3decades

MIRA INFORM REPORT

Report No. :	485512
Report Date :	12.01.2018

IDENTIFICATION DETAILS

Name :	ACHEM ADHESIVE PRODUCT (JIANGSU) CO LTD

Registered Office :	No.1 Wanzhou Road Libao Town Haian County Nantong Jiangsu Province, Pr

Country :	China

Financials (as on) :	31.12.2016

Date of Incorporation :	06.11.2013

Credibility Code :	9132062108156443XY

Legal Form :	Wholly foreign-owned enterprise

Line of Business :	The subject’s registered business scope includes manufacturing PVC related plastic products, various types of tapes, related cutter and its accessories, adhesive products and release paper; selling self-made products; wholesale, import and export, commission agent of non-self-produced similar products (with permit if needed)

No. of Employees :	358

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

China

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state-support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.

After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, 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 liberalization. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi (RMB) after the currency was accepted as part of the IMF’s special drawing rights basket. After engaging in one-way, large-scale intervention to resist appreciation of the RMB for a decade, China’s 2016 intervention in foreign exchange markets has sought to prevent a rapid RMB depreciation that would have negative consequences for the United States, China, and the global economy.

China’s economic growth has slowed since 2011. The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) servicing its high corporate debt burdens to maintain financial stability; (c) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (d) dampening speculative investment in the real estate sector; (e) reducing industrial overcapacity; and (f) raising productivity growth rates through the more efficient allocation of capital. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.

The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. Under President XI Jinping, Beijing has signaled its understanding that China's long-term economic health depends on giving the market a more decisive role in allocating resources, but has moved slowly on market-oriented reforms because of potential negative consequences for stability and short-term economic growth. He has also increased state-control over key sectors and Party control over state-owned enterprises. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time.

Source : CIA

COMPANY NAME AND ADDRESS

Company Name : ACHEM ADHESIVE PRODUCT (JIANGSU) CO LTD

Address : NO.1 WANZHOU ROAD LIBAO TOWN HAIAN COUNTY

NANTONG JIANGSU PROVINCE, PR CHINA

Telephone : 0086-513-80675999

Facsimile : 0086-513-80675998

Website : http://www.achemtape.icoc.cc/

Email : jackychen@achem-cn.ycgroup.tw

REGISTRATION INFORMATION

Established Date : 2013-11-06

Credibility Code : 9132062108156443XY

Legal Form : Wholly foreign-owned enterprise

Issuing Authority : Administration for Industry & Commerce (AIC) – Haian County

Status : Active

Registered Capital : USD 40,000,000

Turnover : RMB 146,911,000 (as of Dec. 31, 2016)

Equities : RMB 158,109,000 (as of Dec. 31, 2016)

Chief Executive : Chen Longxing

Business Line : Manufacturer

Manpower : 358

Tax Registration

Certificate No. : 9132062108156443XY

Organization Code : 08156443-X

HS code : 3206945222

Import & Export code : --

Financial Condition : Fair

Business Size : Medium Enterprise

Payment : Slow but correct

Registered Address

NO.1 WANZHOU ROAD LIBAO TOWN HAIAN COUNTY NANTONG JIANGSU PROVINCE, PR CHINA

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.

Premise

The subject operates from premises located at the heading address, and this address houses its operating office and factory in Haian County. Our checks reveal that the subject owns the total premise, but the square meters are unknown.

MANAGEMENT

Position	Name	Nationality
Legal representative, Chairman	Chen Longxing	Chinese
Directors	Lin Yousheng Xie Qiang	Chinese
Supervisors	Lin Jianyu	Chinese

MAJOR SHAREHOLDERS

Name % Shareholding

Achem Technology (China) Co Ltd 100

KEY EVENTS

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2016-02-04	Legal representative	Gao Nai	Present one

BUSINESS OPERATIONS

The subject’s registered business scope includes manufacturing PVC related plastic products, various types of tapes, related cutter and its accessories, adhesive products and release paper; selling self-made products; wholesale, import and export, commission agent of non-self-produced similar products (with permit if needed)

The subject is mainly engaged in manufacturing and selling tapes.

Products:

Packing tape

Electrical tape

Stationery tape

The subject sources its materials 70% from domestic market, and 30% from overseas market. the subject sells 30% of its products in domestic market, and 70% to overseas market, mainly U.S.A. and Vietnam, India, etc.

The buying terms of the subject include Check, T/T, L/C and Credit of 30-60 days. The payment terms of the subject include Check, T/T, L/C and Credit of 30-60 days.

SUPPLIER & CUSTOMER

*Major customer:

Gomec Electricals Pvt Ltd. (India)

RELATED COMPANIES

No Subsidiary

NEGATIVE INFORMATION

Lawsuit Record: No record.

Trade payment experience: The subject 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 the subject was placed to us for collection within the last 6 years.

Customs administrative penalty: No record.

Equity freeze information: No record.

Administrative Penalty: No record.

MORTGAGE

There is no record of mortgage information at present.

TRADEMARK

No record.

PATENT

No record.

BANKING

Industrial and Commercial Bank of China Haian Libao Subbranch

Account No.: 1111121209000008858

ABBREVIATED FINANCIAL STATEMENT

Financial Summary

===============

Unit: RMB’000

	As of Dec. 31, 2015	As of Dec. 31, 2016
Total assets	170,999	328,336
	=========	=========
Total liabilities	6,096	170,227
Equities	164,903	158,109
	--------------	--------------
Total liabilities & equities	170,999	328,336
	=========	=========
Turnover	0	146,911
Profits before tax	-453	-6,793
Less: tax	6	0
Profits	-459	-6,793

Important Ratios

=============

	As of Dec. 31, 2015	As of Dec. 31, 2016
*Liabilities to assets	0.04	0.52
*Net profit margin (%)	--	-4.62
*Return on total assets (%)	-0.27	-2.07
*Turnover/Total assets	--	0.45

PROFITABILITY: FAIR

The turnover of the subject appears fairly good in 2016 in its line.

the subject’s net profit margin is fair in 2016.

the subject’s return on total assets is fair.

the subject’s turnover is in a fair level in 2016, comparing with the size of its total assets.

LEVERAGE: AVERAGE

The debt ratio of the subject is low in 2015 and average in 2016.

The risk for the subject to go bankrupt is average.

TREND ANALYSIS

===========

	2014	2015	2016
Sales Trend	--	--	Ç
Profit margin	--	--	--
Debt to assets ratio	--	--	Ç
Overall Financial Condition	□Good □Fairly Good □Stable □Fairly Stable ■Fair □Poor

COMMENT

The subject was registered as a Wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license).

The subject is considered medium-sized in its line with fair financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.74
UK Pound	1	INR 86.01
Euro	1	INR 76.14
CNY	1	INR 9.85

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VAR

Report Prepared by :	SYL

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.