MIRA INFORM REPORT
|
Report Date : |
25.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
ANHUI JINHE INDUSTRIAL CO., LTD. |
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Registered Office : |
No. 127,
East Street, Laian County, Chuzhou, Anhui
Province 239200 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2013 |
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Date of Incorporation : |
25.12.2006 |
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Com. Reg. No.: |
341100000007764 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in
manufacturing and selling food additives, flavor and fragrance,
organic classes of hazardous chemicals, liquid anhydrous ammonia, methanol
for industrial use, industrial nitric acid, formaldehyde, concentrated
sulfuric acid, sulfur dioxide and sulfur anhydride. Normal operating projects
include manufacturing and selling melamine, pentaerythritol, sodium formate,
urea and ammonium acid carbonate; import and export chemical raw materials
(excluding the hazard chemicals), mechanical equipment, components, raw
materials and technology (excluding the goods forbidden by the government). Subject products
mainly include Maltol, Ethyl Maltol, Natural
Maltol, Acesulfame-k. |
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No. of Employees |
3,425 (approximately) |
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 : |
Good |
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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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 |
|
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
& address
ANHUI JINHE INDUSTRIAL
CO., LTD.
NO. 127,
EAST STREET, LAIAN COUNTY, CHUZHOU
ANHUI
PROVINCE 239200 PR CHINA
TEL: 86
(0) 550-5612755
FAX: 86
(0) 550-5611232
EXECUTIVE
SUMMARY
Date of Registration : december 25, 2006
REGISTRATION NO. : 341100000007764
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE : yang yingchun (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
cny 277,680,000
staff : 3,425
BUSINESS CATEGORY :
MANUFACTURING & selling
REVENUE :
CNY 2,167,808,000 (JAN. 1, 2013 TO SEP. 30,
2013)
EQUITIES :
CNY 2,004,702,000 (AS OF SEP. 30, 2013)
WEBSITE : www.lajingda.com
E-MAIL :
jinheshiye@jinheshiye.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : FAIRLY GOOD
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
LEGAL STATUS & HISTORY
SC was
established as a shares limited company of PRC with State Administration of Industry & Commerce
(SAIC) under registration No.: 341100000007764 on December 25, 2006.
SC’s Organization Code Certificate No.:
79643317-7
SC’s Tax No.: 341122796433177
SC’s registered capital: cny 277,680,000
SC’s paid-in capital: cny 277,680,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2013 |
Registered Capital |
CNY 213,600,000 |
cny 277,680,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (As of September 30, 2013) |
% of Shareholding |
|
Anhui Jinrui Chemical Investment Co., Ltd. |
58.79 |
|
Shanghai Fuxing Purun Stock Investment Enterprise (Limited
Partnership) |
4.36 |
|
Shanghai Purun Stock Investment Enterprise (Limited
Partnership) |
2.91 |
|
Dalian Zhangzi Island Investment Co., Ltd. |
2.1 |
|
Wuhu Dacheng Venture Capital Center (Limited Partnership) |
1.68 |
|
Shaoxing Ping’an Venture Capital Co., Ltd. |
1.15 |
|
Ren Zhilian |
1.12 |
|
China Life Insurance Company Limited - Dividend - Individual
Dividend-005L-FH002 Shen |
0.78 |
|
Ye Jianyan |
0.71 |
|
Yang Yingchun |
0.69 |
|
Other Shareholders |
25.71 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Yang Yingchun |
|
General Manager |
Dai Shilin |
|
Director |
Zhou Linlin |
|
Yang Zongyong |
|
|
Cao Songting |
|
|
Fang Quan |
|
|
Supervisor |
Liu Ruiyuan |
|
Wang Xiurong |
|
|
Li Zhenbing |
RECENT
DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002597
SHAREHOLDER
CHART & BACKGROUND
Name
%
of Shareholding
(As of September 30, 2013)
----------------------------------
Anhui Jinrui Chemical Investment Co., Ltd. 58.79
Shanghai Fuxing Purun Stock Investment
Enterprise (Limited Partnership) 4.36
Shanghai Purun
Stock Investment Enterprise (Limited Partnership) 2.91
Dalian Zhangzi Island Investment Co., Ltd. 2.1
Wuhu Dacheng Venture Capital Center (Limited
Partnership) 1.68
Shaoxing Ping’an Venture Capital Co., Ltd. 1.15
Ren Zhilian 1.12
China Life Insurance Company Limited -
Dividend –
Individual Dividend-005L-FH002 Shen 0.78
Ye Jianyan 0.71
Yang Yingchun 0.69
Other Shareholders 25.71
Shanghai Fuxing
Purun Stock Investment Enterprise (Limited Partnership)
========================================================
Date of Registration: July 29, 2009
Registration No.: 310000000096450
Legal Form: Limited Partnership
Shanghai Purun
Stock Investment Enterprise (Limited Partnership)
===================================================
Date of Registration: July 20, 2009
Registration No.: 310000000096378
Legal Form: Limited Partnership
Dalian Zhangzi
Island Investment Co., Ltd.
==================================
Date of Registration: March 13, 2008
Registration No.: 210224000001377
Legal Form: Limited Liabilities Company
Registered Capital: CNY 100,000,000
Shaoxing Ping’an
Venture Capital Co., Ltd.
===================================
Date of Registration: September 11, 2008
Legal Form: Limited Liabilities Company
Registered Capital: CNY 300,000,000
MANAGEMENT
Yang Yingchun, Legal Representative and Chairman
--------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø Qualification:
University
Ø Working experience
(s):
From 2012 to present, working in SC as legal representative and chairman, also working in Anhui Jinrui ChemicalInvestment Co., Ltd. as legal representative and chairman
Dai Shilin, General Manager
-------------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø Qualification:
University
Ø Working experience
(s):
From 2006 to 2009, worked in SC as deputy general manager
From 2009 to present, working in SC as general manager
Director
-----------
Zhou Linlin
Yang Zongyong
Cao Songting
Fang Quan
Supervisor
--------------
Liu Ruiyuan
Wang Xiurong
Li Zhenbing
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing and selling food additives, flavor and fragrance, organic classes of hazardous chemicals, liquid anhydrous
ammonia, methanol for industrial use, industrial nitric acid, formaldehyde,
concentrated sulfuric acid, sulfur dioxide and sulfur anhydride. Normal
operating projects: manufacturing and selling melamine, pentaerythritol, sodium
formate, urea and ammonium acid carbonate; import and export chemical raw
materials (excluding the hazard chemicals), mechanical equipment, components,
raw materials and technology (excluding the goods forbidden by the government).
SC is mainly
engaged in manufacturing and selling food additives, flavor and fragrance.
Brand:
Jingda
SC’s products
mainly include: Maltol, Ethyl Maltol, Natural Maltol,
Acesulfame-k.
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 70% of its products
in domestic market, and 30% to overseas 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.
*Major Customers:
==============
Nanjing
Red Sun Biochemistry Co., Ltd.
Jiangsu
Yangnong Chemical Group Co., Ltd.
Changzhou
Cuiqiao Electrical Materials Co., Ltd.
Shandong
Huihai Pharmaceutical and Chemical Co., Ltd.
Wuhan
Lingfeng Wood Industry Co., Ltd.
*Major Supplier:
============
Wuxi Huaguang Boiler Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 3,425 staff
at present.
SC owns an area as
its operating office & factory of approx. 500,000 sq. meters at the heading
address.
RELATED COMPANY
SC is known to have the
following subsidiaries at present:
n
Chuzhou Jinfeng Chemical Co., Ltd.
n
Wandong Jinli Chemical Co., Ltd.
n
Chuzhou Jinyuan Chemical Co., Ltd.
n
Laian Lixin Port Management Logistics Co., Ltd.
n
Anhui Huaertai Chemical Industry 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’s suppliers
declined to make any comments.
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
Chuzhou Branch
AC#:
178211911642
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Sep. 30, 2013 |
|
466,003 |
479,877 |
|
|
Trading financial assets |
0 |
0 |
|
Accounts
receivable |
85,774 |
132,790 |
|
Notes receivable |
330,221 |
202,595 |
|
Advances to
suppliers |
180,691 |
190,349 |
|
Interest
receivable |
848 |
5,364 |
|
Other receivable |
3,044 |
4,403 |
|
Inventory |
294,633 |
298,636 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
6,543 |
29,713 |
|
|
------------------ |
------------------ |
|
Current assets |
1,367,757 |
1,343,727 |
|
Long-term
investments |
1,893 |
1,818 |
|
Real estate
investment |
0 |
0 |
|
Fixed assets |
915,382 |
1,296,101 |
|
Construction in
progress |
95,629 |
40,208 |
|
Project
materials |
25,641 |
851 |
|
Fixed assets in
liquidation |
0 |
12,312 |
|
Intangible assets |
144,052 |
140,936 |
|
Goodwill |
0 |
0 |
|
Long-term
deferred expense |
4,065 |
23,752 |
|
Deferred income
tax assets |
16,353 |
16,672 |
|
Other
non-current assets |
0 |
10,000 |
|
|
------------------ |
------------------ |
|
Total assets |
2,570,772 |
2,886,377 |
|
|
============= |
============= |
|
Short-term loans |
86,000 |
89,500 |
|
Notes payable |
0 |
15,760 |
|
Accounts payable |
210,459 |
280,584 |
|
Payroll payable |
52,549 |
46,247 |
|
Taxes payable |
-10,574 |
-260 |
|
Interest payable |
463 |
796 |
|
Advances from
clients |
43,386 |
33,305 |
|
Other payable |
96,450 |
83,163 |
|
Other current
liabilities |
51,422 |
35,732 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
530,155 |
584,827 |
|
Non-current
liabilities |
116,827 |
296,848 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
646,982 |
881,675 |
|
Equities |
1,923,790 |
2,004,702 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
2,570,772 |
2,886,377 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
Jan.
1, 2013 to Sep. 30, 2013 |
|
Revenue |
2,782,672 |
2,167,808 |
|
Cost of sales |
2,466,055 |
1,873,645 |
|
Business Taxes and Surcharges |
9,634 |
7,133 |
|
Sales expense |
90,990 |
77,785 |
|
Management expense |
60,497 |
51,920 |
|
Finance expense |
2,876 |
3,662 |
|
Asset impairment loss |
6,198 |
8,269 |
|
Investment
income |
308 |
-75 |
|
Non-operating
income |
10,691 |
17,200 |
|
Non-operating expense |
1,954 |
1,105 |
|
Profit before
tax |
155,202 |
161,888 |
|
Less: profit tax |
21,282 |
30,139 |
|
133,920 |
131,749 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Sep. 30, 2013 |
|
*Current ratio |
2.58 |
2.30 |
|
*Quick ratio |
2.02 |
1.79 |
|
*Liabilities
to assets |
0.25 |
0.31 |
|
*Net profit
margin (%) |
4.81 |
6.08 |
|
*Return on
total assets (%) |
5.21 |
4.56 |
|
*Inventory /
Revenue ×365/180 |
39 days |
38 days |
|
*Accounts
receivable/ Revenue ×365/180 |
12 days |
17 days |
|
*
Revenue/Total assets |
1.08 |
0.75 |
|
* Cost of
sales / Revenue |
0.89 |
0.86 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on total
assets is average.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
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 an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered large-sized in its line with
stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.12 |
|
UK Pound |
1 |
Rs.103.38 |
|
Euro |
1 |
Rs.85.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.