MIRA
INFORM REPORT
|
Report Date : |
21.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
TAIXING
YANGZI PHARM CHEMICAL INDUSTRY 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 : |
15.06.2001 |
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Com. Reg. No.: |
321200400004458 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing and selling chemical products. |
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No. of Employees : |
398 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
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 : |
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 |
|
Risk Category |
ECGC
Classification |
|
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
TAIXING YANGZI PHARM CHEMICAL
INDUSTRY CO., LTD.
NO. 16
XINGANG ROAD, ECONOMIC DEVELOPMENT ZONE, TAIXING
JIANGSU PROVINCE
225400 PR CHINA
TEL: 86
(0) 523-87679356/87673750
FAX: 86
(0) 523-87672150
***Note: SC is also known as TaiXing YangZi Pharm
Chemical Co., Ltd.
EXECUTIVE SUMMARY
Date of Registration : JUNE 15, 2001
REGISTRATION NO. : 321200400004458
LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE ENTERPRISE
REGISTERED CAPITAL : USD 365,000
staff : 398
BUSINESS CATEGORY : manufacturing & trading
Revenue : CNY 613,902,000 (AS OF
DEC. 31, 2013)
EQUITIES : CNY 180,267,000 (AS OF DEC. 31, 2013)
WEBSITE : www.yzyyhg.com
E-MAIL :
zzm@yzyyhg.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
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 limited liabilities company of PRC on June 15, 2001. However, SC changed
to present legal form, and was registered as Chinese-foreign equity joint
venture enterprise of PRC with State Administration of Industry & Commerce
(SAIC) under registration No.: 321200400004458 on April 16, 2004.
SC’s Organization Code Certificate
No.: 72901472-2
SC’s registered capital: USD 365,000
SC’s paid-in capital: USD 365,000 (CNY
3,027,844.92)
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered No. |
001157 |
321200400004458 |
|
|
Registered Legal Form |
Limited Liabilities Co. |
Chinese-Foreign Equity Joint Venture Enterprise |
|
Registered Capital |
CNY 3,030,000 |
USD 365,000 |
|
|
Shareholder (s) (% of
Shareholding) |
Zhao Bingnan 8.75% Ren Wenzhong 11.88% Zhou Zhaoming 17.82% Chen Qilin 23.76% other 33 individuals 37.79% |
Cheng HongYa
(France) 26.58% Chen Qilin 23.75% Zhou Zhaoming 17.84% Ren Wenzhong 11.89% other 5 individuals 19.94% |
|
|
|
Legal Representative |
Chen Qilin |
Zhou Zhaoming |
|
Shareholder (s) (% of
Shareholding) |
Cheng HongYa
(France) 26.58% Chen Qilin 23.75% Zhou Zhaoming 17.84% Ren Wenzhong 11.89% other 5 individuals 19.94% |
Xu Limin 3.29% Cheng HongYa (France) 26.58% Zhou Zhaoming 55.59% Ren Wenzhong 11.89% Wang Bo 2.65% |
|
|
|
Shareholder (s) (% of
Shareholding) |
Xu Limin 3.29% Cheng HongYa (France) 26.58% Zhou Zhaoming 55.59% Ren Wenzhong 11.89% Wang Bo 2.65% |
Cheng HongYa (France) 26.58% Ren Wenzhong 20.30% Wang Bo 13.53% Xu Limin 10.55% Zhou Zhaoming 29.04% |
|
2013 |
Legal Representative |
Zhou Zhaoming |
Pierre Rene Louis Luzeau |
|
Shareholder (s) (% of
Shareholding) |
Cheng HongYa (France) 26.58% Ren Wenzhong 20.30% Wang Bo 13.53% Xu Limin 10.55% Zhou Zhaoming 29.04% |
Novacap Asia-Pacific Limited (Hong Kong) 51% Ren Wenzhong 6.2% Wang Bo 4.13% Hongkong
Decheng Co., Limited 26.5753% Xu Limin 3.2247% Zhou Zhaoming 8.87% |
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Novacap Asia-Pacific Limited
(Hong Kong) |
51 |
|
Ren Wenzhong |
6.2 |
|
Wang Bo |
4.13 |
|
Hongkong
Decheng Co., Limited |
26.5753 |
|
Xu Limin |
3.2247 |
|
Zhou Zhaoming |
8.87 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Pierre Rene Louis Luzeau |
|
Vice Chairman and General
Manager |
Zhou Zhaoming |
|
Director |
Ren
Wenzhong |
|
Chen Xiaoping |
|
|
Golles Roger
Jean Maris Grenier |
|
|
Vanessa Anne
Chou |
|
|
Frederic Liniere |
|
|
Supervisor |
Jean-Pascal Mill |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Novacap Asia-Pacific Limited
(Hong Kong) 51
Ren Wenzhong 6.2
Wang Bo 4.13
Hongkong Decheng Co., Limited 26.5753
Xu Limin 3.2247
Zhou Zhaoming 8.87
Novacap Asia-Pacific Limited (Hong
Kong)
===================================
Date of Registration: April 26, 2013
Registration No.: 1898702
Legal Form: Private
Hongkong Decheng Co., Limited
===========================
Date of Registration: April 9, 2013
Registration No.: 1888114
Legal Form: Private
MANAGEMENT
Pierre Rene Louis Luzeau, Legal Representative and Chairman
---------------------------------------------------------------------------------
Ø
Gender: M
Ø
Passport No.: 08CF794397
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Zhou Zhaoming, Vice Chairman and General Manager
-----------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 52
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman and
general manager
Director
-----------
Ren Wenzhong
Chen Xiaoping
Golles Roger Jean Maris Grenier
Vanessa Anne Chou
Frederic Liniere
Supervisor
--------------
Jean-Pascal Mill
BUSINESS OPERATION
SC’s registered business scope includes Permission management project:
manufacturing 4 - nitro-(benzene) phenol and 4-amino-(benzene) phenol. General
operating items: technology R&D, supplying related technology service in 4
- nitro-(benzene) phenol and 4-amino-(benzene) phenol.
SC is mainly
engaged in manufacturing and selling chemical products.
Brand: SHENGNIAO
SC’s products mainly include:
para aminophenol, Para-Nitrophenol, etc.
SC
sources its materials 60% from domestic market, and 40% from the overseas
market. SC sells 70% of its products in domestic market, and 30% to the
overseas market, mainly U.S.A., India, etc.
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.
*Major Customer:
=============
First Continental
International Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 398
staff at present.
SC rents an area
as its operating office & factory of approx. 21,333 sq. meters at the
heading address.
RELATED COMPANY
SC is known to have a
subsidiary at present:
Jiangsu Decheng Import and Export Co., Ltd.
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:
Bank of China Taixing Sub-branch
AC#: 17765008092038
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
80,302 |
86,536 |
88,285 |
124,140 |
|
|
Notes receivable |
1,657 |
887 |
7,963 |
1,908 |
|
Interest receivable |
0 |
0 |
264 |
478 |
|
Accounts
receivable |
45,384 |
51,292 |
74,712 |
107,154 |
|
Advances to
suppliers |
5,428 |
6,135 |
3,477 |
7,557 |
|
Other receivable |
31,107 |
38,011 |
43,062 |
488 |
|
Inventory |
10,760 |
14,249 |
14,984 |
15,344 |
|
Deferred expense |
0 |
0 |
168 |
0 |
|
Non-current
assets within one year |
0 |
0 |
0 |
0 |
|
Other current
assets |
820 |
2,288 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Current assets |
175,458 |
199,398 |
232,915 |
257,069 |
|
Fixed assets |
47,795 |
45,653 |
122,427 |
122,530 |
|
Long term
investment |
5,000 |
5,000 |
5,000 |
0 |
|
Construction in
progress |
2,844 |
1,987 |
0 |
6,548 |
|
Intangible
assets |
0 |
0 |
0 |
8,462 |
|
Long-term
prepaid expenses |
0 |
0 |
0 |
855 |
|
Deferred income
tax assets |
0 |
0 |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total assets |
231,097 |
252,038 |
360,342 |
395,464 |
|
|
========== |
========== |
========== |
========== |
|
Short-term loans |
25,000 |
30,000 |
80,000 |
50,000 |
|
Notes payable |
57,920 |
53,470 |
60,600 |
88,900 |
|
Accounts payable |
15,449 |
17,634 |
11,268 |
16,691 |
|
Wages payable |
3,316 |
3,763 |
1,682 |
3,644 |
|
Welfares payable |
0 |
0 |
915 |
901 |
|
Taxes payable |
3,953 |
2,798 |
7,642 |
5,957 |
|
Advances from
clients |
147 |
565 |
14 |
0 |
|
Other payable |
4,899 |
5,601 |
7,229 |
26,136 |
|
Accrued expense |
0 |
0 |
6,230 |
6,931 |
|
Other current
liabilities |
3,563 |
11,141 |
1,261 |
3,775 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
114,247 |
124,972 |
176,841 |
202,935 |
|
Non-current
liabilities |
7,916 |
7,389 |
7,915 |
12,262 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
122,163 |
132,361 |
184,756 |
215,197 |
|
Equities |
108,934 |
119,677 |
175,586 |
180,267 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
231,097 |
252,038 |
360,342 |
395,464 |
|
|
========== |
========== |
========== |
========== |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Revenue |
295,708 |
334,627 |
564,677 |
613,902 |
|
Cost of sales |
252,940 |
305,462 |
451,506 |
505,267 |
|
Sales expense |
5,237 |
6,131 |
12,487 |
12,284 |
|
Management expense |
14,693 |
17,326 |
19,688 |
26,780 |
|
Finance expense |
321 |
654 |
-568 |
1,657 |
|
Profit before
tax |
20,380 |
15,833 |
79,403 |
66,641 |
|
Less: profit tax |
6,001 |
4,749 |
19,851 |
18,319 |
|
14,379 |
11,084 |
59,552 |
48,322 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.54 |
1.60 |
1.32 |
1.27 |
|
*Quick ratio |
1.44 |
1.48 |
1.23 |
1.19 |
|
*Liabilities to
assets |
0.53 |
0.53 |
0.51 |
0.54 |
|
*Net profit
margin (%) |
4.86 |
3.31 |
10.55 |
7.87 |
|
*Return on
total assets (%) |
6.22 |
4.40 |
16.53 |
12.22 |
|
*Inventory /
Revenue ×365 |
14 days |
16 days |
10 days |
10 days |
|
*Accounts
receivable/ Revenue ×365 |
57 days |
56 days |
49 days |
64 days |
|
*
Revenue/Total assets |
1.28 |
1.33 |
1.57 |
1.55 |
|
* Cost of
sales / Revenue |
0.86 |
0.91 |
0.80 |
0.82 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good in four
years.
l
SC’s net profit margin is fairly good in 2012 and
2013.
l
SC’s return on total assets is fairly good in 2012
and 2013.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level in four years.
l
SC’s quick ratio is maintained in a fairly good
level in four years.
l
The inventory of SC appears is maintained in an
average level.
l
The accounts receivable of SC is maintained in an average
level.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average in four years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.66 |
|
|
1 |
Rs.100.80 |
|
Euro |
1 |
Rs.80.72 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
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 |
|
|
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.