MIRA INFORM REPORT
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Report Date : |
22.02.2014 |
IDENTIFICATION DETAILS
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Name : |
YIXING HENGXING FINE CHEMICAL CO., LTD. |
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Registered Office : |
Yongning Road, Yixing Economic Development Zone Yixing, Wuxi, Jiangsu Province 214213 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
14.12.2006 |
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Com. Reg. No.: |
320282000087646 |
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Legal Form : |
Limited
Liabilities Company |
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Line of Business : |
Manufacturing Methyl isopropyl ketone, 2-pentanone, 3-pentanone, Cyclopentanone, 2-cyclohexanone, 2-heptanone, 2,4-Dimethyl-3-pentanone, Acetone, 4-heptanone, Propionic acid, Butyric acid, Isobutyric acid, Isobutyl isobutyrate, Butyl butyrate, and Ethyl butyrate; wholesaling dangerous chemicals; ordinary freight; manufacturing and selling 5-Nonanone, 6-Undecanone, 2-Octanone, 2-Undecanone, Isovaleric acid, isoamyl isovalerate, and wooden packing box; research & development & service for chemical products and chemical technology; importing and exporting commodities and technology. |
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No. of Employees : |
180 |
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 : |
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 – 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 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
YIXING HENGXING FINE
CHEMICAL CO., LTD.
YONGNING ROAD, YIXING ECONOMIC DEVELOPMENT ZONE
YIXING, WUXI, JIANGSU PROVINCE 214213 PR CHINA
TEL: 86 (0) 510-87823598
FAX: 86 (0) 510-87823596
EXECUTIVE
SUMMARY
Date of Registration : december 14, 2006
REGISTRATION NO. : 320282000087646
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : ZHANG qian (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 30,000,000
staff : 180
BUSINESS CATEGORY :
manufacturing & TRADING
Revenue : CNY 96,677,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 47,454,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.06 = 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 with State Administration of Industry & Commerce (SAIC) under registration No.: 320282000087646 on December 14, 2006.
SC’s Organization
Code Certificate No.: 79610541-3
SC’s Tax No.:
320282796105413
SC’s registered
capital: CNY 30,000,000
SC’s paid-in
capital: CNY 30,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
3202822113999 |
320282000087646 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
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Yixing Zhonggung Fine Chemical Co., Ltd. |
90 |
|
Zhang Qian |
10 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Zhang Qian |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Yixing Zhonggung Fine Chemical Co., Ltd. 90
Zhang Qian 10
Yixing Zhonggung Fine Chemical Co., Ltd.
----------------------------------------------------
Registration No.: 320282000129832
Date of Registration: May 23, 1994
Legal Form: Limited Liabilities Company
Registered Capital: CNY 20,000,000
Legal Representative: Wang Hengxiu
Web: www.zhgchem.com
MANAGEMENT
Zhang Qian (张千), Legal
Representative, Chairman, and General Manager
-------------------------------------------------------------------------------------------------
Gender: M
ID# 320282198610292431
Age: 28
Working experience (s):
At present, working in SC as legal representative, chairman, and general manager
BUSINESS
OPERATION
SC’s registered business scope include manufacturing Methyl isopropyl ketone, 2-pentanone, 3-pentanone, Cyclopentanone, 2-cyclohexanone, 2-heptanone, 2,4-Dimethyl-3-pentanone, Acetone, 4-heptanone, Propionic acid, Butyric acid, Isobutyric acid, Isobutyl isobutyrate, Butyl butyrate, and Ethyl butyrate; wholesaling dangerous chemicals; ordinary freight; manufacturing and selling 5-Nonanone, 6-Undecanone, 2-Octanone, 2-Undecanone, Isovaleric acid, isoamyl isovalerate, and wooden packing box; research & development & service for chemical products and chemical technology; importing and exporting commodities and technology.
SC is mainly engaged in manufacturing and selling chemical products and chemical materials.
SC’s products mainly include:
|
Product name |
Other name |
CAS.NO |
Molecular weight |
Category |
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Methyl Nonyl Ketone, 2-Hendecanone |
|
170.29 |
Ketones |
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Di-n-armyll Ketone, 6-oxoundecane |
927-49-1 |
170.29 |
Ketones |
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3-Methyl-2-butanone, MIPK |
563-80-4 |
86.13 |
Ketones |
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Methyl propyl ketone |
107-87-9 |
86.13 |
Ketones |
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Diethyl Ketone |
96-22-0 |
86.13 |
Ketones |
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Ketocyclopentane |
120-92-3 |
84.12 |
Ketones |
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Methyl n-Butyl Ketone，Butyl Methyl Ketone |
591-78-6 |
100.16 |
Ketones |
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Methyl Armyl Ketone, n- Armyl Methyl Ketone |
110-43-0 |
114.19 |
Ketones |
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Di-n-propyl Ketone |
123-19-3 |
114.19 |
Ketones |
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2,4-Dimethyl-3-pentanone |
565-80-0 |
114.19 |
Ketones |
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Methyl n-Hexyl Ketone，n-Hexyl Methyl Ketone |
111-13-7 |
128.21 |
Ketones |
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Methy heptyl ketone |
821-55-6 |
142.24 |
Ketones |
SC sources its materials 100% from domestic market. SC sells 60% of its products in domestic market, and 40% to overseas 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.
Staff & Office:
--------------------------
SC is known to have approx. 180 staff at present.
SC owns an area as its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
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
The bank information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
Cash |
11,161 |
4,365 |
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Notes receivable |
8,484 |
7,069 |
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Accounts receivable |
28,240 |
26,438 |
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Advances to suppliers |
2,425 |
4,148 |
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Other receivable |
33,273 |
39,024 |
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Inventory |
5,192 |
3,830 |
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Prepaid expenses |
19 |
0 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
88,794 |
84,874 |
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Long-term investment |
0 |
0 |
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Fixed assets |
20,149 |
19,846 |
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Construction in progress |
14 |
694 |
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Intangible assets |
3,896 |
3,850 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
0 |
0 |
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------------------ |
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Total assets |
112,853 |
109,264 |
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============= |
============= |
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Short-term loans |
58,000 |
59,850 |
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Notes payable |
4,500 |
2,000 |
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Accounts payable |
4,626 |
-4,983 |
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Wages payable |
196 |
189 |
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Dividends payable |
1,100 |
0 |
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Taxes payable |
609 |
257 |
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Advances from clients |
0 |
0 |
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Other payable |
1,653 |
4,443 |
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Accrued expenses |
0 |
0 |
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Other current liabilities |
83 |
54 |
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------------------ |
------------------ |
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Current liabilities |
70,767 |
61,810 |
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Non-current liabilities |
0 |
0 |
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------------------ |
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Total liabilities |
70,767 |
61,810 |
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Equities |
42,086 |
47,454 |
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------------------ |
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Total liabilities & equities |
112,853 |
109,264 |
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Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
Revenue |
110,186 |
96,677 |
|
Cost of sales |
88,646 |
77,096 |
|
Taxes and surcharges |
900 |
702 |
|
Sales expense |
1,548 |
1,925 |
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Management expense |
8,906 |
14,127 |
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Finance expense |
3,492 |
2,783 |
|
Subsidy income |
733 |
33 |
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Non-operating income |
0 |
0 |
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Non-operating expense |
146 |
87 |
|
Profit before tax |
9,607 |
3,161 |
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Less: profit tax |
1,674 |
888 |
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Profits |
7,933 |
2,273 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
*Current ratio |
1.25 |
1.37 |
|
*Quick ratio |
1.18 |
1.31 |
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*Liabilities to assets |
0.63 |
0.57 |
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*Net profit margin (%) |
7.20 |
2.35 |
|
*Return on total assets (%) |
7.03 |
2.08 |
|
*Inventory / Revenue ×365 |
18 days |
15 days |
|
*Accounts receivable / Revenue ×365 |
94 days |
100 days |
|
*Revenue / Total assets |
0.98 |
0.88 |
|
*Cost of sales / Revenue |
0.80 |
0.80 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line, and it decreased in 2013.
SC’s net profit margin is fairly good in 2012, average in 2013.
SC’s return on total assets is fairly good in 2012, average in 2013.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in both years.
SC’s quick ratio is maintained in a fairly good level in both years.
The inventory of SC appears average.
The accounts receivable of SC appears large.
The short-term loans of SC appear large.
SC’s revenue is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average in both years.
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. The large amount of accounts receivable and short-term loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.16 |
|
|
1 |
Rs.103.44 |
|
Euro |
1 |
Rs.85.27 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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 |
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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 |
|
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.