MIRA INFORM REPORT
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Report No. : |
322220 |
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Report Date : |
16.05.2015 |
IDENTIFICATION DETAILS
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Name : |
ANHUI JINHE INDUSTRIAL CO., LTD. |
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Registered Office : |
No. 127 East Street, Laian County, Chuzhou Anhui Province 239200 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
25.12.2006 |
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Com. Reg. No.: |
341100000007764 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling food additives, flavor and fragrance,
organic classes of hazardous chemicals, liquid anhydrous ammonia, methanol
for industrial use, industrial nitric acid, formaldehyde, concentrated
sulfuric acid, sulfur dioxide and sulfur anhydride. Normal operating
projects: manufacturing and selling melamine, pentaerythritol, sodium
formate, urea and ammonium acid carbonate; import and export chemical raw
materials (excluding the hazard chemicals), mechanical equipment, components,
raw materials and technology (excluding the goods forbidden by the
government). |
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No. of Employees : |
3,579 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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
ANHUI JINHE INDUSTRIAL CO., LTD.
NO. 127 EAST STREET, LAIAN COUNTY, CHUZHOU
ANHUI PROVINCE 239200 PR CHINA
TEL: 86 (0) 550-5612755
FAX: 86 (0) 550-5611232
EXECUTIVE
SUMMARY
Date of Registration : december 25, 2006
REGISTRATION NO. : 341100000007764
LEGAL FORM : SHARES LIMITED
COMPANY
CHIEF EXECUTIVE :
yang yingchun (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 284,160,000
staff :
3,579
BUSINESS CATEGORY : MANUFACTURING & selling
REVENUE :
CNY 3,214,710,000 (AS OF DEC.
31, 2014)
EQUITIES :
CNY 2,135,294,000 (AS OF DEC. 31, 2014)
WEBSITE : www.lajingda.com
E-MAIL :
jinheshiye@jinheshiye.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE :
CNY 6.20 = 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 shares
limited company of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.:
341100000007764 on December 25,
2006.
SC’s Organization Code Certificate No.:
79643317-7
SC’s Tax No.: 341122796433177
SC’s registered capital: CNY 284,160,000
SC’s paid-in capital: CNY 284,160,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2013 |
Registered Capital |
CNY 213,600,000 |
cny 277,680,000 |
|
2014-8-25 |
Registered Capital |
cny 277,680,000 |
CNY 284,160,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of March 31, 2015) |
% of Shareholding |
|
Anhui Jinrui Investment Group Co., Ltd. |
50.57 |
|
Shanghai Fuxing Purun Stock Investment Enterprise (Limited
Partnership) |
2.47 |
|
Shanghai Purun Stock Investment Enterprise (Limited Partnership) |
1.64 |
|
Wuhu Dacheng Venture Capital Center (Limited Partnership) |
0.81 |
|
Yang Yingchun 杨迎春 |
0.67 |
|
Huarong Securities Co., Ltd. |
0.56 |
|
Shandong International Trust Corporation- Shandong Trust-Dahong 5#
Investment securities Capital Trust Plan |
0.40 |
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Shandong International Trust Corporation-Dahong 1# Investment
Securities Capital Trust Plan |
0.40 |
|
Zheng Dongqiang |
0.35 |
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Shandong International Trust Corporation- Sheng’an 15# Securities
Investment Trust Fund Plan |
0.28 |
|
Other Shareholders |
41.85 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Yang Yingchun |
|
General Manager |
Dai Shilin |
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Deputy General Manager |
Xia Jiaxin |
|
Sun Tao |
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Tao Changwen |
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|
Li Enping |
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Wang Congchun |
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|
Yang Zongyong |
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|
Li Junwei |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002597.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As of March 31, 2015)
-----------------------------
Anhui Jinrui Investment Group Co., Ltd. 50.57
Shanghai Fuxing Purun Stock Investment Enterprise (Limited Partnership) 2.47
Shanghai Purun Stock Investment Enterprise (Limited Partnership) 1.64
Wuhu Dacheng Venture Capital Center (Limited Partnership) 0.81
Yang Yingchun 0.67
Huarong Securities Co., Ltd. 0.56
Shandong International Trust Corporation- Shandong Trust-Dahong 5#
Investment securities Capital Trust Plan
0.40
Shandong International Trust Corporation-Dahong 1# Investment Securities
Capital Trust Plan 0.40
Zheng Dongqiang 0.35
Shandong International Trust Corporation- Sheng’an 15# Securities
Investment Trust Fund Plan 0.28
Other Shareholders 41.85
Anhui Jinrui Investment Group Co., Ltd.
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Date of Registration: September 14, 2001
Registration No.: 341122000009098
Chief Executive: Yang Yingchun
Registered Capital: CNY 60,550,600
Shanghai Fuxing Purun Stock Investment Enterprise (Limited Partnership)
------------------------------------------------------------------------------------------------
Date of Registration: July 29, 2009
Registration No.: 310000000096450
Legal Form: Limited
Partnership
Chief Executive: Yin Feng
Shanghai Purun Stock Investment Enterprise (Limited Partnership)
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Date of Registration: July 20, 2009
Registration No.: 310000000096378
Legal Form: Limited
Partnership
Chief Executive: Yin Feng
MANAGEMENT
Yang Yingchun,
Legal Representative and Chairman
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Gender: M
Age: 51
Qualification: University
Working experience (s):
From 2012 to present, working in SC as legal representative and
chairman, also working in Anhui Jinrui Chemical Investment Co., Ltd. as legal
representative and chairman
Dai Shilin,
General Manager
-------------------------------------------------
Gender: M
Age: 50
Qualification: University
Working experience (s):
From 2006 to 2009, worked in SC as deputy general manager
From 2009 to present, working in SC as general manager
Deputy General
Manager
---------------------------------
Xia Jiaxin
Sun Tao
Tao Changwen
Li Enping
Wang Congchun
Yang Zongyong
Li Junwei
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling food
additives, flavor and fragrance, organic classes of hazardous chemicals, liquid
anhydrous ammonia, methanol for industrial use, industrial nitric acid,
formaldehyde, concentrated sulfuric acid, sulfur dioxide and sulfur anhydride.
Normal operating projects: manufacturing and selling melamine, pentaerythritol,
sodium formate, urea and ammonium acid carbonate; import and export chemical
raw materials (excluding the hazard chemicals), mechanical equipment,
components, raw materials and technology (excluding the goods forbidden by the
government).
SC is mainly engaged in manufacturing and selling food additives, flavor
and fragrance.
Brand: Jingda
SC’s products mainly include: Maltol, Ethyl Maltol, Natural Maltol,
Acesulfame-k.
SC sources its materials 90% from domestic market, and 10% from overseas
market. SC sells 70% of its products in domestic market, and 30% to overseas
market.
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.
*Major Customers:
==============
Fuzhou Liansheng Chemical Co., Ltd.
Dsm Eternal Resins (kunshan) Co., Ltd.
Nanjing JianYe Chemical Co., Ltd.
China Long-Chem Company Limited
SP Chemicals (Taixing) Co., Ltd.
*Major Supplier:
============
Wuxi Huaguang Boiler Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 3,579
staff at present.
SC owns an area as its operating office & factory of approx. 500,000
sq. meters at the heading address.
RELATED COMPANY
SC is known to have
the following subsidiaries at present:
Chuzhou Jinfeng Chemical Co., Ltd.
Wandong Jinli Chemical Co., Ltd.
Chuzhou Jinyuan Chemical Co., Ltd.
Laian Lixin Port Management Logistics Co., Ltd.
Anhui Huaertai Chemical Industry 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’s suppliers declined to make any
comments.
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:
Bank of China Chuzhou Branch
AC#: 178211911642
FINANCIALS
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
514,213 |
532,526 |
|
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Accounts receivable |
104,305 |
116,683 |
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Notes receivable |
289,652 |
279,501 |
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Advances to suppliers |
210,774 |
234,849 |
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Interest receivable |
1,613 |
1,851 |
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Other receivable |
2,532 |
2,979 |
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Inventory |
295,322 |
401,748 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
35,992 |
186,648 |
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------------------ |
------------------ |
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Current assets |
1,454,403 |
1,756,785 |
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Long-term investments |
1,887 |
1,711 |
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Real estate investment |
0 |
0 |
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Fixed assets |
1,331,783 |
1,307,946 |
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Construction in progress |
41,311 |
5,223 |
|
Project materials |
115 |
190 |
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Fixed assets in liquidation |
10,185 |
10,074 |
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Intangible assets |
139,399 |
117,299 |
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Goodwill |
0 |
0 |
|
Long-term deferred expense |
18,060 |
29,112 |
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Deferred income tax assets |
24,356 |
15,872 |
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Other non-current assets |
34,607 |
126,924 |
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------------------ |
------------------ |
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Total assets |
3,056,106 |
3,371,136 |
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|
============= |
============= |
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Short-term loans |
119,000 |
170,500 |
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Notes payable |
11,500 |
8,600 |
|
Accounts payable |
308,396 |
255,237 |
|
Payroll payable |
75,746 |
82,592 |
|
Taxes payable |
-3,744 |
8,524 |
|
Interest payable |
634 |
7,906 |
|
Advances from clients |
30,011 |
79,791 |
|
Other payable |
55,575 |
43,095 |
|
Other current liabilities |
87,519 |
115,014 |
|
|
------------------ |
------------------ |
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Current liabilities |
684,637 |
771,259 |
|
Non-current liabilities |
344,877 |
464,583 |
|
|
------------------ |
------------------ |
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Total liabilities |
1,029,514 |
1,235,842 |
|
Equities |
2,026,592 |
2,135,294 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
3,056,106 |
3,371,136 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Revenue |
2,977,234 |
3,214,710 |
|
Cost of sales |
2,587,427 |
2,738,005 |
|
Business Taxes and Surcharges |
10,143 |
12,582 |
|
Sales expense |
119,823 |
163,861 |
|
Management expense |
73,545 |
104,995 |
|
Finance expense |
5,975 |
32,725 |
|
Asset impairment loss |
5,348 |
11,557 |
|
Investment income |
-7 |
9,287 |
|
Non-operating income |
25,039 |
28,808 |
|
Non-operating expense |
13,656 |
10,651 |
|
Profit before tax |
186,824 |
177,807 |
|
Less: profit tax |
31,528 |
39,861 |
|
155,296 |
137,946 |
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
As of Sep. 30,
2014 |
|
*Current ratio |
2.12 |
2.28 |
|
*Quick ratio |
1.69 |
1.76 |
|
*Liabilities to assets |
0.34 |
0.37 |
|
*Net profit margin (%) |
5.22 |
4.09 |
|
*Return on total assets (%) |
5.08 |
4.09 |
|
*Inventory / Revenue ×365 |
37 days |
46 days |
|
*Accounts receivable/ Revenue ×365 |
13 days |
14 days |
|
*Revenue/Total assets |
0.97 |
0.95 |
|
*Cost of sales / Revenue |
0.87 |
0.85 |
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 goods sold is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
The short-term loans of SC appear average.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered large-sized in its line with stable financial
conditions. Taking into consideration of SC’s general performance, reputation
as well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.57 |
|
|
1 |
Rs.100.30 |
|
Euro |
1 |
Rs.72.37 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>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 |
-- |
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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.