MIRA
INFORM REPORT
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Report No. : |
302851 |
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Report Date : |
20.01.2015 |
IDENTIFICATION DETAILS
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Name : |
ANHUI JINHE INDUSTRIAL CO., LTD. |
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Registered Office : |
No. 127, Chengdong Street, Laian County, Chuzhou, Anhui Province,
239200 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
25.12.2006 |
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Com. Reg. No.: |
341100000007764 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling fine chemical products and basic chemical
products. |
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No. of Employee : |
3,200 |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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
Anhui Jinhe Industrial Co., Ltd.
No. 127, CHENGDONG street, laian county,
chuzhou,
anhui PROVINCE, 239200 PR CHINA
TEL: 86 (0) 550-5612755 FAX: 86 (0) 550-5611232
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 25, 2006
REGISTRATION NO. : 341100000007764
REGISTERED LEGAL FORM : SHARES
LIMITED COMPANY
STAFF STRENGTH : 3,200
REGISTERED CAPITAL : CNY 284,160,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 2,405,677,000 (Consolidated, Jan. 1 to Sep. 30, 2014)
EQUITIES :
CNY 2,101,395,000 (Consolidated, AS OF SEP. 30, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.2185 = 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
HISTORY
SC was registered as a shares limited company at local Administration
for industry & commerce (AIC - the official body of issuing and renewing
business license) on Dec. 25, 2006.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in China. Natural person are allowed to
serve as promoters. The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered
business scope includes manufacturing and selling food additives, organic classes
of hazardous chemicals, liquid anhydrous ammonia, methanol for industrial use,
industrial nitric acid, formaldehyde, concentrated sulfuric acid, sulfur
dioxide, sulfur anhydride, double vinyl ketone and acetone. Normal operating
projects: manufacturing and selling melamine, pentaerythritol, sodium formate,
urea, ammonium acid carbonate, pyridine hydrochloride, methyl acetoacetate,
ethyl acetoacetate; import and export chemical raw materials (excluding the
hazard chemicals), mechanical equipment, components, raw materials and
technology (excluding the goods forbidden by the government).
SC is mainly
engaged in manufacturing and selling fine chemical products and basic chemical
products.
Mr.
Yang Yingchun is legal representative and chairman of SC at present.
SC is known
to have approx. 3,200 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 Chuzhou. The detailed
information of the premise is unspecified.
WEB SITE
http://www.jinheshiye.com/
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
Email: jinheshiye@jinheshiye.com
KEY EVENTS/RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002597.
Tax Registration Certificate No.: 341122796433177
Organization Code: 79643317-7
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2013-5 |
Registered capital |
CNY 213,600,000 |
CNY 277,680,000 |
|
2014-8 |
Registered capital |
CNY 277,680,000 |
Present amount |
|
2014-10 |
Shareholder’s name |
Anhui Jinrui Chemical Investment Co., Ltd. |
Anhui Jinrui Investment Group Co., Ltd. |
LITIGATION
For the past two years there is no record of litigation.
OWNERSHIP/MANAGEMENT
MAIN
SHAREHOLDERS: (as of Sep. 30, 2014)
Name %
of Shareholding
Anhui Jinrui Investment Group Co., Ltd. 57.61
Shanghai Fuxing Purun Stock Investment
Enterprise (Limited Partnership) 3.49
Shanghai Purun Stock Investment Enterprise
(Limited Partnership) 2.34
Wuhu Dacheng Venture Capital Center (Limited
Partnership) 1.3
Bank of communications-Rongtong Industry
Jingqi Securities Investment Fund 1.27
Bank of China-Jiashi Service Value-added
Industries Securities Investment Fund 0.88
Huarong Securities Co., Ltd. 0.87
China Construction Bank Corporation-Rongtong
Leading
Growth Stock Securities Investment Fund 0.81
China Construction Bank Corporation-Guangfa
Domestic Demand Growth
Flexible Configuration Hybrid Securities
Investment Fund 0.8
Shanghai Pudong Development Bank-Guangfa
Small-cap
Growth Stock Securities Investment Fund 0.77
Other shareholders 29.86
Anhui Jinrui Investment Group Co., Ltd.
==============================
Registered no.: 341122000009098
Legal representative: Yang Yingchun
Establishment date:
MANAGEMENT
l Legal
representative and Chairman:
Mr. Yang Yingchun , born in 1964 with Master’s degree. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman.
Also
working in Anhui Jinrui Investment Group Co., Ltd., Laian County Jinli Chemical
Co., Ltd., Chuzhou Jinyuan Chemical Co., Ltd. as legal representative.
l General Manager:
Mr. Dai Shilin (戴世林), born in 1965, with university education,
engineer. He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
Also
working in Anhui Jinrui Investment Group Co., Ltd. as director; working in Laian
Lixin Port Management Logistics Co., Ltd. as legal representative.
l
Directors:
Zhou Linlin
Yang Zongyong
l
Supervisors:
Liu Ruiyuan
Wang Xiurong
Li Zhenbing
BUSINESS OPERATIONS
SC is mainly engaged
in manufacturing and selling fine chemical products and basic chemical
products.
SC’s products
mainly include: liquid Ammonia, Nitric acid, Sulfuric acid, Formaldehyde,
Melamine.
SC sources its materials 90% from domestic
market, and 10% from overseas market. SC sells 70% of its products in domestic
market, and 30% to overseas 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.
Note: SC’s management
declined to release its major clients and suppliers.
Trademark & Patents
|
Registration No. |
6123901 |
8679529 |
|
Registration Date |
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Trademark Design |
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RELATED COMPANIES
SC is known to have the following subsidiaries:
Chuzhou Jinfeng Investment Co., Ltd.
Laian County Jinli Chemical Co., Ltd.
Chuzhou Jinyuan Chemical Co., Ltd.
Laian Lixin Port Management Logistics Co., Ltd.
Anhui Huaertai Chemical Industry Co., Ltd.
PAYMENT
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.
BANKING
SC’s management
declined to release its bank details.
FINANCIAL HIGHLIGHTS
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2013 |
as
of Sep. 30, 2014 |
|
Cash & bank |
514,213 |
531,163 |
|
Inventory |
295,322 |
320,730 |
|
Accounts
receivable |
104,305 |
174,580 |
|
Advances to
suppliers |
210,774 |
144,134 |
|
Notes receivable |
289,652 |
251,472 |
|
Other
receivables |
2,532 |
4,993 |
|
Interest
receivable |
1,613 |
2,977 |
|
Other current
assets |
35,992 |
125,420 |
|
|
------------------ |
------------------ |
|
Current assets |
1,454,403 |
1,555,469 |
|
Held-to-maturity
investments |
0 |
79,000 |
|
Fixed assets net
value |
1,331,783 |
1,336,839 |
|
Projects under
construction |
41,311 |
16,154 |
|
Long term
investment |
1,887 |
1,898 |
|
Intangible
assets |
139,399 |
271,179 |
|
Deferred tax
asset |
24,356 |
25,264 |
|
Engineering
materials |
115 |
2,120 |
|
Liquidation of
fixed assets |
10,185 |
10,047 |
|
Long-term
prepaid expenses |
18,060 |
58,479 |
|
Other assets |
34,607 |
21,460 |
|
|
------------------ |
------------------ |
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Total assets |
3,056,106 |
3,377,909 |
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|
============= |
============= |
|
Short loans |
119,000 |
182,500 |
|
Accounts payable |
308,396 |
297,215 |
|
Notes payable |
11,500 |
6,500 |
|
Other payable |
55,575 |
45,949 |
|
Advances from
customers |
30,011 |
89,589 |
|
Accrued payroll |
75,746 |
57,942 |
|
Taxes payable |
-3,744 |
-372 |
|
Interest payable |
635 |
4,381 |
|
Dividends
payable |
960 |
1,740 |
|
Non-current
liabilities due within one year |
61,044 |
42,247 |
|
Other current
liabilities |
25,514 |
31,066 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
684,637 |
758,757 |
|
Long term
liabilities |
344,877 |
517,757 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,029,514 |
1,276,514 |
|
Equities |
2,026,592 |
2,101,395 |
|
|
------------------ |
------------------ |
|
Total liabilities
& equities |
3,056,106 |
3,377,909 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2013 |
Jan. 1 to Sep. 30, 2014 |
|
Turnover |
2,977,235 |
2,405,677 |
|
Cost of goods sold |
2,587,427 |
2,055,507 |
|
Sales expense |
119,823 |
116,491 |
|
Management expense |
73,545 |
76,857 |
|
Finance expense |
5,975 |
20,788 |
|
Investment
income |
-7 |
2,725 |
|
Profit before
tax |
186,824 |
138,884 |
|
Less: profit tax |
31,527 |
25,700 |
|
Profits |
155,297 |
113,184 |
Important Ratios
=============
|
|
as
of Dec. 31, 2013 |
as
of Sep. 30, 2014 |
|
*Current ratio |
2.12 |
2.05 |
|
*Quick ratio |
1.69 |
1.63 |
|
*Liabilities
to assets |
0.34 |
0.38 |
|
*Net profit
margin (%) |
5.22 |
4.70 |
|
*Return on
total assets (%) |
5.08 |
3.35 |
|
*Inventory
/Turnover ×365 |
37 days |
49 days |
|
*Accounts
receivable/Turnover ×365 |
13 days |
27 days |
|
*Turnover/Total
assets |
0.97 |
0.71 |
|
* Cost of
goods sold/Turnover |
0.87 |
0.85 |
FINANCIAL COMMENTS
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears good in its line.
l
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIRLY GOOD
l The current ratio
of SC is maintained in a fairly good
level.
l SC’s quick ratio
is maintained in a fairly good
level.
l The inventory of
SC appears average.
l The accounts receivable
of SC appears average.
l
The short-term loan of SC is average.
l SC’s turnover is
in a fair level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
l The debt ratio of
SC is low.
l The risk for SC to
go bankrupt is average.
Overall financial
condition of the SC: Fairly good.
REMARKS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.70 |
|
|
1 |
Rs.93.41 |
|
Euro |
1 |
Rs.71.33 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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.