MIRA INFORM REPORT

 

 

Report No. :

347185

Report Date :

30.10.2015

 

IDENTIFICATION DETAILS

 

Name :

JX HOLDINGS INC

 

 

Registered Office :

2-6-3 Ohtemachi Chiyodaku Tokyo 100-0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

April 2010

 

 

Com. Reg. No.:

0100-01-131743

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Holding company of group firms: energy (84%), Oil & natural gas development (2%), metals (11%), others (4%)

 

 

No. of Employees :

26,415

 

 

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 :

Satisfactory

Payment Behaviour :

Slow but correct

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)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

JAPAN - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop an advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been impressive - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession four times since 2008. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2014 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

Company name

 

JX HOLDINGS INC

 

REGD NAME:   JX Holdings KK

MAIN OFFICE:  2-6-3 Ohtemachi Chiyodaku Tokyo 100-0001 JAPAN

                                    Tel: 03-6275-5009          -

 

URL:                 http://www.hd.jx-group.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Holding Company of energy, oil & natural gas, metals companies

BRANCHES:     Nil

OVERSEAS:     (subsidiaries)

FACTORIES:    (subsidiaries)

 

CHIEF EXEC:   UKIO UCHIDA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 10,882,460 M

PAYMENTSSLOW BUT CORRECT         CAPITAL           Yen 100,000 M

TREND STEADY                                   WORTH            Yen 2,429,849 M

STARTED         2010                                         EMPLOYES      26,415

 

COMMENT:      HOLDING COMPANY  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is the holding company founded thru business consolidation of Nippon Oil, Largest oil refiner/wholesaler in Japan, and Nippon Mining Holdings to have Japan Energy and Nippon Mining & metals under its auspices in Apr 2010.  Top ranking of petroleum development and metal products businesses.  Under the Holding Company, 3 core subsidiaries are: JX Nippon Oil & Energy Corp, JX Nippon Oil & Gas Exploration Corp and JX Nippon Mining & Metals Corp.  It is expanding new energy-related projects and making active investments in oil/metal-related development and mining interests.   

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 10,882,460 million, a 12.3% down from Yen 12,412,013 million in the previous term.   Petrochemicals business stagnated.  Profit margin on oil was also fell short of projection, affected by a sharp drop of oil prices.  Inventory valuation loss was yielded heavy burden.  Hence deficit emerged.  The recurring loss was posted at Yen 150,114 million and net loss of Yen 277,212 million, respectively, compared with Yen 302,329 million recurring profit and Yen 107,042 million net profit, respectively, a year ago.

 

(Apr/Jun/2015 results): Sales Yen 2,304,083 million (down 12.8%), recurring profit Yen 97,024 million (up 553.4%), net profit Yen 53,293 million (up 276.4%).  (% as compared with the corresponding period a year ago).  

           

For the current term ending Mar 2016 the recurring profit is projected at Yen 310,000 million and the net profit at Yen 160,000 million, on an 11.2% fall in turnover, to Yen 9,660,000 million.  Earnings will be dragged down by upstream development projects and metal business. .  

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

           

Date Registered:　                         Apr 2010

Regd No.:                                             0100-01-131743 (Tokyo-Chiyodaku)

Legal Status:                             Limited Company (Kabushiki Kaisha

Authorized:                                          8,000 million shares

Issued:                                      2,495,485,929 shares

Sum:                                        Yen 100,000 million

 

Major shareholders (%): Japan Trustee Services T (5.3), Master Trust Bank of Japan T (5.2), Mizuho Bank (3.0), SMBC (2.6), Mitsubishi Corp (1.9), MUFG (1.5), Japan Trustee Services T9 (1.3), Inpex Corp (1.3), Bank of New York Mellon SANV 10 (1.2), State Street Bank West Treaty 505234 (1.2); foreign owners (29.0)

 

No. of shareholders: 183,938

 

Listed on the S/Exchange (s) of: Tokyo, Nagoya

 

Managements: Yasushi Kimura, ch; Ukio Uchida, pres; Jun’ichi Kawada, v pres; Hiroji Adachi, mgn dir; Kunimitsu Oba, mgn dir; Katsuyuki Ota, dir; Tsutomu Sugimori, dir; Ichiro Uchijima, dir; Shunsaku Miyake, dir; Shigeru Oi, dir; Hiroshi Komiyama, dir; Hiroko Ota, dir; Mutsutake Otsuka, dir; Seiichi Kondo, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

OPERATION

           

Activities: Holding company of group firms: energy (84%), Oil & natural gas development (2%), metals (11%), others (4%)

 

Overseas sales ratio (16%)

           

Clients: [Mfrs, wholesalers] JX Nippon Oil & Energy Corp, JX Nippon Mining & Metals ＣCorp, JX Nippon Oil & Gas Exploration Corp, JX Nippon Oil Finance, other

No. of accounts: 300

Domestic areas of activities: Nationwide

 

Payment record: Slow but correct

 

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Bank (H/O)

SMBC (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

10,882,460

12,412,013

　

  Cost of Sales

10,532,913

11,637,633

　

      GROSS PROFIT

349,547

774,380

　

  Selling & Adm Costs

568,432

560,723

　

      OPERATING PROFIT

-218,885

213,657

　

  Non-Operating P/L

68,771

88,672

　

      RECURRING PROFIT

-150,114

302,329

　

      NET PROFIT

-277,212

107,042

BALANCE SHEET

　

　

  Cash

　

329,293

281,733

　

  Receivables

1,007,386

1,401,114

　

  Inventory

1,356,648

1,797,189

　

  Securities, Marketable

　

　

　

  Other Current Assets

303,071

285,548

　

      TOTAL CURRENT ASSETS

2,996,398

3,765,584

　

  Property & Equipment

2,555,616

2,389,191

　

  Intangibles

136,160

132,679

　

  Investments, Other Fixed Assets

1,735,230

1,494,321

　

      TOTAL ASSETS

7,423,404

7,781,775

　

  Payables

680,551

884,480

　

  Short-Term Bank Loans

819,555

1,079,713

　

　

　

　

　

  Other Current Liabs

1,566,325

1,490,695

　

      TOTAL CURRENT LIABS

3,066,431

3,454,888

　

  Debentures

205,000

187,480

　

  Long-Term Bank Loans

1,189,232

1,054,020

　

  Reserve for Retirement Allw

116,875

89,357

　

  Other Debts

　

416,017

369,736

　

      TOTAL LIABILITIES

4,993,555

5,155,481

　

      MINORITY INTERESTS

　

　

Common stock

100,000

100,000

　

Additional paid-in capital

746,711

746,711

　

Retained earnings

783,615

1,119,478

　

Evaluation p/l on investments/securities

87,008

51,312

　

Others

716,441

612,686

　

Treasury stock, at cost

(3,926)

(3,893)

　

      TOTAL S/HOLDERS` EQUITY

2,429,849

2,626,294

　

      TOTAL EQUITIES

7,423,404

7,781,775

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

737,224

305,153

　

Cash Flows from Investment Activities

-377,817

-479,793

　

Cash Flows from Financing Activities

-326,310

180,080

　

Cash, Bank Deposits at the Term End

　

327,980

280,069

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

2,429,849

2,626,294

　

Current Ratio (%)

97.72

108.99

　

Net Worth Ratio (%)

32.73

33.75

　

Recurring Profit Ratio (%)

-1.38

2.44

　

Net Profit Ratio (%)

-2.55

0.86

　

　

Return On Equity (%)

-11.41

4.08

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.15

UK Pound

1

Rs.99.36

Euro

1

Rs.71.25

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TPT

 

               

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.