical & Chemical
Co., Ltd. as legal representative)
Zhu Ji
Pan Zhiwei
Supervisor
---------------
Ying Suhua
Wang Sheng
Gao Changhai
BUSINESS OPERATION
SC’s registered business scope includes manufacturing dangerous
chemicals and chemical products; wholesaling chemical products; importing and
exporting commodities and technology.
SC is mainly
engaged in manufacturing and selling chemical
products.
SC’s products
mainly include: Furan, 2-Acetyl furan, Pyrrole, (Z) -2
- methoxyimino -2 - (furan -2 - yl) ammonium acetate, 2 - furan carboxylic
acid, tetrahydrofuran, methanol, 1,4 - cyclohexyl acid, etc.
SC sources its materials 100% from domestic
market. SC sells 60% of its products in domestic market, and 40% to overseas
market, mainly U.S.A., etc.
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
Client*
------------------
Nova
Molecular
Staff & Office:
--------------------------
SC is
known to have approx. 485 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
Zhejiang
Taizhou Qingquan Medical & Chemical Co., Ltd.
Legal Representative: Liu Jianhua
Registration No.: 331024000016190
Date of Registration:
Branch:
Jiangsu
Qingquan Chemical Co., Ltd. Binhai Branch
Add: Yanhai Industrial Park, Binhai Economic Development Zone, Yancheng
City, Jiangsu Province, China
Tel: +86-515-68893569
Fax: + 86-515-89112960
E-mail: tyf@qqpharm.com
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 Yancheng Branch
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Cash |
26,840 |
33,350 |
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
69,320 |
68,440 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
2,530 |
1,330 |
|
Inventory |
46,980 |
51,680 |
|
Prepaid
expenses |
0 |
0 |
|
Other current
assets |
27,620 |
17,410 |
|
|
------------------ |
------------------ |
|
Current assets |
173,290 |
172,210 |
|
Long-term
investment |
160 |
160 |
|
Fixed assets |
169,890 |
207,120 |
|
Construction in
progress |
25,470 |
35,240 |
|
Intangible
assets |
34,870 |
46,600 |
|
Long-term prepaid
expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
403,680 |
461,330 |
|
|
============= |
============= |
|
Short-term loans |
66,000 |
54,530 |
|
Notes payable |
22,000 |
21,000 |
|
Accounts payable |
53,140 |
45,470 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
2,460 |
-3,800 |
|
Advances from
clients |
210 |
300 |
|
Other payable |
79,330 |
128,250 |
|
Accrued expenses |
0 |
0 |
|
Other current liabilities |
19,270 |
10,340 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
242,410 |
256,090 |
|
Non-current
liabilities |
50,200 |
67,490 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
292,610 |
323,580 |
|
Equities |
111,070 |
137,750 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
403,680 |
461,330 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
320,930 |
335,350 |
|
Cost of sales |
223,390 |
233,010 |
|
Sales expense |
7,480 |
7,700 |
|
Management expense |
31,420 |
38,260 |
|
Finance expense |
18,720 |
21,990 |
|
Profit before
tax |
59,730 |
29,740 |
|
Less: profit tax |
8,670 |
4,410 |
|
Profits |
51,060 |
25,330 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.71 |
0.67 |
|
*Quick ratio |
0.52 |
0.47 |
|
*Liabilities
to assets |
0.72 |
0.70 |
|
*Net profit
margin (%) |
15.91 |
7.55 |
|
*Return on
total assets (%) |
12.65 |
5.49 |
|
*Inventory /
Revenue ×365 |
54 days |
57 days |
|
*Accounts
receivable / Revenue ×365 |
79 days |
75 days |
|
*Revenue /
Total assets |
0.80 |
0.73 |
|
*Cost of sales
/ Revenue |
0.70 |
0.69 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears
fairly good in its line in both years.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear average.
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.73 |
|
|
1 |
Rs.101.48 |
|
Euro |
1 |
Rs.81.04 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
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|
Report Prepared
by : |
PDT |
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 |
|
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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 |
|
|
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 |
-- |
|
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.