MIRA
INFORM REPORT
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Report Date : |
21.01.2014 |
IDENTIFICATION DETAILS
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Name : |
TONGLING JINTAI CHEMICAL CO., LTD. |
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Registered Office : |
Recycling Economic Industrial Park Of Tongling Nonferrous Metals Group
Holding Co., Ltd., Tongling, Anhui Province 244101 PR |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
25.07.2002 |
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Com. Reg. No.: |
340721000006955 |
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Legal Form : |
Shares Limited Co |
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Line of Business : |
Subject is engaged in manufacturing and selling chemical products |
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No. of Employees : |
300 |
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 : |
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 – 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 & address
TONGLING JINTAI CHEMICAL CO., LTD.
RECYCLING ECONOMIC INDUSTRIAL PARK OF TONGLING NONFERROUS METALS GROUP
HOLDING CO., LTD., TONGLING, ANHUI PROVINCE 244101 PR CHINA
TEL: 86 (0) 562-5868440/5868422
FAX: 86 (0) 562-5868425
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 25, 2002
REGISTRATION NO. : 340721000006955
REGISTERED LEGAL FORM : Shares limited co.
CHIEF EXECUTIVE :
MR. XU WUQI (CHAIRMAN)
STAFF STRENGTH :
300
REGISTERED CAPITAL : CNY
133,700,000
BUSINESS LINE :
MANUFACTURING & trading
TURNOVER :
CNY 664,870,000 (UNaudited, AS OF
DEC. 31, 2013)
EQUITIES :
CNY 184,460,000 (UNaudited, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.05 = USD 1
Adopted
abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY
- China Yuan Ren Min Bi
Note: the given name was SC’s former company name, and it has been
changed to the heading one.
SC was registered as a Limited liabilities co. at local Administration
for Industry & Commerce (AIC-The official body of issuing and renewing
business license) on Jul. 25, 2002 and has been under present ownership since
2012.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes manufacturing and selling fine chemical
products; exporting self-made commodities and technologies; importing and
exporting raw materials, instruments, machinery equipment, spare parts and
technologies needed in manufacturing; (excluding commodities and technologies
prohibited by the state) processing with imported materials, processing with
imported samples, assembling with imported parts, and compensation trade in
agreement.
SC is mainly engaged in manufacturing and selling chemical products.
Mr. Xu Wuqi has been the legal representative and chairman of SC since
2008.
SC is known to have approx. 300
employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Tongling.
SC’s accountant refused to release the detailed information of the area.
http://www.tljtchem.com
The design is professional and the content is well organized. At present the web
is in Chinese and English versions.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2003-7-1 |
Registered capital |
CNY 10,677,400 |
CNY 23,486,600 |
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2006-9-26 |
Registered capital |
CNY 23,486,600 |
CNY 34,238,100 |
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2008-5-29 |
Legal representative |
Shi Xiaoming |
Present one |
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Registered capital |
CNY 34,238,100 |
CNY 44,493,300 |
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2009-12-2 |
Registered capital |
CNY 44,493,300 |
CNY 79,853,700 |
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Unknown |
Registered no. |
3407001101191 |
Present one |
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Registered capital |
CNY 79,853,700 |
CNY 80,000,000 |
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Shareholders |
Mei Zhiduo 0.33% Wang Songyuan 0.23% Yin Fangxi 0.24% Wang Guizhen 0.23% Ye Changsheng 0.04% Huang Qiang 0.20% Yu Nengzhi俞能志 0.16% Wang Yuchen 0.16% Zhu Jiedong 0.13% Yu Hai 0.13% Wei Feng 0.13% Zhang Yan 0.13% Wu Shi 0.13% Yan Zhijun 0.13% Wang Min 0.13% Chen Xiao 0.12% Zhang Guoyou 0.11% Tongling Nonferrous Metals Group Holding Co., Ltd. 57.77% Anhui High Technology Industry Investment Co., Ltd. 5.63% Hefei Hi-Tech Venture Capital Co., Ltd. 1.38% Tongling Nonferrous Metals Group Tongguan Investment Co., Ltd. 25.97% Anhui Investment Group Co., Ltd. 6.52% |
Tongling Nonferrous Metals Group Holding Co., Ltd. 57.66% Tongling Nonferrous Metals Group Tongguan Investment Co., Ltd. 25.92% Anhui Investment Group Holdings Co., Ltd. 6.51% Anhui High Technology Industry Investment Co., Ltd. 5.62% Hefei Hi-Tech Venture Capital Co., Ltd. 1.38% Liu Shenghe and other 17 individuals 2.91% |
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2012 |
Company name |
Tongling Jintai Chemical Industrial Co., Ltd. |
Present one |
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Legal form |
Limited liabilities co. |
Present one |
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Registered capital |
CNY 80,000,000 |
Present amount |
SC has passed the ISO9001: 2000 quality system certification, ISO14001:
2004 Environmental System Certification, AAA level credit enterprise
certification
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 74087300X
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name Investment
amount (CNY) %
of Shareholding
Tongling Nonferrous Metals Group Holding Co., Ltd. 46,131,400 57.66
Tongling Nonferrous Metals Group Tongguan Investment Co., Ltd.20,734,200 25.92
Anhui Investment Group Holdings Co., Ltd. 5,208,300 6.51
Anhui High Technology Industry Investment Co., Ltd. 4,497,600 5.62
Hefei Hi-Tech Venture Capital Co., Ltd. 1,102,900 1.38
Liu Shenghe and other 17 individuals 2,325,600 2.91
Note: The above
shareholding information was SC’s former one, and the corresponding registered
capital was CNY 80,000,000. The changes in the amount of shares of each
shareholder were not yet filed in the local registry, hence no up-to-date
shareholder's information could be provided.
Tongling Nonferrous Metals Group Holding Co., Ltd.
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Registered no.: 340700000002695
Legal representative: Wei Jianghong
Date of incorporation:
Add: Changjiang West Road, Tongling City, Anhui Province
Tel: 0562-5860016
Fax: 0562-5861313
Email: tlyszgs@tlys.cn
Tongling Nonferrous Metals Group Tongguan Investment Co., Ltd.
================================================
Registered no.: 340700000000450
Legal representative: Jiang Yuhao
Anhui Investment Group Holdings Co., Ltd.
===============================
Tel: 0551-63677067
Fax: 0551-63677066
Legal
representative and chairman:
Mr. Xu Wuqi is currently responsible
for the overall management of SC.
Working
Experience(s):
From 2008 to present Working
in SC as legal representative and chairman
SC is mainly engaged in manufacturing and selling chemical products
SC’s products mainly include: Diethyl carbonate, Second propanediol,
Dimethyl Carbonate
.
SC sources its materials 50% from domestic market and 50% from the
overseas markets. SC sells 60% of its products in domestic market and 40% to
the overseas markets.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
Note: SC’s management declined to release its customer and supplier
details.
SC is not known to have any subsidiary at present.
Overall payment appraisal : ( )
Excellent ( ) Good
(X) Average ( ) Fair
( ) Poor (
) Not yet 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.
SC’s management refused to disclose its bank information.
Balance
Sheet
Unit: CNY’000
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as
of Dec. 31, 2013 |
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Cash & bank |
30,670 |
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Notes receivable |
52,300 |
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Inventory |
65,430 |
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Accounts receivable |
19,280 |
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Advances to suppliers |
26,760 |
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Other receivables |
790 |
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Other current assets |
0 |
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------------------ |
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Current assets |
195,230 |
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Fixed assets net value |
259,620 |
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Projects under construction |
9,510 |
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Long term investment |
0 |
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Intangible assets |
16,010 |
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Other assets |
110 |
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Total assets |
480,480 |
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Short loans |
158,000 |
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Notes payable |
29,970 |
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Accounts payable |
39,390 |
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Other payable |
4,500 |
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Taxes payable |
-3,910 |
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Advances from clients |
12,470 |
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Other current liabilities |
8,600 |
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Current liabilities |
249,020 |
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Long term liabilities |
47,000 |
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Total liabilities |
296,020 |
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Equities |
184,460 |
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Total liabilities & equities |
480,480 |
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Income
Statement
Unit: CNY’000
|
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as
of Dec. 31, 2013 |
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Turnover |
664,870 |
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Cost of goods sold |
603,220 |
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Sales expense |
35,000 |
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Management expense |
35,970 |
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Finance expense |
16,710 |
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Non-operating income |
1,140 |
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Non-operating expense |
5,040 |
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Profit before tax |
-29,850 |
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Less: profit tax |
0 |
|
Profits |
-29,850 |
Note: The above
financial have not been audited.
Important
Ratios
|
|
as
of Dec. 31, 2013 |
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*Current ratio |
0.78 |
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*Quick ratio |
0.52 |
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*Liabilities to assets |
0.62 |
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*Net profit margin (%) |
-4.49 |
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*Return on total assets (%) |
-6.21 |
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*Inventory /Turnover ×365 |
36 days |
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*Accounts receivable/Turnover ×365 |
11 days |
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*Turnover/Total assets |
1.38 |
|
* Cost of goods sold/Turnover |
0.91 |
PROFITABILITY:
FAIR
·
The turnover of SC appears fairly good in its line.
·
SC’s net profit margin is fair.
·
SC’s return on total assets is fair.
·
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a fair
level.
·
SC’s quick ratio is maintained in a fair level.
·
The inventory of SC is maintained in an average
level.
·
The accounts receivable of SC is maintained in an
average level.
·
SC’s short-term loan appears large in 2013.
·
SC’s turnover is in an average 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: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.63 |
|
|
1 |
Rs.101.25 |
|
Euro |
1 |
Rs.83.42 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
RATING EXPLANATIONS
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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 |
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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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.