MIRA
INFORM REPORT
|
Report Date : |
11.03.2014 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU PROVINCIAL FOREIGN TRADE CORPORATION |
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Registered Office : |
24-26/F, Xinhua Mansion, No. 55 Zhongshan Road, Gulou District, Nanjing, Jiangsu Province, 210005 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
17.07.1992 |
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Com. Reg. No.: |
320000000006044 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in trading of various kinds of products. products
mainly include: metal mineral, timbers, paper pulp, chemicals, textile
materials, electrical equipments, pumps, electric motors and related
controller equipment, construction materials, equipment for the transport and
civic sectors |
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No. of Employees : |
114 |
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
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
China |
A2 |
A2 |
|
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 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 and address
JIANGSU PROVINCIAL FOREIGN TRADE CORPORATION
24-26/F, XINHUA MANSION, NO. 55 ZHONGSHAN ROAD, GULOU DISTRICT,
NANJING, JIANGSU PROVINCE, 210005 PR CHINA
TEL: 86 (0) 25-84795777/84795640/84795627
FAX: 86 (0) 25-84795644
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 17, 1992
REGISTRATION NO. : 320000000006044
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
MR. XIA QIANG (CHAIRMAN)
STAFF STRENGTH :
114
REGISTERED CAPITAL : CNY 102,760,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 5,283,160,000 (AS OF DEC.
31, 2011)
EQUITIES :
cny 215,560,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable (AS OF DEC. 31, 2011)
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE :
CNY 6.12 = 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
SC was registered as a shares limited company at Jiangsu Provincial Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Jul. 17, 1992.
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 wholesaling hazardous chemicals;
wholesaling and retailing pre-packaged foods, dairy products (including infant
formula milk powder); importing and exporting various goods and technology;
selling automobiles, fuel oil and cosmetics; domestic trade; technology
services; consulting services and leasing commodities.
SC is mainly engaged in trading of various kinds of products.
Mr. Xia Qiang has been legal representative, chairman and general
manager of SC since 2001.
SC is known to have approx. 114 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 the total premise about 8,000 square meters.
http://www.jsft.com/waimao/
The design is professional and the content is well organized. At present it is
in Chinese version (The English version belongs to SC’s parent company JOC).
E-Mail: office@jsft.com
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Shareholders (% of shareholding) |
Jiangsu Overseas Group Co., Ltd. (JOC) 40% Individuals
55% Labor Union Committee 5% |
Jiangsu Overseas Group Co., Ltd. (JOC) 80% Staff Individual Shares 20% |
|
Registered capital |
CNY 36,700,000 |
CNY 51,380,000 |
|
|
Shareholders (% of shareholding) |
Jiangsu Overseas Group Co., Ltd. (JOC) 80% Staff Individual Shares 20% |
Jiangsu Overseas Group Co., Ltd. (JOC) 40% Nanjing Huijin Enterprise Management Consulting Co., Ltd. (literal translation) 5% Staff Individual Shares 55% |
|
|
2012 |
Registered capital |
CNY 51,380,000 |
Present amount |
In the end of 2000, SC obtained ISO9002 certificate.
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 134772292
See below for SC as executive party (defendant).
|
Executed Party |
SC |
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Court |
Nanjing City Jiangning District People's Court |
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Date of Case |
|
|
Case Number |
(2013) 02346 |
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Claim Amount |
RMB 135,716.92 |
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Case Status |
Completed |
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Executed Party |
SC |
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Court |
Nanjing City Jiangning District People's Court |
|
Date of Case |
|
|
Case Number |
(2013) 00561 |
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Claim Amount |
RMB 70,400.08 |
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Case Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiangsu Overseas Group Co., Ltd. (JOC) 40
Nanjing Huijin Enterprise Management Consulting Co., Ltd. (literal
translation) 5
Staff Individual Shares 55
Note: The shareholders’ information of SC is not available in local AIC
at present, so we could not confirm whether the above information is the
latest.
Jiangsu Overseas Group Co., Ltd. (JOC)
=============================
JOC is a leading state-owned trading group authorized by the government
of Jiangsu province in 1995. It is developing into a general trading company
that owns international trade, manufacturing, modern service and other
businesses.
Legal representative: Huang Hongliang
Registration No.: 320000000008120
Address: Xinhua Mansion, #55 Zhongshan Road Nanjing Jiangsu
TEL: +86-25-84795805
FAX: +86-25-84795800
Website: http://www.joc.cn
E-mail: joc@joc.cn
Legal
representative, Chairman and General Manager:
Mr. Xia Qiang, born in 1957 with university education. He is currently
responsible for the overall management of SC.
Working
Experience(s):
From 2001 to present Working
in SC as legal representative, chairman and general manager;
Also working in Jiangsu Litian P & C Terminal Co., Ltd., Jiangsu
Litian Real Estate Development Co., Ltd., Jiangsu Litian New Material Co. Ltd.,
Suzhou Huaide Trading Co., ltd. and Ningbo Haifu Trade Co., Ltd. as legal
representative, etc.
*Officials:
=======
Name Title
Huang Tianyun Director
Chen Qi’nan Director
Bi Wu Director
Yue Liang Director
Zhang Wenxiang Director
Zheng Bin Director
Zhu Darong Chairman
of Supervisors
Li Ying Supervisor
SC is mainly engaged in trading of various kinds of products.
SC’s products mainly include: metal mineral, timbers, paper pulp,
chemicals, textile materials, electrical equipments, pumps, electric motors and
related controller equipment, construction materials, equipment for the
transport and civic sectors
SC’s department mainly include: metals & minerals department, metals
finished product department, metal & construction materials department,
sourcing department, pulp & paper department, chemicals department, etc.
SC sources its merchandise 40% from domestic market, and 60% from the
overseas market, mainly Southeast Asia, European countries. SC sells 60% of its
products in domestic market, and 40% to the overseas market, mainly American
and European countries.
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’s
management declined to release its major clients and suppliers.
SC is known to invest in the following companies: (According to SC’s
website)
Jiangsu Litian P & C Terminal Co., Ltd.
…………………………………………
Legal representative: Xia Qiang
Registration No.: 320281400003008
Website: http://www.jsltpct.com/
Tel: 4008-810-798
Fax: 0510-86092333
Jiangsu Litian Real Estate Development Co., Ltd.
…………………………………………………..
Legal representative: Xia Qiang
Registration No.: 320121000012666
Jiangsu Litian New Material Co. Ltd.
…………………………………………
Legal representative: Xia Qiang
Registration No.: 320592400002942
Website: http://www.joclt.com/site/boot/
Tel: 0512-58326557/58323782
Fax: 0512-58326553
Suzhou Huaide Trading Co., ltd.
…………………………………
Legal representative: Xia Qiang
Registration No.: 320512000031418
Ningbo Haifu Trade Co., Ltd.
………………………………………………………
Legal representative: Xia Qiang
Registration No.: 330216000012354
Incorporation date: June 15, 2000
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#：N/A
Bank of Communications
AC#：320006607010061004277
Relationship: Normal.
Note: SC declined to release its other bank details, so the given one
ICBC can’t be confirmed.
Balance
Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Cash & bank |
429,070 |
376,010 |
|
Inventory |
503,880 |
594,790 |
|
Bills receivable |
152,390 |
417,300 |
|
Accounts receivable |
78,480 |
122,900 |
|
Other Accounts receivable |
295,130 |
167,330 |
|
Advances to suppliers |
232,190 |
194,980 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
1,691,140 |
1,873,310 |
|
Fixed assets net value |
55,040 |
53,770 |
|
Long-term investment |
169,170 |
258,080 |
|
Financial assets available for sale |
61,060 |
45,340 |
|
Investment real estate |
97,220 |
94,210 |
|
Deferred tax assets |
1,360 |
4,610 |
|
Intangible and other assets |
20 |
10 |
|
|
------------------ |
------------------ |
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Total assets |
2,075,010 |
2,329,330 |
|
|
============= |
============= |
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Short loans |
563,550 |
933,650 |
|
Accounts payable |
339,420 |
490,130 |
|
Advance from customers |
625,530 |
582,860 |
|
Other Accounts payable |
77,880 |
106,780 |
|
Notes payable |
232,890 |
0 |
|
Accrued payroll |
16,970 |
14,220 |
|
Taxes payable |
8,080 |
-20,490 |
|
Interest payable |
1,150 |
0 |
|
Dividend payable |
1,790 |
2,690 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
1,867,260 |
2,109,840 |
|
|
Long term liabilities |
3,930 |
3,930 |
|
Other liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,871,190 |
2,113,770 |
|
Equities |
203,820 |
215,560 |
|
|
------------------ |
------------------ |
|
2,075,010 |
2,329,330 |
|
|
|
============= |
============= |
Income
Statement
Unit: CNY’000
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Turnover |
5,270,010 |
5,283,160 |
|
Cost of goods sold |
5,108,920 |
5,113,100 |
|
Taxes and additional of main operation |
4,040 |
3,270 |
|
Sales expense |
72,860 |
52,180 |
|
Management expense |
29,440 |
27,670 |
|
Finance expense |
9,160 |
21,090 |
|
Assets impairment loss |
7,410 |
24,800 |
|
Investment income |
390 |
1,160 |
|
Non-operating income |
10,850 |
9,700 |
|
Non-operating expense |
210 |
70 |
|
Profit before tax |
49,210 |
51,840 |
|
Less: profit tax |
12,230 |
10,330 |
|
Profits |
36,980 |
41,510 |
Note: SC’s management refused to release latest financial reports.
Important
Ratios
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
0.91 |
0.89 |
|
*Quick ratio |
0.64 |
0.61 |
|
*Liabilities to assets |
0.90 |
0.91 |
|
*Net profit margin (%) |
0.70 |
0.79 |
|
*Return on total assets (%) |
1.78 |
1.78 |
|
*Inventory /Turnover ×365 |
35 days |
42 days |
|
*Accounts receivable/Turnover ×365 |
6 days |
9 days |
|
*Turnover/Total assets |
2.54 |
2.27 |
|
* Cost of goods sold/Turnover |
0.97 |
0.97 |
PROFITABILITY:
AVERAGE
·
The turnover of SC appears good in its line in both
years.
·
SC’s net profit margin is average in both years.
·
SC’s return on total assets is average in both
years.
·
SC’s cost of goods sold is high, comparing with its
turnover in both years.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a fair
level in both years.
·
SC’s quick ratio is maintained in a fair level in
both years.
·
The accounts receivable of SC appears average in
both years.
·
The inventory of SC appears average in both years.
·
The short-term loan of SC appears fairly large in
2010, but large in 2011.
·
SC’s turnover is in an average level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is high in both years.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable (as of Dec. 31, 2011).
SC is considered medium-sized in its industry with 22 years development
history.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.20 |
|
|
1 |
Rs.102.35 |
|
Euro |
1 |
Rs.84.95 |
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.