MIRA INFORM REPORT
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Report No. : |
350279 |
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Report Date : |
17.11.2015 |
IDENTIFICATION DETAILS
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Name : |
WUXI HEXIA CHEMICAL COMPANY |
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Registered Office : |
Room 1109, Cepa Center, Zhanqian Commercial
Zone, No. 16 North Jiefang Road, Wuxi City, Jiangsu Province, 214000 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
04.06.2003 |
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Com. Reg. No.: |
320204000022358 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling APIs and chemical
intermediate |
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No. of Employees : |
26 |
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 : |
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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 2014 more than 274 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 also implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further 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
WUXI HEXIA CHEMICAL COMPANY
ROOM
1109, CEPA CENTER, ZHANQIAN COMMERCIAL ZONE, NO. 16 NORTH JIEFANG ROAD, WUXI
CITY, JIANGSU PROVINCE, 214000 PR CHINA
TEL: 86 (0) 510-82321139-8006 FAX:
86 (0) 510-82321159
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JUNE 4, 2003
REGISTRATION NO. :
320204000022358
REGISTERED
LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF
EXECUTIVE : MS. JIN
LINGYING (CHAIRMAN)
STAFF STRENGTH :
26
REGISTERED CAPITAL :
CNY 1,000,000
BUSINESS LINE :
tradinG
TURNOVER :
CNY 258,500,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 29,100,000 (AS OF DEC. 31, 2014)
PAYMENT :
NO COMPLAINTS
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.3729 = USD
Adopted abbreviations:
ANS
- amount not stated
NS
- not stated
SC
- subject company (the company inquired by you)
NA
- not available
CNY
- China Yuan Renminbi
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 June 4, 2003.
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 selling chemical raw materials (in
accordance with the permit range of hazardous chemicals), knitting and
textiles, garments, electronic products and communication equipment (excluding
emitting devices and satellite TV broadcasting ground receiving facilities),
household appliances, common machinery, hardware tools, office supply,
instrument and meter, timber, retailing daily necessities, importing and
exporting goods and technology (excluding the items prohibited or limited by
the country, with permit if needed)
SC
is mainly engaged in selling APIs and chemical intermediate.
Ms.
Jin Lingying is legal representative, chairman and general manager of SC at
present.
SC is
known to have approx. 26 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Wuxi. Detailed information of the
premise is unspecified.
www.hexiachem.com The design is professional and the content is well organized. At
present it is in English and other versions.
E-mail:
xsca@263.net
No
significant events or changes were found during our checks with the local
Administration for Industry and Commerce.
Organization
Code: 750012756
For
the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Hua
Jianxin 4
Jin
Lingying 96
Legal Representative, chairman and general manager:
Ms.
Jin Lingying, ID# 32020219660711XXXX, born in 1966. She 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 Wuxi Hexia Chemical Company
Huatong Branch as Principal, and in Jiangsu Dolphin Pharmaceutical Co.,
Ltd. (literal translation) as director.
Supervisor:
Hua
Jianxin
SC
is mainly engaged in selling APIs and chemical intermediate.
SC’s
products mainly include:
APIs
Pharmaceutical
Intermediates
Food
Additives
Machinery
& Equipment
Coating
Pigment&
Dye
SC
sources its materials 99% from domestic market and 1% from the overseas market.
SC sells 1% of its products in domestic market, and 99% 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.
Note: SC’s management
declined to release the major suppliers and customers.
SC is known to invest in the following company:
Jiangsu Dolphin Pharmaceutical Co., Ltd. (literal translation)
================================
Registration
no.: 320900400026521
Legal
representative: Xia Tiehong
Incorporation
date: 2014-01-23
Branch:
Wuxi Hexia Chemical Company Huatong
Branch
======================================
Registration no.: 320202000042143
Incorporation date: Aug. 12, 2003
Principal:
Jin Lingying
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.
Industrial
Bank Wuxi Branch
AC#:
408410100100095858
Relationship:
Normal
Balance Sheet
Unit:
CNY’000
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as of Dec. 31, 2014 |
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Cash & bank |
71,130 |
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90 |
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Accounts receivable |
37,090 |
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Advances to suppliers |
3,640 |
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Other Accounts receivable |
5,940 |
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Other current assets |
0 |
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------------------ |
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Current assets |
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Fixed assets net value |
150 |
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Intangible assets |
30 |
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Long term investment |
2,830 |
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Other assets |
0 |
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------------------ |
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Total assets |
120,900 |
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============= |
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Short loans |
0 |
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Accounts payable |
25,110 |
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Notes Payable |
65,580 |
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Tax Payable |
200 |
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Other Accounts payable |
910 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
91,800 |
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Equities |
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------------------ |
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Total liabilities & equities |
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============= |
Income Statement
Unit:
CNY’000
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as of Dec. 31, 2014 |
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Cost of goods sold |
241,850 |
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Taxes and additional of main operation |
60 |
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Sales expense |
6,830 |
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Management expense |
1,950 |
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Finance expense |
-580 |
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Non-operating income |
1,230 |
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Non-operating expense |
130 |
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Profit before tax |
9,500 |
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Less: profit tax |
2,370 |
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Profits |
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Important Ratios
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as of Dec. 31, 2014 |
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*Current ratio |
1.28 |
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*Quick ratio |
1.28 |
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*Liabilities to assets |
0.76 |
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*Net profit margin (%) |
2.76 |
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*Return on total assets (%) |
5.90 |
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*Inventory /Turnover ×365 |
1 day |
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*Accounts receivable/Turnover ×365 |
53 days |
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*Turnover/Total assets |
2.14 |
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* Cost of goods sold/Turnover |
0.94 |
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 fairly good.
SC’s
cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
The
current ratio of SC is maintained in a normal level.
SC’s
quick ratio is maintained in a normal level.
The
inventory of SC appears small in 2014.
The
accounts receivable of SC is maintained in an average level.
SC
has no short-term loan in 2014.
SC’s
turnover is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIR
The
debt ratio of SC is fairly high.
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. Taking
into consideration of SC’s general performance
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.17 |
|
UK Pound |
1 |
Rs.100.66 |
|
Euro |
1 |
Rs.70.97 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TRU |
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.