MIRA
INFORM REPORT
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Report No. : |
320088 |
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Report Date : |
09.05.2015 |
IDENTIFICATION DETAILS
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Name : |
NINHUA GROUP CO., LTD. |
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Registered Office : |
Floor 8-12, Pufa Building, No. 21 Jiangxia Street, Ningbo, Zhejiang Province, 315010 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
11.11.1993 |
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Com. Reg. No.: |
330200000042822 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in highly toxic chemical: zinc phosphate, 3-【3-( |
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No. of Employees : |
270 |
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 and address
NINHUA GROUP CO.,
LTD.
FLOOR 8-12, PUFA BUILDING, NO. 21 JIANGXIA
STREET,
NINGBO, ZHEJIANG PROVINCE, 315010 PR CHINA
TEL: 86 (0) 574-87348868-2817 FAX: 86 (0) 574-87366775-2817
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOV. 11, 1993
REGISTRATION NO. :
330200000042822
REGISTERED LEGAL FORM :
ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH : 270
REGISTERED CAPITAL :
CNY 200,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
CNY 2,417,380,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 596,560,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
WELL KNOWN
EXCHANGE RATE : CNY 6.2072=USD 1
HISTORY
Note: the given name was SC’s former name.
SC was registered as a limited liabilities co. at local Administration
for Industry & Commerce (AIC-The official body of issuing and renewing
business license) on Nov. 11, 1993 and has been under the current ownership
since March, 2015.
Company Status:
One-person Limited Liability Company
Single person LLC refers to a limited liability company set up by only one natural person or legal person as the single shareholder of it.
The minimum registered capital of Single person LLC is CNY100,000. The shareholder’s capital contributes, as set out by the articles of associations should be a lump-sum payment in full.
One natural person can only invest in and set up one limited liability company, which is not permitted to invest in and set up a new Single person LLC.
As to any one-person limited liability company, the sole-investor nature of the natural person or legal person shall be indicated in the registration documents of the company and shall be indicated in the business license thereof as well.
The regulation of Single person LLC should be set up by the shareholder
The regulation of Single person LLC has no shareholder meeting.
SC’s registered business scope includes highly toxic
chemical: zinc phosphate, 3-【3-(
SC is mainly engaged in international trade.
Mr. Liu Jianping has been chairman, legal representative and general manager of SC since March, 2015.
SC is known to have approx. 270 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Ningbo. Our checks reveal that SC owns the total premise about 4,000 square meters.
WEB SITE
http://www.sinochem-nb.com The design is
professional and the content is well organized. At present it is both in
Chinese and English versions.
E-Mail: nbchem@sinochem-nb.com
KEY EVENTS/RECENT DEVELOPMENT
Changes
of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2000-03-30 |
Registered capital |
CNY 14,800,000 |
CNY 20,000,000 |
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2002-05-31 |
Registered capital |
CNY 20,000,000 |
CNY 43,000,000 |
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2003-07-28 |
Registered capital |
CNY 43,000,000 |
CNY 50,000,000 |
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2004-04-06 |
Registered name |
Sinochem Ningbo Import & Export Corp. |
Sinochem Ningbo Ltd |
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2007-06-01 |
Legal representative |
Pan Zhengyi |
Wang Yinping |
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2008-08-05 |
Registered capital |
CNY 50,000,000 |
Present amount |
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2008-08-12 |
Registered no. |
3302001000032 |
Present one |
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2010-11-9 |
Legal representative |
Wang Yinping |
Du Keping |
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2015-3-2 |
Legal representative |
Du Keping |
Present one |
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Company’s name |
Sinochem Ningbo Ltd. |
Present one |
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Legal form |
limited liabilities co. |
Present one |
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Shareholders & % of shareholding |
Employee Shareholders Association of
Sinochem Ningbo Ltd. 49% China Sinochem Group Corporation 51% |
Present one |
Honors
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2013 Zhejiang Province Top 100 Tertiary Industry (49th)
2013 Ningbo City Top 100 Tertiary Industry (19th)
2013 Ningbo City Top 100 Comprehensive Enterprises (54th)
2012 Zhejiang Province Top 100 Tertiary Industry (40th)
2012 Ningbo City Top 100 Tertiary Industry (15th)
2012 Ningbo City Top 100 Comprehensive Enterprises (49th)
2011 Ningbo City Top 100 Tertiary Industry (23rd)
2011 Ningbo City Top 100 Comprehensive Enterprises (54th)
2010 Zhejiang Province Top 100 Tertiary Industry
2010 Ningbo City Top 100 Comprehensive Enterprises (52nd)
2010 Ningbo City Top 100 Tertiary Industry（22nd）
2010 AA-grade Management Enterprise of China Customs
2010 AAA Credit Rating Enterprise in Loans
2009 Ningbo City Top 20 Taxpayers in Tertiary Industries (13th)
2009 Ningbo City Top 100 Tertiary Industry（16th）
2009 Ningbo City Top 100 Enterprises（39th）
Subject passed the annual inspection of 2012
with Administration for Industry & Commerce.
Organization Code: 144052010
Tax No.: 330203144052010
LITIGATION
For the past two years there is no record of litigation.
OWNERSHIP/MANAGEMENT
MAIN SHAREHOLDERS:
Name
% of
shareholdings
Employee Shareholders Association of
Sinochem Ningbo Ltd. 100
MANAGEMENT
- Chairman,
Legal Representative & General Manager:
Mr. Liu Jianping is currently responsible for the overall
management of SC.
Working Experience(s):
From March, 2015 to present Working in SC as chairman, legal representative
and general manager
- Vice Chairmen:
Shan Mengchuan
Chen Youxiang
They are currently responsible for the
daily management of SC.
Working Experience(s):
At present Working in SC as vice chairmen
- Directors:
He Dongsheng
Zhu Fuyuan
Chen Weijun
Ban Yan
- Supervisors:
Zhao Li
Chen Zhongyu
Zhang Zhenye
Wu Kan
Lu Genfa
BUSINESS OPERATIONS
SC is mainly
engaged in international trade.
SC’s main products
and brands:
Brand of Sining
Products in medicine
raw materials, intermediate, fine chemicals, medicine and veterinary medicine. Sining has been growing to be a world-known
brand, especially in Asia, Africa and South America.
Brand of Climatic
Products for
camping, hunting, gardening and
beach leisure
Brands of Carstech
Products of all
sorts of fittings and parts.
Brand of G-Touch
Outdoor products
like tables, chairs, hammocks, tents,
umbrellas, braziers
Brand of ICOOL
Products including
air-conditioners and ventilating products.
SC sources its merchandises 30% from the overseas market, mainly from
European and American Countries, and 70% from domestic market. SC sells 30% of
its merchandises in domestic market, and 70% to overseas market.
Trademark & Patents
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Registration No. |
10713253 |
10767211 |
10767188 |
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Registration Date |
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Trademark Design |
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The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note: SC refused to release its main
suppliers and customers.
RELATED COMPANIES
SC is known to
invested in the following companies
Zhejiang Hisun Chemical Co., Ltd.
Ningbo Sanjiang
Yinong Chemicals Co., Ltd. (literal translation)
Zhejiang Langhua Pharmaceutical Co., Ltd.
Ningbo Aike Refrigeration Co., Ltd.
Ningbo Free Trade
Zone Ninghua International Trade Co., Ltd.
Fuzun Wine
(Beijing) Co., Ltd. (literal translation)
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 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
Bank of China Ningbo Branch
AC#：N/A
Relationship:
Normal.
FINANCIAL HIGHLIGHTS
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
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Cash & bank |
40,770 |
184,800 |
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Inventory |
89,420 |
108,010 |
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Accounts
receivable |
456,250 |
444,280 |
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Bills receivable |
1,020 |
0 |
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Advances to
suppliers |
3,690 |
6,670 |
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Other accounts
receivable |
91,760 |
195,310 |
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Other current
assets |
315,000 |
325,000 |
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------------------ |
------------------ |
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Current assets |
997,910 |
1,264,070 |
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Fixed assets net
value |
11,280 |
11,030 |
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Available-for-sale
financial assets |
30,800 |
29,600 |
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Long term investment |
339,490 |
337,830 |
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Deferred income
tax assets |
11,530 |
11,900 |
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Long term
prepaid expenses |
600 |
850 |
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Intangible and
other assets |
390 |
240 |
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Total assets |
1,392,000 |
1,655,520 |
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Short loans |
94,790 |
11,040 |
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Accounts payable |
135,760 |
300,320 |
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Bills payable |
274,380 |
381,520 |
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Advances from
clients |
37,630 |
43,830 |
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Accrued payroll |
16,740 |
65,300 |
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Taxes payable |
5,600 |
18,730 |
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Interest payable |
680 |
220 |
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Other accounts
payable |
84,520 |
1,810 |
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Non-current
liabilities maturing within one year |
170,000 |
50,000 |
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Other current
liabilities |
0 |
0 |
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------------------ |
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Current
liabilities |
820,100 |
872,770 |
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Other
liabilities |
6,730 |
186,190 |
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------------------ |
------------------ |
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Total
liabilities |
826,830 |
1,058,960 |
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Equities |
565,170 |
596,560 |
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------------------ |
------------------ |
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Total
liabilities & equities |
1,392,000 |
1,655,520 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2013 |
As of Dec. 31,
2014 |
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Turnover |
2,343,340 |
2,417,380 |
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Cost of goods sold |
2,063,510 |
2,044,830 |
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Taxes and additional of main operations |
1,120 |
2,260 |
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Sales expense |
113,900 |
154,710 |
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Management expense |
52,180 |
52,870 |
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Finance expense |
29,520 |
15,600 |
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Loss of asset
impairment |
4,170 |
320 |
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Investment
income |
15,730 |
27,380 |
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Non-operating
income |
6,350 |
4,380 |
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Non-operating expense |
1,350 |
250 |
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Profit before
tax |
99,670 |
178,300 |
|
25,650 |
45,310 |
|
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Profits |
74,020 |
132,990 |
Important
Ratios
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.22 |
1.45 |
|
*Quick ratio |
1.11 |
1.32 |
|
*Liabilities
to assets |
0.59 |
0.64 |
|
*Net profit margin
(%) |
3.16 |
5.50 |
|
*Return on
total assets (%) |
5.32 |
8.03 |
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*Inventory
/Turnover ×365 |
14 days |
16 days |
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*Accounts
receivable/Turnover ×365 |
71 days |
67 days |
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*Turnover/Total
assets |
1.68 |
1.46 |
|
* Cost of
goods sold/Turnover |
0.88 |
0.85 |
FINANCIAL COMMENTS
PROFITABILITY: FAIRLY GOOD
- The turnover of SC appears good in its
line in both years.
- SC’s net profit margin appears average
in 2013 and fairly good in 2014.
- SC’s return on total assets appears
fairly good in both years.
- SC’s cost of goods sold is average,
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 in
both years.
- The accounts receivable of SC appears
average in both years.
- SC’s short-term loan appears average in
both years.
- SC’s turnover 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: Stable
REMARKS
SC is considered
large-sized in its line with 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.64.05 |
|
|
1 |
Rs.99.04 |
|
Euro |
1 |
Rs.71.76 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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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.