MIRA INFORM REPORT
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Report Date : |
27.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
CHROMA CHEMICAL
CORP. (SUQIAN) |
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Registered Office : |
No. 1 Jingliu Road, Lakeside New Town Development Zone Suqian, Jiangsu Province 223809 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
13.09.2007 |
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Com. Reg. No.: |
321300400002101 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
engaged in Manufacturing, Processing, and Selling
Textile Dyes and Leather Dyes. |
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No of Employees : |
65 (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 : |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
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, 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 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. Debt overhang from
its credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future.
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 & address
CHROMA
CHEMICAL CORP. (SUQIAN)
NO. 1 JINGLIU ROAD, LAKESIDE NEW TOWN
DEVELOPMENT ZONE
SUQIAN, JIANGSU PROVINCE 223809 PR CHINA
TEL: 86 (0) 527-88032165/88032161-832
FAX: 86 (0) 527-88032161/88032167
EXECUTIVE
SUMMARY
Date of Registration : SEPTEMBER 13, 2007
REGISTRATION NO. : 321300400002101
LEGAL FORM : Wholly foreign-owned enterprise
CHIEF EXECUTIVE : CAI WANFA (Legal representative)
REGISTERED CAPITAL : USD 7,500,000
staff : 65
BUSINESS CATEGORY : manufacturing & processing & trading
Revenue : CNY 55,011,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 53,856,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRly STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.23 = 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 wholly foreign-owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 321300400002101 on September
13, 2007.
SC’s Organization Code Certificate
No.: 66637454-3
%20-%20273890%2027-Jun-2014_files/image002.jpg)
SC’s Tax No.: 321311666374543
SC’s registered capital: usd 7,500,000
SC’s paid-in capital: usd 7,500,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2014-03-20 |
Registered
Capital |
usd 5,000,000 |
usd 7,500,000 |
Current
Co search indicates SC’s shareholders & chief executives are as follows:-
|
Name
of Shareholder (s) |
% of
Shareholding |
|
Huihuang
Global International Inc. (Seychelles) |
100 |
SC’s
Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman and General Manager |
Cai Wanfa |
|
Director |
He Baoyu |
|
Cai Donghan |
|
|
Supervisor |
Cai Yalu |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name
%
of Shareholding
Huihuang Global International Inc.
(Seychelles) 100
MANAGEMENT
Cai Wanfa, Legal Representative, Chairman, and General
Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Passport No.: 0056058603(D)
Ø
Nationality: Taiwan
Ø Working experience
(s):
From 2007 to present, working in SC as legal
representative, chairman, and general manager
He
Baoyu, Director
-------------------------------------
Ø
Gender: M
Ø
Passport No.: 0382040702(D)
Ø
Nationality: Taiwan
Ø Working experience
(s):
At present, working in Nanjing Chroma Chemical Co., Ltd. as legal
representative
Cai
Donghan, Director
-----------------------------------------
Ø
Gender: M
Ø
Passport No.: 0630337701(D)
Ø
Nationality: Taiwan
Cai
Yalu, Supervisor
---------------------------------------
Ø
Gender: M
Ø
Passport No.: 0686312501(D)
Ø
Nationality: Taiwan
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and processing
textile dyes and leather dyes; and selling its products.
SC is mainly
engaged in manufacturing, processing, and selling textile dyes and leather
dyes.
SC’s
products mainly include: textile dyes and leather dyes.
SC sources its materials 100% from domestic
market, mainly Jiangsu province. SC sells 80% of its products in domestic
market, and 20% to overseas market, mainly India.
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.
Staff & Office:
--------------------------
SC is
known to have approx. 65 staff
at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.
RELATED COMPANY
Nanjing Chroma Chemical Co., Ltd.
Registration No.: 320100400000562
Date of Registration: September 25, 1991
Legal Form: Wholly Foreign-Owned Enterprise
Legal Representative: He Baoyu
Address: No. 138 Xiongzhou East Road, Xiongzhou Town, Liuhe District, Nanjing, Jiangsu Province
Tel: 86 (0) 25-57512623/57512647
Fax: 86 (0) 25-57102193
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
Industrial &
Commercial Bank of China Suqian Branch
AC#:
1116020009300234932
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
10,235 |
4,518 |
|
|
Notes receivable |
0 |
3,490 |
|
Accounts
receivable |
5,832 |
7,143 |
|
Advances to
suppliers |
1,659 |
2,093 |
|
Other receivable |
7 |
1,069 |
|
Inventory |
26,243 |
46,324 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
43,976 |
64,637 |
|
Fixed assets |
33,748 |
32,455 |
|
Construction in
progress |
3,503 |
19,782 |
|
Intangible
assets |
4,397 |
4,298 |
|
Long-term
prepaid expenses |
471 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
254 |
|
|
------------------ |
------------------ |
|
Total assets |
86,095 |
121,426 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
1,224 |
28,419 |
|
Payroll payable |
180 |
209 |
|
Tax payable |
-91 |
-2,453 |
|
Advances from
clients |
0 |
3,380 |
|
Other payable |
8,508 |
5,900 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
9,821 |
35,455 |
|
Non-current
liabilities |
32,115 |
32,115 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
41,936 |
67,570 |
|
Equities |
44,159 |
53,856 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
86,095 |
121,426 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
59,500 |
55,011 |
|
Cost of sales |
50,857 |
47,531 |
|
Sales expense |
403 |
1,008 |
|
Management expense |
3,263 |
3,369 |
|
Finance expense |
781 |
1,910 |
|
Non-operating
income |
594 |
4 |
|
Non-operating expense |
0 |
102 |
|
Profit before
tax |
4,783 |
1,097 |
|
Less: profit tax |
1,196 |
274 |
|
3,587 |
823 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
4.48 |
1.82 |
|
*Quick ratio |
1.81 |
0.52 |
|
*Liabilities
to assets |
0.49 |
0.56 |
|
*Net profit
margin (%) |
6.03 |
1.50 |
|
*Return on
total assets (%) |
4.17 |
0.68 |
|
*Inventory /
Revenue ×365 |
161 days |
308 days |
|
*Accounts receivable
/ Revenue ×365 |
36 days |
48 days |
|
*Revenue /
Total assets |
0.69 |
0.45 |
|
*Cost of sales
/ Revenue |
0.85 |
0.86 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears average in its line in both years.
l SC’s net profit margin
is fairly good in 2012, average in 2013.
l SC’s return on
total assets is fairly good in 2012, average in 2013.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fairly good
level.
l
SC’s quick ratio is maintained in a fair level in
2013.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears average.
l
SC has no short-term loans in both years.
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
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. The large amount of inventory may be
a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.16 |
|
UK Pound |
1 |
Rs.102.23 |
|
Euro |
1 |
Rs.82.04 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.