MIRA INFORM REPORT
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Report Date : |
16.10.2014 |
IDENTIFICATION DETAILS
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Name : |
JIANGXI SPICE CHEMICAL INDUSTRIAL Co.,
Ltd. |
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Registered Office : |
Zone C, Industrial Park, Jinxi County,
Fuzhou, Jiangxi Province, 344800 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
13.05.2004 |
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Com. Reg. No.: |
361000520001076 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is mainly engaged in manufacturing and sales of spices. |
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No of Employees : |
60 |
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 : |
Slow but correct |
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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
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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.
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Source
: CIA |
COMPANY
NAME & ADDRESS
JIANGXI SPICE CHEMICAL INDUSTRIAL Co., Ltd.
ZONE
C, INDUSTRIAL PARK, JINXI COUNTY,
FUZHOU,
JIANGXI PROVINCE, 344800 PR CHINA
TEL:
86 (0) 794-5258169
FAX:
86 (0) 794-5258055
EXECUTIVE
SUMMARY
INCORPORATION DATE : MAY 13, 2004
REGISTRATION NO. : 361000520001076
REGISTERED LEGAL FORM : Limited liabilities co.
CHIEF EXECUTIVE :
Mr. LI XIANGLIN (legal representative)
STAFF STRENGTH :
60
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
TRADING AND MANUFACTURING
TURNOVER :
CNY 48,960,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 6,310,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1377 = 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 limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on May
13, 2004.
Company Status: Limited liabilities co. This form of business in PR China is defined as a legal
person. No more than fifty shareholders contribute its registered capital
jointly. Shareholders bear limited liability to the extent of shareholding,
and the co. is liable for its debts only to extent of its total assets. The
characteristics of this form of co. are as follows: Upon the establishment of the co., an investment
certificate is issued to the each of shareholders. The board of directors is comprised of three to thirteen
members. The minimum registered capital for a co. is CNY 30,000. Shareholders may take their capital contributions in
cash or by means of tangible assets or intangible assets such as industrial
property and non-patented technology. Cash contributed by all shareholders must account for at
least 30% of the registered capital. Existing shareholders have pre-exemption right to
purchase shares of the co. offered for sale by the other shareholders and
to subscribe for the newly increased registered capital of the co.
SC’s registered business scope includes manufacture and sales of
linalool, eucalyptus oil, cineole, camphor powder, terpineol, sassafras oil,
citral, white camphor oil, citronella oil, wintergreen oil, geranium oil and
other natural spices and synthetic perfume (operating according to the related
regulations) (Safety production license is valid until September 23, 2015; Non
pharmaceutical precursor chemicals production license is valid until September
9, 2015).
SC is mainly engaged in manufacturing and sales of spices.
Mr. Li Xianglin is legal representative and chairman of SC at present.
SC is known to have approx. 60 employees
at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Fuzhou.
Detailed premise information is not available at present.
http://www.jxspice.com/
The design is professional and the content is well organized. At present it is
in English and Chinese versions.
Email: jxspicemarkets@gmail.com
For the past two years there is no record of litigation.
No significant changes were found during our
checks with the local Administration for Industry and Commerce.
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 759982951
MAIN SHAREHOLDERS:
Name %
of Shareholding
Li Xianglin 67
Fu Houming 33
Legal
Representative and Chairman:
Mr. Li Xianglin is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman.
Director:
Xu Wensheng
Supervisor:
Li Qunwei
SC is mainly engaged in manufacturing and sales of spices.
SC’s products mainly include: Natural eucalyptus oil, Natural camphor
powder, Natural aromatic leaf oil, Sassafras oil, Wintergreen oil and White
camphor oil.
SC sources its materials from domestic market and overseas market. SC
sells its products in domestic market, and 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 declined to release its major suppliers and clients.
TRADEMARKS & PATENTS
Registration No.: 7822693
Registration Date: Dec. 14, 2010
Trademark Design:
According to SC’s website:
Kunming Dianrun Spice Chemical Industrial Co., Ltd.
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 accountant refused to release the bank details.
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2013 |
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Cash & bank |
8,010 |
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Inventory |
31,710 |
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Accounts receivable |
-2,790 |
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Advances to suppliers |
1,710 |
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Other receivables |
-10 |
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Subsidies receivable |
-230 |
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------------------ |
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Current assets |
38,400 |
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Fixed assets net value |
9,180 |
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Long term investment |
22,400 |
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Liquidation of fixed assets |
630 |
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Projects under construction |
730 |
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Intangible and other assets |
4,660 |
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Total assets |
76,000 |
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=========== |
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Short loan |
20,000 |
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Accounts payable |
80 |
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Advances from customers |
530 |
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Taxes payable |
-580 |
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Other accounts payable |
47,950 |
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Payroll payable |
100 |
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Other unpaid expenses |
280 |
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------------------ |
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Current liabilities |
68,360 |
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Long term liabilities |
1,330 |
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------------------ |
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Total liabilities |
69,690 |
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Equities |
6,310 |
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------------------ |
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Total liabilities & equities |
76,000 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2013 |
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Turnover |
48,960 |
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Cost of goods sold |
46,410 |
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Taxes and additional of
main operation |
480 |
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Sales expense |
320 |
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Management expense |
1,640 |
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Finance expense |
1,470 |
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Investment income |
600 |
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Non-operating income |
560 |
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Non-operating expense |
690 |
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Profit before tax |
-890 |
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Less: profit tax |
150 |
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Profits |
-1,040 |
Important Ratios
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As of Dec.
31, 2013 |
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*Current ratio |
0.56 |
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*Quick ratio |
0.10 |
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*Liabilities to assets |
0.92 |
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*Net profit margin (%) |
-2.12 |
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*Return on total assets (%) |
-1.37 |
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*Inventory /Turnover ×365 |
237 days |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
0.64 |
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* Cost of goods sold/Turnover |
0.95 |
PROFITABILITY:
FAIR
The turnover of SC appears average in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of goods sold is fairly high.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a poor level.
The inventory of SC appears large.
SC’s short loans are large in 2013.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
The large amount of inventory and short loans could be a threat to SC’s
financial situation.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.11 |
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|
1 |
Rs.98.15 |
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Euro |
1 |
Rs.77.68 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
SMN |
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 |
-- |
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.