MIRA INFORM REPORT
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Report No. : |
330614 |
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Report Date : |
10.07.2015 |
IDENTIFICATION DETAILS
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Name : |
CHANGZHOU SUNKEE
CHEMICALS CO., LTD. |
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Registered Office : |
Rm 1001 Chunyuan Building, No. 101, Juqian Street, Tianning District, Changzhou, Jiangsu Province 213003 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
28.05.2003 |
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Com. Reg. No.: |
320402000025082 |
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Legal Form : |
One- Person Limited Liabilities Company |
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Line of Business : |
Subject includes selling chemicals, hardware, general merchandise,
common machinery and parts, office equipment, textiles, rubber & plastics,
building materials, decoration materials, textile raw materials and metal
materials; import and export of various goods and technology. |
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No. of Employees : |
8 |
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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year... 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 2014 more than 274 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
|
Source
: CIA |
Company
name and address
CHANGZHOU SUNKEE CHEMICALS CO., LTD.
RM 1001 CHUNYUAN
BUILDING, NO. 101, JUQIAN STREET
TIANNING DISTRICT, CHANGZHOU,
JIANGSU PROVINCE 213003 PR CHINA
TEL: 86 (0)
519-86602669
FAX: 86 (0)
519-86627700
EXECUTIVE
SUMMARY
Date of Registration : may 28, 2003
REGISTRATION NO. : 320402000025082
LEGAL FORM : one- person Limited liabilities company
REGISTERED CAPITAL : CNY
1,010,000
staff : 8
BUSINESS CATEGORY : TRADING
Revenue : CNY 89,430,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 3,260,000 (AS OF DEC. 31, 2014)
WEBSITE : www.sunkeechem.com
E-MAIL : info@sunkeechem.com
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.21 = 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
Not yet be determined
LEGAL
STATUS & HISTORY
SC was established
as a limited liabilities company of PRC on May
28, 2003. However, SC changed to present legal form, and was registered
as one-person limited liabilities company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 320402000025082 in 2013.
SC’s Organization Code Certificate No.:
75000657-5
SC’s Tax No.: 320400750006575
SC’s registered capital: CNY 1,010,000
SC’s paid-in capital: CNY 1,010,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2013 |
Registration No. |
3204022102622 |
320402000025082 |
|
Legal Form |
Limited Liabilities Company |
One-Person Limited Liabilities Company |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Sun Weili |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman, and General Manager |
Sun Weili |
|
Supervisor |
Lv Zhi |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Sun Weili 100
MANAGEMENT
Sun Weili,
Legal Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 43
Ø
ID# 320421197206293110
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Supervisor
--------------
Lv Zhi
BUSINESS
OPERATION
SC’s registered
business scope includes selling chemicals, hardware, general merchandise,
common machinery and parts, office equipment, textiles, rubber & plastics, building
materials, decoration materials, textile raw materials and metal materials;
import and export of various goods and technology.
SC is mainly
engaged in selling pigment.
SC’s products
mainly include: organic pigment, inorganic pigment, dyestuff,
pearlescent effect pigment, flourscent brightener, etc.
SC sources its products 100% from domestic
market, mainly Jiangsu Province. SC sells 30% of its products in domestic
market, mainly Jiangsu Province, and 70% to overseas market.
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*
-------------------
Changzhou Long Yu
Chemicals Group Co., Ltd.
*Major Customers*
-----------------------
Grupo Plastikom,
S.A De Cv
Interprome
Marketing Inc.
ABC Chemicals Pvt
Ltd
Staff & Office:
--------------------------
SC is known
to have approx. 8 staff at
present.
SC rents an area
as its operating office of approx. 120 sq. meters at the heading address.
RELATED
COMPANY
n
Sunkey International (Hong Kong) Co., Ltd.
Registration No.:
1192837
Establishment
Date: Dec. 7, 2007
Legal Form: Private
Status:
Live
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: A trade enquiry currently conducted with
SC's supplier(s) reveal the following:
Supplier
A
Products
sold: Pigment
Date account
opened: 2010
Line of credit: No comment
Terms: Check,
T/T, Credit of 30 days
Average monthly
sales: No comment
Current balance: No comment
Rating Key: 3
Payment
record keys :
1
= Prompt : Payment made before the credit period expires
2
= As agreed terms : Payment made upon due date
3
= Slightly slow but acceptable : Payment made 5 to 20 days beyond agreed terms
4
= Slow : Payment made 16 to 45 days beyond agreed terms
5
= Poor : Payment made over 45 days beyond agreed terms
6 = No comment : Account is newly opened
& record is not yet established
Note : In some
instances, payment beyond terms can be the result of disputes over merchandise,
lost invoices, disputed accounts & etc.
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 Communications Changzhou Branch
AC#:
324006010018000264090
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
27,830 |
19,010 |
19,050 |
|
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Notes receivable |
0 |
0 |
0 |
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Accounts receivable |
8,690 |
12,810 |
14,950 |
|
Advances to suppliers |
0 |
0 |
0 |
|
Other receivable |
0 |
0 |
0 |
|
Inventory |
8,310 |
8,690 |
6,950 |
|
Non-current assets within one year |
0 |
0 |
0 |
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Other current assets |
0 |
0 |
0 |
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|
------------------ |
------------------ |
------------------ |
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Current assets |
44,830 |
40,510 |
40,950 |
|
Fixed assets |
390 |
300 |
250 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
30 |
20 |
10 |
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------------------ |
------------------ |
------------------ |
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Total assets |
45,250 |
40,830 |
41,210 |
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|
============= |
============= |
============= |
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Short-term loans |
0 |
0 |
0 |
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Notes payable |
26,120 |
24,610 |
24,940 |
|
Accounts payable |
13,660 |
7,620 |
10,870 |
|
Advances from clients |
0 |
0 |
0 |
|
Other payable |
4,650 |
5,510 |
1,990 |
|
Other current liabilities |
80 |
200 |
150 |
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------------------ |
------------------ |
------------------ |
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Current liabilities |
44,510 |
37,940 |
37,950 |
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Non-current liabilities |
0 |
0 |
0 |
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|
------------------ |
------------------ |
------------------ |
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Total liabilities |
44,510 |
37,940 |
37,950 |
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Equities |
740 |
2,890 |
3,260 |
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------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
45,250 |
40,830 |
41,210 |
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============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Revenue |
77,240 |
89,430 |
|
Cost of sales |
73,000 |
86,820 |
|
Sales expense |
990 |
1,190 |
|
Management expense |
980 |
910 |
|
Finance expense |
-70 |
-90 |
|
Profit before tax |
2,270 |
530 |
|
Less: profit tax |
120 |
140 |
|
2,150 |
390 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
1.01 |
1.07 |
1.08 |
|
*Quick ratio |
0.82 |
0.84 |
0.90 |
|
*Liabilities to assets |
0.98 |
0.93 |
0.92 |
|
*Net profit margin (%) |
-- |
2.78 |
0.44 |
|
*Return on total assets (%) |
-- |
5.27 |
0.95 |
|
*Inventory / Revenue ×365 |
-- |
42 days |
29 days |
|
*Accounts receivable/ Revenue ×365 |
-- |
61 days |
62 days |
|
*Revenue/Total assets |
-- |
1.89 |
2.17 |
|
*Cost of sales / Revenue |
-- |
0.95 |
0.97 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears average 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 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 appears average.
l
SC has no short-term loans in three years.
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 fairly high.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.51 |
|
|
1 |
Rs.97.85 |
|
Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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 |
|
|
-- |
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.