MIRA INFORM REPORT
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Report Date : |
22.10.2014 |
IDENTIFICATION DETAILS
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Name : |
Solutia
Performance Products Suzhou Co., Ltd. |
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Registered Office : |
No. 129 Wangjiang Road, Weiting
Town, Suzhou Industrial Zone, Jiangsu
Province 215121 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
29.12.2005 |
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Com. Reg. No.: |
320594400012056 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject includes researching and
manufacturing the environmental protection multifunctional organic film
products, selling its owned products, providing related after-sale service;
wholesale, import and export, commission agents and related business of its
owned products and similar goods |
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No. of Employees : |
180 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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 and address
Solutia Performance Products Suzhou
Co., Ltd.
no. 129
wangjiang road, weiting town, suzhou industrial zone
jiangsu
PROVINCE 215121 PR CHINA
TEL: 86
(0) 512-66968329/66986321
FAX: 86
(0) 512-66968305
EXECUTIVE
SUMMARY
Date of Registration : december 29, 2005
REGISTRATION NO. : 320594400012056
LEGAL FORM : Wholly foreign-owned enterprise
REGISTERED CAPITAL : usd 40,000,000
staff : 180
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 717,530,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 136,520,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIRLY
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.13 = 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 wholly foreign-owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 320594400012056 on December 29, 2005.
SC’s Organization Code Certificate No.:
78336079-X
SC’s Tax No.: 32170078336079X
SC’s registered capital: usd 40,000,000
SC’s paid-in capital: usd 40,000,000
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 |
|
Solutia Performance Products
Solutions, Ltd. (Mauritius) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Dante
Joseph Rutstrom |
|
General Manager |
Wang
Zengheng |
|
Director |
Dirk
A. J. Duquet |
|
Jennifer
Bellamy Bogni |
|
|
Supervisor |
Jin
Haifang |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Solutia Performance Products
Solutions, Ltd. (Mauritius) 100
=========================================
Type of the company: Limited by Shares
Detailed status: Live
Date of registration:
Code of the company: C59980
MANAGEMENT
Dante
Joseph Rutstrom, Legal
Representative and Chairman
------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Wang Zengheng, General Manager
---------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general
manager
Director
-----------
Dirk A. J. Duquet
Jennifer Bellamy Bogni
Supervisor
--------------
Jin Haifang
BUSINESS
OPERATION
SC’s registered business scope includes researching and
manufacturing the environmental protection multifunctional organic film
products, selling its owned products, providing related after-sale service;
wholesale, import and export, commission agents and related business of its
owned products and similar goods.
SC is
mainly engaged in manufacturing and selling multifunctional organic film.
SC’s
products mainly include: multifunctional organic film.
SC sources its materials 100% from domestic market, mainly Guangdong. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly U.S.A., Europe, Mid East, Southeast Asia, etc.
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 Customers:
==============
Solutia Inc.
Macro Engineering
& Technology Inc.
FIBC Recycling
Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 180 staff at present.
SC owned an area
as its operating office & factory of approx. 19,000 sq. meters at the
heading address.
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:
Bank
of China Suzhou Industrial Zone Sub-branch
AC#:
38528208091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
7,410 |
|
|
Notes receivable |
0 |
|
Accounts
receivable |
128,760 |
|
Advances to
suppliers |
0 |
|
Other receivable |
1,490 |
|
Inventory |
200,820 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
7,320 |
|
|
------------------ |
|
Current assets |
345,800 |
|
Fixed assets |
446,510 |
|
Long-term
prepaid expenses |
0 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
25,620 |
|
|
------------------ |
|
Total assets |
817,930 |
|
|
============= |
|
Short-term loans |
0 |
|
Notes payable |
0 |
|
Accounts payable |
275,670 |
|
Advances from
clients |
770 |
|
Other payable |
17,540 |
|
Other current liabilities |
16,050 |
|
|
------------------ |
|
Current
liabilities |
310,030 |
|
Non-current
liabilities |
371,380 |
|
|
------------------ |
|
Total
liabilities |
681,410 |
|
Equities |
136,520 |
|
|
------------------ |
|
Total
liabilities & equities |
817,930 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
717,530 |
|
Cost of sales |
623,000 |
|
Sales expense |
41,410 |
|
Management expense |
43,170 |
|
Finance expense |
9,260 |
|
Profit before tax |
-14,580 |
|
Less: profit tax |
0 |
|
-14,580 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
|
*Current ratio |
1.12 |
|
*Quick ratio |
0.47 |
|
*Liabilities
to assets |
0.83 |
|
*Net profit
margin (%) |
-2.03 |
|
*Return on total
assets (%) |
-1.78 |
|
*Inventory /
Revenue ×365 |
103 days |
|
*Accounts
receivable/ Revenue ×365 |
66 days |
|
*Revenue/Total
assets |
0.88 |
|
*Cost of sales
/ Revenue |
0.87 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC appears fairly good in its line.
l SC’s net profit
margin is fair.
l SC’s return on
total assets is fair.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans.
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with
fair financial conditions. The large amount of inventory may be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.30 |
|
|
1 |
Rs.99.16 |
|
Euro |
1 |
Rs.78.59 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.