MIRA INFORM REPORT
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Report No. : |
306055 |
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Report Date : |
05.02.2015 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU CHUNJIANG AGROCHEMICAL CO., LTD. |
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Registered Office : |
No.
84, Panjiawan, Zhixi Town, Jintan, Jiangsu Province 213251 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
25.11.2004 |
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Com. Reg. No.: |
320482000020312 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Manufacturing and Selling of Agrochemical Products. |
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No. of Employees : |
220 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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.
|
Source
: CIA |
Company
Name and address
JIANGSU
CHUNJIANG AGROCHEMICAL CO., LTD.
NO. 84, PANJIAWAN,
ZHIXI TOWN, JINTAN, JIANGSU PROVINCE 213251 PR CHINA
TEL: 86 (0) 519-82444298
FAX: 86 (0) 519-82442866
EXECUTIVE
SUMMARY
INCORPORATION DATE : NOV. 25, 2004
REGISTRATION NO. : 320482000020312
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 220
REGISTERED CAPITAL :
CNY 10,600,000
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER : cny 208,050,000 (AS OF DEC. 31,
2013)
EQUITIES : cny 23,000,000 (AS OF DEC. 31,
2013)
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION
: fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.2534 =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
co. at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on Nov. 25, 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 wholesaling methanol, 2 -
propanol, 2 - methyl - 2 - propanol, insecticides, fungicides, plant growth
regulator, herbicides; manufacturing and selling triphenyl tin, effective
chlorine fluorine with acetate, biphenyl three fluorine chlorine chrysanthemum
chrysanthemum ester, acid, 2 - methyl - 3 - al, amino pyrazole phenyl methanol;
selling 2 - methyl - 3 - chlorobenzene butyryl chloride, kalong acid,
cypermethrin, fenvalerate, fluorine, efficient cypermethrin, DV - chrysanthemum
acyl chloride,, methyl diphenyl ether aldehyde; importing and exporting
commodities and technologies (with permit if needed).
SC is mainly engaged in manufacturing and
selling agrochemical products.
Mr.
Zhang Heping is the legal representative, chairman and general manager of SC at
present.
SC is known
to have approx. 220 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 Jintan. Our checks
reveal that SC owns the total premise about 20,000 square meters.
http://www.chunjiangchem.com/ The design is professional and the content is
well organized. At present the web site is in Chinese and English versions.
Email: zm@chunjiangchem.com
No significant events or changes were found
during our checks with the local Administration for Industry and Commerce.
Organization code: 768298457
See below for SC as executive party
(defendant).
|
Executed Party |
Jiangsu
Chunjiang Agrochemical Co., Ltd. |
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Court |
Jintan City
People's Court |
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Date of
Case |
June 17, 2013 |
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Case Number |
(2013)
00089 |
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Claim
Amount |
RMB 1,260,349.6 |
|
Case Status |
Completed |
|
Executed Party |
Jiangsu
Chunjiang Agrochemical Co., Ltd. |
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Court |
Jintan City
People's Court |
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Date of
Case |
May 17, 2010 |
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Case Number |
(2010)
00769 |
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Claim
Amount |
RMB 97,755.68 |
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Case Status |
Completed |
Remark: Due to the lack
of information, we are unable to provide the cause of action, judgment or other
information.
MAIN SHAREHOLDERS:
Name
Investment amount (CNY) % of Shareholding
Zhang Heping 9,000,000 84.91
ID#
32042219640318****
Zhang Min 1,600,000 15.09
ID#
32048219820428****
l Legal
Representative, Chairman and General Manager:
Mr. Zhang Heping, born in 1964. He is currently responsible for the
overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative, chairman and general manager.
l Supervisor:
Zhang Min
SC is mainly
engaged in manufacturing and selling agrochemical products.
SC’s products mainly include: Triphenyltin
hydroxide, Fentin Acetate, Lambda-cyhalothrin, Bifenthrin, Lambda-cyhalothric
Acid, etc.
SC sources its materials 90% from domestic market and 10% from overseas
market, mainly India. SC sells 70% of its products in domestic market and 30%
to overseas market, mainly America, Europe, India, etc.
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, Check
and Credit of 30-60 days.
Note:
SC declined to release its major suppliers and clients.
Trademark & Patents
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Registration
No. |
4855059 |
5083389 |
5083390 |
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Registration
Date |
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Trademark
Design |
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The subsidiary information is unknown.
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.
China Construction Bank Jintan Zhixi Office
AC#：32001626444059668166
Relationship: Normal
Balance Sheet
Unit: CNY’000
|
|
as of
Dec. 31, 2012 |
as of Dec.
31, 2013 |
|
Cash & bank |
51,630 |
27,540 |
|
Notes receivable |
5,000 |
0 |
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Inventory |
20,130 |
31,070 |
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Accounts receivable |
49,950 |
53,820 |
|
Advances to suppliers |
0 |
0 |
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Prepaid expenses |
160 |
0 |
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Other receivables |
16,420 |
7,670 |
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Other current assets |
0 |
200 |
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------------------ |
------------------ |
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Current assets |
143,290 |
120,300 |
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Long-term investments |
0 |
70,560 |
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Fixed assets net value |
13,160 |
13,650 |
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Projects under construction |
0 |
0 |
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Intangible assets |
1,140 |
1,100 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
157,590 |
205,610 |
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============= |
============= |
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Short loans |
91,230 |
77,000 |
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Notes payable |
42,500 |
50,000 |
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Accounts payable |
330 |
24,210 |
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Advances from customers |
0 |
0 |
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Taxes payable |
-12,030 |
-9,510 |
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Other accounts payable |
13,460 |
37,860 |
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Other current liabilities |
1,090 |
3,050 |
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----------------- |
----------------- |
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Current liabilities |
136,580 |
182,610 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
136,580 |
182,610 |
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Shareholders equities |
21,010 |
23,000 |
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------------------ |
------------------ |
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Total liabilities & equities |
157,590 |
205,610 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of
Dec. 31, 2012 |
as of
Dec. 31, 2013 |
|
Turnover |
181,140 |
208,050 |
|
Cost of goods sold |
155,690 |
180,420 |
|
Sales expense |
1,130 |
1,330 |
|
Management expense |
15,210 |
18,460 |
|
Finance expense |
6,720 |
8,560 |
|
Profit before tax |
3,930 |
3,310 |
|
Less: profit tax |
990 |
830 |
|
Net profit |
2,940 |
2,480 |
Important Ratios
=============
|
|
as of Dec. 31, 2012 |
as of Dec. 31, 2013 |
|
*Current
ratio |
1.05 |
0.66 |
|
*Quick
ratio |
0.90 |
0.49 |
|
*Liabilities
to assets |
0.87 |
0.89 |
|
*Net profit
margin (%) |
1.62 |
1.19 |
|
*Return on
total assets (%) |
1.87 |
1.21 |
|
*Inventory
/Turnover ×365 |
41 days |
55 days |
|
*Accounts
receivable/Turnover ×365 |
101 days |
95 days |
|
*Turnover/Total
assets |
1.15 |
1.01 |
|
* Cost of
goods sold/Turnover |
0.86 |
0.87 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears fairly good in its line.
l SC’s net profit margin
is average.
l SC’s return on
total assets is average.
l SC’s cost of goods
sold is average, comparing with its turnover.
LIQUIDITY:
FAIR
l The current ratio
of SC is maintained in a normal level in 2012 but in a fair level in 2013.
l SC’s quick ratio
is maintained in a normal level in 2012 but in a fair level in 2013.
l The inventory of
SC appears average.
l The accounts
receivable of SC is maintained in a fairly large level.
l SC’s short-term
loan appears large.
l SC’s turnover is
in an average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l The debt ratio of
SC is high.
l 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
fairly stable financial conditions. The large amount of short loans could be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.68 |
|
|
1 |
Rs.93.53 |
|
Euro |
1 |
Rs.70.75 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
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 |
|
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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 |
|
|
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 |
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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.