MIRA INFORM REPORT
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Report No. : |
335148 |
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Report Date : |
07.08.2015 |
IDENTIFICATION DETAILS
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Name : |
CHANGZHOU HARVECHEM LTD. |
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Registered Office : |
Floor 11, Building 1, Hengsheng Science Park, No. 8, North Tanghe Road, Tianning District, Changzhou City, Jiangsu Province Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
15.11.2006 |
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Com. Reg. No.: |
320483000132478 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is mainly engaged in Selling of Chemical Products. |
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No. of Employees : |
17 |
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 : |
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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year... 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 2014 more than 274 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
Name and address
FLOOR 11, BUILDING 1, HENGSHENG SCIENCE PARK,
NO. 8, NORTH TANGHE ROAD, TIANNING DISTRICT, CHANGZHOU CITY, JIANGSU PROVINCE
PR CHINA
TEL: 86 (0) 519-88784888/88781234 FAX: 86 (0) 519-88721515
EXECUTIVE
SUMMARY
INCORPORATION DATE : NOV. 15, 2006
REGISTRATION NO. : 320483000132478
REGISTERED LEGAL FORM : Limited liabilities
coMPANY
STAFF STRENGTH : 17
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 53,240,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 6,090,000 (AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.2123= 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 Ren Min Bi
Note: The “20 Hengyao
Road, Zhenxi Industrial Zone, Henglin, Changzhou Jiangsu” is one of the SC’s
operating addresses, and the main operating address should be the heading one.
SC was registered as a Limited liabilities
co. at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on Nov. 15, 2006.
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
selling chemical products listed in the scope of license, chemical raw
materials and products, general machinery, hardware, crafts and daily
necessaries; importing and exporting commodities and technologies, excluding
commodities and technologies prohibited by the state. (with permit if needed)
SC is mainly
engaged in selling chemical products.
Mr. Xu Liyan has
been the legal representative, chairman and general manager of SC since 2006.
SC is known
to have approx. 17 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Changzhou. The detailed premise
information is unspecified.
http://www.harvechem.com/ The design is professional and the content is
well organized. At present the web site is in Chinese and English versions.
E-mail: xu.liyan@harvechem.com
Changes
of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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2011-5-9 |
Registered capital |
CNY 500,000 |
Present amount |
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Unknown |
Registered no. |
3204832113620 |
Present one |
Organization code: 795355349
MAIN
SHAREHOLDERS:
Name % of Shareholding
Xu Liyan 60
Yao Jie 40
l Legal
representative, Chairman and General manager:
Mr. Xu Liyan, (ID# 32042119730827XXXX), born
in 1973. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present work
in SC as legal representative, chairman and general manager.
l Supervisor:
Yao Jie
SC is mainly
engaged in selling chemical products.
SC’s products
mainly include: APi and Intermediates-Multiple, 4-Phenylbutanol, etc.
SC sources its
materials 50% from domestic market and 50% from overseas market. SC sells 40%
of its products in domestic market and 60% 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 T/T, L/C and Credit of 30-60 days.
Note:
SC declined to release its major suppliers and clients.
Trademarks & Patents
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Registration No. |
8429667 |
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Registration Date |
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Trademark Design |
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CHANGZHOU
HARVECHEM LTD. XINBEI DISTRICT BRANCH
INCORPORATION DATE : oCT. 26, 2007
REGISTRATION NO. : 320407000096175
RESPONSIBLE PERSON : CAI
JINGXIAN
CHANGZHOU KANGRONG
PHARMACEUTICAL TECHNOLOGY CO., LTD
INCORPORATION DATE : Feb. 12, 2015
REGISTRATION NO. : 320407000288565
LEGAL REPRESENTATIVE : XU
YIMING
REGISTERED LEGAL FORM : Limited liabilities
coMPANY
REGISTERED CAPITAL : CNY 1,000,000
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 refused to
release any information of its suppliers and the trade reference was not
available.
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.
We didn’t find the
banking information of SC in local AIC.
Financial Summary
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Unit: CNY’000
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As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
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Total liabilities |
4,320 |
6,100 |
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Equities |
5,200 |
6,090 |
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-------------- |
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Total liabilities & equities |
9,520 |
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========= |
========= |
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Turnover |
45,740 |
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Profit before tax |
1,100 |
1,490 |
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Less: profit tax |
280 |
370 |
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Profits |
820 |
1,120 |
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Note: We did not find SC’s detailed
financial reports for Yr2013&2014.
Important Ratios
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As of Dec. 31,
2013 |
As of Dec. 31, 2014 |
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*Liabilities to assets |
0.45 |
0.50 |
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*Net profit margin (%) |
1.79% |
2.10% |
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*Return on total assets (%) |
8.61% |
9.19% |
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*Turnover/Total assets |
4.80 |
4.37 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC
appears average in its line and it was increasing in 2014.
l SC’s net profit margin
is average and it was increasing in 2014.
l SC’s return on
total assets is fairly good in both 2013 and 2014.
l
SC’s turnover is fairly good in both 2013 and 2014,
comparing with the size of its total assets.
LEVERAGE: LOW
l
The debt ratio of SC is low in 2013 and 2014.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: STABLE.
SC is considered small-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.76 |
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1 |
Rs.99.60 |
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Euro |
1 |
Rs.69.71 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
NIT |
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.