MIRA
INFORM REPORT
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Report No. : |
301806 |
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Report Date : |
05.01.2015 |
IDENTIFICATION DETAILS
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Name : |
TTCA CO., LTD. |
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Registered Office : |
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Country : |
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Financial As on : |
31.12.2013 |
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Date of Incorporation : |
16.08..2000 |
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Com. Reg. No.: |
370000400001856 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Subject is engaged in manufacturing and selling citric acid salts, citric acid series products. |
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No. of Employee : |
1,600 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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.
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Source
: CIA |
Company name and address
TTCA CO., LTD.
NO. 27 XIN'AN NAN ROAD, ANQIU, SHANDONG PROVINCE 262100 PR CHINA
TEL: 86 (0) 536-4222798/4281767/2262383
FAX: 86 (0) 536-4221500/4221818
EXECUTIVE SUMMARY
Date of Registration : AUGUST 16, 2000
REGISTRATION NO. : 370000400001856
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
REGISTERED CAPITAL : USD 15,772,900
staff :
1,600
BUSINESS CATEGORY : manufacturing & TRADING
Revenue :
CNY 1,165,382,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY -138,662,000 (AS OF DEC. 31, 2013)
WEBSITE : www.ttca.com.cn
E-MAIL :
sales@ttca.com.cn
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : poor
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.24 = USD 1
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 Chinese-foreign equity joint venture
enterprise of PRC with State Administration of Industry & Commerce
(SAIC) under registration No.: 370000400001856
on August 16, 2000.
SC’s Organization Code Certificate No.:
72427800-8
SC’s Tax No.: 370784724278008
SC’s Customs registration No.: 3707932093
SC’s registered capital: USD 15,772,900
SC’s paid-in capital: USD 15,772,900
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
003907 |
370000400001856 |
|
Registered Capital |
CNY 32,000,000 |
USD 15,772,900 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Anqiu Tiantian Investment Co., Ltd. |
75 |
|
Gain United (H.K.) Limited |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General
Manager |
Liu Haiqing |
|
Director |
Wu Qinghua |
|
Li Guangli |
|
|
Liu Wang |
|
|
Li Zhigang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Anqiu Tiantian Investment Co., Ltd. 75
Gain United (H.K.) Limited 25
Anqiu Tiantian Investment Co.,
Ltd.
-------------------------------------------
Registration No.: 370784228011840
Legal Form: Limited Liabilities Company
Registered Capital: CNY 75,000,000
Legal Representative: Liu Haiqing
Gain United (H.K.)
Limited
--------------------
CR No. 0921596
Legal Form: Private
Status: Live
MANAGEMENT
Liu Haiqing, Legal Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø
Qualification:
University
Ø
Working
experience (s):
From 2000
to present, working in SC as legal representative, chairman and general manager
Also
working in Anqiu Tiantian
Investment Co., Ltd. and Shandong Qufeng Food
Technology Co., Ltd. as legal representative
Director
-----------
Wu Qinghua
Li Guangli
Liu Wang
Li Zhigang
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing and selling citric acid salt, citric acid
series products; purchasing and processing grains.
SC is mainly engaged
in manufacturing and selling citric acid salts, citric acid series products.
Brand: 
SC’s products mainly include: Citric Acid
Anhydrous, Citric Acid Monohydrate, Sodium Citrate, Tri-Potassium Citrate,
SC sources its materials 100% from domestic
market. SC sells 25% of its products in domestic market, and 75% to overseas
market, mainly India, Thailand, Indonesia,
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Supplier
--------------------
Anqiu Qingshan
Biochemistry Co., Ltd
*Major
Customers
----------------------
Bulunna Corporation
(Europe)
Jugos Antillas Srl
Apac Chemical
Corporation
CLEARTECH
INDUSTRIES INC.
Factores Y Mercadeo S.A.
Aditsolventes Y Sustancias Quimcladisol
Montana SA
Casco-Cptdc Alberta Supply Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 1,600 staff
at present.
SC owns an area as
its operating office & factory of approx. 440,000 sq. meters at the heading
address.
RELATED COMPANY
SC is known to have a
subsidiary at present,
Shandong
Qufeng Food Technology Co., Ltd.
Registration
No.: 370784200011731
Date
of Registration: February 8, 2012
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 120,000,000
Legal
Representative: Liu Haiqing
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 Anqiu Branch
AC#:
406852573008091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
235,331 |
287,174 |
161,102 |
339,284 |
296,888 |
|
|
Short-term investments |
1,500 |
0 |
1,000 |
1,800 |
1,800 |
|
Notes receivable |
36,300 |
35,200 |
2,642 |
1,262 |
12,365 |
|
Accounts
receivable |
148,705 |
189,062 |
20,207 |
47,435 |
90,957 |
|
Advances to
suppliers |
37,954 |
29,387 |
3 |
3 |
3 |
|
Other receivable |
37,882 |
30,993 |
7,837 |
17,222 |
36,859 |
|
Inventory |
185,725 |
242,694 |
413,405 |
257,643 |
221,756 |
|
Other current
assets |
19,872 |
14,173 |
12,635 |
20,854 |
0 |
|
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------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
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Current assets |
703,269 |
828,683 |
618,831 |
685,503 |
660,628 |
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Long-term
investment |
0 |
0 |
3,958 |
51,958 |
51,958 |
|
Fixed assets |
560,977 |
660,481 |
933,293 |
863,456 |
868,670 |
|
Construction in
progress |
49,217 |
93,598 |
12,898 |
51,409 |
28,681 |
|
Engineering
materials |
0 |
0 |
2,135 |
2,038 |
1,652 |
|
Intangible
assets |
56,184 |
54,972 |
22,102 |
22,162 |
21,546 |
|
Long-term
prepaid expenses |
0 |
0 |
5,699 |
3,586 |
1,398 |
|
Deferred income
tax assets |
0 |
0 |
0 |
0 |
0 |
|
Other
non-current assets |
-999 |
668 |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
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Total assets |
1,368,648 |
1,638,402 |
1,598,916 |
1,680,112 |
1,634,533 |
|
|
=========== |
=========== |
=========== |
=========== |
=========== |
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Short-term loans |
421,600 |
490,952 |
744,402 |
950,649 |
1,210,319 |
|
Notes payable |
230,000 |
304,000 |
165,697 |
395,118 |
317,580 |
|
Accounts payable |
1,273 |
1,298 |
71,463 |
69,898 |
84,108 |
|
Wages payable |
0 |
0 |
0 |
0 |
0 |
|
Taxes payable |
-6,419 |
-31,956 |
-29,166 |
-5,373 |
-8,956 |
|
Interest payable |
0 |
1,050 |
0 |
0 |
0 |
|
Advances from
clients |
0 |
0 |
0 |
0 |
0 |
|
Other payable |
-4,253 |
1,011 |
116,796 |
-26,168 |
-110,429 |
|
Other current
liabilities |
119 |
120 |
119 |
119 |
119 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
642,320 |
766,475 |
1,069,311 |
1,384,243 |
1,492,741 |
|
Non-current
liabilities |
232,050 |
306,489 |
304,930 |
226,400 |
280,454 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
874,370 |
1,072,964 |
1,374,241 |
1,610,643 |
1,773,195 |
|
Equities |
494,278 |
565,438 |
224,675 |
69,469 |
-138,662 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
1,368,648 |
1,638,402 |
1,598,916 |
1,680,112 |
1,634,533 |
|
|
=========== |
=========== |
=========== |
=========== |
=========== |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
887,195 |
1,263,333 |
1,194,901 |
945,997 |
1,165,382 |
|
Cost of sales |
772,841 |
1,095,578 |
1,043,028 |
999,609 |
1,233,256 |
|
Sales expense |
18,391 |
24,915 |
33,736 |
30,751 |
38,145 |
|
Management expense |
20,837 |
27,086 |
31,222 |
38,695 |
38,004 |
|
Finance expense |
30,547 |
39,998 |
35,326 |
83,183 |
90,357 |
|
Non-operating
Revenue |
991 |
8,697 |
2,766 |
993 |
2,238 |
|
Non-operating expenditure |
523 |
736 |
1,031 |
376 |
1,696 |
|
Profit before
tax |
45,047 |
83,717 |
59,788 |
-199,928 |
-233,489 |
|
Less: profit tax |
6,757 |
12,558 |
8,968 |
0 |
0 |
|
38,290 |
71,159 |
50,820 |
-199,928 |
-233,489 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.09 |
1.08 |
0.58 |
0.50 |
0.44 |
|
*Quick ratio |
0.81 |
0.76 |
0.19 |
0.31 |
0.29 |
|
*Liabilities
to assets |
0.64 |
0.65 |
0.86 |
0.96 |
1.08 |
|
*Net profit
margin (%) |
4.32 |
5.63 |
4.25 |
-21.13 |
-20.04 |
|
*Return on
total assets (%) |
2.80 |
4.34 |
3.18 |
-11.90 |
-14.28 |
|
*Inventory /
Revenue ×365 |
77 days |
71 days |
127 days |
100 days |
70 days |
|
*Accounts
receivable / Revenue ×365 |
62 days |
55 days |
7 days |
19 days |
29 days |
|
*Revenue /
Total assets |
0.65 |
0.77 |
0.75 |
0.56 |
0.71 |
|
*Cost of sales
/ Revenue |
0.87 |
0.87 |
0.87 |
1.06 |
1.06 |
FINANCIAL COMMENTS
PROFITABILITY:
POOR
l
The revenue of SC appears fairly good in its line
in five years.
l
SC’s net profit margin is average in 2009 &
2010 & 2011, poor in 2012 and 2013.
l
SC’s return on total assets is average in 2009
& 2010 & 2011, poor in 2012 and 2013.
l
SC’s cost of sales is high, comparing with its
revenue in 2012 and 2013.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in 2009 & 2010, fair in 2011 & 2012 & 2013.
l
SC’s quick ratio is maintained in a normal level in
2009 & 2010, poor in 2011 & 2012 & 2013.
l
The inventory of SC appears large in 2011 &
2012 & 2013.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loan of SC appears large in 2011
& 2012 & 2013.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: POOR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Poor.
CONCLUSIONS
SC is considered large-sized in its line with poor financial conditions.
The large amount of inventory & short-term loan may be a threat to SC’s
financial condition. Great caution is required in providing credit to SC &
C.O.D. to small amount is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.29 |
|
|
1 |
Rs.98.39 |
|
Euro |
1 |
Rs.76.31 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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|
Report Prepared
by : |
ANK |
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.