MIRA INFORM REPORT
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Report No. : |
320536 |
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Report Date : |
05.05.2015 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU HUAIHE CHEMICALS CO., LTD. |
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Registered Office : |
Sanhe Farm, Xuyi County, Huaian, Jiangsu Province 211700 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
02.02.1991 |
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Com. Reg. No.: |
320800000005333 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing and selling chemicals raw materials and chemicals;
manufacturing chemical fertilizer; general cargo; exporting its products and
technology; importing materials, instrument, machinery and equipment, parts
and technology needed for its production. |
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No. of Employees : |
800 |
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
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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. 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 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
Name & address
JIANGSU HUAIHE CHEMICALS CO.,
LTD.
SANHE FARM, XUYI COUNTY, HUAIAN, JIANGSU PROVINCE 211700 PR CHINA
TEL: 86 (0) 517-88511024/88515017
FAX: 86 (0) 517-88511172
***Note: SC’s
address should be the heading one, while SC’s Sales Departments locates in the (Room
No 2103, Fenghui Mansion, 8 North Huain China 223001)
EXECUTIVE
SUMMARY
Date of Registration : FEBRUARY 2, 1991
REGISTRATION NO. : 320800000005333
LEGAL FORM : WHOLLY
FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
AN LIRU (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY
24,700,000
staff :
800
BUSINESS CATEGORY :
MANUFACTURING & trading
Revenue :
CNY 1,250,994,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 138,091,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
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 wholly foreign-owned enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 320800000005333.
SC’s Organization Code Certificate No.:
13475319-8
SC’s registered capital: CNY 24,700,000
SC’s paid-in capital: CNY 24,700,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered Capital |
CNY 21,000,000 |
CNY 24,700,000 |
|
Legal Representative |
Lei Zhihong |
An Liru |
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|
2014-12-11 |
Legal Form |
Limited liabilities company |
Wholly foreign-owned enterprise |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
CNAC International Company Limited (Hong Kong) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
An Liru |
|
General Manager |
Xia Wenbiao |
|
Supervisor |
She Zhili |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
CNAC International Company Limited (Hong Kong) 100
----------------------------------------
Date of Registration: January 11, 2011
Registration No.: 1550540
Legal Form: Private
Status: Live
MANAGEMENT
An Liru, Legal Representative and Chairman
----------------------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as legal representative and chairman
Xia Wenbiao,
General Manager
-----------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as general manager
Supervisor
--------------
She Zhili
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling chemicals raw materials and chemicals; manufacturing chemical
fertilizer; general cargo; exporting its products and technology; importing
materials, instrument, machinery and equipment, parts and technology needed for
its production.
SC is mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include:
Para Nitro Toluene (PNT)
Ortho Nitro Toluene (ONT)
Meta Nitro Toluene (MNT)
Para Toluidine (PT)
Ortho Toluidine (OT)
Meta Toluidine (MT)
Concentrated Nitric Acid
Sodium Nitrate for Industrial use
Sodium Nitrite for Industrial use
Ammonia, liquid
SC sources its materials 80% from domestic market, and 20% from the overseas market, mainly European countries. SC sells 90% of its products in domestic market, and 10% to the overseas market, mainly USA and Europe.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers*
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Hempel-hai Hong Coatings (Kunshan) Co., Ltd.
Archroma U.S. Inc.
Staff &
Office:
--------------------------
SC is known to have approx. 800
staff at present.
SC owns an area as its operating office & factory of approx. 120,000
sq. meters at the heading address.
RELATED COMPANY
SC is not known to have any subsidiary at present.
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
Basic Bank:
Agricultural Bank of China Xuyi Sub-branch
AC#: 1088252994435
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
37,050 |
55,729 |
|
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Notes receivable |
89,344 |
56,538 |
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Accounts receivable |
20,011 |
24,273 |
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Advances to suppliers |
23,545 |
22,127 |
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Other receivable |
12,163 |
6,052 |
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Inventory |
96,949 |
94,388 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
0 |
371 |
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------------------ |
------------------ |
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Current assets |
279,062 |
259,478 |
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Long-term investment |
5,731 |
0 |
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Fixed assets |
208,166 |
321,782 |
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Construction in progress |
115,131 |
35,365 |
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Intangible assets |
15,924 |
15,757 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
4,285 |
3,251 |
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Other non-current assets |
4,969 |
8,020 |
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------------------ |
------------------ |
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Total assets |
633,268 |
643,653 |
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|
============= |
============= |
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Short-term loans |
308,300 |
266,300 |
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Notes payable |
15,850 |
42,200 |
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Accounts payable |
17,656 |
30,439 |
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Wages payable |
12,607 |
12,185 |
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Taxes payable |
5,704 |
5,230 |
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Advances from clients |
13,889 |
28,555 |
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Other payable |
10,864 |
6,822 |
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Other current liabilities |
41,025 |
60,000 |
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------------------ |
------------------ |
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Current liabilities |
425,895 |
451,731 |
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Non-current liabilities |
75,484 |
53,831 |
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------------------ |
------------------ |
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Total liabilities |
501,379 |
505,562 |
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Equities |
131,889 |
138,091 |
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------------------ |
------------------ |
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Total liabilities & equities |
633,268 |
643,653 |
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============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
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Revenue |
1,344,484 |
1,250,994 |
|
Cost of sales |
1,238,772 |
1,117,849 |
|
Taxes and surcharges |
820 |
1,799 |
|
Sales expense |
25,184 |
21,166 |
|
Management expense |
61,697 |
84,558 |
|
Finance expense |
19,642 |
21,723 |
|
Non-business income |
7,789 |
8,253 |
|
Non-business expenditure |
1,101 |
19 |
|
Profit before tax |
5,244 |
11,864 |
|
Less: profit tax |
4,376 |
2,176 |
|
868 |
9,688 |
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
0.66 |
0.57 |
|
*Quick ratio |
0.43 |
0.37 |
|
*Liabilities to assets |
0.79 |
0.79 |
|
*Net profit margin (%) |
0.06 |
0.77 |
|
*Return on total assets (%) |
0.14 |
1.51 |
|
*Inventory / Revenue ×365 |
27 days |
28 days |
|
*Accounts receivable/ Revenue ×365 |
6 days |
8 days |
|
*Revenue/Total assets |
2.12 |
1.94 |
|
*Cost of sales / Revenue |
0.92 |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a poor level.
SC’s quick ratio is maintained in a poor level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC appears small.
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. The large amount of short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.57 |
|
|
1 |
Rs.97.99 |
|
Euro |
1 |
Rs.70.53 |
INFORMATION DETAILS
|
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 |
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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.