MIRA INFORM REPORT
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Report No. : |
338622 |
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Report Date : |
02.09.2015 |
IDENTIFICATION DETAILS
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Name : |
BAICHUAN (RUGAO) CHEMICAL CO., LTD. |
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Registered Office : |
No. 6 Xiangjiang Road, Changjiang Town, Rugao City, Jiangsu Province 226532
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
09.02.2007 |
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Com. Reg. No.: |
320682000004699 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Manufacturing hazardous chemicals (N-butyl acetate, ethyl acetate,
isobutyl acetate, isopropyl acetate, n-propyl acetate, formaldehyde), selling
dangerous chemicals, manufacturing chemical products (trimellitic anhydride,
trimethylol propane, trimellitic acid, trioctyl, propylene glycol monomethyl
ether, propylene glycol monomethyl ether acetate, propylene glycol methyl
ether isomers, diethylene glycol monomethyl ether, propylene glycol methyl
ether acetate isomers, dipropylene glycol methyl ether acetate esters, sodium
acetate, bis trimethylolpropane, sodium), selling chemical raw materials
(excluding hazardous chemicals), operating and acting as an agent of
importing and exporting various kinds of commodities and technology,
excluding the goods forbidden by the government. |
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No. of Employees : |
512 |
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
BAICHUAN (RUGAO) CHEMICAL CO.,
LTD.
NO. 6 XIANGJIANG ROAD, CHANGJIANG TOWN, RUGAO CITY
JIANGSU PROVINCE 226532 PR CHINA
TEL: 86 (0) 513-87229523/87229666
FAX: 86 (0) 513-85158601
EXECUTIVE
SUMMARY
Date of Registration : february 9, 2007
REGISTRATION NO. : 320682000004699
LEGAL FORM : ONE-PERSON LIMITED
LIABILITY COMPANY
CHIEF EXECUTIVE :
zheng tiejiang (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 600,000,000
staff :
512
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 1,359,804,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 706,114,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.39 = 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 one-person limited liabilities company of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 320682000004699 on February 9, 2007.
SC’s Organization Code Certificate No.:
79862391-9
%20CHEMICAL%20CO.,%20LTD.%20-%20338622%2002-Sep-2015_files/image006.jpg)
SC’s Tax No.: 320682798623919
SC’s registered capital: CNY 600,000,000
SC’s paid-in capital: CNY 600,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2012 |
Registered Capital |
CNY 295,000,000 |
CNY 375,000,000 |
|
2013 |
Registered Capital |
CNY 375,000,000 |
CNY 600,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wuxi Baichuan Chemical Industrial Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Zheng Tiejiang |
|
Supervisor |
Liu Yanming |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Wuxi Baichuan Chemical Industrial Co., Ltd. 100
-----------------------------------
Date of Registration: July 1, 2002
Registration No.: 320200000082212
Legal Form: Shares Limited
Company
Chief Executive: Zheng Tiejiang
Address: No. 55, Jianshe Road, Yunting Street, Jiangyin City, Jiangsu
Province, China
Tel: +86-510-86019100/86015188
Fax: +86-510-86013255
Web: www.bcchem.com
MANAGEMENT
Zheng Tiejiang, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------------
Gender: M
Age: 51
ID# 320219640121451
Qualification: University
Working experience (s):
From 2007 to present, working in SC as legal representative, chairman
and general manager
Also working in Wuxi Baichuan Chemical Industrial Co., Ltd. as legal
representative
Liu Yanming,
Supervisor
--------------------------------------------
Gender: M
Age: 52
ID# 320219196310104538
BUSINESS OPERATION
SC’s registered business scope includes manufacturing hazardous
chemicals (N-butyl acetate, ethyl acetate, isobutyl acetate, isopropyl acetate,
n-propyl acetate, formaldehyde), selling dangerous chemicals, manufacturing
chemical products (trimellitic anhydride, trimethylol propane, trimellitic
acid, trioctyl, propylene glycol monomethyl ether, propylene glycol monomethyl
ether acetate, propylene glycol methyl ether isomers, diethylene glycol
monomethyl ether, propylene glycol methyl ether acetate isomers, dipropylene
glycol methyl ether acetate esters, sodium acetate, bis trimethylolpropane,
sodium), selling chemical raw materials (excluding hazardous chemicals),
operating and acting as an agent of importing and exporting various kinds of
commodities and technology, excluding the goods forbidden by the government.
SC is mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include:
Acetic ester products
Trimellitic anhydride and their derivatives
Trimethylolpropane and its by-products
SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 60% of its products in domestic market, and 40% to overseas market, mainly U.S.A., Mid East, Southeast Asia, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers*
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Transchem Inc.
Allnex Usa Inc.
Kao Specialties Americas Llc
Bdp International Inc.
Staff &
Office:
--------------------------
SC is known to have approx. 512
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is known to
have a subsidiary at present.
Baichuan Chemical Trading (Rugao) Co., Ltd.
------------------------------------
Date of Registration: May 27, 2013
Registration No.: 320682000351690
Chief Executive: Zheng Tiejiang
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 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.
BANKING
The bank information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
35,075 |
56,870 |
136,188 |
|
|
Notes receivable |
9,814 |
122,765 |
115,977 |
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Accounts receivable |
26,420 |
110,452 |
205,880 |
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Advances to suppliers |
75,886 |
75,066 |
69,954 |
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Other receivable |
0 |
3,580 |
6,816 |
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Inventory |
97,084 |
188,213 |
150,262 |
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Non-current assets within one year |
0 |
0 |
0 |
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Other current assets |
641 |
71,753 |
26,201 |
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------------------ |
------------------ |
------------------ |
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Current assets |
244,920 |
628,699 |
711,278 |
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Fixed assets |
487,136 |
652,116 |
761,718 |
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Construction in progress |
170,945 |
146,822 |
112,954 |
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Construction materials |
11,581 |
0 |
0 |
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Intangible assets |
48,334 |
47,293 |
46,252 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
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Deferred income tax assets |
347 |
524 |
460 |
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Other non-current assets |
0 |
38,944 |
30,954 |
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------------------ |
------------------ |
------------------ |
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Total assets |
963,263 |
1,514,398 |
1,663,616 |
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============= |
============= |
============= |
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Short-term loans |
100,000 |
339,105 |
473,118 |
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Notes payable |
0 |
87,279 |
209,442 |
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Accounts payable |
66,683 |
339,741 |
129,536 |
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Wages payable |
1,024 |
1,020 |
1,815 |
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Taxes payable |
-70,245 |
564 |
563 |
|
Advances from clients |
4,125 |
10,459 |
8,513 |
|
Other payable |
350,542 |
33 |
1,015 |
|
Other current liabilities |
30,501 |
46,001 |
48,500 |
|
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------------------ |
------------------ |
------------------ |
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Current liabilities |
482,630 |
824,202 |
872,502 |
|
Non-current liabilities |
99,500 |
53,500 |
85,000 |
|
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------------------ |
------------------ |
------------------ |
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Total liabilities |
582,130 |
877,702 |
957,502 |
|
Equities |
381,133 |
636,696 |
706,114 |
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------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
963,263 |
1,514,398 |
1,663,616 |
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|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Revenue |
317,079 |
1,050,916 |
1,359,804 |
|
Cost of sales |
285,776 |
941,009 |
1,150,870 |
|
Sales expense |
6,019 |
14,430 |
43,306 |
|
Management expense |
21,816 |
47,592 |
59,855 |
|
Finance expense |
5,606 |
16,159 |
31,948 |
|
Non-business income |
8,227 |
3,604 |
5,146 |
|
Non-business expenditure |
58 |
28 |
62 |
|
Profit before tax |
7,135 |
35,304 |
78,591 |
|
Less: profit tax |
979 |
4,740 |
9,174 |
|
6,156 |
30,564 |
69,417 |
Important Ratios
=============
|
|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
*Current ratio |
0.51 |
0.76 |
0.82 |
|
*Quick ratio |
0.31 |
0.53 |
0.64 |
|
*Liabilities to assets |
0.60 |
0.58 |
0.58 |
|
*Net profit margin (%) |
1.94 |
2.91 |
5.10 |
|
*Return on total assets (%) |
0.64 |
2.02 |
4.17 |
|
*Inventory / Revenue ×365 |
112 days |
66 days |
41 days |
|
*Accounts receivable/ Revenue ×365 |
31 days |
39 days |
56 days |
|
* Revenue/Total assets |
0.33 |
0.69 |
0.82 |
|
* Cost of sales / Revenue |
0.90 |
0.90 |
0.85 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
The short-term loans of SC appear large.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.26 |
|
|
1 |
Rs.101.99 |
|
Euro |
1 |
Rs.74.79 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
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 |
|
|
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 |
-- |
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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.