MIRA
INFORM REPORT
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Report Date : |
10.07.2014 |
IDENTIFICATION DETAILS
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Name : |
SINOCHEM JIANGSU CO., LTD. |
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Registered Office : |
Floors 21& 22 |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
30.12.1992 |
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Com. Reg. No.: |
320000000004080 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in wholesale of hazardous chemicals (operating according to the license), importing and exporting various kinds of commodities and technology, domestic trade, technology development, transferring and consulting of chemical pharmaceuticals. |
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No of Employees : |
140 |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 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
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Source
: CIA |
COMPANY NAME & ADDRESS
SINOCHEM JIANGSU CO., LTD.
FLOORS 21& 22 JINCHENG TOWER, NO. 216 MIDDLE LONGPAN ROAD,
BAIXIA DISTRICT, NANJING CITY, JIANGSU PROVINCE, 210005 PR CHINA
TEL: 86 (0) 25-51817888/51817974/51817967 FAX: 86 (0)
25-51817799
EXECUTIVE SUMMARY
INCORPORATION DATE :
DECEMBER 30, 1992
REGISTRATION NO. :
320000000004080
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH :
140
REGISTERED CAPITAL : CNY 162,478,576.86
BUSINESS LINE :
TRADING
TURNOVER :
CNY 1,599,940,000 (As of DEC. 31, 2013)
EQUITIES :
CNY 173,090,000 (As of DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE :
CNY 6.2095 = 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 Renminbi
SC was registered as a state-owned enterprise at Jiangsu
provincial Administration for Industry & Commerce (AIC - The official body
of issuing and renewing business license) on December 30, 1992 and has been under present
legal form since Oct. of 2009.
Company Status: One-person Limited
Liability Company Single
person LLC refers to a limited liability company set up by only one natural
person or legal person as the single shareholder of it. The
minimum registered capital of Single person LLC is CNY 100,000. The
shareholder’s capital contributes, as set out by the articles of
associations should be a lump-sum payment in full. One
natural person can only invest in and set up one limited liability company,
which is not permitted to invest in and set up a new Single person LLC. As
to any one-person limited liability company, the sole-investor nature of
the natural person or legal person shall be indicated in the registration
documents of the company and shall be indicated in the business license thereof
as well. The
regulation of Single person LLC should be set up by the shareholder. The
regulation of Single person LLC has no shareholder meeting.
SC’s registered business scope includes wholesale of hazardous chemicals
(operating according to the license), importing and exporting various kinds of
commodities and technology, domestic trade, technology development,
transferring and consulting of chemical pharmaceuticals.
SC is mainly
engaged in importing and exporting pharmaceutical intermediates, APIs,
formulations and other pharmaceutical products.
Mr. Dong Jianhua
has been legal representative, executive director and general manager of SC
since 2009.
SC is known to have approx. 140 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Nanjing. Our checks reveal that SC
owns an area of 2,000 square meters.
http://www.sinochemjiangsu.com The design is professional and the content
is well organized. At present the web site is in both Chinese and English
versions.
E-mail: info@sinochem.com
For the past two years there is no record of litigation.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2004-6 |
Legal representative |
He Shujun |
Gu Linmin |
|
2004-11 |
Registered capital |
CNY 33,076,000 |
CNY 50,000,000 |
|
2008 |
Registration No. |
3200001100945 |
320000000004080 |
|
2009-10 |
Legal Form |
State-Owned Enterprise |
One-Person Limited Liability Company |
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Shareholders |
Sinochem Corporation 100% |
Sinochem Co., Ltd. 100% |
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Company name |
Sinochem Jiangsu Corporation |
Sinochem Jiangsu Co., Ltd. |
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Registered Capital |
CNY 50,000,000 |
CNY 102,218,576 |
|
|
Legal representative |
Gu Linmin |
Dong Jianhua |
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|
2012 |
Registered Capital |
CNY 102,218,576 |
Present amount |
On 24-25th June 1999, the ISO9002:1994 quality management system of SC
was successfully accredited by SGS Yarsley International Certification Services
Limited for the first time on the spot, and it acquired the Certificate of
ISO9002:1994 quality management system issued by SGS Yarsley on 20th
July, 1999.
On 14-45th January, SC’s ISO9001:2000 quality management system was successfully
audited by SGS Systems and Services Certification again, and SC obtained the
certificate of ISO9001:2000 issued by SGS United Kingdom Ltd. Systems &
Services Certification on 8th April, 2003.
On 19th April, 2006, SGS Systems & Services Certification
audited SC’s quality management system at the expiration of the Certificate on
the basis of renewal. SC has got new Certificate by SGS United Kingdom Ltd.
Systems & Services Certification.
Subject passed the
annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code:
134762377
MAIN SHAREHOLDERS:
Name % of
Shareholding
Sinochem Co., Ltd. 100
Sinochem Co., Ltd. is one of the largest companies in the "Fortune
500" and under the supervision of SASAC (State-owned Assets Supervision
and Administration Commission of the State Council).
Legal representative: Liu Deshu
Registration No.: 100000000042135
Add.: No. 28 Fuxingmennei Street, Xicheng
District, Beijing
Tel: 0086-10-59568888
l
Legal representative, Executive
Director and
General Manager:
Mr. Dong Jianhua, born in 1967, with Master's degree. He is currently
responsible for the overall and daily management of SC.
Working Experience(s):
From 2009 to present Working
in SC as legal representative, executive director and general manager;
Also
working in Sinochem Jiangsu Pharmaceutical Co., Ltd. as legal representative.
l
Supervisor:
Xu Yuhong, born in 1970.
SC is mainly
engaged in importing and exporting pharmaceutical intermediates, APIs,
formulations and other pharmaceutical products.
SC’s products
mainly include:
SC sources its
materials 50% from domestic market, and 50% from overseas market. SC sells 80%
of its products to overseas market, mainly India, America and Europe, and 20%
in domestic 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.
Note: SC refused
to release its major suppliers and customers.
SC is known to invest in the following companies:
Sinochem
Jiangsu Pharmaceutical Co., Ltd.
===============================
Registration No.: 321200000020077
Incorporation Date: 2010-03-01
Legal representative: Dong Jianhua
Registered Capital: CNY 10,000,000
Shanghai
Chemspace Co., Ltd
=======================
Registration No.: 310115000934861
Incorporation Date: 2006-01-26
Legal representative: Huang Yonghong
Registered Capital: CNY 2,000,000
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.
Bank of China Jiangsu Branch
AC#: 475458191171
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
Cash & bank |
33,010 |
55,710 |
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Notes receivable |
10,260 |
3,120 |
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Inventory |
162,580 |
157,420 |
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Accounts
receivable |
198,850 |
166,090 |
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Other Accounts
receivable |
92,700 |
72,360 |
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Advances to
suppliers |
29,580 |
90,000 |
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Other current
assets |
0 |
10 |
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------------------ |
------------------ |
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Current assets |
526,980 |
544,710 |
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Fixed assets net
value |
4,960 |
6,740 |
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Long term
investment |
17,020 |
17,020 |
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Deferred tax
assets |
670 |
850 |
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Intangible and
other assets |
3,210 |
3,320 |
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Long-term
deferred expenses |
260 |
520 |
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------------------ |
------------------ |
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Total assets |
553,100 |
573,160 |
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============= |
============= |
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Short loans |
120,480 |
172,010 |
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Notes payable |
98,350 |
52,130 |
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Accounts payable |
81,960 |
96,050 |
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Other Accounts
payable |
16,170 |
14,100 |
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Payroll payable |
5,400 |
7,140 |
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Taxes payable |
-7,980 |
-10,820 |
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Advance from
clients |
64,720 |
62,580 |
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Interest payable |
230 |
0 |
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Other current
liabilities |
0 |
340 |
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------------------ |
------------------ |
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Current
liabilities |
379,330 |
393,530 |
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Other
liabilities |
680 |
720 |
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------------------ |
------------------ |
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Total
liabilities |
380,010 |
394,250 |
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Equities |
173,090 |
178,910 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
553,100 |
573,160 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
Turnover |
1,599,940 |
1,438,040 |
|
Cost of goods sold |
1,520,380 |
1,361,770 |
|
Taxes and additional of main operation |
590 |
710 |
|
Sales expense |
35,440 |
32,140 |
|
Management expense |
29,410 |
23,440 |
|
Finance expense |
12,350 |
8,680 |
|
Asset impairment loss |
180 |
-1,040 |
|
Investment
income |
2,430 |
110 |
|
Non-operating
income |
4,280 |
3,230 |
|
Non-operating expense |
330 |
100 |
|
Profit before
tax |
7,970 |
2,867,180 |
|
Less: profit tax |
2,760 |
3,900 |
|
Profits |
5,210 |
11,680 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As of Dec. 31, 2012 |
|
*Current ratio |
1.39 |
1.38 |
|
*Quick ratio |
0.96 |
0.98 |
|
*Liabilities
to assets |
0.69 |
0.69 |
|
*Net profit
margin (%) |
0.33 |
0.81 |
|
*Return on
total assets (%) |
0.94 |
2.04 |
|
*Inventory
/Turnover ×365 |
38 days |
40 days |
|
*Accounts
receivable/Turnover ×365 |
46 days |
43 days |
|
*Turnover/Total
assets |
2.89 |
2.51 |
|
* Cost of
goods sold/Turnover |
0.95 |
0.95 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears good in both years.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of goods sold is fairly high in both years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC is average in both years.
l
The accounts receivable of SC appears average in
both years.
l
SC’s short-term loan appears fairly large in both
years.
l
SC’s turnover is in an average level in both years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both years.
l
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 favorable background and fairly
stable financial conditions. The fairly large amount of short term loan could
be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.73 |
|
|
1 |
Rs.102.36 |
|
Euro |
1 |
Rs.81.38 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.