MIRA INFORM REPORT
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Report Date : |
15.10.2014 |
IDENTIFICATION DETAILS
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Name : |
CHANGZHOU CHONTECH BAOCHENG CHEMICAL CO., LTD. |
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Registered Office : |
No. 20 Houyang Chemical Zone, Jincheng Town Jintan, Jiangsu Province
213200 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
27.12.2004 |
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Com. Reg. No.: |
320400400014437 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing Methyl 3,5-dihydroxybenzoate, 3-Acetoxy-o-toluic acid, 2-Bromo-5-Methylbenzaldehyde, 3-Methoxybenzyl chloride, N-[4-Cyano-3-(Trifluoromethyl) Phenyl]-2-Methyl-2-Oxirane Carboxamide, 4-[2-(methylamino) ethyl]Phenol hydrobromide N-MethyltyraMine hydrochloride, 4,4`-dihydroxydiphenyl cyclohexane, 9, 10-Dihydro-4H-benzo[4, 5]cyclohepta[1, 2-b]thiophen-4-one, 1-Oxo-6,11-dihydrodibenzo [b,e]thiepin, 1- (4- hydroxyphenyl) -2- ethanolamine hydrochloride, Acetic acid (2,2- two -4- chlorine cyclopropyl) phenyl ester, 3'-methoxypropiophenone, Methyl 3,5-dihydroxybenzoate and 5-Hydroxyisophthalic acid; and selling its products. |
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No of Employees : |
50 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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, 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 & address
CHANGZHOU CHONTECH BAOCHENG CHEMICAL CO., LTD.
NO. 20 HOUYANG CHEMICAL ZONE, JINCHENG TOWN
JINTAN, JIANGSU PROVINCE 213200 PR CHINA
TEL: 86 (0) 519-82698290/82698291/82698292
FAX: 86 (0) 519-82698295
EXECUTIVE
SUMMARY
DATE OF REGISTRATION :
DECEMBER 27, 2004
REGISTRATION NO. :
320400400014437
LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
FU HEYING (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
USD 300,000
STAFF :
50
BUSINESS CATEGORY :
MANUFACTURING & TRADING
REVENUE :
CNY 31,653,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 18,717,000 (AS OF DEC. 31, 2013)
WEBSITE :
WWW.BAOCHENGCHEM.COM
E-MAIL :
INFO@BAOCHENGCHEM.COM
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
ORDINARY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.13 = USD 1 AS
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.: 320400400014437 on December 27, 2004.
SC’s Organization Code Certificate No.: 76910523-1
SC’s Tax No.: 320482769105231
SC’s registered capital: USD 300,000
SC’s paid-in capital: USD 300,000
Registration Change Record:-
No significant changes of SC have been noted in SAIC since its
incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of
Shareholder (s) |
% of
Shareholding |
|
Jintan Baocheng Chemical Technology Research Institute |
75 |
|
Liu Kun (U.S.A.) |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Fu Heying |
|
General Manager |
Tang Baoqing |
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Director |
Huang Jianhua |
|
Tang Baoqing |
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Supervisor |
Fu Zhiming |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Jintan Baocheng Chemical Technology Research Institute 75
Liu Kun (U.S.A.) 25
Jintan Baocheng Chemical Technology Research Institute
-------------------------------------
Registration No.: 320482000047214
Date of Registration: April 8, 1997
Legal Form: Sole Proprietorship enterprise
Principal: Tang Baoqing
MANAGEMENT
Fu Heying, Legal Representative and Chairman
-------------------------------------------------------------------------
Gender: M
Working experience (s):
At present, working in SC as legal representative and chairman
Tang Baoqing (唐保清), General Manager
------------------------------------------------------
Gender: M
Working experience (s):
At present, working in SC as general manager
Also working in Jintan Baocheng Chemical Technology Research Institute
as principal
Director
-----------
Huang Jianhua
Tang Baoqing
Supervisor
---------------
Fu Zhiming
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
Methyl 3,5-dihydroxybenzoate, 3-Acetoxy-o-toluic acid,
2-Bromo-5-Methylbenzaldehyde, 3-Methoxybenzyl chloride,
N-[4-Cyano-3-(Trifluoromethyl)Phenyl]-2-Methyl-2-Oxirane Carboxamide,
4-[2-(methylamino)ethyl]Phenol hydrobromide N-MethyltyraMine hydrochloride,
4,4`-dihydroxydiphenyl cyclohexane, 9, 10-Dihydro-4H-benzo[4, 5]cyclohepta[1,
2-b]thiophen-4-one, 1-Oxo-6,11-dihydrodibenzo[b,e]thiepin, 1- (4-
hydroxyphenyl) -2- ethanolamine hydrochloride, Acetic acid (2,2- two -4-
chlorine cyclopropyl) phenyl ester, 3'-methoxypropiophenone, Methyl
3,5-dihydroxybenzoate and 5-Hydroxyisophthalic acid; and selling its products.
SC is mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include: Methyl 3,5-dihydroxybenzoate,
3-Acetoxy-o-toluic acid, 2-Bromo-5-Methylbenzaldehyde, 3-Methoxybenzyl
chloride, etc.
SC sources its materials 100% from domestic market. SC sells 100% of its
products to overseas market, mainly India, etc.
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.
Staff &
Office:
--------------------------
SC is known to have approx. 50 staff at present.
SC rents an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is not known to have any subsidiary at present.
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:
Agricultural Bank of China
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Cash |
2,839 |
3,901 |
|
Notes receivable |
0 |
0 |
|
Accounts receivable |
7,708 |
7,691 |
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Advances to suppliers |
2,982 |
4,148 |
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Other receivable |
400 |
300 |
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Inventory |
3,307 |
2,705 |
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Prepaid expenses |
0 |
0 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
17,236 |
18,745 |
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Fixed assets |
2,444 |
2,874 |
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Construction in progress |
0 |
0 |
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Intangible assets |
0 |
0 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
19,680 |
21,619 |
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============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
2,123 |
648 |
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Wages payable |
0 |
557 |
|
Taxes payable |
176 |
150 |
|
Advances from clients |
330 |
1,547 |
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Other payable |
0 |
0 |
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Accrued expenses |
0 |
0 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
2,629 |
2,902 |
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Non-current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
2,629 |
2,902 |
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Equities |
17,051 |
18,717 |
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------------------ |
------------------ |
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Total liabilities & equities |
19,680 |
21,619 |
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============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Revenue |
38,525 |
31,653 |
|
Cost of sales |
29,959 |
23,565 |
|
Taxes and surcharges |
155 |
142 |
|
Sales expense |
653 |
373 |
|
Management expense |
5,855 |
5,466 |
|
Finance expense |
167 |
65 |
|
Non-operating income |
40 |
34 |
|
Non-operating expense |
84 |
95 |
|
Profit before tax |
1,691 |
1,981 |
|
Less: profit tax |
254 |
297 |
|
Profits |
1,437 |
1,684 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
6.56 |
6.46 |
|
*Quick ratio |
5.30 |
5.53 |
|
*Liabilities to assets |
0.13 |
0.13 |
|
*Net profit margin (%) |
3.73 |
5.32 |
|
*Return on total assets (%) |
7.30 |
7.79 |
|
*Inventory / Revenue ×365 |
32 days |
32 days |
|
*Accounts receivable / Revenue ×365 |
74 days |
89 days |
|
*Revenue / Total assets |
1.96 |
1.46 |
|
*Cost of sales / Revenue |
0.78 |
0.74 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears average in its line in both years.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears average.
The accounts receivable of SC appears large.
SC has no short-term loans.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is low.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-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.61.11 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.68 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
TPT |
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.