MIRA INFORM REPORT
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Report No. : |
346286 |
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Report Date : |
23.10.2015 |
IDENTIFICATION DETAILS
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Name : |
HONGRUI FINE
CHEMICAL CO., LTD. |
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Registered Office : |
D309, No. 21, Ruanjian Street, Yuhuatai District, Nanjing, Jiangsu Province,
210012 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
16.03.2009 |
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Com. Reg. No.: |
320103000178382 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is
mainly engaged in selling of chemical products. |
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No. of Employees : |
7 |
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 – 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.
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Source
: CIA |
Company
Name and Address
HONGRUI FINE
CHEMICAL CO., LTD.
D309, NO. 21, RUANJIAN STREET, YUHUATAI DISTRICT,
NANJING, JIANGSU PROVINCE, 210012 PR CHINA
TEL: 86 (0) 25-84621695/52878655 FAX: 86 (0) 25-84599612
EXECUTIVE
SUMMARY
INCORPORATION
DATE : MAR. 16,
2009
REGISTRATION NO. : 320103000178382
REGISTERED LEGAL
FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 7
REGISTERED
CAPITAL : CNY 10,000,000
BUSINESS
LINE :
TRADING
TURNOVER : cny 80,840,000 (AS OF DEC. 31, 2014)
EQUITIES :
cny 3,110,000 (AS OF DEC. 31,
2014)
PAYMENT
:
AVERAGE
MARKET
CONDITION :
AVERAGE
FINANCIAL
CONDITION : fairly
STABLE
OPERATIONAL
TREND : fairly STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.3485=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 is SC’s registered address, and SC
is operation in the heading address.
SC was registered
as a One-person Limited Liability Company at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Mar. 16, 2009, and has been under the present legal form since 2015.
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 research and development, sales, technical consulting,
technology transfer of pharmaceutical intermediates and medical devices;
selling chemicals and technical service; industrial investment; equity
investment; enterprise management consulting; enterprise marketing planning;
importing and exporting commodities and technologies (excluding commodities and
technologies limited or prohibited by country). (with permit if needed)
SC is mainly engaged in selling chemical
products.
Mr. Hu Hongxin has been legal representative and
executive director of SC since 2009.
SC is known to have approx. 7
employees at present.
SC is currently
operating at the above stated address, and this address houses its operating office
in the commercial zone of Nanjing. Our checks reveal that SC rents the total
premise about 70 square meters.
http://www.hongruichemical.com/ The design is professional and the content is
well organized. At present it is in Chinese and English versions.
E-mail: sales@hongruichemical.com
Changes of its registered
information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2015-4-10 |
Registered capital |
CNY 1,000,000 |
CNY 1,500,000 |
|
Shareholders |
Hu Hongxin |
Hu Hongxin He Hui |
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|
Legal form |
One-person Limited Liability Company |
Present one |
|
|
2015-9-24 |
Registered capital |
CNY 1,500,000 |
Present amount |
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Shareholders |
Hu Hongxin He Hui |
Present ones |
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|
Company name |
|
Present one |
Note: SC changed its Chinese name in 2015,
while its English name remains the same.
Organization Code: 682545947
Honor:
For the past two
years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
Hu Hongxin
He Hui
Xia Fei
Note: the detailed shareholding information is not available.
l Legal representative and Executive Director:
Mr. Hu Hongxin, ID#: 32042119731204xxxx, born in 1973, with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 2009 to present Working in SC as
legal representative and executive director
l
General
Manager:
He Hui is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general
manager
l
Supervisor:
-----------------------
Xia Fei
SC is mainly
engaged in selling chemical products.
SC’s products mainly include:
Pharmaceutical intermediates
Indole Series
Piperazine Series
Pyridine Series
Naphthalene series
Fluoro compounds
Chlorotoluene Series
8-Hydroxy Quinoline Derivatives
SC sources its merchandise 100% from
domestic market. SC sells 100% of its products to overseas market.
The buying terms of
SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include
L/C, Check and Credit of 30-60 days.
TRADEMARKS & PATENTS
No record
Note: SC’s management declined
to release its major suppliers and clients.
SC is not known to have any 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.
Bank of China
Nanjing Ruijin Road Sub-branch
AC#: N/A
Relationship:
Normal
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2013 |
|
Cash &
bank |
13,516 |
|
Inventory |
0 |
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Accounts
receivable |
9,342 |
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Advances to
suppliers |
1,291 |
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Subsidies
receivable |
319 |
|
|
--------------- |
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Current
assets |
24,468 |
|
Fixed assets
net value |
261 |
|
|
--------------- |
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Total
assets |
24,729 |
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|
============ |
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Short loans |
6,010 |
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Notes
payable |
12,115 |
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Accounts
payable |
4,494 |
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Advances
from clients |
177 |
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Taxes
payable |
-563 |
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Welfare
payable |
20 |
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Other payable |
109 |
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------------------- |
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Current
liabilities |
22,362 |
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Long term
liabilities |
0 |
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------------------- |
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Total
liabilities |
22,362 |
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Equities |
2,367 |
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------------------- |
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Total
liabilities & equities |
24,729 |
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|
=========== |
Income Statement
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Unit:
CNY’000 |
As of Dec.
31, 2013 |
|
Turnover |
90,669 |
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Cost of
goods sold |
85,832 |
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Taxes and additional of main operation |
60 |
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Sales expense |
1,387 |
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Management expense |
998 |
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Finance expense |
1,794 |
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Profit
before tax |
598 |
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Less:
profit tax |
149 |
|
Profits |
449 |
Financial Information
Unit: CNY’000
|
|
as of Dec. 31, 2014 |
|
Total liabilities |
15,050 |
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Equities |
3,110 |
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|
-------------- |
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Total assets |
18,160 |
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|
========= |
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Turnover |
80,840 |
|
Profits |
/ |
Note: SC’s accountant refused to release the detailed financial reports
for Yr2014.
Important Ratios
=============
|
|
As of Dec.
31, 2013 |
As of Dec.
31, 2014 |
|
*Current ratio |
1.09 |
/ |
|
*Quick ratio |
1.09 |
/ |
|
*Liabilities to assets |
0.90 |
0.83 |
|
*Net profit margin (%) |
0.50 |
/ |
|
*Return on total assets (%) |
1.82 |
/ |
|
*Inventory /Turnover ×365 |
/ |
/ |
|
*Accounts receivable/Turnover ×365 |
38 days |
/ |
|
*Turnover/Total assets |
3.67 |
4.45 |
|
* Cost of goods sold/Turnover |
0.95 |
/ |
PROFITABILITY: AVERAGE
l
The turnover of SC appears average in its line in both
years, but it decreased in 2014.
l
SC’s
net profit margin is average in 2013.
l
SC’s
return on total assets is average in 2013.
l SC’s cost of goods sold is fairly high in
2013.
LIQUIDITY: AVERAGE
l The current ratio of SC is maintained in a
normal level in 2013.
l SC’s quick ratio is maintained in a normal
level in 2013.
l SC has no inventory in 2013.
l The accounts receivable of SC is maintained
in an average level in 2013.
l SC’s short loans are large in 2013.
l SC’s turnover is in a fairly good level in
both years, comparing with the size of its total assets.
LEVERAGE: FAIR
l The debt ratio of SC is high in both years.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.89 |
|
|
1 |
Rs.100.39 |
|
Euro |
1 |
Rs.73.52 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
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 |
|
|
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.