MIRA INFORM REPORT
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Report Date : |
21.05.2014 |
IDENTIFICATION DETAILS
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Name : |
JIANGYIN HUAHONG CHEMICAL FIBER CO., LTD. |
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Formerly Known
as: |
Jiangyin Huahong
Chemical Fiber Factory |
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Registered Office : |
Huahong Industry Park, Zhouzhuang Town, Jiangyin, Jiangsu Province
214423 Pr |
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Country : |
China |
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Date of Incorporation : |
17.01.2001 |
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Com. Reg. No.: |
320281000094956 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing, processing and selling
of PET chips and PET staple fiber. |
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No. of Employees : |
620 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 |
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.
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Source : CIA |
Company
name & address
JIANGYIN HUAHONG
CHEMICAL FIBER CO., LTD.
HUAHONG INDUSTRY PARK, ZHOUZHUANG TOWN, JIANGYIN
JIANGSU PROVINCE 214423 PR CHINA
TEL: 86 (0) 510-86225818/86903563
FAX: 86 (0) 510-86225187
EXECUTIVE
SUMMARY
Date of Registration : JANUARY 17, 2001
REGISTRATION NO. : 320281000094956
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
HU SHIQING (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 50,000,000
staff : 620
BUSINESS CATEGORY :
MANUFACTURING & processing & trading
REVENUE :
N/A (AS OF DEC. 31, 2012)
EQUITIES :
N/A (AS OF DEC. 31, 2012)
WEBSITE : www.jyhuahong.com
E-MAIL :
sales@jyhuahong.com
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : N/A
OPERATIONAL TREND :
ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.10 = 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 collective-owned enterprise of PRC on January 17, 2001.
However, SC changed to present legal form, and was registered as a limited
liabilities company of PRC with State Administration for Industry & Commerce
(SAIC) under registration No.: 320281000094956 on April 11, 2003.
SC’s Organization Code Certificate
No.: 72519578-1
SC’s Tax No.: 320281725195781
SC’s registered capital: cny 50,000,000
SC’s paid-in capital: cny 50,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After the change |
|
2003-04-11 |
Company Name |
Jiangyin Huahong
Chemical Fiber Factory |
Jiangyin Huahong
Chemical Fiber Co., Ltd. |
|
Registered Capital |
CNY 500,000 |
CNY 50,000,000 |
|
|
Legal Representative |
Bian Manxing |
Hu Shiqing |
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Shareholder (s) (% of
Shareholding) |
Bian Huifang 5% Bian Manxing 24% Huang Yuxiang 10% Zhou Lixin 10% Village Committee of Huahong Village
Zhouzhuang Town Jiangyin 51% |
Bian Manxing 20% Jiangsu Huahong Industrial
Group Co., Ltd. 60% Yangzhou Huitong Polyester Technology Co.,
Ltd. 20% |
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|
Legal Form |
Collective-owned enterprise |
Limited
Liabilities Company |
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|
2007-03-15 |
Shareholder (s) (% of
Shareholding) |
Bian Manxing 20% Jiangsu Huahong Industrial
Group Co., Ltd. 60% Yangzhou Huitong Polyester Technology Co.,
Ltd. 20% |
Bian Manxing 20% Jiangsu Huahong Industrial
Group Co., Ltd. 80% |
|
-- |
Registration No. |
3202812121324 |
320281000094956 |
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Jiangsu Huahong Industrial
Group Co., Ltd. |
80 |
|
Bian Manxing |
20 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Hu Shiqing
|
|
Supervisor |
Hu Dongming |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name
%
of Shareholding
Jiangsu Huahong Industrial Group
Co., Ltd. 80
Bian Manxing 20
Jiangsu Huahong Industrial Group Co.,
Ltd.
--------------------------------------------------------------
Registration No.: 320281000078173
Date of Registration: July 26, 1989
Legal Form: Limited Liabilities Company
Registered Capital: CNY 101,880,000
Legal Representative: Hu Shiyong
Tel: 86 (0) 510-86225880
Fax: 86 (0) 510-86222561
E-mail: hh@cn-huahong.com
Bian Manxing
---------------------------------
Ø
Gender: M
Ø
ID# 320219196408123534
Ø
Age: 49
Ø Qualification:
University
MANAGEMENT
Hu
Shiqing, Legal
Representative, Chairman, and General Manager
----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID#320219195709153513
Ø
Age: 56
Ø Qualification:
University
Ø Working experience
(s):
From 1986 to 2003, worked in Huahong Group as vice general manager
From 2003 to present, working in SC as legal representative, chairman and general manager
Also working in Jiangyin Hongkai Chemical Fiber Co., Ltd. and Jiangyin Huakai Polyester Co., Ltd. as legal representative
Hu Dongming, Supervisor
-------------------------------------- ------
Ø
Gender: M
Ø
ID#320219197911113530
Ø
Age: 34
Ø Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes
manufacturing and processing differential and functional PET staple fiber; exporting
its products; importing machines, components and raw materials, excluding the
items prohibited by the state.
SC is
mainly engaged in manufacturing, processing and selling PET chips and PET
staple fiber.
SC’s
products mainly include: PET chips and PET staple fiber.
SC sources its materials 80%
from domestic market, and 20% from overseas market. SC sells 65% of its products
in domestic market, and 35% to overseas market, mainly Southeast Asia and
Europe.
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.
*Major Customer:
=============
Giotex
Sa De Cv
Staff & Office:
-------------------
SC is
known to have approx. 620 staff at present.
SC
rents an area as its operating office and factory of approx. 130,000 sq. meters
at the heading address.
RELATED COMPANY
u
Jiangsu Huahong Science and Technology Co., Ltd.
Jiangsu
Huahong Technology Stock Co., Ltd. is the key branch enterprise of Jiangsu
Huahong Industrial Group. It is a reputable enterprise in the industry of recycling
resource process equipment and a specialized manufacturer of large, medium and
small sized recycling resource process equipment.
Address:
Huahong Industrial Park, Zhouzhuang town, Jiangyin city, Jiangsu province, P.
R. China
Tel:
+86 (0) 510 8062 9680
Fax:
+86 (0) 510 8062 9681
Web:
www.hhyyjx.com
Email:
info@asiabaler.com
u
Jiangyin Huahong Synthetic Leather Material Factory Co., Ltd.
u
Jiangyin Huarui Plastic Building Material Co., Ltd.
u
Jiangyin New Huahong Copper Industry Co., Ltd.
u
Jiangyin Huahong Auto Ornaments Co., Ltd.
Etc.
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
Jiangyin Rural Commercial Bank Zhouzhuang Sub-branch
AC#:
10110010083
Industrial and Commercial Bank of China Jiangyin
Sub-branch
AC#:
75-900-2341
FINANCIALS
SC’s financials are not filed in local SAIC, and SC also refused to
release the details.
CONCLUSIONS
SC is considered medium-sized in its line with 12 years business
history.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.75 |
|
UK Pound |
1 |
Rs.98.77 |
|
Euro |
1 |
Rs.80.55 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.