MIRA INFORM REPORT
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Report No. : |
346509 |
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Report Date : |
27.10.2015 |
IDENTIFICATION DETAILS
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Name : |
ZHENJIANG LEE CHANG YUNG GENERAL CHEMICAL CO., LTD. |
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Registered Office : |
Dantu Economic Development Zone, Zhenjiang City, Jiangsu Province, 212114 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
24.09.1997 |
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Com. Reg. No.: |
321100400001783 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and selling chemical raw materials and products. |
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No. of Employees : |
160 |
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
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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 & address
ZHENJIANG LEE CHANG YUNG GENERAL CHEMICAL co.,
ltd.
dantu econOmic development zone, zhenjiang
city,
jiangsu province, 212114 PR CHINA
TEL: 86 (0) 511-85680337-8039 FAX: 86 (0) 511-85688702
EXECUTIVE
SUMMARY
INCORPORATION DATE : sep. 24, 1997
REGISTRATION NO. : 321100400001783
REGISTERED LEGAL FORM : Wholly foreign-owned
enterprise
STAFF STRENGTH :
160
REGISTERED CAPITAL : usd 30,000,000
BUSINESS LINE :
manufacturing and trading
TURNOVER :
CNY 600,120,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 342,550,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.3496 = 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
SC was registered as a wholly foreign-owned enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Sep. 24, 1997.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon approval
of Examination and Approval Authorities.
SC’s registered
business scope includes manufacturing aqueous solution of formaldehyde,
paraformaldehyde, methylal, methyl isobutyl ketone, isopropanol, di-iso-butyl
(methyl) ketone; operating owned dock and other port facilities (only permit
approved content); cargo handling and warehousing within the port area (only
permit approved content); domestic wholesales, import and export of hazardous
chemicals (limited to dangerous chemicals business license permit scope).
Domestic wholesales, import and export of chemical raw materials, copper foil,
polysilicon products (if the trade of the goods is governed by the quota or
special rule, relevant regulations shall be followed). (With permit if needed)
SC is mainly
engaged in manufacturing and selling chemical raw materials and products.
Mr. Song Dingbang
has been the legal representative and chairman of SC since Aug., 2015.
SC is known to
have approx. 160 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the economic development zone of Zhenjiang. Our
checks reveal that SC owns the total premise, but SC’s employee refused to
release the gross area of the premise.
http://www.lcygroup.com/
the website belongs to LCY Chemical Corp. The design is professional and the
content is well organized. At present it is in Chinese and English versions.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2015-8-17 |
Legal Rep. |
Yang Saifen |
Present one |
Organization code: 608863007
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Lee Chang Yung Investment (H.K.) Limited 100
CR No.: 1189183
Incorporation Date: 2007-11-27
Legal form: Private company limited by
shares
Status: Live
l Legal
representative and Chairman:
Mr. Song Dingbang is currently responsible for the overall management of
SC.
Working Experience(s):
From Aug., 2015 to present Working in SC as legal
representative and chairman;
Also
working in Zhenjiang LCY Warehousing & Storage Co., Ltd. as legal
representative and chairman.
l General manager:
Jiang Jiewen is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager
Also
working in Zhenjiang LCY Warehousing & Storage Co., Ltd. as director and
general manager.
l Directors:
Li Mouwei Certificate # 00727106029(B)
Li Minggong
l Supervisor:
Li Minglan
SC is mainly
engaged in manufacturing and selling chemical raw materials and products.
SC’s products
mainly include: queous solution of formaldehyde, paraformaldehyde, methylal,
methyl isobutyl ketone, isopropanol, di-iso-butyl (methyl) ketone, etc.
SC sources its materials 70% from domestic
market, and 30% from overseas market. SC sells 30% of its products 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.
TRADEMARKS & PATENTS
No record
Note:
SC declined to release its major suppliers and clients.
According to http://www.lcygroup.com/
LCY
Chemical Corp. (Taiwan)
===========================
Email:
lcy.website@lcygroup.com
Tel:
+886-7-8712890
Tel:
+886-2-2763-1611
Fax:
+886-7-8714723
Zhenjiang
LCY Warehousing & Storage Co., Ltd.
===============================
Incorporation
date:
Registration
no.: 321100400001791
Registered
capital: USD 3,500,000
Legal
representative: Song Dingbang
Legal
form: Wholly foreign-owned enterprise
Huizhou
LCY Elastomers Corp.
================================
Legal
representative: Hong Zaixing
Registration
No.: 441300400012763
Registered
capital: USD 20,500,000
Incorporation
date: Jan. 6, 2006
Legal
form: Wholly foreign-owned enterprise
LCY
Technology Corp. (Taiwan)
===================
Email:
lcyt.website@lcygroup.com
Tel:
+886-2-27631611
Fax:
+886-2-27486937
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.
Agricultural Bank of China
AC#: N/A
Relationship:
Normal.
Balance
Sheet
Unit: CNY’000
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As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
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Cash &
bank |
104,290 |
/ |
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Inventory |
64,250 |
/ |
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Accounts
receivable |
33,770 |
/ |
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Advances to
suppliers |
2,780 |
/ |
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Other accounts
receivable |
970 |
/ |
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Trading
financial assets |
60,140 |
/ |
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Notes
receivable |
156,410 |
/ |
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Other current
assets |
26,690 |
/ |
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------------------ |
------------------ |
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Current assets |
449,300 |
/ |
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Deferred income tax assets |
2,140 |
/ |
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Fixed assets
net value |
156,590 |
/ |
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Project under
construction |
28,080 |
/ |
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Long-term
deferred expense |
280 |
/ |
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Long term
investment |
1,000 |
/ |
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Intangible and
other assets |
21,820 |
/ |
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------------------ |
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Total assets |
659,210 |
/ |
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============= |
============= |
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Short loans |
276,700 |
/ |
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Accounts
payable |
33,480 |
/ |
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Advances from
clients |
3,760 |
/ |
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Taxes payable |
-290 |
/ |
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Other accounts
payable |
350 |
/ |
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Accrued
payroll |
2,180 |
/ |
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Interest
payable |
450 |
/ |
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------------------ |
------------------ |
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Current
liabilities |
316,630 |
/ |
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Long-term
liabilities |
30 |
/ |
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------------------ |
------------------ |
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Total
liabilities |
316,660 |
345,610 |
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Equities |
342,550 |
288,800 |
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------------------ |
------------------ |
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Total
liabilities & equities |
659,210 |
634,410 |
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============= |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
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Turnover |
600,120 |
631,820 |
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Cost of goods
sold |
574,860 |
586,050 |
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Taxes and additional of main operation |
860 |
/ |
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Sales expense |
7,300 |
/ |
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Management expense |
10,370 |
/ |
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Finance expense |
7,470 |
/ |
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Assets impairment loss |
3,240 |
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Investment
income |
4,820 |
/ |
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Subsidy income |
0 |
/ |
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Non-operating
income |
2,220 |
/ |
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Non-operating expenses |
500 |
/ |
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Profit before
tax |
2,560 |
/ |
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Less: profit
tax |
480 |
/ |
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Profits |
2,080 |
27,680 |
Note:
SC’s accountant refused to release the detailed financial reports for Yr2013.
Important
Ratios
=============
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|
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
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*Current ratio |
1.42 |
/ |
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*Quick ratio |
1.22 |
/ |
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*Liabilities
to assets |
0.48 |
0.54 |
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*Net profit
margin (%) |
0.35 |
4.38 |
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*Return on
total assets (%) |
0.32 |
4.36 |
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*Inventory
/Turnover ×365 |
40 days |
/ |
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*Accounts
receivable/Turnover ×365 |
21 days |
/ |
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*Turnover/Total
assets |
0.91 |
1.00 |
|
* Cost of
goods sold/Turnover |
0.96 |
0.93 |
PROFITABILITY: AVERAGE
l The turnover of SC
appears fairly good in its line in both years, but it declined in 2014.
l SC’s net profit
margin appears average in both years, but it declined in 2014.
l SC’s return on
total assets appears average in both years, but it declined in 2014.
l
SC’s cost of goods sold is average in 2013, and
fairly high in 2014, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2014.
l
SC’s quick ratio is maintained in a normal level in
2014.
l
The inventory of SC appears average in 2014.
l
The accounts receivable of SC appears average in
2014.
l
The short-term loan of SC appears large in 2014.
l
SC’s turnover is in an average level in both years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in 2013, and low in
2014.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered medium-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. After our research and based on the information obtained.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.96 |
|
|
1 |
Rs.99.54 |
|
Euro |
1 |
Rs.71.64 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
DPT |
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.