MIRA
INFORM REPORT
|
Report No. : |
344831 |
|
Report Date : |
15.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
NINHUA GROUP CO., LTD. |
|
|
|
|
Registered Office : |
Floor 8-12, Pufa Building, No. 21 Jiangxia Street Ningbo, Zhejiang Province 315010 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
11.11.1993 |
|
|
|
|
Com. Reg. No.: |
330200000042822 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Subject is
mainly engaged in international trade, products in medicine raw materials,
intermediate, fine chemicals, medicine and veterinary medicine. |
|
|
|
|
No. of Employees : |
270 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
NINHUA GROUP CO., LTD.
FLOOR 8-12, PUFA BUILDING, NO. 21
JIANGXIA STREET
NINGBO, ZHEJIANG PROVINCE 315010
PR CHINA
TEL: 86 (0)
574-87268320/87348868/87260161
FAX: 86 (0) 574-87366775*2817
EXECUTIVE SUMMARY
Date of Registration : NOVEMBER 11, 1993
REGISTRATION NO. : 330200000042822
LEGAL FORM : limited Liability Company
REGISTERED CAPITAL : CNY 200,000,000
staff : 270
BUSINESS CATEGORY : TRADING
Revenue : CNY 2,417,380,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 596,560,000 (AS OF DEC. 31, 2014)
WEBSITE : www.sinochem-nb.com
E-MAIL : nbchem@sinochem-nb.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.34 = 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 limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 330200000042822 on November 11,
1993.
SC’s Organization Code Certificate No.:
14405201-0
SC’s Tax No.: 330203144052010
SC’s registered capital: CNY 200,000,000
SC’s paid-in capital: CNY 200,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2000-03-30 |
Registered Capital |
CNY 14,800,000 |
CNY 20,000,000 |
|
2002-05-31 |
Registered Capital |
CNY 20,000,000 |
CNY 43,000,000 |
|
2003-07-28 |
Registered Capital |
CNY 43,000,000 |
CNY 50,000,000 |
|
2004-04-06 |
Registered Name |
Sinochem Ningbo Import & Export Corp. |
Sinochem Ningbo
Ltd. |
|
2007-06-01 |
Legal Representative |
Pan Zhengyi |
Wang Yinping |
|
2008-08-05 |
Registered Capital |
CNY 50,000,000 |
CNY 200,000,000 |
|
2008-08-12 |
Registered No. |
3302001000032 |
330200000042822 |
|
2010-11-9 |
Legal Representative |
Wang Yinping |
Du Keping |
|
2015-3-2 |
Legal Representative |
Du Keping |
Liu Jianping |
|
Company Name |
Sinochem Ningbo Ltd. |
Ninhua Group Co., Ltd. |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Ningbo
Yonghua Investment & Management Co., Ltd. |
51 |
|
Ningbo Ninghua
Investment & Management Center (Limited Partnership) |
49 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman and General Manager |
Liu Jianping |
|
Vice
Chairman |
Chen Youxiang |
|
Shan Mengchun |
|
|
Director |
He Dongsheng |
|
Zhu Fuyuan |
|
|
Supervisor |
Zhao Li |
|
Zhang Zhenye |
|
|
Chen Zhongyu |
|
|
Wu Kan |
|
|
Lu Genfa |
RECENT DEVELOPMENT
Honors
----------
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)
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Ningbo Yonghua Investment & Management
Co., Ltd. 51
Ningbo Ninghua Investment & Management
Center (Limited Partnership) 49
Ningbo Yonghua
Investment & Management Co., Ltd.
-----------------------------------------------------------------------
Date of Registration: March 30, 2015
Registration No.: 330203000234180
Registered Capital: CNY 98,000,000
MANAGEMENT
Liu Jianping, Legal Representative, Chairman and General
Manager
----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal representative,
chairman and general manager
Chen
Youxiang, Vice Chairman
-----------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as vice chairman,
also working in Ningbo Yonghua Investment & Management Co., Ltd. as legal representative
Shan
Mengchun, Vice Chairman
------------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as vice
chairman
Director
-----------
He Dongsheng
Zhu Fuyuan
Supervisor
--------------
Zhao Li
Zhang Zhenye
Chen Zhongyu
Wu Kan
Lu Genfa
BUSINESS OPERATION
SC’s registered business scope includes highly toxic chemical: zinc
phosphate, 3-【3-(
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, etc. 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 games.
Brands of Carstech
Products of all
sorts of fittings and parts.
Brand of Trivers
Main products of
fine chemicals such as colors and fuels, and the intermediates.
Brand of
Transteknic
Products including
engine system, steering system, braking system, body, and electrical system.
SC sources its merchandises 30% from the overseas market, mainly Europe,
USA, etc, and 70% from domestic market. SC sells 30% of its merchandises in
domestic market, and 70% 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:
==============
Quality Engineering Products Corp.
W.H. Jack Mcadams Company
*Major Supplier:
============
Sinochem Ningbo Chemicals Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 270 staff at
present.
SC owns an area as
its operating office of approx. 4,000 sq. meters at the heading address.
RELATED COMPANY
SC is known to
invested in the following companies
Zhejiang Hisun Chemical Co., Ltd.
Ningbo Sunjoy Agroscience Co., Ltd.
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)
Etc.
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 supplier
refused 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 Ningbo Branch
AC#: 810060097508091001
SPD Bank Ningbo
Branch
AC#:
70014292064327
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
42,270 |
40,770 |
184,800 |
|
|
Notes receivable |
590 |
1,020 |
0 |
|
Accounts receivable |
387,510 |
456,250 |
444,280 |
|
Advances to suppliers |
8,620 |
3,690 |
6,670 |
|
Other receivable |
83,980 |
91,760 |
195,310 |
|
Inventory |
53,170 |
89,420 |
108,010 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
323,000 |
315,000 |
325,000 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
899,140 |
997,910 |
1,264,070 |
|
Long-term investment |
335,490 |
339,490 |
337,830 |
|
Fixed assets |
11,300 |
11,280 |
11,030 |
|
Available-for-sale financial assets |
31,690 |
30,800 |
29,600 |
|
Construction in progress |
0 |
0 |
0 |
|
Intangible assets |
0 |
0 |
0 |
|
Long-term prepaid expenses |
800 |
600 |
850 |
|
Deferred assets |
10,160 |
11,530 |
11,900 |
|
Other non-current assets |
350 |
390 |
240 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
1,288,930 |
1,392,000 |
1,655,520 |
|
|
============= |
============= |
============= |
|
Short-term loans |
48,060 |
94,790 |
11,040 |
|
Notes payable |
324,370 |
274,380 |
381,520 |
|
Accounts payable |
112,160 |
135,760 |
300,320 |
|
Wages payable |
1,660 |
16,740 |
65,300 |
|
Taxes payable |
-1,250 |
5,600 |
18,730 |
|
Advances from clients |
55,830 |
37,630 |
43,830 |
|
Interest payable |
600 |
680 |
220 |
|
Other payable |
23,300 |
84,520 |
1,810 |
|
Non-current liabilities maturing within one year |
180,000 |
170,000 |
50,000 |
|
Other current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
744,730 |
820,100 |
872,770 |
|
Non-current liabilities |
6,950 |
6,730 |
186,190 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
751,680 |
826,830 |
1,058,960 |
|
Equities |
537,250 |
565,170 |
596,560 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
1,288,930 |
1,392,000 |
1,655,520 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Revenue |
2,636,880 |
2,343,340 |
2,417,380 |
|
Cost of sales |
2,327,530 |
2,063,510 |
2,044,830 |
|
Taxes and surcharges |
920 |
1,120 |
2,260 |
|
Sales expense |
129,670 |
113,900 |
154,710 |
|
Management expense |
56,490 |
52,180 |
52,870 |
|
Finance expense |
28,090 |
29,520 |
15,600 |
|
Investment income |
28,880 |
15,730 |
27,380 |
|
Non-business income |
3,920 |
6,350 |
4,380 |
|
Non-business expenditure |
1,500 |
1,350 |
250 |
|
Profit before tax |
125,100 |
99,670 |
178,300 |
|
Less: profit tax |
32,350 |
25,650 |
45,310 |
|
92,750 |
74,020 |
132,990 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
1.21 |
1.22 |
1.45 |
|
*Quick ratio |
1.14 |
1.11 |
1.32 |
|
*Liabilities to assets |
0.58 |
0.59 |
0.64 |
|
*Net profit margin (%) |
3.52 |
3.16 |
5.50 |
|
*Return on total assets (%) |
7.20 |
5.32 |
8.03 |
|
*Inventory / Revenue ×365 |
7 days |
14 days |
16 days |
|
*Accounts receivable/ Revenue ×365 |
54 days |
71 days |
67 days |
|
* Revenue/Total assets |
2.05 |
1.68 |
1.46 |
|
* Cost of sales / Revenue |
0.88 |
0.88 |
0.85 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears good in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear average.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered large-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.11 |
|
|
1 |
Rs.99.50 |
|
Euro |
1 |
Rs.74.24 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIT |
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 |
|
|
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 |
|
|
-- |
NB |
New Business |
-- |
|
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.