MIRA INFORM REPORT
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Report No. : |
308368 |
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Report Date : |
17.02.2015 |
IDENTIFICATION DETAILS
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Name : |
SINOCHEM JIANGSU CO., LTD. |
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Formerly Known as : |
Sinochem Jiangsu Corporation |
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Registered Office : |
Floor 21
& 22 Jincheng Tower, No. 216 Middle Longpan Road, Baixia District,
Nanjing City, Jiangsu Province 210005 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 : |
· Engaged as wholesaler of hazardous chemicals (operating according to the license) as well as importing and exporting various kinds of commodities and technology, domestic trade, technology development, transferring and consulting of chemical pharmaceuticals · engaged in importing and exporting pharmaceutical intermediates, APIs, formulations and other pharmaceutical products. Subject product ranges includes:- APIs ·
Nutraceuticals ·
Pharmaceuticals ·
Veterinaries Pharmaceutical
Intermediates ·
Aroma
Chemicals ·
Cosmetic
Ingredients ·
Chemical
Equipment ·
Fine
Chemicals ·
organosilicon ·
Pharmaceutical
Intermediates Finished Products ·
Other
Products Available ·
Products
Under Development ·
New
Generics Biochemicals Chinese Medicine Pharmaceutical
Distribution |
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No of Employees : |
140 (Approximately) |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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 & address
Sinochem Jiangsu Co.,
Ltd.
Floor 21
& 22 Jincheng Tower, No. 216 Middle Longpan Road
Baixia District,
Nanjing City, Jiangsu Province 210005 PR China
TEL: 86
(0) 25-51817888/51817974/51817967
FAX: 86
(0) 25-51817799
EXECUTIVE
SUMMARY
Date of Registration : DECEMBER 30, 1992
REGISTRATION NO. : 320000000004080
LEGAL FORM : ONE-PERSON Limited Liability Company
CHIEF EXECUTIVE : DONG JIANHUA (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY
162,478,576.86
staff : 140
BUSINESS CATEGORY :
TRADING
Revenue : CNY 1,350,846,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 171,407,000 (AS OF DEC. 31, 2014)
WEBSITE : www.sinochemjiangsu.com
E-MAIL :
info@sinochem.com
PAYMENT : Slow but Correct
MARKET CONDITION : COMPETITIE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.25 = 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
LEGAL STATUS & HISTORY
SC was
established as a state-owned enterprise of PRC on December 30, 1992. However, SC
changed to present legal form, and was registered as one-person limited
liabilities company of PRC with State Administration for Industry &
Commerce (SAIC) under registration No.: 320000000004080 in October 2009.
SC’s Organization Code Certificate
No.: 13476237-7
SC’s Tax No.: 320103134762377
SC’s registered capital: CNY 162,478,576.86
SC’s paid-in capital: CNY 162,478,576.86
Registration Change Record:-
|
Date |
Change
of Contents |
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 |
|
Shareholder (s) |
Sinochem Corporation 100% |
Sinochem Co., Ltd. 100% |
|
|
Company Name |
Sinochem Jiangsu
Corporation |
Sinochem Jiangsu Co., Ltd. |
|
|
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 |
CNY 162,478,576.86 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Sinochem Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Dong
Jianhua |
|
Supervisor |
Xu
Yuhong |
RECENT DEVELOPMENT
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.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Sinochem Co., Ltd. 100
-----------------------------
Registration No.: 100000000042135
Legal Form: Shares Limited Company
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).
Add.: No. 28 Fuxingmennei Street, Xicheng
District, Beijing
Tel: 0086-10-59568888
MANAGEMENT
Dong Jianhua, Legal Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø
Age: 48
Ø Qualification:
University
Ø Working experience
(s):
At
present, working in SC as legal representative, chairman and general manager
Also
working in Sinochem Jiangsu Pharmaceutical Co., Ltd. as legal representative
Supervisor
Xu Yuhong
BUSINESS OPERATION
SC’s registered business scope includes wholesale of hazardous chemicals
(operating according to the license), importing and exporting various kinds of commodities
and technology, domestic trade, technology development, transferring and
consulting of chemical pharmaceuticals.
SC is mainly
engaged in importing and exporting pharmaceutical intermediates, APIs,
formulations and other pharmaceutical products.
SC’s
products mainly include:
SC sources the products
60% from domestic market and 40% from overseas market. SC sells 20% of its
products in domestic market and 80% to overseas market, mainly U.S.A., etc.
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*
----------------------
Compound Solutions
Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 140
staff at present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is known to have the
following subsidiaries at present,
Sinochem
Jiangsu Pharmaceutical Co., Ltd.
Registration No.: 321200000020077
Date of Registration: 2010-03-01
Legal Representative: Dong Jianhua
Registered Capital: CNY 10,000,000
Shanghai
Chemspace Co., Ltd
Registration No.: 310115000934861
Date of Registration: 2006-01-26
Legal Representative: Huang Yonghong
Registered Capital: CNY 2,000,000
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Slow but Correct ( ) 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 Jiangsu Branch
AC#: 475458191171
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
Cash |
33,011 |
64,550 |
|
Notes receivable |
10,256 |
1,887 |
|
Accounts
receivable |
204,180 |
224,747 |
|
Advances to
suppliers |
86,548 |
29,725 |
|
Other receivable |
92,703 |
84,042 |
|
Inventory |
162,582 |
59,958 |
|
Prepaid
expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
589,280 |
464,909 |
|
Financial assets
available for sale |
3,204 |
4,910 |
|
Long-term
investment |
17,017 |
17,017 |
|
Fixed assets |
4,962 |
4,338 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
261 |
669 |
|
Deferred income
tax assets |
673 |
673 |
|
Other non-current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
615,397 |
492,516 |
|
|
============= |
============= |
|
Short-term loans |
120,484 |
81,880 |
|
Notes payable |
98,342 |
98,975 |
|
Accounts payable |
138,929 |
92,006 |
|
Wages payable |
5,404 |
2,147 |
|
Taxes payable |
-7,980 |
-4,505 |
|
Interest payable |
231 |
187 |
|
Advances from
clients |
70,039 |
35,994 |
|
Other payable |
16,175 |
13,310 |
|
Accrued expenses |
0 |
0 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
441,624 |
319,994 |
|
Non-current
liabilities |
688 |
1,115 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
442,312 |
321,109 |
|
Equities |
173,085 |
171,407 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
615,397 |
492,516 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Revenue |
1,599,942 |
1,350,846 |
|
Cost of sales |
1,520,385 |
1,284,386 |
|
Taxes and surcharges |
592 |
785 |
|
Sales expense |
35,444 |
38,405 |
|
Management expense |
29,589 |
19,531 |
|
Finance expense |
12,340 |
5,971 |
|
Investment
income |
2,432 |
88 |
|
Non-operating income |
4,282 |
2,038 |
|
Non-operating expense |
333 |
85 |
|
Profit before
tax |
7,973 |
2,975 |
|
Less: profit tax |
2,758 |
1,302 |
|
Profits |
5,215 |
1,673 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.33 |
1.45 |
|
*Quick ratio |
0.97 |
1.27 |
|
*Liabilities
to assets |
0.72 |
0.65 |
|
*Net profit
margin (%) |
0.33 |
0.12 |
|
*Return on
total assets (%) |
0.85 |
0.34 |
|
*Inventory /
Revenue ×365 |
38 days |
17 days |
|
*Accounts receivable
/ Revenue ×365 |
47 days |
61 days |
|
*Revenue /
Total assets |
2.60 |
2.74 |
|
*Cost of sales
/ Revenue |
0.95 |
0.95 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue 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 sales is fairly high, comparing with
its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear average.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.20 |
|
UK Pound |
1 |
Rs.95.99 |
|
Euro |
1 |
Rs.71.00 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
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|
Report Prepared
by : |
MNL |
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.