MIRA INFORM REPORT
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Report No. : |
347525 |
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Report Date : |
29.10.2015 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
No. 28, Pengcheng Road, Airport Industrial Zone, Changle, Fujian
Province, 350212 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
06.04.2006 |
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Com. Reg. No.: |
350100400002565 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is
mainly engaged in manufacturing and selling
of polyamide fibers. |
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No. of Employees : |
2,000 |
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 : |
Moderate |
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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
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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. 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 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 that year... Still, per capita income is below the world average.
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 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
FUJIAN JINJIANG
TECHNOLOGY CO., LTD.
NO. 28, PENGCHENG ROAD, AIRPORT INDUSTRIAL
ZONE, CHANGLE,
FUJIAN PROVINCE, 350212 PR CHINA
TEL: 86 (0) 591-28339878 FAX: 86 (0) 591-28635066/28339820
EXECUTIVE
SUMMARY
INCORPORATION DATE :
APRIL 6, 2006
REGISTRATION NO. : 350100400002565
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
STAFF STRENGTH : 2,000
REGISTERED CAPITAL : CNY 550,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER : CNY
2,935,768,989 (AS OF DEC. 31, 2014)
EQUITIES : CNY 661,358,249
(AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.3951 = 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 April 6, 2006.
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 production of differential chemical fiber and other
high-tech chemical fiber; storage of chemical fiber raw materials, chemical
fiber products; single line daily output of 100 tons’ polyamide (with permit if
needed).
SC is mainly
engaged in manufacturing and selling
polyamide fibers.
Mr. Chen Fei has been
legal representative, chairman and general manager of SC since July of 2012.
SC is known to
have approx. 2,000 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Changle. SC’s
employee
refused to release the detailed information of the premise.
http://www.cjjtech.com/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: zx06@cjjtech.com
Qualifications:
SC has passed ISO 9001:2008.
SC’s former legal representative was Mr. Cao Huibin, but he was taken
place by Mr. Chen Fei in July of 2012.
Organization code: 78691468X
Tax no.:
35018278691468X
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Jinjiang (Hong Kong) Limited 100
Registration no.: 1385674
Legal form: Private
Incorporation date: October 29, 2009
l
Legal representative, Chairman and General manager:
Mr. Chen Fei, in his
Working Experience(s):
Before Worked in SC as chairman;
From July of 2012 to present Working in SC as legal
representative, chairman and general manager
l
Directors:
Wu Daobin
l
Supervisors:
Chen Gui
Tong Ping
SC is mainly
engaged in manufacturing and selling
polyamide fibers.
SC’s products mainly include: Nylon, Nylon chips, Polyamide, etc.
SC sources its materials 60% from domestic market,
and 40% from overseas market, mainly Taiwan. SC sells 90% of its products in
domestic market, and 10% 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 refused to release its main clients and suppliers.
Trademarks:
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Trademark |
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Registration No. |
7567373 |
9905772 |
7006823 |
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Registration Date |
November 7, 2010 |
November 7, 2012 |
September 14, 2010 |
Etc.
The
information on SC’s subsidiaries is not available.
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 details.
Financial Summary
Unit: CNY
|
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As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
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Total liabilities |
5,816,883,405
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5,235,169,239
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Equities |
776,682,825
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661,358,249
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-------------------- |
-------------------- |
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Total assets |
6,593,566,230 |
5,896,527,488
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============= |
============= |
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Turnover |
2,756,061,849 |
2,935,768,989 |
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Including: main business income |
2,752,416,600 |
2,935,768,989 |
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Profit before tax |
55,216,290 |
-72,792,415 |
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Less: income tax |
1,003,846 |
5,001,348 |
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Net Profits |
54,212,444 |
-77,793,763 |
Note: SC’s management refused to release the
detail financial reports for Year 2013 & 2014.
Important Ratios
=============
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as of Dec.
31, 2013 |
as of Dec. 31, 2014 |
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*Current
ratio |
/ |
/ |
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*Quick ratio |
/ |
/ |
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*Liabilities
to assets |
0.88 |
0.89 |
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*Net profit margin (%) |
1.97% |
-2.65% |
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*Return on total assets (%) |
0.82% |
-1.32% |
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*Inventory /Turnover ×365 |
/ |
/ |
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*Accounts receivable/Turnover ×365 |
/ |
/ |
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*Turnover/Total assets |
0.42 |
0.50 |
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* Cost of goods sold/Turnover |
/ |
/ |
PROFITABILITY:
FAIR
l
The turnover of SC appears good in both years and
there is a rise in 2014.
l
SC’s net profit margin is average in 2013, but
appears fair in 2014.
l
SC’s return on total assets is average in 2013, but
appears fair in 2014.
l
SC’s turnover is in a fair level in both years,
comparing with the size of its total assets, but it has improved in 2014.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair
SC is considered large-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.04 |
|
|
1 |
Rs.99.58 |
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Euro |
1 |
Rs.71.75 |
INFORMATION DETAILS
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Analysis Done by
: |
TRI |
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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 |
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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.