MIRA INFORM REPORT
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Report No. : |
310033 |
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Report Date : |
07.03.2015 |
IDENTIFICATION DETAILS
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Name : |
NORCHEM JIANGSU CORPORATION |
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Registered Office : |
Room 703, Bldg. B, Wanda Plaza, No. 106, Middle Jiangdong Road, Jianye District, Nanjing, Jiangsu Province,
210017 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
09.06.2009 |
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Com. Reg. No.: |
320000000080374 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Selling chemical products, chemical raw material and products,
importing and exporting goods and technology, domestic trade, selling
dangerous chemical products |
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No. of Employees : |
32 |
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 – 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
NORCHEM JIANGSU CORPORATION
ROOM 703, BLDG. B, WANDA PLAZA, NO. 106, MIDDLE JIANGDONG ROAD,
JIANYE DISTRICT, NANJING, JIANGSU PROVINCE, 210017 PR CHINA
TEL: 86
(0) 25-58055134
FAX: 86 (0) 25-58055142
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JUNE 9, 2009
REGISTRATION NO. :
320000000080374
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. ZHU QINSHENG (CHAIRMAN)
STAFF STRENGTH : 32
REGISTERED CAPITAL :
CNY 10,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 190,300,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 14,440,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2735=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 Ren Min Bi
Note: the was SC’s former one, while SC is currently operating at the
heading address.
SC was registered as a limited
liabilities co. at provincial Administration for Industry & Commerce
(AIC-The official body of issuing and renewing business license) on June 9,
2009.
Company Status: Limited Liabilities Co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes selling
chemical products, chemical raw material and products, importing and exporting
goods and technology, domestic trade, selling dangerous chemical products
SC is mainly engaged in exporting pesticide intermediates.
Mr. Zhu Qinsheng is legal representative, chairman and general manager
of SC at present.
SC is known to have approx. 32 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. The detailed
information of the premise is unspecified.
http://www.norchem.com.cn
The design is professional and the content is well organized. At present it is
only in English version.
Email: info@norchem.com.cn
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Organization code: 69078813X
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of shareholdings
High Hope Int’l Group Jiangsu Native Produce Imp. & Exp. Corp. Ltd. 25
Tong Xiao 2.5
Xu Hui 24.5
Yang Meifang 24
Zhu Hong 24
High Hope Int’l Group Jiangsu Native Produce Imp. & Exp. Corp. Ltd.
===================================================
Incorporation Date : Dec.
21, 1992
Registration No. :
320000000004670
Registered Legal Form : Shares Limited Company
Chief Executive : Mr.
Li Jinliang (Chairman)
Add: 5-9/F, High Hope Mansion, No. 91 Baixia Road, Nanjing, Jiangsu
Province, 210001 PR China
Tel: 86 (0) 25-84691692
Fax: 86 (0) 25-84692773
Legal Representative, Chairman and General manager:
Mr. Zhu Qinsheng, born in 1965, he is currently responsible for the
overall management of SC.
Working Experience(s):
At present Working in SC
as legal representative, chairman and general manager
Also working in Jiangsu Juhe Industrial Co., Ltd., Nanjing Huajin
Biological Products Co., Ltd. and Jiangsu High Hope Huajin International Trade
Co., Ltd. as legal representative
Supervisor:
Tong Xiao
Directors:
Zhang Xiaojuan
Jin Haoyang
SC is mainly engaged in exporting pesticide intermediates.
SC’s products mainly include: herbicides, fungicides, insecticides,
planter growth regulators, pesticide intermediates, and etc.
SC sources its materials 100% from domestic market. SC sells 100% of its
products to overseas market, mainly Brazil and India.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, L/C, T/T, and Credit of 30-60 days.
Note: SC declined
to release its major suppliers and clients.
Jiangsu Juhe Industrial Co., Ltd.
==========================
Legal representative: Zhu Qinsheng
Reg. No: 320000000070477
Incorporation date:
Nanjing Huajin Biological Products Co., Ltd.
==========================
Legal representative: Zhu Qinsheng
Reg. No: 320100400004679
Incorporation date:
Jiangsu High Hope Huajin International Trade Co., Ltd. (literal
translation)
=========================================
Legal representative: Zhu Qinsheng
Reg. No: 320121000261527
Incorporation date:
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.
Shanghai Pudong Development Bank Nanjing Branch Gulou Sub-Branch
AC#: 93030158000009155
Relationship: Normal
Balance
Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2012 |
|
Cash & bank |
7,630 |
14,070 |
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Inventory |
10,350 |
10,900 |
|
Accounts receivable |
14,700 |
48,300 |
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Advances to suppliers |
5,140 |
2,040 |
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Other accounts receivable |
20 |
10 |
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Export drawback receivable |
2,850 |
4,660 |
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Other current assets |
0 |
0 |
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|
------------------ |
------------------ |
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Current assets |
40,690 |
79,980 |
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Fixed assets net value |
310 |
370 |
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Long-term deferred expenses |
230 |
0 |
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Long term investment |
0 |
0 |
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Intangible and other assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
41,230 |
80,350 |
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|
============= |
============= |
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Short loans |
4,900 |
19,200 |
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Accounts payable |
11,150 |
34,750 |
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Advances from clients |
10,830 |
4,670 |
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Accrued payroll |
200 |
0 |
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Taxes payable |
-850 |
-1,060 |
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Interest payable |
60 |
0 |
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Other accounts payable |
500 |
10,030 |
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Other current liabilities |
0 |
350 |
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------------------ |
------------------ |
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Current liabilities |
26,790 |
67,940 |
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Long-term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
26,790 |
67,940 |
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Equities |
14,440 |
12,410 |
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------------------ |
------------------ |
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Total liabilities & equities |
41,230 |
80,350 |
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|
============= |
============= |
Income
Statement
Unit: CNY’000
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2012 |
|
Turnover |
190,300 |
213,920 |
|
Cost of goods sold |
179,940 |
203,250 |
|
Taxes and additional of main operation |
10 |
/ |
|
Sales expense |
4,240 |
4,450 |
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Management expense |
1,750 |
1,440 |
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Finance expense |
960 |
1,700 |
|
Non-operation income |
130 |
/ |
|
Profit before tax |
3,530 |
3,060 |
|
980 |
810 |
|
|
Profits |
2,550 |
2,250 |
Important
Ratios
=============
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2012 |
|
*Current ratio |
1.52 |
1.18 |
|
*Quick ratio |
1.13 |
1.02 |
|
*Liabilities to assets |
0.65 |
0.85 |
|
*Net profit margin (%) |
1.34 |
1.05 |
|
*Return on total assets (%) |
6.18 |
2.80 |
|
*Inventory /Turnover ×365 |
20 days |
19 days |
|
*Accounts receivable/Turnover ×365 |
28 days |
83 days |
|
*Turnover/Total assets |
4.62 |
2.66 |
|
* Cost of goods sold/Turnover |
0.95 |
0.95 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good in both years.
SC’s net profit margin appears average in both years.
SC’s return on total assets appears average in 2012 and fairly good in
2013.
SC’s cost of goods sold is fairly high in both years, comparing with its
turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in both years.
SC’s quick ratio is maintained in a normal level in both years.
The inventory of SC appears average.
The accounts receivable of SC appears average in 2013.
The short-term loan of SC appears average in 2013.
SC’s turnover is in a fairly good level in 2013, 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
SC is considered medium-sized in its line with fairly stable financial
conditions. Taking into consideration of SC’s general performance and operation
size.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.20 |
|
|
1 |
Rs.94.71 |
|
Euro |
1 |
Rs.68.60 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
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 |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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|
-- |
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.