MIRA INFORM REPORT
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Report No. : |
340405 |
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Report Date : |
11.09.2015 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU TIANRONG GROUP CO., LTD. |
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Registered Office : |
No. 1, Shugang Road, Eco-Chemical Industrial Park, Xiangshui County, Jiangsu Province 224600 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
29.09.1998 |
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Com. Reg. No.: |
320400000019225 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is
mainly engaged in manufacturing and selling pesticides, main products include
dimehypo, monosultap, cartap hydrochloride, thiocyclam hydrogenoxalate,
bensultap, chlorpyrifos, brifenthrin. |
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No. of Employees : |
346 |
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 : |
-- |
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 and Address
JIANGSU TIANRONG GROUP CO., LTD.
NO. 1, SHUGANG
ROAD, eco-chemical industrial park,
XIANGSHUI COUNTY, JIANGSU PROVINCE 224600 PR
CHINA
TEL: 86 (0)
515-89601388/89629039 FAX:
86 (0) 515- 89601388
EXECUTIVE
SUMMARY
INCORPORATION DATE : SEPTEMBER 29, 1998
REGISTRATION NO. : 320400000019225
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 346
REGISTERED CAPITAL : CNY
104,500,000
BUSINESS LINE :
MANUFACTURING
& TRADING
TURNOVER : CNY 457,960,000
(AS OF DEC. 31, 2014)
EQUITIES : CNY 307,570,000
(AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.40 = 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: SC’s correct address should be the
heading one.
SC was registered as a limited liabilities
company at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on September 29, 1998, and has
been under present ownership since August 28, 2006.
Company Status: Shares limited co. This form of business in PR China is defined as a legal
person. Its registered capital is divided into shares of equal par value
and the co. raises capital by issuing share certificates by promotion or by
public offer. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to the extent of its
total assets. The co has independent property of legal person and enjoys property
rights of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co. requires at least two
promoters and no more than 200, half
of whom shall be domiciled in China. Natural person are allowed to
serve as promoters. The minimum registered capital of a co. is CNY The board of directors must consist of five to nineteen
directors. If the co. raises capital by public offer, the promoters
must not subscribe less than 35% of the total shares. the promoters’ shares
are restricted to transfer- within one year of the offer. A state-owned enterprise that is restructured into a
shares limited co. must comply with the conditions & requirements
specified under the law & administrative rule.
SC’s registered
business scope includes licensing items: manufacturing, processing, subpackaging
and mixture of pesticides; manufacturing industrial phosphorous acid (according
to safety production license); general
operating items: manufacturing sodium sulfite, sulfuric acid and sodium,
building materials; import and export of various goods and technology
(excluding goods and technology prohibited or limited by the country).
SC is mainly
engaged in manufacturing and selling pesticides.
Mr. Xu Wangbao has
been the legal representative and chairman of SC since 1998.
SC is known
to have approx. 346 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in Xiangshui County. SC’s management declined to
release the detailed information of the premise.
http://www.jstrgf.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: trjt@jstrgf.com
SC was awarded as Jiangsu Hi-Tech Enterprise, Jiangsu Famous-Brand
Products, China Well-Known Trademark, etc. (according to SC’s website)
Changes
of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2003-8-6 |
Company name |
Liyang Lihua Chemical Co., Ltd. |
Jiangsu Lihua Chemical Co., Ltd. |
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2006-8-18 |
Company name |
Jiangsu Lihua Chemical Co., Ltd. |
Jiangsu Tianrong Group Co., Ltd. |
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2006-8-28 |
Chinese name |
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Registered legal form |
Limited liabilities company |
Shares limited company |
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Unknown |
Registration No. |
3204002103648 |
Present one |
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2014-10-21 |
Registered capital |
CNY 118,000,000 |
Present amount |
Note: SC changed its Chinese name in 2006, while the English name
remains the same.
Organization Code: 703622682
See below for SC as executive party (defendant).
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Executed Party |
SC |
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Court |
Rugao City People's Court |
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Date of Case |
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Case Number |
(2013) 03747 |
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Claim Amount |
RMB 65,000 |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Jiangsu High-Tech Investment Group Co., Ltd. 7.66
Jiangsu Hongrui Venture Capital Co., Ltd. 1.91
Xu Wangbao 22.28
Other shareholders 68.15
l Legal
representative and chairman:
Mr. Xu Wangbao, born in 1969, with master’s degree,
he is currently responsible for the overall management of SC.
Working Experience(s):
From 1998 to presentWorking in SC as
chairman and legal representative;
Also working in Jiangsu Tianrong
International Trade Co., Ltd.
Jiangsu Zhongyi Chemical Co., Ltd.
etc. as legal representative.
l General manager:
Mr. Wei Mingyang, born in 1967, he is
currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general
manager.
Also working in Liyang
Tianrong Property Co., Ltd. as legal representative.
Supervisors:
Sun Guoqiang
Yu Guoxin
Directors:
Liu Wenxin
Zang Weixin
SC is mainly
engaged in manufacturing and selling pesticides.
SC’s main products
include dimehypo, monosultap, cartap hydrochloride, thiocyclam hydrogenoxalate,
bensultap, chlorpyrifos, brifenthrin, etc.
SC sources its materials 90% from domestic
market, and 10% from the overseas market. SC sells 50% of its products in
domestic market, and 50% 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 refused to release its major customers and suppliers.
Trademark & Patents
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Registration No. |
1724578 |
3187890 |
5380100 |
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Registration Date |
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Trademark Design |
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SC
is known to have the following subsidiaries:
Jiangsu
Tianrong International Trade Co., Ltd.
Legal rep. Xu Wangbao
Incorporated date: May 18, 2005
Registration No.: 320000000054589
Jiangsu
Zhongyi Chemical Co., Ltd.
Legal rep. Xu Wangbao
Incorporated date: July 20, 2002
Registration No.: 320921000008786
Liyang Tianrong Property Co., Ltd.
Legal rep. Wei Mingyang
Incorporated date: August 29, 2011
Registration No.:
320481000074764
Etc.
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 information.
Financial Summary
===============
Unit: CNY’000
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As of Dec. 31,
2014 |
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Total
liabilities |
205,870 |
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Equities |
307,570 |
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-------------- |
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Total
liabilities & equities |
513,440 |
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========= |
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Turnover |
457,960 |
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Profits |
72,700 |
Note:
SC’s management refused to release its detailed financial reports.
Important Ratios
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as of Dec. 31, 2014 |
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*Liabilities to assets |
0.40 |
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*Net profit margin (%) |
15.87 |
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*Return on total assets (%) |
14.16 |
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*Turnover/Total assets |
0.89 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is good.
l
SC’s return on total assets is good.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly good.
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
Rs.66.58 |
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1 |
Rs.102.29 |
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Euro |
1 |
Rs.74.71 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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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.