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MIRA INFORM REPORT
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Report No. : |
495332 |
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Report Date : |
05.03.2018 |
IDENTIFICATION DETAILS
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Name : |
NANJING
COSMOS INDUSTRIAL CO., LTD. |
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Registered Office : |
10/F, C 1 Tower, Jiulonghu International Corporate
Headquarters, No. 19 Suyuan Avenue, Jiangning District, Nanjing, Jiangsu
Province 211102 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
20.04.2000 |
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Unified Social Credit Code: |
91320115721793100R |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject registered
business scope includes selling chemical raw materials and products; technology development
of chemical raw materials and products; 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 : |
56 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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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 announced it would allow a resumption of gradual liberalization. From 2013 until early2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.
The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. 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 more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. 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. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.
|
Source
: CIA |
Company
name and address
|
COMPANY NAME |
Nanjing Cosmos Industrial Co., Ltd. |
|
CURRENT ADDRESS/ REGISTERED ADDRESS |
10/F, C 1 Tower, Jiulonghu
International Corporate Headquarters, No. 19 Suyuan Avenue, Jiangning
District, Nanjing, Jiangsu Province 211102 PR China |
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TEL. NO. |
86 (0) 25-66987788 |
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FAX NO. |
86 (0) 25-83346877/66988288 |
EXECUTIVE
SUMMARY
Date of Registration : april 20, 2000
Unified social credit code : 91320115721793100R
LEGAL FORM : Shares
limited Company
REGISTERED CAPITAL : CNY 84,660,000
staff : 56
BUSINESS CATEGORY : TRADING
Revenue : CNY 636,886,000 (AS OF DEC. 31, 2017)
EQUITIES : CNY 223,028,000 (AS OF DEC. 31, 2017)
WEBSITE : www.cosmoschem.com
E-MAIL : cosmos@cosmoschem.com
PAYMENT : No Complaints
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
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 shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under unified social credit code: 91320115721793100R.
SC’s Import and Export Enterprise
Code: 3201721793100
SC’s registered capital: CNY 84,660,000
SC’s paid-in capital: CNY 84,660,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2016-6-22 |
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
2016-8-30 |
Registered Capital |
CNY 80,000,000 |
CNY 82,660,000 |
|
2017-6-14 |
Registered Capital |
CNY 82,660,000 |
CNY 84,660,000 |
|
-- |
Registration No./ Unified
Social Credit Code |
320121000030651 |
91320115721793100R |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Nanjing Cosmos Investment & Development Co., Ltd. |
81.84 |
|
Nanjing Ningsheng Venture Capital Co., Ltd. |
4.92 |
|
Zhou Jiujing |
7.04 |
|
Yang Dongsheng |
1.28 |
|
Jiangsu Dansheng Venture Capital Co., Ltd. |
4.92 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Zhou
Xuming |
|
Vice Chairman |
Zhu
Jiangsheng |
|
General Manager |
Yang
Jun |
|
Director |
Yang Dongsheng |
|
Xia Lulu |
|
|
Supervisor |
Liu Jiansheng |
|
Wang Yanhong |
|
|
Wei Kun |
RECENT
DEVELOPMENT
No recent development was found during our checks at
present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Nanjing Cosmos Investment &
Development Co., Ltd. 81.84
Nanjing Ningsheng Venture
Capital Co., Ltd. 4.92
Zhou Jiujing 7.04
Yang Dongsheng 1.28
Jiangsu Dansheng Venture Capital
Co., Ltd. 4.92
Nanjing
Cosmos Investment & Development Co., Ltd.
-----------------------------------------------------------------------
Date of Registration: November 18, 2011
Registered Capital: CNY 30,000,000
MANAGEMENT
Zhou
Xuming , Legal Representative and Chairman
------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø
Age: 45
Ø
ID# 320106197311192055
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC
as legal representative and chairman, also working in Nanjing Cosmos Investment
& Development Co., Ltd. as legal representative
Zhu Jiangsheng Vice Chairman
-----------------------------------------------------
Ø Gender:
M
Ø Nationality:
China
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC
as vice chairman
Yang Jun ), General Manager
---------------------------------------------
Ø Gender:
M
Ø Nationality:
China
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC
as general manager
Director
-----------
Yang Dongsheng
Xia Lulu
Supervisor
--------------
Liu Jiansheng
Wang Yanhong
Wei Kun
BUSINESS
OPERATION
SC’s registered business scope
includes selling chemical raw materials and products; technology
development of chemical raw materials and products; 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 selling chemical raw materials and products.
SC’s
products mainly include:
Lilialdehyde
Anisic
Aldehyde
2-Acetonaphthone
Synthetic
Anethole
Cyclamen
aldehyde
4-Methoxybenzyl
Alcohol
Etc.
SC sources the products 100% from domestic market, mainly Jiangsu. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly U.S.A., Europe, 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*
==============
Firmenich
De Mexico S.A.
Firmenich
Incorporated
Colgate
Palmolive India Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 56
staff at present.
SC
rents an area as its operating office, but the detailed information is unknown.
RELATED
COMPANY
SC is known to
have 3 subsidiaries at present,
Maanshan Cosmos Chemical Co., Ltd.
Sinobest Cosmeceutical Co., Ltd.
Suqian Cosmos Chemical Co., Ltd.
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 records 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:
CITIC Bank
AC#: 7321110182800015042
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2016 |
As of Dec. 31, 2017 |
|
20,715 |
27,041 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
42,296 |
87,840 |
|
Advances
to suppliers |
113,143 |
57,552 |
|
Other
receivable |
56 |
332 |
|
Inventory |
13,720 |
20,411 |
|
Non-current
assets within one year |
0 |
0 |
|
Other
current assets |
47,468 |
14,429 |
|
|
------------------ |
------------------ |
|
Current
assets |
237,398 |
207,605 |
|
Long-term
investment |
131,438 |
150,710 |
|
Fixed
assets |
12 |
3 |
|
Construction
in progress |
0 |
0 |
|
Intangible
assets |
12 |
4 |
|
Long-term
prepaid expenses |
2,822 |
2,118 |
|
Deferred
income tax assets |
398 |
332 |
|
Other
non-current assets |
1,510 |
1,633 |
|
|
------------------ |
------------------ |
|
Total
assets |
373,590 |
362,405 |
|
|
============= |
============= |
|
Short-term
loans |
106,842 |
58,560 |
|
Notes
payable |
20,000 |
15,000 |
|
Accounts
payable |
33,802 |
42,444 |
|
Wages
payable |
1,300 |
2,390 |
|
Taxes
payable |
-620 |
400 |
|
Advances
from clients |
240 |
1 |
|
Other
payable |
149 |
20,582 |
|
Other
current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
161,713 |
139,377 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
161,713 |
139,377 |
|
Equities |
211,877 |
223,028 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
373,590 |
362,405 |
|
|
============= |
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2016 |
As
of Dec. 31, 2017 |
|
Revenue |
552,932 |
636,886 |
|
Cost of sales |
518,555 |
616,283 |
|
Sales expense |
6,888 |
9,896 |
|
Management expense |
16,423 |
13,418 |
|
Finance expense |
4,471 |
6,102 |
|
Profit
before tax |
36,336 |
2,728 |
|
Less:
profit tax |
6,721 |
329 |
|
29,615 |
2,399 |
Important
Ratios
=============
|
|
As of Dec. 31, 2016 |
As of Dec. 31, 2017 |
|
*Current
ratio |
1.47 |
1.49 |
|
*Quick
ratio |
1.38 |
1.34 |
|
*Liabilities
to assets |
0.43 |
0.38 |
|
*Net
profit margin (%) |
5.36 |
0.38 |
|
*Return
on total assets (%) |
7.93 |
0.66 |
|
*Inventory
/ Revenue ×365 |
10
days |
12
days |
|
*Accounts
receivable/ Revenue ×365 |
28
days |
51
days |
|
*Revenue/Total
assets |
1.48 |
1.76 |
|
*Cost
of sales / Revenue |
0.94 |
0.97 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue
of SC appears fairly good in its line.
l SC’s
net profit margin is average.
l SC’s
return on total assets is average.
l
SC’s cost of sales is fairly high,
comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in
a normal level.
l
SC’s quick ratio is maintained in a
fairly good level.
l
The inventory of SC is maintained in an
average level.
l
The accounts receivable of SC is
maintained in an average level.
l
SC’s short-term loans are in an average
level.
l
SC’s revenue is in an average level,
comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Stable.
CONCLUSIONS
SC is considered medium-sized in its line with stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.10 |
|
|
1 |
INR 94.44 |
|
Euro |
1 |
INR 79.59 |
|
CNY |
1 |
INR 10.28 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
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Report Prepared
by : |
KET |
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.