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Report No. : |
323036 |
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Report Date : |
21.05.2015 |
IDENTIFICATION DETAILS
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Name : |
JINGMEN HONGJU CHEMICAL PLASTIC CO., LTD. |
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Registered Office : |
(In The Area Of Tianmao Group Co., Ltd.) No. 132, Yangwan Road, Jingmen, Hubei Province 448000 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
14.04.2011 |
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Com. Reg. No.: |
420800000148349 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is engaged in wholesaling ethylene, propylene, propane, toluene, xylene, sulfur, sulfuric acid, hydrochloric acid, yean, petroleum ether, methanol, liquefied petroleum gas, natural gas, methyl tert-butyl ether, ethanol, dimethyl ether, solvent oil, caustic soda, paraquat, endosulfan, chlorpyrifos, tricyclazole, triadimefon, kill borers, b allicin, imidacloprid, amidine, padan, insecticidal single budweiser, sulfur powder, butyl, budweiser, methyl carbamate, pentane, butane; importing and exporting trade (excluding items prohibited by the state); selling plastic products and plastic materials |
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No. of Employees : |
8 |
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 : |
Small Company |
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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 |
JINGMEN
HONGJU CHEMICAL PLASTIC CO., LTD.
(IN THE AREA OF TIANMAO GROUP CO., LTD.) NO.
132,
YANGWAN ROAD, JINGMEN,
HUBEI PROVINCE 448000 PR CHINA
‘TEL: 86 (0) 724-2368096 FAX: N/A
INCORPORATION DATE : APR. 14, 2011
REGISTRATION NO. : 420800000148349
REGISTERED LEGAL FORM : LIMITED
LIABILITIES CO.
STAFF STRENGTH :
8
REGISTERED CAPITAL : CNY
1,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 38,110,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 1,050,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.20= USD 1
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 Apr. 14, 2011.
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
SC’s registered business scope includes wholesaling ethylene, propylene, propane, toluene, xylene, sulfur, sulfuric acid, hydrochloric acid, yean, petroleum ether, methanol, liquefied petroleum gas, natural gas, methyl tert-butyl ether, ethanol, dimethyl ether, solvent oil, caustic soda, paraquat, endosulfan, chlorpyrifos, tricyclazole, triadimefon, kill borers, b allicin, imidacloprid, amidine, padan, insecticidal single budweiser, sulfur powder, butyl, budweiser, methyl carbamate, pentane, butane; importing and exporting trade (excluding items prohibited by the state); selling plastic products and plastic materials
SC is mainly engaged in selling chemical products.
Li Jie is legal representative, chairman and general manager of SC at present.
SC is known to have approx. 8 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in Jingmen. The detailed premise information is unspecified.
SC
is not known to host web site of its own at present.
E-mail: 107575481@qq.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
Organization code: 571534401
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Zhang Changzheng 50
Li Jie 50
l Legal
representative, chairman and general manager:
Li Jie is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative, chairman and general manager.
l Supervisor:
-----------------------
Zhang Changzheng
SC is mainly engaged in selling chemical products.
SC’s products mainly include ethylene, propylene, propane, toluene
SC sources its materials 100% from domestic market. SC sells 5% in domestic market and 95% to overseas 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.
Note:
SC declined to release its major suppliers and clients.
SC is not known to have the subsidiary at present.
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.
SC’s accountant
refused to release the bank details.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2014 |
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Cash & bank |
1,970 |
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Inventory |
410 |
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Accounts
receivable |
2,020 |
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Advances to
suppliers |
2,170 |
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Other
receivables |
0 |
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Other current
assets |
20 |
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------------------ |
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Current assets |
6,590 |
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Fixed assets net
value |
30 |
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Long term
investment |
0 |
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Projects under
construction |
0 |
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Intangible and
other assets |
10 |
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------------------ |
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Total assets |
6,630 |
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=========== |
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Short loan |
1,800 |
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Accounts payable |
970 |
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Advances from
clients |
1,020 |
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Other Accounts
payable |
1,780 |
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Other current
liabilities |
10 |
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Current
liabilities |
5,580 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
5,580 |
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Equities |
1,050 |
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------------------ |
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Total
liabilities & equities |
6,630 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2014 |
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Turnover |
38,110 |
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Cost of goods sold |
37,440 |
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Sales expense |
0 |
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Management expense |
470 |
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Finance expense |
150 |
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Profit before tax |
40 |
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Less: profit tax |
10 |
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Profits |
30 |
Important
Ratios
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As of Dec. 31, 2014 |
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*Current ratio |
1.18 |
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*Quick ratio |
1.11 |
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*Liabilities
to assets |
0.84 |
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*Net profit
margin (%) |
0.08 |
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*Return on
total assets (%) |
0.45 |
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*Inventory
/Turnover ×365 |
4 days |
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*Accounts
receivable/Turnover ×365 |
20 days |
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*Turnover/Total
assets |
5.75 |
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* Cost of
goods sold/Turnover |
0.98 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears average.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears fairly large.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.87 |
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1 |
Rs.98.89 |
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Euro |
1 |
Rs.70.73 |
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.