MIRA
INFORM REPORT
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Report Date : |
17.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
Zhejiang Jinfanda Biochemical Co., Ltd. |
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Registered Office : |
22-26/F,
Bldg. B, Tonglu International Entrepreneurship Center (Former
New Youth Square), No. 205, South Yingchun Road, Tonglu County, Hangzhou,
Zhejiang Province, 311500 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
30.12.1999 |
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Com. Reg. No.: |
330100400003346 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing and selling chemicals |
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No. of Employees |
500 |
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 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately 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, 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
Zhejiang Jinfanda Biochemical Co., Ltd.
22-26/F,
BLDG. B, Tonglu International Entrepreneurship Center (Former New Youth
Square), NO. 205, SOUTH YINGCHUN ROAD,
TONGLU
COUNTY, HANGZHOU, ZHEJIANG PROVINCE, 311500 PR CHINA
TEL: 86
(0) 571-56986616
FAX: 86
(0) 571-56986766
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 30, 1999
REGISTRATION NO. : 330100400003346
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 500
REGISTERED CAPITAL :
CNY 90,000,000
BUSINESS LINE : MANUFACTURING & TRADING
TURNOVER : CNY 2,164,910,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 628,140,000 (AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY
6.23 = 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 co.
at local Administration for industry & commerce (AIC - the official body of
issuing and renewing business license).
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 processing glyphosate soluble
powder (grain) agent and gyphosate solution; manufacturing glyphosate tech., methyl
chloride, methyl acetaland dimethyl phosphate; hydrochloric acid (by-product),
sulfuric acid (by-product); selling its products.
SC is mainly
engaged in manufacturing and selling chemicals.
Mr. Kong Xinming is legal representative, chairman and general manager of SC
at present.
SC is
known to have approx. 500 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Hangzhou. The detailed
information of the premise is unspecified.
Another
operating address: 7/F, Haiyue Mansion, No. 788, Danfeng Road, Binjiang
District, Hangzhou
Tel:
0571-87241678
Factory
address: Hengcun Town, Tonglu County, Hangzhou City, Zhejiang Province
http://www.jinfanda.com/ The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
Email: market@jinfanda.com
Changes of its registered information are as follows:
|
Date
of change |
Item |
Before
the change |
After
the change |
|
2007-7 |
Company name |
Hangzhou Jinfanda Chemical Co., Ltd. |
Present one |
Organization Code: 720049101
Subject passed the annual inspection of 2012
with Administration for Industry & Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Taicheng Electronics
Co., Ltd. 10
Zhejiang Aoxin Holding Group Co., Ltd. 55
Tonglu Lida Investment Co., Ltd. 10
Huge Giant International Enterprise Limited
(Hong Kong) 25
Zhejiang Aoxin Holding Group Co., Ltd.
=====================
Registered no.: 330122000024947
Legal representative: Zhang Yinjuan
Incorporation date:
Huge Giant International Enterprise Limited
(Hong Kong)
=======================
CR No.: 0888820
Company Status: Private
company limited by shares
Active Status: Live
l
Legal representative, Chairman and General manager:
Mr. Kong Xinming born in 1963, he is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager;
Also working in Tonglu Xinyada Thermal Power Co., Ltd. and Hubei Taisheng
Chemical Co., Ltd., etc. as legal representative
l
Directors:
Zong Peimin
Du Zhongxiang
Yu Yeming
l
Supervisors:
Sun Liqin
Liu Kaimeng
SC is mainly
engaged in manufacturing and selling chemicals.
SC’s products
mainly include: Glyphosate Tech., Paraquat, Phosphorous acid, Succinic acid, Dimethyl
phosphite, Chloromethane, etc.
SC sources its materials 100%
from domestic market. SC sells 70% of its products in domestic market, and 30%
to overseas market.
The buying terms of SC include Check, T/T 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 the following subsidiaries:
Tonglu Xinyada Thermal Power Co., Ltd.
---------------------------------
Registered
no.: 330122000003397
Legal
representative: Kong Xinming
Incorporation
date:
Yichang Jinxin Chemical Co., Ltd.
-------------------------------
Registered no.: 420500000036163
Legal representative: Peng Chunxue
Incorporation date:
Hubei Xingrui Chemical Co., Ltd.
------------------------------
Registered no.: 420500000017981
Legal representative: Lei Zhengchao
Incorporation date:
Hubei Taisheng Chemical Co., Ltd.
------------------------------
Registered no.: 420500400000268
Legal
representative: Kong Xinming
Incorporation date:
Zhejiang Jinfanda Import and Export Trading Co., Ltd. (Literal Translation)
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.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2013 |
|
Cash & bank |
195,990 |
|
Notes receivable |
28,420 |
|
Inventory |
207,830 |
|
Accounts
receivable |
248,020 |
|
Advances to
suppliers |
297,610 |
|
Other
receivables |
114,590 |
|
Trading
financial assets |
22,150 |
|
Other current
assets |
22,230 |
|
|
------------------ |
|
Current assets |
1,136,840 |
|
Fixed assets net
value |
167,050 |
|
Projects under
construction |
13,070 |
|
Long term investment |
446,360 |
|
Long-term
deferred expenses |
2,160 |
|
Intangible
assets |
11,580 |
|
Other assets |
5,300 |
|
|
------------------ |
|
Total assets |
1,782,360 |
|
|
============= |
|
Short loans |
244,000 |
|
Notes payable |
506,380 |
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Accounts payable |
222,860 |
|
Other payable |
5,230 |
|
Taxes payable |
380 |
|
Advances from
clients |
138,760 |
|
Accrued payroll |
5,290 |
|
Interest payable |
1,000 |
|
Dividends
payable |
27,000 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
1,150,900 |
|
Long term
liabilities |
3,320 |
|
|
------------------ |
|
Total
liabilities |
1,154,220 |
|
Equities |
628,140 |
|
|
------------------ |
|
Total
liabilities & equities |
1,782,360 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2013 |
|
Turnover |
2,164,910 |
|
Cost of goods
sold |
1,897,550 |
|
Sales expense |
21,870 |
|
Management expense |
92,180 |
|
Finance expense |
19,740 |
|
Investment
income |
273,380 |
|
Incomes
on the changes in fair value |
22,540 |
|
Asset impairment loss |
15,430 |
|
Profit before
tax |
411,510 |
|
Less: profit tax |
19,870 |
|
Profits |
391,640 |
Important Ratios
=============
|
|
as
of Dec. 31, 2013 |
|
*Current ratio |
0.99 |
|
*Quick ratio |
0.81 |
|
*Liabilities
to assets |
0.65 |
|
*Net profit
margin (%) |
18.09 |
|
*Return on
total assets (%) |
21.97 |
|
*Inventory
/Turnover ×365 |
36 days |
|
*Accounts
receivable/Turnover ×365 |
42 days |
|
*Turnover/Total
assets |
1.21 |
|
* Cost of
goods sold/Turnover |
0.88 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in its line.
l
SC’s net profit margin is good.
l
SC’s return on total assets is good.
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.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Fairly good.
SC is considered medium-sized in its line with fairly good
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.86 |
|
|
1 |
Rs.98.82 |
|
Euro |
1 |
Rs.80.71 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
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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.