MIRA
INFORM REPORT
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Report Date : |
20.07.2007 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG HISUN CHEMICAL
CO., LTD. |
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Registered Office : |
No. 46, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Dec. 4, 1998 |
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Com. Reg. No.: |
3300001005284 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing and selling chemical products. |
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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Maximum Credit Limit : |
Up To usd 1,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
ZHEJIANG hisun
chemical co., ltd.
NO. 46,
TEL :
86 (0) 576-88827793
FAX :
86 (0) 576-88827789
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 4, 1998
REGISTRATION NO. : 3300001005284
REGISTERED LEGAL FORM : shares limited co.
STAFF STRENGTH :
400
REGISTERED CAPITAL : cny85,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
cny216,790,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY163,220,000 (AS OF DEC. 31, 2006)
PAYMENT :
average
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.56 = US$1 AS OF 2007-07-20
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a shares limited co. at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Dec. 4, 1998.
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 characteristics of the shares limited co.
are as follows: The
establishment of the co. requires at least five promoters and at least
three of them must be PR- China controlled legal persons. Natural person
cannot be allowed to serve as promoters. The minimum registered capital
of a co. is CNY 10M. while that of the co. with foreign investment is CNY
30M. The total capital of a co. which propose to apply for publicly listed
must not less than CNY 50M. The board of directors must
consist of an odd number 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 three years of the
offer. Directors can not transfer the shares they hold in the co. during
their terms of office. 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 manufacturing, developing, and selling chemical products, chemical
intermediates, pesticide intermediates, composite pesticide, agricultural
chemicals, pesticide preparation, animal remedy, animal preparation, and agricultural
machinery; operating import & export business.
SC is
mainly engaged in manufacturing and selling chemical products.
Mr. Bai Hua has
been chairman of SC since 1998.
SC owns about 400
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Taizhou. Our checks
reveal that SC owns the total premise about 52,800 square meters.
http://www.hisunchem.com The design is professional and the
content is well organized. At present the web is both in Chinese and English
versions.
E-mail: sales.intl@hisunchem.com
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name Investment (CNY’000) % of Shareholding
Guotou High-tech Investment Co., Ltd. 32,200 37.88
Import & Export Co., Ltd.
Zhejiang Hisun Group Co., Ltd.
7,862.7
9.25
Taizhou Dudeli Biotech Development Co.,
Ltd. 390 0.46
Taizhou Jiaojiang National Asset
14,500
17.06
Operating Co., Ltd.
Bai Hua
692.3
0.82
Li Hao 636 0.75
Wei Haigu
513
0.60
Zhang A’en 306 0.36
Shen Liang
231
0.27
Luo Hongbo 153 0.18
Geng Liwen
153
0.18
Jiang Zhengping 153 0.18
Established in 1987, SINOCHEM
NINGBO LTD. is a subsidiary of SINOCHEM CORPORATION, which has been listed
among the Fortune Global 500 Companies for 16 consecutive years. In 2006,
SINOCHEM was ranked the 304th. It has been awarded the certificates of ISO9001,
ISO14001 and OHSAS18001 by TUV. Meanwhile, it has also been honored as the
"AAA" grade enterprise within the fields of Qualification and Credit
by the Central Bank and the Contract Abiding, "AAA" grade enterprise
by the Provincial Administration for Industry and Commerce for years, as well
as "AAA" grade excellent foreign trade enterprise by the Committee of
the Credit System of China Foreign Trade & Economic Cooperation Enterprise.
Beijing High Technology Venture Capital Co.,
Ltd.(former Beijing High Technology Industry Investment Co., Ltd) was founded
on October 27,1998 with a registered capital of 310 million yuan (RMB) and
funded by Beijing Comprehensive Investment Company, State Development &
Investment Corp., Beijing City State-owned Assets Management Company, Shougang
Group and Tsinghua Tongfang Co., Ltd. As the first venture capital company in
Zhejiang Hisun Group Co., Ltd. is ranked in the top 520 key enterprises in
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Chairman and
General Manager:
Mr. Bai Hua, born
in 1947, 60 years old with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 1998 to present Working in SC as chairman and general manager;
At present Also working in Zhejiang Hisun Group Co., Ltd. as Party committee secretary,
and in Zhejiang
Hisun Pharmaceutical Co., Ltd. as chairman.
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Assistant Manager:
Mr. Wang Zhengping, in his 40’s with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 1998 to present Working in SC as assistant manager.
SC is
mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include:
INSECTICIDE (including Dazomet, EMAMECTIN, ACETAMIPRID, and ABAMECTIN),
HERBICIDE (including Oxadiazon, Clethodim, Clomazone, flazasulfuron and
QUIZALOFOP-P-ETHYL), FUNGICIDE AND GERMICIDE (including OXINE-COPPER), and
INTERMEDIATE (including 2-[(6-chloro-4-pyrimidinyl)oxy]-3-(methoxy
methylene)-benzeneacetic acid methyl ester, Ethyl 2,3-dicyanopropionate,
2,6-Dichloro-4-(trifluoromethyl)aniline, and 2-chloro-5-trifluromethyl
pyridine, etc.)
SC sources its materials 70%
from domestic market, mainly
The
buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms
of SC include T/T, L/C and Credit of 15-30 days.
*Major Supplier:
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Zhejiang Hisun Pharmaceutical
Co., Ltd.
*Major Customer:
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Zhejiang Hisun Group Co., Ltd.
SC is known to have a branch, as follows:
Zhejiang Hisun Chemical Co., Ltd.
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
principal declined to release any bank information.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
63,690 |
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Inventory |
46,480 |
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Accounts
receivable |
28,240 |
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Other Accounts
receivable |
10,760 |
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Accounts payable
in advance |
2,710 |
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To be
apportioned expense |
0 |
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Other current
assets |
2,480 |
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Current assets |
154,360 |
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Fixed assets |
128,810 |
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Fixed assets net
value |
104,530 |
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Projects under
construction |
24,280 |
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Long term
investment |
6,990 |
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Other assets |
-5,390 |
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Total assets |
284,770 |
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Short loans |
62,500 |
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Accounts payable |
26,450 |
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Bills payable |
0 |
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Accounts
receivable in advance |
350 |
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Other Accounts
payable |
6,300 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
25,950 |
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Current
liabilities |
121,550 |
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Long term liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
121,550 |
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Equities |
163,220 |
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Total
liabilities & equities |
284,770 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
216,790 |
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Cost of goods
sold |
193,510 |
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Sales expense |
1,260 |
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Management expense |
12,880 |
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Finance expense |
5,000 |
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Profit before
tax |
3,320 |
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Less: profit tax |
1,230 |
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Profits |
2,090 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.27
*Quick ratio 0.89
*Liabilities to
assets 0.43
*Net profit
margin (%) 0.96
*Return on total
assets (%) 0.73
*Inventory
/Turnover ×365 78 days
*Accounts
receivable/Turnover ×365 48 days
*Turnover/Total
assets 0.76
* Cost of goods
sold/Turnover 0.89
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in
its line.
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SC’s net profit margin is acceptable.
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SC’s return on total assets is acceptable.
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SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal
level.
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SC’s quick ratio is maintained in a normal level.
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The inventory of SC in maintained in a slightly
large level.
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The accounts receivable of SC is maintained in a
normal level.
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The short-term loan of SC appears fairly large.
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SC’s turnover is in an average level,
comparing with the size of its total assets.
LEVERAGE:
AVERAGE
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is low.
Overall
financial condition of the SC: Stable.
SC is considered medium-sized in its line with fairly good financial conditions.
A credit line up to USD1,000,000 would appear to be within SC’s capacities.
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)