MIRA INFORM REPORT
|
Report No. : |
340940 |
|
Report Date : |
14.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
SUZHOU LINTONG CHEMICAL SCIENCE CORPORATION |
|
|
|
|
Registered Office : |
East Ramp Of Yinshan Bridge, Suzhou, Jiangsu Province 215124 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
17.12.1998 |
|
|
|
|
Com. Reg. No.: |
320500400005730 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and selling refined naphthalene, 2,3-acid color,
2,3-basic dye, oil soluble dyes, azoic dyes, intermediates and related
products. |
|
|
|
|
No. of Employees : |
264 |
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 : |
No Complaints |
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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.
|
Source
: CIA |
Company
Name & address
SUZHOU LINTONG CHEMICAL SCIENCE
CORPORATION
EAST RAMP OF YINSHAN BRIDGE, SUZHOU
JIANGSU PROVINCE 215124 PR CHINA
TEL: 86 (0) 512-65252073/65252072
FAX: 86 (0) 512-65252487
EXECUTIVE
SUMMARY
Date of Registration : december 17, 1998
REGISTRATION NO. : 320500400005730
LEGAL FORM : SHARES LIMITED
COMPANY
CHIEF EXECUTIVE :
qi yunhua (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 88,000,000
staff :
264
BUSINESS CATEGORY : manufacturing & TRADING
Revenue :
CNY 260,248,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 109,014,000 (AS OF DEC. 31, 2014)
WEBSITE : www.lintong.com
E-MAIL :
szlt@public1.sz.js.cn
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.36 = 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 a shares limited company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 320500400005730 on December 17, 1998.
SC’s Organization Code Certificate No.:
70372490-2
SC’s registered capital: CNY 88,000,000
SC’s paid-in capital: CNY 88,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2008-01 |
Registered Capital |
CNY 51,660,000 |
CNY 88,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Dainippon Ink and Chemicals Incorporated (Japan) |
13.86 |
|
DIC (China) Co., Ltd. |
9 |
|
Guangyin International Group Co., Ltd. (B.V.I.) |
9 |
|
Richen Trading Incorporated (Japan) |
4.5 |
|
Suqian Kaitong Trading Co., Ltd. |
10 |
|
Suqian Shuntong Investment Co., Ltd. |
53.64 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Qi Yunhua |
|
Vice Chairman |
You Zhongli |
|
Deputy General Manager and Director |
Kong Xincun |
|
Director |
Zhang Jin |
|
Nozawa Hirofumi |
|
|
Huang Jundu |
|
|
Yu Yinliang |
|
|
Ikeda Hiroyuki |
|
|
Supervisor |
Lu Jiandong |
|
Liu Yinshan |
|
|
|
RECENT DEVELOPMENT
SC passed GB/T19001-2000/ISO9001: 2000 international Quality Management
System authentication. In 1998, they passed GB/T24001-2004/ISO14001: 2004 international
Environment Management System authentication. And in 2001, SC succeeds in get
through Occupational Health and Safety Management System (OHSMS)
authentication.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Dainippon Ink and Chemicals Incorporated (Japan) 13.86
DIC (China) Co., Ltd. 9
Guangyin International Group Co., Ltd. (B.V.I.) 9
Richen Trading Incorporated (Japan) 4.5
Suqian Kaitong Trading Co., Ltd. 10
Suqian Shuntong Investment Co., Ltd. 53.64
Dainippon Ink and Chemicals Incorporated (Japan)
--------------------------------------------------------------
Dainippon Ink and Chemicals Incorporated (DIC) is one of Japan's most
diversified chemical companies and the core of the DIC Group, which comprises
approximately 300 subsidiaries and affiliates, including Sun Chemical Corp. and
Reichhold, Inc. in more than 60 countries worldwide. The operations of the DIC
Group are divided into five segments: graphic arts materials; packaging
materials; electronics & information materials; industrial materials; and
performance chemicals.
DIC Building, 7-20, Nihonbashi 3-chome, Chuo-ku, Tokyo 103-8233, Japan
Tel: +81 3 32724511
Fax: +81 3 32788558
Web: www.dic.co.jp
DIC (China) Co., Ltd.
---------------------------
Registration No.: 310000400349559
Registered Capital: USD 89,508,048
Legal Representative: INOUCHI Hideki
Web: www.dic.com.cn
Richen Trading Incorporated (Japan)
---------------------------------------------
Suzhou Kaitong Trading Co., Ltd.
----------------------------------------
Registration No.: 320506000097114
Registered Capital: CNY 6,000,000
Legal Representative: Lu Jiandong
Suqian Shuntong Investment Co., Ltd.
----------------------------------------------
Registration No.: 321300000021154
Registered Capital: CNY 22,206,000
Legal Representative: Xu Aofeng
MANAGEMENT
Qi Yunhua, Legal Representative, Chairman and General
Manager
--------------------------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Also working in Suzhou Chuangtong Dyestuffs & Chemicals Co., Ltd. as
legal representative
You Zhongli, Vice
Chairman
-----------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
Kong Xincun,
Deputy General Manager and Director
--------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as deputy general manager and director
Director
-----------
Zhang Jin
Nozawa Hirofumi
Huang Jundu
Yu Yinliang
Ikeda Hiroyuki
Supervisor
-------------
Lu Jiandong
Liu Yinshan
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling
refined naphthalene, 2,3-acid color, 2,3-basic dye, oil soluble dyes, azoic
dyes, intermediates and related products.
SC is mainly engaged in manufacturing and selling basic dyes.
SC’s products mainly include: Beta-Naphthol, Bon Acid, EAB, MAB,
N-Ethyl-1-Naphthylamine, HNA, 4B Acid, Leuco Violet.
SC sources its materials 100% from domestic market. SC sells 20% of its
products in domestic market, and 80% to overseas market, mainly Japan, U.S.A.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include L/C and Credit of 30-60 days.
*Major Client*
-----------------
Flint Group Pigments
Staff &
Office:
--------------------------
SC is known to have approx. 264
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,
Suzhou Chuangtong Dyestuffs & Chemicals Co., Ltd.
Registration No.: 320500400030029
Date of Registration: November 17, 2006
Legal Form: Chinese-foreign equity joint venture enterprise
Registered Capital: USD 1,850,000
Legal Representative: Qi Yunhua
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
Basic Bank
Bank of China Suzhou Branch Wuzhong Sub-branch
AC#: 09001408091001
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
|
Total assets |
209,369 |
|
|
------------- |
|
Total liabilities |
100,355 |
|
Equities |
109,014 |
|
|
------------- |
|
Revenue |
260,248 |
|
Profit before tax |
7,519 |
|
Less: profit tax |
1,899 |
|
Profits |
5,620 |
Important Ratios
=============
|
|
As of Dec. 31,
2014 |
|
*Liabilities to assets |
0.48 |
|
*Net profit margin (%) |
2.16 |
|
*Return on total assets (%) |
2.68 |
|
*Revenue / Total assets |
1.24 |
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.
LIQUIDITY: AVERAGE
SC’s revenue is in an average 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.39 |
|
|
1 |
Rs.102.59 |
|
Euro |
1 |
Rs.74.90 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.