MIRA INFORM REPORT
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Report No. : |
343921 |
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Report Date : |
14.10.2015 |
IDENTIFICATION DETAILS
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Name : |
JURONG NINGWU NEW MATERIAL CO., LTD. |
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Registered Office : |
Juchen Road, Biancheng (Chenwu) Town, Jurong City, Jiangsu Province, 212405 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
12.12.2008 |
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Com. Reg. No.: |
321183000061985 |
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Legal Form : |
Shares limited co. |
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Line of Business : |
Subject is engaged in manufacturing and
trading polyurethane. |
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No. of Employees : |
280 |
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 – March 31, 2015
|
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.
|
Source
: CIA |
Company
name and address
JURONG NINGWU NEW MATERIAL CO., LTD.
JUCHEN
ROAD, BIANCHENG (CHENWU) TOWN, JURONG CITY,
JIANGSU
PROVINCE, 212405 PR CHINA
TEL:
86 (0) 511-87634986/87634958 FAX: 86
(0) 510-87634688
EXECUTIVE
SUMMARY
INCORPORATION
DATE : DEC. 12, 2008
REGISTRATION
NO. : 321183000061985
REGISTERED
LEGAL FORM : SHARES LIMITED CO.
CHIEF
EXECUTIVE : MS. YING JUE (LEGAL REPRESENTATIVE)
STAFF
STRENGTH : 280
REGISTERED
CAPITAL :
CNY 125,000,000
BUSINESS
LINE :
MANUFACTURING AND TRADING
TURNOVER : CNY
1,700,000,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 323,000,000
(AS OF DEC. 31, 2014)
PAYMENT
: AVERAGE
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : STABLE
OPERATIONAL
TREND :
STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.3235= USD
1
Adopted abbreviations:
ANS
- amount not stated NS - not
stated
SC
- subject company (the company inquired by you)
NA
- not available
CNY
- China Yuan Renminbi
Note:
The given name “Jurong Ningwu New Material Development Company Limited” is SC’s
previous name.
SC
was registered as a Chinese-foreign equity joint venture enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Dec. 12, 2008 and changed to Shares limited co. on Sep. 6, 2015.
Company Status: Shares limited
co.
This form
of business in PR China is defined as a legal person. Its registered capital is
divided into shares of equal par value and the co. raises capital by issuing
share certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its debts
only to the extent of its total assets. The co has independent property of
legal person and enjoys property rights of legal person. The characteristics of
the shares limited co. are as follows:
The
establishment of the co. requires at least two promoters and no more than 200, half of
whom shall be domiciled in China.. Natural person are allowed to serve as promoters.
The
minimum registered capital of a co. is CNY
The
board of directors must consist of five to nineteen directors.
If the
co. raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer.
A
state-owned enterprise that is restructured into a shares limited co. must
comply with the conditions & requirements specified under the law &
administrative rule.
SC’s
registered business scope includes: manufacturing polyurethane; wholesale,
retail and import and export business of polyurethane (excluding the
commodities managed by state, the goods involving quota and license management,
shall be dealt with in accordance with the relevant regulations). Above
excluding the manufacturing and sales of dangerous chemicals (With permit if
needed)
SC is mainly engaged in manufacturing and trading polyurethane.
Ms.
Ying Jue is legal representative and chairman of SC at present.
SC
is known to have approx. 280 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial park of Jurong. SC’s accountant
refused to release the detailed information of the premise.
www.jrningwu.com The design is professional and the content is
well organized. At present it is in English and Chinese versions.
E-mail:
peter_xia@jrningwu.com
For
the past two years there is no record of litigation.
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2014-09-26 |
Shareholders (%) |
Ms. Ying Jue 70 EVER WAX LIMITED (HK) 30 |
Present one |
|
2015-09-06 |
Registered name |
Jurong Ningwu New Material Development
Co., Ltd. |
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|
Legal form |
Chinese-foreign equity joint venture enterprise |
Organization Code: 683515870
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Ying
Jue 68
Ever
Wax Limited (H.K.) 30
Jiangsu
Jurong Venture Capital Co., Ltd. (literal translation) 2
Ever
Wax Limited (H.K.)
======================
Registered No.: 1176717
Established Date:
Jiangsu
Jurong Venture Capital Co., Ltd. (literal translation)
=======================================
Registered No.: 321183000123457
Established Date:
Legal
Representative: Jiang Ce
Legal representative and Chairman:
Ms.
Ying Jue is currently responsible for the overall management of SC.
Working
Experience(s):
At
present Working in SC
as legal representative and
chairman.
Vice Chairman:
Pan
Lvmin is currently responsible for the daily management of SC.
Working
Experience(s):
At
present Working in SC
as vice chairman
General Manager:
Ying
Jun is currently responsible for the daily management of SC.
Working
Experience(s):
At
present Working in SC
as general manager.
Also
working in Jurong Ningwu Science Development Co., Ltd. as legal representative.
Directors:
Ying
Jun
Xia
Wenhua
Jiang
Ce
Li
Xiaohu
Pan
Yongjian
Ma
Tianyu
Yang
Jingsong
SC
is mainly engaged in manufacturing and trading polyurethane.
SC’s
products mainly include:
Flexible
Foam- high reactive polyether polyols
C.A.S.E
Allyl
Alcohol polyether polyol
Polymer
polyol（POP）
Polyether
polyols for rigid polyurethanes -Sucrose based polyether polyols
Sorbitol
based polyether
Ethylenediamine
based polyether
Toluene
diamine based polyether
Glycerine
based polyether
Flexible
Foam- conventional foam polyether polyols
Polyether
polyol for special usage
SC
sources its material 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.
Note: SC’s management declined
to release its major clients and suppliers.
Jurong
Ningwu New Hi-tech Development Co., Ltd.
======================================
Registered No.: 321183000039532
Established Date:
Legal
Representative: Lai Guiqin
Jurong
Ningwu Science Development Co., Ltd.
==================================
Registered No.: 321100400017530
Established Date:
Legal
Representative: Ying Jun
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
management declined to release its bank information.
Balance Sheet
|
Unit: CNY’000,000 |
as of Dec. 31, 2014 |
|
Cash & bank |
80 |
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Inventory |
90 |
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Accounts receivable |
100 |
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Notes receivable |
100 |
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------------------ |
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Current assets |
370 |
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Fixed assets net value |
300 |
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Other assets |
0 |
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------------------ |
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Total assets |
670 |
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============= |
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Short loans |
180 |
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Accounts payable |
70 |
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Advances from clients |
0 |
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Taxes payable |
7 |
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Other Accounts payable |
90 |
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------------------ |
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Current liabilities |
347 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
347 |
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Equities |
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------------------ |
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Total liabilities & equities |
670 |
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============= |
Income Statement
|
Unit: CNY’000,000 |
as of Dec. 31, 2014 |
|
Turnover |
1,700 |
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Cost of goods sold |
1,500 |
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Taxes and additional of main operation |
20 |
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Sales expense |
20 |
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Management expense |
70 |
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Finance expense |
10 |
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Non-operating income |
0 |
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Non-operating expense |
1 |
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Profit before tax |
79 |
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Less: profit tax |
19 |
|
Profits |
60 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
|
*Current ratio |
1.07 |
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*Quick ratio |
0.81 |
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*Liabilities to assets |
0.52 |
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*Net profit margin (%) |
3.53 |
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*Return on total assets (%) |
8.96 |
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*Inventory /Turnover ×365 |
19 days |
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*Accounts receivable/Turnover ×365 |
22 days |
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*Turnover/Total assets |
2.54 |
|
* Cost of goods sold/Turnover |
0.88 |
PROFITABILITY: FAIRLY GOOD
The
turnover of SC appears good in its line.
SC’s
net profit margin is average in 2014.
SC’s
return on total assets is fairly good in 2014.
SC’s
cost of goods sold is average in 2014, comparing with its turnover.
LIQUIDITY: AVERAGE
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 appears average.
The
accounts receivable of SC appears average.
SC’s
short-term loan is fairly large in 2014.
SC’s
turnover is average in 2014, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The
debt ratio of SC is average in 2014.
The
risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC
is considered medium-sized in its line with stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.02 |
|
UK Pound |
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.73.92 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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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 |
|
|
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 |
|
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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.