MIRA
INFORM REPORT
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Report Date : |
21.01.2014 |
IDENTIFICATION DETAILS
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Name : |
SINO HIGH ( |
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Registered Office : |
No. 51 Chongfu Road, Chemical Industrial Park, Liuhe District Nanjing, Jiangsu Province 210004 PR |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
25.07.2008 |
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Com. Reg. No.: |
320000000075544 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
wholesale of dangerous chemicals; industrial investment; operating and acting as an agent of importing and exporting various kinds of commodities and technology; domestic trade, science and technology intermediary services, computer systems services, economic information consulting, training; manufacturing and selling chemical products. SC is mainly engaged in manufacturing and selling chemical products. |
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No. of Employees : |
100 |
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 : |
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
SINO HIGH (CHINA)
CO., LTD.
NO. 51 CHONGFU ROAD, CHEMICAL INDUSTRIAL PARK, LIUHE DISTRICT
NANJING, JIANGSU PROVINCE 210004 PR CHINA
TEL: 86 (0) 25-58392388
FAX: 86 (0) 25-58392588
EXECUTIVE SUMMARY
Date of Registration : JUly 25, 2008
REGISTRATION NO. : 320000000075544
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE : yan liuxin (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 50,000,000
staff : 100
BUSINESS CATEGORY :
MANUFACTURING & TRADING
Revenue : CNY 96,530,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 55,400,000 (AS OF DEC. 31, 2013)
WEBSITE : www.sinohighchem.com
E-MAIL : yanliuxin@sinohighchem.com
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.05 = 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.: 320000000075544 on July 25, 2008.
SC’s Organization
Code Certificate No.: 67895221-6
%20CO%20,%20LTD%20%20-%20250914%2021-Jan-2014_files/image002.jpg)
SC’s Tax No.:
320112678952216
SC’s registered
capital: CNY 50,000,000
SC’s paid-in
capital: CNY 50,000,000
Registration Change Record:-
No significant
changes of SC have been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
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Changzhou Huashan Chemical Co., Ltd. |
99 |
|
Qin Cui’e |
1 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman, and General Manager |
Yan Liuxin |
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Supervisor |
Qin Cui’e |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Changzhou Huashan Chemical Co., Ltd. 99
Qin Cui’e 1
Changzhou Huashan Chemical Co., Ltd.
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Date of Registration: December 28, 2004
Registration No.: 320400400014488
Legal Form:
Chinese-Foreign Equity Joint Venture Enterprise
Chief Executive: Yan Liuxin
Address: Huashan Town,Jintan City,Jiangsu Province
Tel: 86-519-82651640
Fax: 86-519-82652280
E-mail: huashan@huashanchem.com
Web: www.huashanchem.com
MANAGEMENT
Yan Liuxin , Legal Representative, Chairman and General
Manager
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Gender: M
Age: 43
ID# 320422710409013
Qualification: University
Working experience (s):
From 2008 to present, working in SC as legal representative, chairman and general manager
Also working in Changzhou Huashan Chemical Co., Ltd. as legal representative
Qin Cui’e,
Supervisor
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Gender: F
Age: 42
ID# 320422721016282
BUSINESS OPERATION
SC’s registered business scope includes wholesale of dangerous chemicals; industrial investment; operating and acting as an agent of importing and exporting various kinds of commodities and technology; domestic trade, science and technology intermediary services, computer systems services, economic information consulting, training; manufacturing and selling chemical products. SC is mainly engaged in manufacturing and selling chemical products.
Brand: %20CO%20,%20LTD%20%20-%20250914%2021-Jan-2014_files/image004.jpg){kind=small}
SC’s products mainly include: acetophenone derivatives, benzophenone derivatives, etc.
SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly U.S.A., Mid East, Southeast Asia, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Igm Resins Charlotte Inc.
Staff & Office:
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SC is known to have approx. 100 staff at present.
SC owns an area as its operating office and factory, but the detailed information is unknown.
%20CO%20,%20LTD%20%20-%20250914%2021-Jan-2014_files/image006.jpg)
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 SAIC.
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31, 2013 |
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7,420 |
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Notes receivable |
0 |
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Accounts receivable |
17,110 |
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Advances to suppliers |
0 |
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Other receivable |
0 |
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Inventory |
9,740 |
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Non-current assets within one year |
0 |
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Other current assets |
1,780 |
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------------------ |
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Current assets |
36,050 |
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Fixed assets |
59,850 |
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Long-term prepaid expenses |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
20,070 |
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Total assets |
115,970 |
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Short-term loans |
0 |
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Accounts payable |
7,840 |
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Advances from clients |
690 |
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Other payable |
1,220 |
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Other current liabilities |
820 |
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Current liabilities |
10,570 |
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Non-current liabilities |
50,000 |
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Total liabilities |
60,570 |
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Equities |
55,400 |
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Total liabilities & equities |
115,970 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31, 2013 |
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Revenue |
96,530 |
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Cost of sales |
71,350 |
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Sales expense |
1,210 |
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Management expense |
14,130 |
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Finance expense |
3,760 |
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Profit before tax |
5,860 |
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Less: profit tax |
770 |
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5,090 |
Important Ratios
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As of Dec. 31, 2013 |
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*Current ratio |
3.41 |
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*Quick ratio |
2.49 |
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*Liabilities to assets |
0.52 |
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*Net profit margin (%) |
5.27 |
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*Return on total assets (%) |
4.39 |
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*Inventory / Revenue ×365 |
37 days |
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*Accounts receivable/ Revenue ×365 |
65 days |
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*Revenue/Total assets |
0.83 |
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*Cost of sales / Revenue |
0.74 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loans.
SC’s revenue is in a fair level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Stable.
CONCLUSIONS
SC is considered medium-sized in its line with stable financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.63 |
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1 |
Rs.101.25 |
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Euro |
1 |
Rs.83.42 |
INFORMATION DETAILS
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Report Prepared by
: |
NIS |
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 |
-- |
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.