MIRA INFORM REPORT
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Report No. : |
352913 |
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Report Date : |
03.12.2015 |
IDENTIFICATION DETAILS
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Name : |
SINOCHEM JIANGSU CO., LTD. |
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Registered Office : |
Floors 21& 22 Jincheng Tower, No. 216 Middle Longpan Road, Baixia
District, Nanjing City, Jiangsu Province, 210002 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
30.12.1992 |
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Com. Reg. No.: |
320000000004080 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in importing and exporting pharmaceutical
intermediates, APIs, formulations and other pharmaceutical products. |
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No. of Employee : |
130 |
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 – March 31, 2015
|
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.
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 for the
first time in modern history. Still, China's per capita income is below the
world average.
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
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 also 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 and address
SINOCHEM JIANGSU CO., LTD.
FLOORS 21& 22 JINCHENG TOWER, NO. 216 MIDDLE LONGPAN ROAD,
BAIXIA DISTRICT, NANJING CITY, JIANGSU PROVINCE, 210002 PR CHINA
TEL: 86 (0) 25-51817888/51817974/51817967 FAX: 86 (0)
25-51817799
EXECUTIVE
SUMMARY
INCORPORATION DATE :
DECEMBER 30, 1992
REGISTRATION NO. : 320000000004080
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE : MR. DONG JIANHUA
(LEGAL
REPRESENTATIVE)
STAFF STRENGTH : 130
REGISTERED CAPITAL :
CNY 162,478,576.86
BUSINESS LINE : TRADING
TURNOVER : CNY
1,355,080,000 (As of DEC. 31, 2014)
EQUITIES : CNY 170,960,000
(As of DEC. 31, 2014)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD
1,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE : CNY 6.3681 = USD
1 AS OF 2015-9-9
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 state-owned enterprise at Jiangsu provincial
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on December 30, 1992 and has been under present
legal form since Oct. of 2009.
Company Status: One-person Limited Liability Company
Single person LLC refers to a limited liability company set up by only one natural person or legal person as the single shareholder of it.
The minimum registered capital of Single person LLC is CNY 100,000. The shareholder’s capital contributes, as set out by the articles of associations should be a lump-sum payment in full.
One natural person can only invest in and set up one limited liability company, which is not permitted to invest in and set up a new Single person LLC.
As to any one-person limited liability company, the sole-investor nature of the natural person or legal person shall be indicated in the registration documents of the company and shall be indicated in the business license thereof as well.
The regulation of Single person LLC should be set up by the shareholder.
The regulation of Single person LLC has no shareholder meeting.
SC’s registered business scope includes wholesale of hazardous chemicals
(operating according to the license), wholesale of class III medical devices
(excluding vitro diagnostic reagents), importing and exporting various kinds of
commodities and technology, domestic trade, technology development, transferring
and consulting of chemical pharmaceuticals. (with permit if needed)
SC is mainly engaged in importing and exporting pharmaceutical
intermediates, APIs, formulations and other pharmaceutical products.
Mr. Dong Jianhua has been legal representative, executive director and
general manager of SC since 2009.
SC is known to have approx. 130 employees at present.
SC is currently operating at the above stated address, and this address houses
its operating office in the commercial zone of Nanjing. Our checks reveal that
SC owns an area of 2,000 square meters.
http://www.sinochemjiangsu.com The design is professional and the content
is well organized. At present the web site is in both Chinese and English
versions.
E-mail: info@sinochem.com
For the past two years there is no record of litigation.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2004-6 |
Legal representative |
He Shujun |
Gu Linmin |
|
2004-11 |
Registered capital |
CNY 33,076,000 |
CNY 50,000,000 |
|
2008 |
Registration No. |
3200001100945 |
320000000004080 |
|
2009-10 |
Legal Form |
State-Owned Enterprise |
One-Person Limited Liability Company |
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Shareholders |
Sinochem Corporation 100% |
Sinochem Co., Ltd. 100% |
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Company name |
Sinochem Jiangsu Corporation |
Sinochem Jiangsu Co., Ltd. |
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Registered Capital |
CNY 50,000,000 |
CNY 102,218,576 |
|
|
Legal representative |
Gu Linmin |
Dong Jianhua |
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|
2012 |
Registered Capital |
CNY 102,218,576 |
Present amount |
On 24-25th June 1999, the ISO9002:1994 quality management system of SC
was successfully accredited by SGS Yarsley International Certification Services
Limited for the first time on the spot, and it acquired the Certificate of
ISO9002:1994 quality management system issued by SGS Yarsley on 20th
July, 1999.
On 14-45th January, SC’s ISO9001:2000 quality management system was
successfully audited by SGS Systems and Services Certification again, and SC
obtained the certificate of ISO9001:2000 issued by SGS United Kingdom Ltd.
Systems & Services Certification on 8th April, 2003.
On 19th April, 2006, SGS Systems & Services Certification
audited SC’s quality management system at the expiration of the Certificate on
the basis of renewal. SC has got new Certificate by SGS United Kingdom Ltd.
Systems & Services Certification.
Organization Code: 134762377
MAIN SHAREHOLDERS:
Name %
of Shareholding
Sinochem Co., Ltd. 100
Sinochem Co., Ltd. is one of the largest companies in the "Fortune
500" and under the supervision of SASAC (State-owned Assets Supervision
and Administration Commission of the State Council).
Legal representative: Liu Deshu
Registration No.: 100000000042135
Registered capital: CNY 39,800,000,000
Add.: No. 28 Fuxingmennei Street, Xicheng District, Beijing
28
Tel: 0086-10-59568888
Legal representative, Executive Director and General Manager:
Mr. Dong Jianhua, born in 1967, with Master's degree. He is currently
responsible for the overall and daily management of SC.
Working
Experience(s):
From 2009 to present Working in
SC as legal representative, executive director and general manager;
Also working in Sinochem Jiangsu Pharmaceutical Co., Ltd. as legal
representative.
Supervisor:
Xu Yuhong, born in 1970.
SC is mainly engaged in importing and exporting pharmaceutical
intermediates, APIs, formulations and other pharmaceutical products.
SC’s products
mainly include:
SC sources its materials 50% from domestic market, and 50% from overseas
market. SC sells 80% of its products to overseas market, mainly India, America
and Europe, and 20% in domestic 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.
TRADEMARKS & PATENTS
|
Registration No. |
5164160 |
3142754 |
5445131 |
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Registration Date |
2009-10-28 |
2004-2-14 |
2009-10-28 |
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Trademark Design |
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Note: SC refused
to release its major suppliers and customers.
SC is known to invest in the following companies:
Sinochem Jiangsu Pharmaceutical Co., Ltd.
===============================
Registration No.: 321200000020077
Incorporation Date:
Legal representative: Dong Jianhua
Registered Capital: CNY 10,000,000
Shanghai Chemspace Co., Ltd
=======================
Registration No.: 310115000934861
Incorporation Date:
Legal representative: Huang Yonghong
Registered Capital: CNY 2,000,000
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 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.
Bank of China Jiangsu Branch
AC#: 475458191171
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
Cash & bank |
33,010 |
46,130 |
|
Notes receivable |
10,260 |
1,750 |
|
Inventory |
162,580 |
86,990 |
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Accounts receivable |
198,850 |
219,200 |
|
Other accounts receivable |
92,700 |
85,350 |
|
Advances to suppliers |
29,580 |
24,500 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
526,980 |
463,920 |
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Financial assets available for sale |
/ |
7,450 |
|
Fixed assets net value |
4,960 |
4,340 |
|
Long term investment |
17,020 |
14,480 |
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Deferred tax assets |
670 |
610 |
|
Intangible and other assets |
3,210 |
0 |
|
Long-term deferred expenses |
260 |
670 |
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|
------------------ |
------------------ |
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Total assets |
553,100 |
491,470 |
|
|
============= |
============= |
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Short loans |
120,480 |
82,780 |
|
Notes payable |
98,350 |
108,010 |
|
Accounts payable |
81,960 |
86,860 |
|
Other accounts payable |
16,170 |
13,210 |
|
Employee pay payable |
5,400 |
2,280 |
|
Taxes payable |
-7,980 |
-5,810 |
|
Advance from clients |
64,720 |
31,880 |
|
Interest payable |
230 |
180 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current liabilities |
379,330 |
319,390 |
|
Other liabilities |
680 |
1,120 |
|
|
------------------ |
------------------ |
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Total liabilities |
380,010 |
320,510 |
|
Equities |
173,090 |
170,960 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
553,100 |
491,470 |
|
|
============= |
============= |
Income
Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
Turnover |
1,599,940 |
1,355,080 |
|
Cost of goods sold |
1,520,380 |
1,288,690 |
|
Taxes and additional of main operation |
590 |
950 |
|
Sales expense |
35,440 |
38,660 |
|
Management expense |
29,410 |
19,260 |
|
Finance expense |
12,350 |
6,890 |
|
Asset impairment loss |
180 |
960 |
|
Investment income |
2,430 |
4,160 |
|
Non-operating income |
4,280 |
2,040 |
|
Non-operating expense |
330 |
90 |
|
Profit before tax |
7,970 |
5,780 |
|
Less: profit tax |
2,760 |
490 |
|
Profits |
5,210 |
5,290 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.39 |
1.45 |
|
*Quick ratio |
0.96 |
1.18 |
|
*Liabilities to assets |
0.69 |
0.65 |
|
*Net profit margin (%) |
0.33 |
0.39 |
|
*Return on total assets (%) |
0.94 |
1.08 |
|
*Inventory /Turnover ×365 |
38 days |
24 days |
|
*Accounts receivable/Turnover ×365 |
46 days |
60 days |
|
*Turnover/Total assets |
2.89 |
2.76 |
|
* Cost of goods sold/Turnover |
0.95 |
0.95 |
PROFITABILITY:
AVERAGE
The turnover of SC appears good in both years, but it decreased in 2014.
SC’s net profit margin is average in both years.
SC’s return on total assets is average in both years.
SC’s cost of goods sold is fairly high in both years, comparing with its
turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in both years.
SC’s quick ratio is maintained in a normal level in both years.
The inventory of SC is average in both years.
The accounts receivable of SC appears average in both years.
SC’s short-term loan appears fairly large in both years.
SC’s turnover is in an average level in both years, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average in both years.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with favorable background and
fairly stable financial conditions. The fairly large amount of short term loan
could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.62 |
|
|
1 |
Rs.100.34 |
|
Euro |
1 |
Rs.70.67 |
|
CYN |
1 |
Rs. 10.41 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
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|
Report Prepared
by : |
ASH |
RATING EXPLANATIONS
|
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 |
|
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.