MIRA INFORM REPORT
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Report No. : |
303174 |
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Report Date : |
14.01.2015 |
IDENTIFICATION DETAILS
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Name : |
HONGRUI FINE
CHEMICAL CO., LTD. |
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Registered Office : |
D309, No. 21, Ruanjian Street, Yuhuatai District, Nanjing, Jiangsu Province,
210012 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
16.03.2009 |
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Com. Reg. No.: |
320103000178382 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Selling chemicals and providing technical service; enterprise
management consulting; importing and exporting commodities and technologies
(excluding commodities and technologies prohibited by country). |
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No of Employees : |
5 |
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 – 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.
|
Source
: CIA |
Company
name & address
HONGRUI FINE CHEMICAL CO., LTD.
D309, NO. 21, RUANJIAN STREET, YUHUATAI DISTRICT,
NANJING, JIANGSU PROVINCE, 210012 PR CHINA
TEL: 86 (0) 25-84621695/52878655
FAX: 86 (0) 25-84599612
EXECUTIVE
SUMMARY
INCORPORATION DATE : MAR. 16, 2009
REGISTRATION NO. :
320103000178382
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE :
MR. HU HONGXIN (LEGAL REPRESENTATIVE)
STAFF STRENGTH :
5
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
TRADING
TURNOVER :
cny 90,669,000 (AS OF DEC. 31,
2013)
EQUITIES :
cny 2,367,000 (AS OF DEC. 31, 2013)
PAYMENT :
slow but correct
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.136=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
Note: The is SC’s registered address, and SC is operation in the heading
address.
SC was registered as a One-person Limited Liability Company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Mar. 16, 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
CNY100,000. 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 selling chemicals and providing
technical service; enterprise management consulting; importing and exporting
commodities and technologies (excluding commodities and technologies prohibited
by country).
SC is mainly engaged in selling chemical products.
Mr. Hu Hongxin has been legal representative, executive director and
general manager of SC since 2009.
SC is known to have approx. 5 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 rents the total premise about 70 square meters.
http://www.hongruichemical.com/ The design is
professional and the content is well organized. At present it is in Chinese and
English versions.
E-mail: sales@hongruichemical.com
No significant events or changes were found during our checks with local
AIC.
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 682545947
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Hu Hongxin 100
Legal
representative, Executive Director and General Manager:
Mr. Hu Hongxin, ID#: 32042119731204xxxx, born in 1973, with university
education. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2009 to present Working in SC as legal
representative, executive director and general manager
Supervisor:
-----------------------
Fang Yongmei
ID#: 32010319731103xxxx
SC is mainly engaged in selling chemical products.
SC’s products mainly include:
8-Hydroxy Quinoline Derivative
Camphor Sulphonic Acid Series
Chlorotoluene Series
Fluoro Compounds
Furfural Series
Metal Compounds
Naphthalene Series
Organosilicon Compounds
Pharmaceutical Intermediates
Solvents
Fine Chemicals
SC sources its merchandise 100% from domestic market. SC sells 100% of
its products to overseas market.
The buying terms of SC include Check, T/T 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’s
management declined to release its major suppliers and clients.
SC is not known to have any subsidiary at present.
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
AC#: 802650508208091001
Relationship: Normal
Balance
Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
Cash & bank |
13,516 |
|
Inventory |
0 |
|
Accounts receivable |
9,342 |
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Advances to suppliers |
1,291 |
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Subsidies receivable |
319 |
|
|
--------------- |
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Current assets |
24,468 |
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Fixed assets net value |
261 |
|
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--------------- |
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Total assets |
24,729 |
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|
============ |
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Short loans |
6,010 |
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Notes payable |
12,115 |
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Accounts payable |
4,494 |
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Advances from clients |
177 |
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Taxes payable |
-563 |
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Welfare payable |
20 |
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Other payable |
109 |
|
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------------------- |
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Current liabilities |
22,362 |
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Long term liabilities |
0 |
|
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------------------- |
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Total liabilities |
22,362 |
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Equities |
2,367 |
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|
------------------- |
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Total liabilities & equities |
24,729 |
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|
=========== |
Income
Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
Turnover |
90,669 |
|
Cost of goods sold |
85,832 |
|
Taxes and additional of
main operation |
60 |
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Sales expense |
1,387 |
|
Management expense |
998 |
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Finance expense |
1,794 |
|
Profit before tax |
598 |
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Less: profit tax |
149 |
|
Profits |
449 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2013 |
|
*Current ratio |
1.09 |
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*Quick ratio |
1.09 |
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*Liabilities to assets |
0.90 |
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*Net profit margin (%) |
0.50 |
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*Return on total assets (%) |
1.82 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
38 days |
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*Turnover/Total assets |
3.67 |
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* Cost of goods sold/Turnover |
0.95 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is fairly high.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
SC has no inventory in 2013.
The accounts receivable of SC is maintained in an average level.
SC’s short loans are large in 2013.
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial conditions.
The large amount of short loans could be a threat to SC’s financial situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.10 |
|
|
1 |
Rs.94.09 |
|
Euro |
1 |
Rs.73.41 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
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Report Prepared
by : |
DPT |
RATING EXPLANATIONS
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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.