MIRA INFORM REPORT
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Report Date : |
28.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
JIANGSU SINORGCHEM
TECHNOLOGY CO., LTD |
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Registered Office : |
No. 1
Yaocheng Avenue, Taizhou, Jiangsu
Province 225300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
14.05.2008 |
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Com. Reg. No.: |
321200000014478 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject is mainly engaged in developing and Selling of Chemical
Products. |
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No. of Employees : |
388 |
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 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate 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
JIANGSU SINORGCHEM TECHNOLOGY CO., LTD
NO. 1 YAOCHENG
AVENUE, TAIZHOU, JIANGSU PROVINCE 225300 PR CHINA
TEL: 86 (0)
523-86200330
FAX: 86 (0)
523-86200662
EXECUTIVE SUMMARY
Date of Registration : may 14, 2008
REGISTRATION NO. : 321200000014478
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL : CNY
585,000,000
staff :
388
BUSINESS CATEGORY :
developing & trading
Revenue :
CNY 2,798,783,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 1,600,286,000 (AS OF DEC. 31, 2013)
WEBSITE : www.sinorgchem.com
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE :
CNY 6.24 = 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
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a Chinese-foreign equity joint venture enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 321200000014478 on may
14, 2008.
SC’s Organization Code Certificate No.:
67545808-7
SC’s registered capital: CNY 585,000,000
SC’s paid-in capital: CNY 585,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Legal Representative |
Wang Hao |
Tan Hengde |
|
Shareholder (s) |
HK Carlyle Sinorgchem Industrial Company Limited Cheng Qianwen Du Zibin Feng Xiaogen Li Guoliang Mao Xiaohui Tang Zhimin Wang Nongyue Wang Hao Yu Ruibiao |
HK Carlyle Sinorgchem Industrial Company Limited Sinochem International (Overseas) Pte. Ltd Wang Hao |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
HK Carlyle Sinorgchem Industrial Company
Limited |
100 |
|
Sinochem
International (Overseas) Pte. Ltd. |
|
|
Wang Hao |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General
Manager |
Tan Hengde |
|
Vice Chairman |
Li Xuetao |
|
Director |
Su Fu |
|
Cheng Xiaoxi |
|
|
Xu Xu |
|
|
Wang Hao |
|
|
Supervisor |
Zhang Yongjian |
|
Cheng Qianwen |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
HK Carlyle Sinorgchem Industrial Company
Limited
Sinochem International (Overseas) Pte. Ltd.
Wang Hao
-----------------------------------------------
The
above Shareholders 100
Carlyle Sinorgchem
Industrial Company Limited (Hong Kong)
------------------------------------------------------------
Date of Registration :
January 3, 2008
Registration No. : 1200436
Legal Form : Private
Status : Live
Wang Hao
Ø
Gender: M
Ø
Age: 36
Ø
ID# 220104197810231315
MANAGEMENT
Tan Hengde, Legal Representative, Chairman and General
Manager
----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Li Xuetao,
Vice Chairman
---------------------------------------------
Ø
Gender: M
Ø
Working
experience (s):
At present, working in SC as vice chairman
*Director*
-------------
Su Fu
Cheng Xiaoxi
Xu Xu
Wang Hao
*Supervisor*
----------------
Zhang Yongjian
Cheng Qianwen
BUSINESS OPERATION
SC’s registered
business scope includes technology development, technology transfer, technical
advisory and technical services of rubber additives, chemical compound
medicine, selling chemical raw materials, chemical products, chemical equipment
and parts, technology import and export.
SC is mainly
engaged in developing and selling chemical products.
SC’s products
mainly include:
Antioxidant
6PPD
Antioxidant
IPPD
Antioxidant
TMQ
Intermediate
4-ADPA
Antioxidant
7PPD
Antioxidant
8PPD
Antioxidant
OPPD
Antioxidant
H-TMQ
Antioxidant
S-TMQ
SC sources its products 100% from domestic
market, mainly Shandong. SC sells 10% of its products in domestic market, and
90% to overseas market, mainly Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier*
---------------------
Shandong Sinorgchem Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 388 staff at
present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
Subsidiaries & Branch:
----------------------------------
u
Shandong Sinorgchem International Chemical Industry Co., Ltd.
u
Sinorgchem Co., Tai’An
u
Anhui Sinorgchem Technology Co., Ltd
u
Lanxi Qiantang Synthetic New Materials Co., Ltd.
u
Shiyan Kuipeng Chemical Industry Co., Ltd.
u
Sinorgchem Europe B.V.
u
ENVIRCHEM, INC.
u
Jiangsu Sinorgchem Technology Co., Ltd. Shanghai Shengbo Chemical Branch
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’s suppliers
declined to make any comments.
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:
China
Construction Bank
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
553,751 |
820,442 |
1,030,578 |
|
|
Notes receivable |
161,198 |
70,861 |
115,765 |
|
Dividend receivable |
69,000 |
319,000 |
319,000 |
|
Accounts
receivable |
432,706 |
490,968 |
807,047 |
|
Advances to
suppliers |
158,952 |
112,449 |
6,698 |
|
Other receivable |
24,091 |
195,017 |
153,293 |
|
Inventory |
27,833 |
39,837 |
52,060 |
|
Non-current
assets within one year |
0 |
0 |
0 |
|
Other current
assets |
26,025 |
9,204 |
1,265 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
1,453,556 |
2,057,778 |
2,485,706 |
|
Fixed assets |
3,954 |
2,808 |
2,818 |
|
Construction in
progress |
1,942 |
2,780 |
0 |
|
Intangible
assets |
9,559 |
9,006 |
8,622 |
|
Long-term
investments |
304,126 |
304,126 |
304,126 |
|
Deferred income
tax assets |
7,429 |
10,690 |
7,020 |
|
Long-term
deferred expenses |
2,594 |
1,404 |
872 |
|
Other
non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
1,783,160 |
2,388,592 |
2,809,164 |
|
|
============= |
============= |
============= |
|
Short-term loans |
0 |
0 |
0 |
|
Notes payable |
90,000 |
150,000 |
295,000 |
|
Accounts payable |
190,801 |
287,572 |
685,554 |
|
Payroll payable |
20,591 |
8,786 |
19,300 |
|
Welfares payable |
6,640 |
6,579 |
7,771 |
|
Dividends
payable |
421,728 |
252,485 |
252,485 |
|
Taxes payable |
-61,136 |
-47,265 |
-88,700 |
|
Advances from
clients |
11,410 |
6,292 |
6,857 |
|
Other payable |
32,349 |
244,876 |
30,611 |
|
Other current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
712,383 |
909,325 |
1,208,878 |
|
Non-current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
712,383 |
909,325 |
1,208,878 |
|
Equities |
1,070,777 |
1,479,267 |
1,600,286 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
1,783,160 |
2,388,592 |
2,809,164 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
2,521,217 |
2,798,783 |
|
Cost of sales |
2,131,703 |
2,489,079 |
|
Tax and associate charge |
3,514 |
1,782 |
|
Sales expense |
112,713 |
90,734 |
|
Management expense |
93,775 |
72,999 |
|
Finance expense |
-9,454 |
-27,429 |
|
Investment
income |
250,000 |
601 |
|
Non-operating
income |
22,581 |
10,816 |
|
Non-operating expense |
227 |
291 |
|
Profit before
tax |
461,320 |
182,745 |
|
Less: profit tax |
52,830 |
47,272 |
|
408,490 |
135,473 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
2.04 |
2.26 |
2.06 |
|
*Quick ratio |
2.00 |
2.22 |
2.01 |
|
*Liabilities
to assets |
0.40 |
0.38 |
0.43 |
|
*Net profit
margin (%) |
-- |
16.20 |
4.84 |
|
*Return on
total assets (%) |
-- |
17.10 |
4.82 |
|
*Inventory /
Revenue ×365 |
-- |
6 days |
7 days |
|
*Accounts
receivable / Revenue ×365 |
-- |
72 days |
106 days |
|
*Revenue /
Total assets |
-- |
1.06 |
1.00 |
|
*Cost of sales
/ Revenue |
-- |
0.85 |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good in its line,
and it increased in 2013.
l
SC’s net profit margin is fairly good in 2012,
average in 2013.
l
SC’s return on total assets is fairly good in 2012,
average in 2013.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears large in
2013.
l
SC has no short-term loan in three years.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial condition
of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.06 |
|
|
1 |
Rs.99.61 |
|
Euro |
1 |
Rs.80.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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|
Report Prepared
by : |
NIT |
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.