MIRA
INFORM REPORT
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Report Date : |
12.05.2014 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU JIUJIUJIU
TECHNOLOGY CO., LTD. |
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Formerly Known as : |
Jiangsu Haitong Chemicals Co., Ltd. |
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Registered Office : |
No. 12, Third Huanghai Road, Coastal Economic Development
Zone, Rudong County, Nantong, Jiangsu Province, 226407 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 (Consolidated) |
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Date of Incorporation : |
30.12.2002 |
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Com. Reg. No.: |
320600000164458 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing synthesis ammonia, peracetic acid, muriatic
acid, hydrogen fluoride (anhydrous) and selling its products. Normal operating
projects: manufacturing and selling 7- amino 3- deacetoxycephalosporanic
acid, 5,5-dimethyl hydantoinm, 7-Phenyl-3-
chloromethyl carboxylic acid
p-methoxybenzyl ester, trichloropyridin, ammonium bicarbonate, plastics,
toluylic acid, ammonia chloride, lithium hexafluorophosphate, ammonia sulfate
and sulfate picolinamide; selling
fertilizer, thin film and seed packaging; manufacturing and installing
chemical equipment (excluding pressure vessel) and mechanical equipment; exporting its products and technology, importing
machinery equipment, parts, raw materials and technology needed in the
manufacture (excluding the items limited or forbidden by the state). Subject products
ranges includes Benzaldehyde, 5,5-dimethyl hydantoin, Chlorocyclohexane, Benzoic
acid & Methyl benzoate |
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No of Employees : |
1,586
employees at present (including the ones in its subsidiaries), including 384
technicians, 1,037 workers, 11 financial staff, 105 administrative staff and
49 sales representatives. |
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
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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, 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
Jiangsu Jiujiujiu Technology Co., Ltd.
No. 12, THIRD
HUANGHAI ROAD, COASTAL economic development zone, rudong county, nantong, jiangsu
PROVINCE, 226407 PR CHINA
TEL: 86 (0)
513-84415055 FAX: 86 (0)
513-84415116
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 30, 2002
REGISTRATION NO. : 320600000164458
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
1,586 ((INCLUDING SUBSIDIARIES)
REGISTERED CAPITAL : CNY 348,300,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 894,688,000 (CONSOLIDATED,
AS OF DEC. 31, 2013)
EQUITIES :
CNY 869,443,000 (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 6.2277= 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
Note: The was SC’s former operating address.
SC was registered as a limited liabilities co. at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Dec. 30, 2002 and has been under present ownership since 2007.
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 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. 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 certified business items:
manufacturing synthesis ammonia, peracetic acid, muriatic acid, hydrogen fluoride
(anhydrous) and selling its products. Normal operating projects: manufacturing
and selling 7- amino 3- deacetoxycephalosporanic acid, 5,5-dimethyl hydantoinm,
7-Phenyl-3- chloromethyl carboxylic acid p-methoxybenzyl
ester, trichloropyridin, ammonium bicarbonate, plastics, toluylic acid, ammonia
chloride, lithium hexafluorophosphate, ammonia sulfate and sulfate picolinamide; selling fertilizer, thin film
and seed packaging; manufacturing and installing chemical equipment (excluding
pressure vessel) and mechanical equipment; exporting
its products and technology, importing machinery equipment, parts, raw
materials and technology needed in the manufacture (excluding the items limited
or forbidden by the state).
SC is mainly
engaged in manufacturing and selling pharmaceutical intermediates, pesticide
intermediates and other products.
Mr. Zhou Xinji is legal representative and chairman of SC at present.
SC is
known to have approx. 1,586 employees at present (including the ones in
its subsidiaries), including 384 technicians, 1,037 workers, 11 financial
staff, 105 administrative staff and 49 sales representatives.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the economic development zone of Rudong County. The detailed information of the
premise is unspecified.
http://www.jjjkj.cn The design is
professional and the content is well organized. At present it is in Chinese
version.
Email: jjjkj@jjjkj.com.cn
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002411.
Tax Registration Certificate No.: 320623744827713
Organization Code: 744827713
Subject passed the annual inspection of 2012
with Administration for Industry & Commerce.
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2006 |
Company name |
Nantong Sutong Fertilizer Co., Ltd. |
Jiangsu Haitong Chemicals Co., Ltd. |
|
2007 |
Company name |
Jiangsu Haitong Chemicals Co., Ltd. |
Present one |
|
Legal form |
Limited liabilities co. |
Present one |
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|
Unspecified |
Registered no. |
3206002118727 |
Present one |
See below for SC
as executive party (defendant).
|
SC |
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Court |
Rudong County People's Court |
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Date of Case |
2007-9-11 |
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Case
Number |
(2007) 01645 |
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Claim Amount |
RMB 35,000 |
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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:
(As of Mar. 31, 2014)
Name
%
of Shareholding
Zhou Xinji 18.66
Shanghai Liyuan Stock Investment Management Co., Ltd.
(literal translation) 2.93
Yang Dexin 2.86
Gao Jiye 2.74
Qin Baolin 2.55
Industrial and Commercial Bank of China
-SWS MU New Economy Mixed Securities
Investment Fund 2.23
Industrial and Commercial Bank of China
-BOC International Income Mixed Securities
Investment Fund 1.81
-Jiashi Service Value-added Industry
Securities Investment Fund 1.72
Wang Bangming 1.58
Kuwait Investment Authority 1.49
Other shareholders 61.43
Legal
representative and Chairman:
Mr. Zhou Xinji), Senior Economist, born in 1964, with bachelor’s degree. He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative and chairman
Also working in Nantong Tianshi Chemical Co., Ltd. and Nantong Yongfu Chemical Co., Ltd. as legal representative and working in Jiangsu Jiujiujiu Technology Co., Ltd. Yangkou Branch as principal
General Manager:
Mr. Zhu Jianjun, Senior Economist, born in 1966, with junior college education. He is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager
Vice General
Managers:
Gao Jiye
Guo Jinhuang
Xu Feng
Chen Bing
Zhang Jinshan
Yao Xiangyang
Directors:
Huang Xinguo
Jia Xudong
Zhao Weijian
Supervisors:
Qian Honglin
Yang Xiaobing
Yao Jianquan
SC is mainly
engaged in manufacturing and selling pharmaceutical intermediates, pesticide
intermediates and other products.
SC’s products
mainly include: Benzaldehyde, 5,5-dimethyl hydantoin, Chlorocyclohexane,
Benzoic acid & Methyl benzoate
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 90% of its
products in domestic market, and 10% 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.
Note: SC’s management declined to release its customer and supplier
details.
SC is known to
have two subsidiaries and a branch at present:
Nantong Tianshi Chemical Co., Ltd.
Legal representative: Zhou Xinji
Registered no.: 320623000112250
Nantong Yongfu Chemical Co., Ltd.
Legal representative: Zhou Xinji
Registered no.: 320600400018324
Jiangsu Jiujiujiu Technology Co., Ltd.
Yangkou Branch
Principal:
Zhou Xinji
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’s management
declined to release its bank details.
Consolidated Balance
Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2013 |
as
of Dec. 31, 2012 |
|
Cash & bank |
109,569 |
231,859 |
|
Notes receivable |
98,113 |
189,193 |
|
Inventory |
119,498 |
83,113 |
|
Accounts
receivable |
188,551 |
134,702 |
|
Advances to
suppliers |
33,015 |
94,004 |
|
Other
receivables |
3,613 |
3,948 |
|
Interest
receivable |
553 |
1,523 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
552,912 |
738,342 |
|
Fixed assets |
352,120 |
253,354 |
|
Projects under
construction |
324,904 |
151,365 |
|
Project
materials |
1,821 |
5,549 |
|
Long term
investment |
0 |
0 |
|
Long-term
deferred expenses |
240 |
0 |
|
Intangible
assets |
72,065 |
46,653 |
|
Other assets |
0 |
3,902 |
|
Deferred assets |
4,902 |
0 |
|
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------------------ |
------------------ |
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Total assets |
1,308,964 |
1,199,165 |
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============= |
============= |
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Short loans |
326,550 |
232,837 |
|
Accounts payable |
98,867 |
60,088 |
|
Other payable |
6,049 |
3,495 |
|
Salaries and
welfare payable |
10,008 |
8,432 |
|
Taxes payable |
-22,734 |
-10,243 |
|
Advances from
clients |
3,072 |
4,176 |
|
Interest payable |
499 |
291 |
|
Non-current
liabilities due within one year |
0 |
30,000 |
|
Other current
liabilities |
1,060 |
661 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
423,371 |
329,737 |
|
Long term
liabilities |
16,150 |
11,910 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
439,521 |
341,647 |
|
Equities |
869,443 |
857,518 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
1,308,964 |
1,199,165 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2013 |
as of Dec. 31,
2012 |
|
Turnover |
894,688 |
1,009,770 |
|
Cost of goods
sold |
732,450 |
828,094 |
|
Taxes
and additional of main operation |
1,946 |
4,140 |
|
Sales expense |
26,739 |
24,323 |
|
Management expense |
109,304 |
87,680 |
|
Finance expense |
14,773 |
3,167 |
|
Asset impairment loss |
2,826 |
2,710 |
|
Non-operating
income |
23,752 |
18,656 |
|
Non-operating expense |
704 |
4,548 |
|
Profit before
tax |
29,698 |
73,764 |
|
Less: profit tax |
5,642 |
10,998 |
|
Profits |
24,056 |
62,766 |
Important Ratios
=============
|
|
as
of Dec. 31, 2013 |
as
of Dec. 31, 2012 |
|
*Current ratio |
1.31 |
2.24 |
|
*Quick ratio |
1.02 |
1.99 |
|
*Liabilities
to assets |
0.34 |
0.28 |
|
*Net profit
margin (%) |
2.69 |
6.22 |
|
*Return on
total assets (%) |
1.84 |
5.23 |
|
*Inventory
/Turnover ×365 |
49 days |
31 days |
|
*Accounts
receivable/Turnover ×365 |
77 days |
49 days |
|
*Turnover/Total
assets |
0.68 |
0.84 |
|
* Cost of
goods sold/Turnover |
0.82 |
0.82 |
PROFITABILITY: AVERAGE
· The turnover of SC appears good in its line in 2012, but fairly good in 2013.
SC’s
net profit margin is fairy good in 2012 and average in 2013.
SC’s
return on total assets is fairy good in 2012 and average in 2013
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
· The current ratio of SC is maintained in a fairly good level in 2012 and normal in 2013.
SC’s
quick ratio is maintained in a normal level in both years.
The
inventory of SC appears average in both years.
The
accounts receivable of SC appears average in both years.
SC’s
short-term loan appears fairly large in both years.
SC’s
turnover is in a fair level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
· The debt ratio of SC is low.
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-term loan could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.05 |
|
UK Pound |
1 |
Rs.101.65 |
|
Euro |
1 |
Rs.83.08 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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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.