MIRA
INFORM REPORT
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Report Date : |
07.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
JIANGSU JIUDING
NEW MATERIAL CO., LTD. |
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Registered Office : |
No. 1 East Zhongshan Road, Rugao, Jiangsu Province, 226500
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
30.06.1994 |
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Com. Reg. No.: |
320000000007238 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing and selling glass fiber yarn, fabrics and its
products, glass steel products |
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|
No. of Employees |
1,583 |
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 : |
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
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 |
|
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
JIANGSU JIUDING NEW MATERIAL CO., LTD.
No. 1 East Zhongshan Road, Rugao,
Jiangsu PROVINCE, 226500 PR CHINA
TEL: 86 (0) 513-87530125/80695029 FAX:
86 (0) 513-80695179
EXECUTIVE SUMMARY
INCORPORATION DATE : june 30, 1994
REGISTRATION NO. : 320000000007238
REGISTERED LEGAL FORM : Shares limited company
STAFF STRENGTH : 1,583
REGISTERED CAPITAL : CNY 175,760,000
BUSINESS LINE :
manufacturing & trading
TURNOVER : CNY 626,390,000 (Consolidated, AS OF DEC. 31, 2013)
EQUITIES :
CNY 421,249,000 (Consolidated, AS OF DEC. 31,
2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.2578 = 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 shares limited company
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on June
30, 1994.
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 China. Natural person are allowed
to serve as promoters. 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 glass fiber yarn, fabrics and related
products, glass steel products, fabrics and products of other industrial
fibers, construction and decoration enhanced materials; importing and exporting
commodities and technology.
SC is mainly
engaged in manufacturing and selling glass fiber yarn, fabrics and its
products, glass steel products, etc.
Mr. Gu Qingbo is
chairman and general manager of SC at present.
SC is
known to have approx. 1,583
employees at present, including 886 production staff, 84 administration staff,
16 financial staff, 91 sales staff, 506 R&D and technical staff.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Rugao. Detailed premise
information is not available at present.
http://www.cjdg.com/ The design is
professional and the content is well organized. At present it is in Chinese and
English versions.
E-mail: cjdg@jiudinggroup.com
SC listed in Shenzhen Stock Exchange Market in 2007 with the stock code
002201.
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
1995-9 |
Company’s name |
Nantong Huatai Co., Ltd. |
Jiangsu Jiuding Group Inc |
|
2005-5 |
Company’s name |
Jiangsu Jiuding Group Inc. |
Present One |
Honors and
qualifications:
SC is now the processing base of fiberglass products, one of the top 100
Chinese building material enterprises, the leading enterprise of Chinese
industry (fiberglass and its products), national key hi-tech enterprise,
National and provincial torch plan project implementation enterprise, national
trustworthy enterprise, Jiangsu provincial quality management award enterprise,
Nantong quality management award enterprise. SC has passed ISO9001 quality
management system, ISO14001 environmental management system, ohsas18001
occupation health and safety management system and TS16949 quality management
system certification, and was recommended to be vice-President enterprise for
China Glass Fiber Industrial Association and China Composites Industry
Association.
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Tax Registration Certificate No.: 320682711592743
Organization Code: 711592743
See below for SC as executive party (defendant).
|
Executed Party |
SC |
|
Court |
Rugao People's Cour |
|
Date
of Case |
|
|
Case Number |
(2013) 02310 |
|
Claim
Amount |
RMB 261,756.03 |
|
Case
Status |
In process |
|
Executed Party |
SC |
|
Court |
Rugao People's Court |
|
Date
of Case |
|
|
Case Number |
(2010) 02516 |
|
Claim
Amount |
RMB 4,000 |
|
Case
Status |
Completed |
|
Executed Party |
SC |
|
Court |
Rugao People's Court |
|
Date
of Case |
|
|
Case Number |
(2009) 04752 |
|
Claim
Amount |
RMB 16,000 |
|
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: (As of March 31, 2014)
Name %
of Shareholding
Jiangsu Jiuding Group Co., Ltd. 50.05
Gu Qingbo 4.45
Agreed Buyback Special Account of GF Securities Co., Ltd. 0.9
Xu Zhenduo 0.65
Xu Rong 0.63
Beijing Navigable Technology Trading Co.,
Ltd. (Literal translation) 0.53
Hu Lin 0.5
Gu Zebo 0.46
Jiang Hu 0.42
Zhu Qianxin 0.42
Other Shareholders 40.99
Jiangsu Jiuding Group Co., Ltd.
=======================
Registration no.: 320682000080714
Registered capital: CNY 50,000,000
Legal representative: Gu Qingbo
Tel: 0513-80695006
l Chairman and
general manager:
Mr. Gu Qingbo, senior economist, born in 1948 with Master’s Degree. He
is currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman and general manager.
Also working in Jiangsu Jiuding Group Co., Ltd., Jiangsu Jiuding
Universal Wind Energy Co., Ltd., Nantong Jiuding Investment Co., Ltd., Nantong
Jiuding Biological Engineering Co., Ltd., etc. as legal representative.
l Vice chairman:
Mr. Xu Rong, senior economist, born in 1952 with university education.
He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as vice chairman.
l Vice general
managers:
Gu Roujian
Hu Lin
l Directors:
Feng Yongzhao
Gu Roujian
Gu Zhengfen
l Supervisors:
Jiang Hu
Gu Ming
Ma Zhizhong
SC is mainly
engaged in manufacturing and selling glass fiber yarn, fabrics and its
products, glass steel products.
SC’s products
mainly include:
Fiberglass Products
- New Building Materials
- Abrasive Materials
- Special Fiberglass
Composites Products
- Engineering Composite Materials
- Wind Composites
- General Composite Materials
Main products of Jiuding are textile fiberglass and FRP products
including reinforcement material for grinding wheels, construction, road, and
decoration. Among these, seven products were honored as ‘national key
products’, nine products were honored as ‘Jiangsu High-tech products’. Jiuding
owns 44 patents of products or technology, hosted or participated in drafting
13 national standards or industry standards. The brand 'Ding ' of geogrid won
the honor of ' China famous brand ', the same brand of fiberglass fabric
products won the honor of ' Jiangsu famous brand '. The trademark ’Ding” won
the honor of ‘Jiangsu famous trademark’.
SC sources its
materials 90% from domestic market, and 10% from overseas market. SC sells 35%
of its products in domestic market, and 65% 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 T/T, L/C and Credit of 30-60 days.
Note: SC’s management refused to release its
main suppliers and clients.
Jiangsu Jiuding Universal Wind Energy Co., Ltd.
Nantong Jiuding Investment Co., Ltd.
Nantong Jiuding Biological Engineering Co., Ltd.
SC is known to invest in the following companies:
Yinchuan Jiuding Gold Wind Composite Materials Co., Ltd.
Gansu Jiuding Wind Power Composite Materials Co., Ltd.
Shandong Jiuding New Material Co., Ltd.
Jiuding New Material (HK) Limited
Rugao Huijin Rural Microfinance Ltd.
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 declined to
release its bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
Cash & bank |
160,073 |
134,801 |
|
Inventory |
177,469 |
140,767 |
|
Accounts
receivable |
167,862 |
185,805 |
|
Notes receivable |
6,663 |
3,992 |
|
Other Accounts receivable |
27,329 |
49,862 |
|
Advances to
supplies |
83,030 |
50,920 |
|
Other current
assets |
0 |
0 |
|
|
----------------- |
------------------ |
|
Current assets |
622,426 |
566,147 |
|
Fixed assets |
452,379 |
493,901 |
|
Projects under
construction |
56,881 |
25,580 |
|
Long term
investment |
52,085 |
13,000 |
|
Investment real
estate |
18,860 |
4,862 |
|
Intangible
assets |
38,869 |
40,319 |
|
Development
expenditure |
9,123 |
0 |
|
Long-term
deferred expense |
5,235 |
3,762 |
|
Deferred tax
assets |
3,585 |
3,207 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
1,259,443 |
1,150,778 |
|
|
============= |
============= |
|
Short loans |
378,243 |
246,000 |
|
Accounts payable |
104,317 |
91,427 |
|
Notes payable |
38,098 |
27,347 |
|
Accrued Payroll |
9,358 |
8,001 |
|
Taxes payable |
4,369 |
9,096 |
|
Interest payable |
718 |
477 |
|
Advances from
customers |
8,310 |
6,269 |
|
Other Accounts
payable |
11,022 |
42,882 |
|
Non-current
liabilities due within one year |
35,070 |
70,071 |
|
Other current
liabilities |
5,650 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
595,155 |
501,570 |
|
Long-term loans |
220,439 |
229,509 |
|
Specified
payables |
0 |
500 |
|
Other
liabilities |
22,600 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
838,194 |
731,579 |
|
Equities |
421,249 |
419,199 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,259,443 |
1,150,778 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
Turnover |
626,390 |
652,362 |
|
Cost of goods sold |
499,461 |
494,509 |
|
Taxes and additional of main
operation |
5,403 |
5,791 |
|
Sales expense |
37,174 |
47,069 |
|
Management expense |
55,428 |
56,935 |
|
Finance expense |
40,229 |
34,294 |
|
Assets impairment loss |
1,447 |
5,268 |
|
Investment
income |
5,960 |
900 |
|
Non-operating
income |
9,865 |
14,632 |
|
Non-operating expense |
208 |
325 |
|
Profit before
tax |
2,865 |
23,703 |
|
Less: profit tax |
1,804 |
4,161 |
|
Profits |
1,061 |
19,542 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.05 |
1.13 |
|
*Quick ratio |
0.75 |
0.85 |
|
*Liabilities
to assets |
0.67 |
0.64 |
|
*Net profit
margin (%) |
0.17 |
3.00 |
|
*Return on
total assets (%) |
0.08 |
1.70 |
|
*Inventory
/Turnover ×365 |
104 days |
79 days |
|
*Accounts
receivable/Turnover ×365 |
98 days |
104 days |
|
*Turnover/Total
assets |
0.50 |
0.57 |
|
* Cost of
goods sold/Turnover |
0.80 |
0.76 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level in
2012, but fair in 2013.
l
The inventory of SC appears average.
l
The accounts receivable of SC is average.
l
SC’s short-term loan appears large in both years.
l
SC’s turnover 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.
SC is considered large-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.60.20 |
|
|
1 |
Rs.101.67 |
|
Euro |
1 |
Rs.83.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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|
Report Prepared
by : |
PDT |
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.