MIRA INFORM REPORT
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Report Date : |
18.06.2014 |
IDENTIFICATION DETAILS
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Name : |
CURRENT TECH FINE CHEMICAL CO., LTD. |
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Registered Office : |
No. 99 Fengxiang Road, Ningbo Chemical Industry Zone, Zhejiang Province 315204 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
01.07.2003 |
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Com. Reg. No.: |
330200400020695 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and selling dyes and dye
intermediates, chemical auxiliaries, leather dyes, leather auxiliaries and
other fine chemicals. |
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No. of Employees : |
80 |
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 : |
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) |
|
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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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately 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.
|
Source
: CIA |
Company
name and address
CURRENT TECH FINE CHEMICAL CO.,
LTD.
NO. 99 FENGXIANG ROAD, NINGBO CHEMICAL INDUSTRY ZONE
ZHEJIANG PROVINCE 315204 PR CHINA
TEL: 86 (0) 574-86502801/86502800
FAX: 86 (0) 574-86503167
EXECUTIVE
SUMMARY
Date of Registration : july 1, 2003
REGISTRATION NO. : 330200400020695
LEGAL FORM : Wholly foreign-owned enterprise
CHIEF EXECUTIVE :
CHEN JICHU (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : usd 5,000,000
staff :
80
BUSINESS CATEGORY : MANUFACTURING & trading
Revenue :
CNY 67,057,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 44,744,000 (AS OF DEC. 31, 2013)
WEBSITE : www.cnmdp.com
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.21= 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 wholly
foreign-owned enterprise of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 330200400020695
on July 1, 2003.
SC’s Organization Code Certificate No.:
74495481-9
SC’s Tax No.: 330211744954819
SC’s registered capital: USD 5,000,000
SC’s paid-in capital: USD 5,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010 |
Legal Representative |
Wu Pinqi |
Chen Jichu |
|
2012 |
Registered Capital |
USD 3,460,000 |
USD 5,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Universal Industry L.L.C. (U.S.A.) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Chen Jichu |
|
Vice Chairman |
Wu Zongzhe |
|
Director |
Wu Pinqi |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Universal Industry L.L.C. (U.S.A.) 100
MANAGEMENT
Chen Jichu, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------
Gender: M
Nationality: Taiwan
Working experience
(s):
At present, working in SC as legal representative, chairman and general
manager
Also working in Current Tech Fine Chemical Co., Ltd. Branch Company as
principal
Wu
Zongzhe, Vice Chairman
-------------------------------------------------
Gender: M
Nationality: Taiwan
Working experience
(s):
At present, working in SC as vice chairman
Wu Pinqi, Supervisor
----------------------------------------
Gender: F
Nationality: Taiwan
BUSINESS OPERATION
SC’s registered business scope includes manufacturing,
processing, and wholesaling dyes & dyes intermediates, chemical additives,
leather dyes, and leather auxiliaries; wholesaling the 3rd types of flammable
liquid, the 4th flammable solid, spontaneous combustion of materials, flammable
objects when wet, the 5th oxidants, organic peroxide, the 6th toxic chemicals,
infectious substances, and the 8th corrosion products; importing and exporting
commodities and technology.
SC is mainly engaged in manufacturing and selling dyes and dye
intermediates, chemical auxiliaries, leather dyes, leather auxiliaries and
other fine chemicals.
Main Products: dyes and dye intermediates, chemical auxiliaries, leather
dyes, leather auxiliaries
SC sources its materials 80% from domestic market, and 20% 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.
Staff &
Office:
--------------------------
SC is known to have approx. 80
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is known to
have the following branch:
Current Tech Fine Chemical Co., Ltd. Branch Company
Principal: Chen Jichu
Date of Registration: Dec. 12, 2008
Registration No.: 330200500009537
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
Basic Bank:
Bank of Ningbo
AC#: 23020122000012770
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Cash |
1,221 |
5,967 |
|
Notes receivable |
2,510 |
2,488 |
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Accounts receivable |
10,573 |
13,225 |
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Advances to suppliers |
266 |
1,259 |
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Other receivable |
1,593 |
1,621 |
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Inventory |
14,854 |
19,139 |
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Prepaid expenses |
0 |
0 |
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Other current assets |
254 |
169 |
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------------------ |
------------------ |
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Current assets |
31,271 |
43,868 |
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Fixed assets |
19,833 |
18,111 |
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Construction in progress |
146 |
445 |
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Intangible assets |
3,961 |
3,747 |
|
Long-term prepaid expenses |
455 |
498 |
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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 |
55,666 |
66,669 |
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============= |
============= |
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Short-term loans |
8,989 |
9,980 |
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Notes payable |
0 |
2,600 |
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Accounts payable |
4,140 |
5,718 |
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Wages payable |
435 |
1,163 |
|
Taxes payable |
609 |
720 |
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Interest payable |
270 |
39 |
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Advances from clients |
116 |
179 |
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Other payable |
276 |
1,497 |
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Accrued expenses |
0 |
0 |
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Other current liabilities |
33 |
29 |
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------------------ |
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Current liabilities |
14,868 |
21,925 |
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Non-current liabilities |
5,657 |
0 |
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------------------ |
------------------ |
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Total liabilities |
20,525 |
21,925 |
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Equities |
35,141 |
44,744 |
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------------------ |
------------------ |
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Total liabilities & equities |
55,666 |
66,669 |
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============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
41,206 |
67,057 |
|
Cost of sales |
32,218 |
52,952 |
|
Taxes and surcharges |
547 |
689 |
|
Sales expense |
1,463 |
1,833 |
|
Management expense |
5,074 |
6,914 |
|
Finance expense |
777 |
986 |
|
Non-operating income |
52 |
550 |
|
Non-operating expense |
90 |
76 |
|
Profit before tax |
1,090 |
4,157 |
|
Less: profit tax |
151 |
1,082 |
|
Profits |
939 |
3,075 |
Important Ratios
|
|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
*Current ratio |
2.10 |
2.00 |
|
*Quick ratio |
1.10 |
1.13 |
|
*Liabilities to assets |
0.37 |
0.33 |
|
*Net profit margin (%) |
2.28 |
4.59 |
|
*Return on total assets (%) |
1.69 |
4.61 |
|
*Inventory / Revenue ×365 |
132 days |
105 days |
|
*Accounts receivable / Revenue ×365 |
94 days |
72 days |
|
*Revenue / Total assets |
0.74 |
1.01 |
|
*Cost of sales / Revenue |
0.78 |
0.79 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
·
The revenue of SC appears average in its line, and
it increased in 2013.
·
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 appears large.
·
The accounts receivable of SC appears average.
·
The short-term loans of SC appear average.
·
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
·
The debt ratio of SC is low.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.37 |
|
|
1 |
Rs.102.48 |
|
Euro |
1 |
Rs.81.87 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
NNA |
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 |
|
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.