MIRA INFORM REPORT
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Report No. : |
337635 |
|
Report Date : |
22.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
TAIXING YANGZI PHARM CHEMICAL INDUSTRY CO., LTD. |
|
|
|
|
Registered Office : |
No. 16 Xingang Road, Economic Development Zone, Taixing Jiangsu
Province 225400 Pr |
|
|
|
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Country : |
China |
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|
|
Financials (as on) : |
31.12.2014 |
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|
|
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Date of Incorporation : |
15.06.2001 |
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|
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Com. Reg. No.: |
321200400004458 |
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|
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Permission management project: manufacturing 4 - nitro-(benzene)
phenol and 4-amino-(benzene) phenol. General operating items: technology
R&D, supplying related technology service in 4 - nitro-(benzene) phenol
and 4-amino-(benzene) phenol. |
|
|
|
|
No. of Employees : |
398 |
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 |
|
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
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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.
|
Source
: CIA |
Company
Name & address
TAIXING YANGZI PHARM CHEMICAL
INDUSTRY CO., LTD.
NO. 16 XINGANG ROAD, ECONOMIC DEVELOPMENT ZONE, TAIXING
JIANGSU PROVINCE 225400 PR CHINA
TEL: 86 (0) 523-87679356/87673750
FAX: 86 (0) 523-87672150
***Note: SC is
also known as TaiXing YangZi Pharm Chemical Co., Ltd.
EXECUTIVE
SUMMARY
Date of Registration : JUNE 15, 2001
REGISTRATION NO. : 321200400004458
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
CHIEF EXECUTIVE :
PIERRE
RENE LOUIS LUZEAU (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 365,000
staff :
398
BUSINESS CATEGORY :
manufacturing & trading
Revenue :
CNY 626,409,000 (AS OF DEC. 31,
2014)
EQUITIES : CNY 220,236,000 (AS OF DEC. 31, 2014)
WEBSITE : www.yzyyhg.com
E-MAIL :
zzm@yzyyhg.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.39 = 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 limited liabilities company of PRC on June 15, 2001.
However, SC changed to present legal form, and was registered as
Chinese-foreign equity joint venture enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
321200400004458 on April 16, 2004.
SC’s Organization Code Certificate No.:
72901472-2
SC’s registered capital: USD 365,000
SC’s paid-in capital: USD 365,000 (CNY
3,027,844.92)
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered No. |
001157 |
321200400004458 |
|
2004-04-16 |
Registered Legal Form |
Limited Liabilities Co. |
Chinese-Foreign Equity Joint Venture Enterprise |
|
Registered Capital |
CNY 3,030,000 |
USD 365,000 |
|
|
Shareholder (s) (% of Shareholding) |
Zhao Bingnan 8.75% Ren Wenzhong 11.88% Zhou Zhaoming 17.82% Chen Qilin 23.76% other 33 individuals 37.79% |
Cheng HongYa (France) 26.58% Chen Qilin 23.75% Zhou Zhaoming 17.84% Ren Wenzhong 11.89% other 5 individuals 19.94% |
|
|
2006-04-25 |
Legal Representative |
Chen Qilin |
Zhou Zhaoming |
|
Shareholder (s) (% of Shareholding) |
Cheng HongYa (France) 26.58% Chen Qilin 23.75% Zhou Zhaoming 17.84% Ren Wenzhong 11.89% other 5 individuals 19.94% |
Xu Limin 3.29% Cheng HongYa (France) 26.58% Zhou Zhaoming 55.59% Ren Wenzhong 11.89% Wang Bo 2.65% |
|
|
2006-4-30 |
Shareholder (s) (% of Shareholding) |
Xu Limin 3.29% Cheng HongYa (France) 26.58% Zhou Zhaoming 55.59% Ren Wenzhong 11.89% Wang Bo 2.65% |
Cheng HongYa (France) 26.58% Ren Wenzhong 20.30% Wang Bo 13.53% Xu Limin 10.55% Zhou Zhaoming 29.04% |
|
2013 |
Legal Representative |
Zhou Zhaoming |
Pierre Rene Louis Luzeau |
|
Shareholder (s) (% of Shareholding) |
Cheng HongYa (France) 26.58% Ren Wenzhong 20.30% Wang Bo .53% Xu Limin 10.55% Zhou Zhaoming 29.04% |
Novacap Asia-Pacific Limited (Hong Kong) 51% Ren Wenzhong 6.2% Wang Bo 4.13% Hongkong
Decheng Co., Limited 26.5753% Xu Limin 3.2247% Zhou Zhaoming 8.87% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Novacap Asia-Pacific Limited (Hong Kong) |
51 |
|
Ren Wenzhong |
6.2 |
|
Wang Bo |
4.13 |
|
Hongkong
Decheng Co., Limited |
26.5753 |
|
Xu Limin |
3.2247 |
|
Zhou Zhaoming |
8.87 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Pierre Rene Louis Luzeau |
|
Vice Chairman and General Manager |
Zhou Zhaoming |
|
Director |
Ren Wenzhong |
|
Chen Xiaoping |
|
|
Jean-Pascal Mill |
|
|
LAU Poh Eng |
|
|
John Zhan Sun |
|
|
Supervisor |
Thierry Pierre Charles Jean Dervieux |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Novacap Asia-Pacific Limited (Hong Kong) 51
Ren Wenzhong 6.2
Wang Bo 4.13
Hongkong Decheng Co., Limited 26.5753
Xu Limin 3.2247
Zhou Zhaoming 8.87
Novacap Asia-Pacific Limited (Hong Kong)
===================================
Date of Registration: April 26, 2013
Registration No.: 1898702
Legal Form: Private
Hongkong Decheng Co., Limited
===========================
Date of Registration: April 9, 2013
Registration No.: 1888114
Legal Form: Private
MANAGEMENT
Pierre Rene Louis Luzeau, Legal Representative and Chairman
---------------------------------------------------------------------------------
Gender: M
Passport No.: 08CF794397
Qualification: University
Working experience (s):
At present, working in SC as legal representative and chairman
Zhou Zhaoming,
Vice Chairman and General Manager
-----------------------------------------------------------------------------------
Gender: M
Age: 53
Qualification: University
Working experience (s):
At present, working in SC as vice chairman and general manager
Director
-----------
Ren Wenzhong
Chen Xiaoping
Jean-Pascal Mill
LAU Poh Eng
John Zhan Sun
Supervisor
--------------
Thierry Pierre Charles Jean Dervieux
BUSINESS OPERATION
SC’s registered business scope includes Permission management project:
manufacturing 4 - nitro-(benzene) phenol and 4-amino-(benzene) phenol. General
operating items: technology R&D, supplying related technology service in 4
- nitro-(benzene) phenol and 4-amino-(benzene) phenol.
SC is mainly engaged in manufacturing and selling chemical products.
Brand: SHENGNIAO
SC’s products mainly include: para aminophenol, Para-Nitrophenol.
SC sources its materials 60% from domestic market, and 40% from the
overseas market. SC sells 70% of its products in domestic market, and 30% to
the overseas market, mainly U.S.A., India.
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.
*Major Customer*
---------------------
First Continental International Inc.
Staff &
Office:
--------------------------
SC is known to have approx. 398
staff at present.
SC rents an area as its operating office & factory of approx. 21,333
sq. meters at the heading address.
RELATED COMPANY
SC is known to
have a subsidiary at present:
Jiangsu Decheng Import and Export Co., Ltd.
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 Taixing Sub-branch
AC#: 17765008092038
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31, 2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
80,302 |
86,536 |
88,285 |
124,140 |
113,687 |
|
|
Notes receivable |
1,657 |
887 |
7,963 |
1,908 |
6,092 |
|
Interest
receivable |
0 |
0 |
264 |
478 |
374 |
|
Accounts receivable |
45,384 |
51,292 |
74,712 |
107,154 |
129,585 |
|
Advances to suppliers |
5,428 |
6,135 |
3,477 |
7,557 |
6,579 |
|
Other receivable |
31,107 |
38,011 |
43,062 |
488 |
309 |
|
Inventory |
10,760 |
14,249 |
14,984 |
15,344 |
12,586 |
|
Deferred expense |
0 |
0 |
168 |
0 |
0 |
|
Non-current assets within one year |
0 |
0 |
0 |
0 |
0 |
|
Other current assets |
820 |
2,288 |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
Current assets |
175,458 |
199,398 |
232,915 |
257,069 |
269,212 |
|
Fixed assets |
47,795 |
45,653 |
122,427 |
122,530 |
119,751 |
|
Long term investment |
5,000 |
5,000 |
5,000 |
0 |
0 |
|
Construction in progress |
2,844 |
1,987 |
0 |
6,548 |
3,257 |
|
Intangible assets |
0 |
0 |
0 |
8,462 |
8,268 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
855 |
780 |
|
Deferred income tax assets |
0 |
0 |
0 |
0 |
0 |
|
Other non-current assets |
0 |
0 |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
Total assets |
231,097 |
252,038 |
360,342 |
395,464 |
401,268 |
|
|
========== |
========== |
========== |
========== |
========== |
|
Short-term loans |
25,000 |
30,000 |
80,000 |
50,000 |
50,000 |
|
Notes payable |
57,920 |
53,470 |
60,600 |
88,900 |
60,700 |
|
Accounts payable |
15,449 |
17,634 |
11,268 |
16,691 |
8,513 |
|
Wages payable |
3,316 |
3,763 |
1,682 |
3,644 |
4,058 |
|
Welfares payable |
0 |
0 |
915 |
901 |
552 |
|
Taxes payable |
3,953 |
2,798 |
7,642 |
5,957 |
11,734 |
|
Advances from clients |
147 |
565 |
14 |
0 |
43 |
|
Other payable |
4,899 |
5,601 |
7,229 |
26,136 |
12,426 |
|
Accrued expense |
0 |
0 |
6,230 |
6,931 |
14,401 |
|
Other current liabilities |
3,563 |
11,141 |
1,261 |
3,775 |
4,839 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
Current liabilities |
114,247 |
124,972 |
176,841 |
202,935 |
167,266 |
|
Non-current liabilities |
7,916 |
7,389 |
7,915 |
12,262 |
13,766 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
Total liabilities |
122,163 |
132,361 |
184,756 |
215,197 |
181,032 |
|
Equities |
108,934 |
119,677 |
175,586 |
180,267 |
220,236 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
231,097 |
252,038 |
360,342 |
395,464 |
401,268 |
|
|
========== |
========== |
========== |
========== |
========== |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Revenue |
295,708 |
334,627 |
564,677 |
613,902 |
626,409 |
|
Cost of sales |
252,940 |
305,462 |
451,506 |
505,267 |
495,118 |
|
Sales expense |
5,237 |
6,131 |
12,487 |
12,284 |
16,231 |
|
Management expense |
14,693 |
17,326 |
19,688 |
26,780 |
32,318 |
|
Finance expense |
321 |
654 |
-568 |
1,657 |
-3,851 |
|
Profit before tax |
20,380 |
15,833 |
79,403 |
66,641 |
84,409 |
|
Less: profit tax |
6,001 |
4,749 |
19,851 |
18,319 |
22,057 |
|
14,379 |
11,084 |
59,552 |
48,322 |
62,352 |
Important Ratios
=============
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31, 2012 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
*Current ratio |
1.54 |
1.60 |
1.32 |
1.27 |
1.61 |
|
*Quick ratio |
1.44 |
1.48 |
1.23 |
1.19 |
1.53 |
|
*Liabilities to assets |
0.53 |
0.53 |
0.51 |
0.54 |
0.45 |
|
*Net profit margin (%) |
4.86 |
3.31 |
10.55 |
7.87 |
9.95 |
|
*Return on total assets (%) |
6.22 |
4.40 |
16.53 |
12.22 |
15.54 |
|
*Inventory / Revenue ×365 |
14 days |
16 days |
10 days |
10 days |
8 days |
|
*Accounts receivable / Revenue ×365 |
57 days |
56 days |
49 days |
64 days |
76 days |
|
*Revenue / Total assets |
1.28 |
1.33 |
1.57 |
1.55 |
1.56 |
|
*Cost of sales / Revenue |
0.86 |
0.91 |
0.80 |
0.82 |
0.79 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in five years.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loans are in an average level.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average in five years.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions. Taking into consideration of SC’s general performance, reputation
as well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.83 |
|
|
1 |
Rs.103.39 |
|
Euro |
1 |
Rs.74.27 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
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.