MIRA INFORM REPORT
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Report No. : |
325954 |
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Report Date : |
06.06.2015 |
IDENTIFICATION DETAILS
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Name : |
NINGXIA JIAFENG CHEMICALS CO., LTD. |
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Registered Office : |
Changcheng Zone, Hongguozi Industrial Zone, Huinong District,
Shizuishan, Ningxia 753200 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
24.06.2003 |
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Com. Reg. No.: |
640200200000450 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in export its products and technologies; importing
business of the materials, machinery, parts and technology needed for its produce,
excluding the import and export commodity and technology defined or
prohibited by the government; manufacturing and selling cyanoguanidine and
cyanoguanidine with electronic grade; selling acetylene carbon black,
carburetant, chemicals, hardware, mechanical and electrical equipment and
building materials; processing and selling Calcium cyanamide. |
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No. of Employees : |
400 |
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 : |
No Complaints |
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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) |
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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
NINGXIA JIAFENG CHEMICALS CO.,
LTD.
CHANGCHENG ZONE, HONGGUOZI INDUSTRIAL ZONE
HUINONG DISTRICT, SHIZUISHAN, NINGXIA 753200 PR CHINA
TEL: 86 (0) 952-7682302/7681382/7682009
FAX: 86 (0) 952-7681172
EXECUTIVE
SUMMARY
Date of Registration : june 24, 2003
REGISTRATION NO. : 640200200000450
LEGAL FORM : LIMITED
LIABILITIES COMPANY
CHIEF EXECUTIVE :
shi shaofeng (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny
180,000,000
staff :
400
BUSINESS CATEGORY :
processing & trading
Revenue :
CNY 374,450,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 178,540,000 (AS OF DEC. 31, 2014)
WEBSITE : www.jiafengchem.com.cn
E-MAIL :
sales@jiafeng-china.com
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.26 = 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 with State
Administration of Industry & Commerce (SAIC) under registration No.: 640200200000450 on June 24, 2003.
SC’s Organization Code Certificate No.:
75080419-8
SC’s registered capital: CNY 180,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2009 |
Registered Capital |
CNY 15,000,000 |
CNY 40,000,000 |
|
Shareholder (s) (% of Shareholding) |
Shi Shaohua 6.6% Shi Shaofeng 52.6% Shi Shaoyun 9.2% Other Shareholders 31.6% |
Shi Shaohua 4% Shi Shaofeng 56% Shi Shaoyun 13% Shi Shaojuan 9% Shi Shaojia 18% |
|
|
-- |
Registration No. |
6402002201582 |
640200200000450 |
|
2011-12 |
Registered Capital |
CNY 40,000,000 |
CNY 60,000,000 |
|
-- |
Registered Capital |
CNY 60,000,000 |
cny 100,000,000 |
|
2014-12-12 |
Registered Capital |
cny 100,000,000 |
cny 170,000,000 |
|
2014-12-25 |
Registered Capital |
cny 170,000,000 |
CNY 180,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shi Shaohua |
4 |
|
Shi Shaofeng |
56 |
|
Shi Shaoyun |
13 |
|
Shi Shaojuan |
9 |
|
Shi Shaojia |
18 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Shi Shaofeng |
|
Supervisor |
Shi Shaojuan |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Shi Shaohua 4
Shi Shaofeng 56
Shi Shaoyun 13
Shi Shaojuan 9
Shi Shaojia 18
MANAGEMENT
Shi Shaofeng, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------
Gender: M
ID# 640203770201051
Age: 38
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Supervisor
--------------
Shi Shaojuan
BUSINESS OPERATION
SC’s registered business scope includes export its products and technologies;
importing business of the materials, machinery, parts and technology needed for
its produce, excluding the import and export commodity and technology defined
or prohibited by the government; manufacturing and selling cyanoguanidine and
cyanoguanidine with electronic grade; selling acetylene carbon black,
carburetant, chemicals, hardware, mechanical and electrical equipment and
building materials; processing and selling Calcium cyanamide.
SC is mainly engaged in processing and selling chemicals and chemical
raw materials.
SC’s products mainly include:
Dicyandiamide
Electronic Dicyandiamide
Micro-Dicyandiamide
Calcium Cyanamide
SC sources its materials 100% from domestic market. SC sells 60% of its
products in domestic market, and 40% to overseas market, mainly U.S.A.,
Southeast Asia, etc.
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 Customers:
==============
Air Products and Chemicals Inc.
Jiafeng Chemicals USA Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 400
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
Suzhou Jiafeng Chemical Co., Ltd.
Guangzhou Jiafeng Chemical Co., Ltd.
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
The bank information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
60,690 |
|
|
Notes receivable |
0 |
|
Accounts receivable |
62,600 |
|
Advances to suppliers |
0 |
|
Other receivable |
24,490 |
|
Inventory |
19,030 |
|
Non-current assets within one year |
0 |
|
Other current assets |
44,330 |
|
|
------------------ |
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Current assets |
211,140 |
|
Fixed assets |
97,860 |
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Long-term investment |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
20,590 |
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------------------ |
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Total assets |
329,590 |
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============= |
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Short-term loans |
115,600 |
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Notes payable |
0 |
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Accounts payable |
15,670 |
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Advances from clients |
0 |
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Other payable |
19,300 |
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Other current liabilities |
68,370 |
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------------------ |
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Current liabilities |
218,940 |
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Non-current liabilities |
0 |
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------------------ |
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Total liabilities |
218,940 |
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Equities |
110,250 |
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------------------ |
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Total liabilities & equities |
329,590 |
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============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
395,630 |
|
Cost of sales |
352,310 |
|
Sales expense |
25,350 |
|
Management expense |
9,860 |
|
Finance expense |
11,960 |
|
Profit before tax |
-270 |
|
Less: profit tax |
0 |
|
-270 |
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
|
Total assets |
585,290 |
|
|
------------- |
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Total liabilities |
406,750 |
|
Equities |
178,540 |
|
|
------------- |
|
Revenue |
374,450 |
|
Cost of sales |
340,330 |
|
Profit before tax |
11,250 |
|
Less: profit tax |
0 |
|
Profits |
11,250 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
0.96 |
-- |
|
*Quick ratio |
0.88 |
-- |
|
*Liabilities to assets |
0.66 |
0.69 |
|
*Net profit margin (%) |
-0.07 |
3.00 |
|
*Return on total assets (%) |
-0.08 |
1.92 |
|
*Inventory / Revenue ×365 |
18 days |
-- |
|
*Accounts receivable / Revenue ×365 |
58 days |
-- |
|
*Revenue / Total assets |
1.20 |
0.64 |
|
*Cost of sales / Revenue |
0.89 |
0.91 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average in 2014.
SC’s return on total assets is average in 2014.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
The short-term loans of SC appear large.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
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.63.90 |
|
|
1 |
Rs.97.98 |
|
Euro |
1 |
Rs.71.82 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
NIT |
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 |
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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 |
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|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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|
-- |
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.