MIRA INFORM REPORT
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Report No. : |
321017 |
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Report Date : |
07.05.2015 |
IDENTIFICATION DETAILS
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Name : |
IPROCHEM CO., LTD. |
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Registered Office : |
35/F, Guomao Business Mansion, No. 3005 Nanhu Road, Luohu District, Shenzhen,
Guangdong Province, 518001 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
13.09.2004 |
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Com. Reg. No.: |
440301103492832 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
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No. of Employees : |
68 |
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 – 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 and address
IPROCHEM CO., LTD.
35/F, gUOMAO
bUSINESS mANSION, No. 3005 nANHU rOAD, lUOHU dISTRICT,
SHENZHEN, GUANGDONG
PROVINCE, 518001 PR CHINA.
TEL: 86 (0)
755-82353001 FAX: 86 (0)
755-82225900
EXECUTIVE
SUMMARY
INCORPORATION DATE :
SEP. 13, 2004
REGISTRATION NO. :
440301103492832
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
68
REGISTERED CAPITAL :
CNY 11,900,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 523,790,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 14,020,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2001 = USD 1
HISTORY
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Sep. 13, 2004.
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: engaging in industrial projects
(The detail items to be declared separately); chemicals, domestic commerce,
supplying and selling of commodities (excluding the operated, controlled and
monopolized commodities); import & export business
SC is mainly
engaged in exporting different sorts of pesticide.
Mr. Zhu Xianding
is legal representative, chairman and general manager of SC at present.
SC is known
to have approx. 68 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Shenzhen. Our checks reveal that SC owns the total premise about 1,000 square meters.
WEB
SITE
www.iprochem.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: iprochem@iprochem.com
KEY
EVENTS/RECENT DEVELOPMENT
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2005-5-16 |
Shareholders and shareholdings |
Zhu Xianding 90% He Fuying 5% Guo Dandan 5% |
Zhu Xianding 95% He Fuying 5% |
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2007-1-22 |
Registered capital |
CNY 1,000,000 |
CNY 2,500,000 |
|
Shareholders and shareholdings |
Zhu Xianding 95% He Fuying 5% |
Zhu Xianding 90% He Fuying 5% Yang Zhebin 5% |
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2007-2-5 |
Registered capital |
CNY 2,500,000 |
CNY 4,100,000 |
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2008-7-14 |
Registration number |
4403012153604 |
440301103492832 |
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Registered capital |
CNY 4,100,000 |
CNY 5,600,000 |
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|
2008-8-4 |
Registered capital |
CNY 5,600,000 |
Present amount |
Tax Registration Certificate No.: 440301766385952
Organization Code: 766385952
LITIGATION
For the past two years there is no record of litigation.
OWNERSHIP/MANAGEMENT
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhu Xianding 90
He Fuying 5
Yang Zhebin 5
MANAGEMENT
- Legal
representative, Chairman and General manager:
Mr. Zhu Xianding, born in 1962 with
university education. 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 Shenzhen
Ipro Biotechnology Co., Ltd. (Literal translation) as legal representative.
- Supervisor:
He Fuying, born in 1954 with
university education.
BUSINESS
OPERATIONS
SC is mainly
engaged in exporting different sorts of pesticide.
SC’s products mainly include tricyclazole, tebuconazole, propiconazole,
metalaxyl, flutriafol, difenoconazole, carbendazim, diquat,
glufosinate-ammonium, fungicides, insecticides, herbicide and rodenticide.
SC sources its materials 100% from domestic
market. SC sells 10% of its products in domestic market, and 90% to overseas
market, mainly Europe, USA, and Southeast Asian 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 Customer
============
JIA NON
Major Supplier
===========
Hubei Benxing Agrochemical Co., Ltd.
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TRADEMARKS & PATENTS |
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Registration No. |
4486202 |
7202719 |
7202707 |
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Registration Date |
April
7, 2008 |
Sep. 14, 2010 |
Sep. 14, 2010 |
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Trademark Design |
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RELATED
COMPANIES
SC is known to invest in
the following companies:
Shanghai Bofeng International Trade Co., Ltd.
Registration number: 310115001024081
Legal representative: Ding Jining
Legal form: Limited Liabilities Company
Registered capital: CNY 1,000,000
Incorporation date: July 17, 2007
Iprochem Tianmen Agrochemical Co., Ltd.
Registration number: 429006000004893
Legal representative: Su Sanyang
Legal form: Limited Liabilities Company
Registered capital: CNY 10,000,000
Incorporation date: March 24, 2004
Shenzhen Ipro Xingnong Plant Protection Technology Co., Ltd. (Literal translation)
Registration number: 440301105933095
Legal representative: Chen Xinjian
Legal form: Limited Liabilities Company
Registered capital: CNY 1,000,000
Incorporation date: December 30, 2011
SC is also known to have
the following related company:
Shenzhen Ipro Biotechnology Co., Ltd. (Literal translation)
Registration number: 440301103991624
Legal representative: Zhu Xianding
Legal form: Limited Liabilities Company
Registered capital: CNY 1,000,000
Incorporation date: May 5, 2009
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’s supplier
declined to make any commends.
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
Bank of China Shenzhen Dongmen Sub-branch
AC#：756257929622
China Construction Bank Shenzhen Luohu Sub-branch
AC#：44201507300052508734
Relationship: Normal.
FINANCIAL
HIGHLIGHTS
Balance Sheet
|
Unit: CNY’000 |
as of Dec. 31, 2014 |
|
Cash & bank |
16,930 |
|
Inventory |
4,030 |
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Accounts
receivable |
93,490 |
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Advances to
supplies |
49,590 |
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Other
receivables |
50,300 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
214,340 |
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Fixed assets net
value |
11,380 |
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Projects under
construction |
0 |
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Long-term
investments |
8,960 |
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Intangible
assets |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
234,680 |
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============= |
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Short loans |
76,990 |
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Accounts payable |
12,140 |
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Advances from
customers |
68,170 |
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Notes payable |
26,220 |
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Accrued Wages |
170 |
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Taxes payable |
-250 |
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Other Accounts
payable |
37,220 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
220,660 |
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Long term
liabilities |
0 |
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Other long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
220,660 |
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Shareholders
equities |
14,020 |
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------------------ |
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Total
liabilities & equities |
234,680 |
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============= |
Income Statement
|
Unit: CNY’000 |
as of Dec. 31, 2014 |
|
Turnover |
523,790 |
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Cost of goods sold |
491,280 |
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Taxes and additional of main operation |
60 |
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Sales expense |
27,930 |
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Management expense |
2,220 |
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Finance expense |
1,110 |
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Profit before
tax |
1,190 |
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Less: profit tax |
310 |
|
Profits |
880 |
Important Ratios
=============
|
|
as of Dec. 31, 2014 |
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*Current ratio |
0.97 |
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*Quick ratio |
0.95 |
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*Liabilities
to assets |
0.94 |
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*Net profit
margin (%) |
0.17 |
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*Return on
total assets (%) |
0.37 |
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*Inventory
/Turnover ×365 |
3 days |
|
*Accounts
receivable/Turnover ×365 |
66 days |
|
*Turnover/Total
assets |
2.23 |
|
* Cost of
goods sold/Turnover |
0.94 |
FINANCIAL
COMMENTS
PROFITABILITY: AVERAGE
- The turnover 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 goods sold is fairly high,
comparing with its turnover.
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 is average.
- The accounts receivable of SC is fairly
large.
- The short term loan appears large in
2014.
- SC’s turnover is in a fairly good
level, comparing with the size of its total assets.
LEVERAGE: FAIR
- The debt ratio of SC is high.
- The risk for SC to go bankrupt is
average.
Overall financial
condition of the SC: Fairly Stable.
REMARKS
SC is considered medium-sized in its line with fairly stable financial conditions.
The large amount of accounts receivable and short-term loan could be a threat
to SC’s financial condition. A credit line up to USD 100,000 appears to be
within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.64 |
|
|
1 |
Rs.96.81 |
|
Euro |
1 |
Rs.71.51 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
VNT |
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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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.