MIRA
INFORM REPORT
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Report Date : |
14.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
ZHEJIANG MATERIALS INDUSTRY CHEMICAL GROUP CO., LTD. |
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Registered Office : |
19/F Weixing Century Mansion, No. 85 Jiefang
Road, Hangzhou, Zhejiang Province, 310009 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
08.12. 2005 |
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Com. Reg. No.: |
330000000023122 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
International Trader |
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 : |
USD 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
naem & address
ZHEJIANG MATERIALS INDUSTRY CHEMICAL GROUP CO., LTD.
19/F WEIXING CENTURY MANSION, NO. 85 JIEFANG
ROAD, HANGZHOU,
ZHEJIANG PROVINCE, 310009 PR CHINA
TEL: 86 (0)
571-87054623 FAX:
86 (0) 571-87050748
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 8, 2005
REGISTRATION NO. : 330000000023122
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
80
REGISTERED CAPITAL : CNY 100,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
CNY 3,539,260,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 144,060,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 1,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.84= 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 Ren Min Bi
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 Dec. 8, 2005.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co
SC’s registered business scope includes operating chemical materials and
products, rubber and its products, paper, light textile materials, building
materials, metal materials, building hardware, wood and equipment; importing
and exporting various goods and technology.
SC is mainly
engaged in international trade.
Ms. Zhou Guan’nv
has been chairman of SC since 2005.
SC is known
to have approx. 80 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Hangzhou. Our checks reveal that SC
rents the total premise about 600 square meters.
http://www.zjmichem.com
The design is professional and the content is well organized. At present it is
in Chinese version.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Materials Industry Group Corp. 90
Zhou Guan’nv 2
Other 8 individuals 8
Zhejiang Materials Industry Group
Corporation (ZJMI) is a large-sized logistics group corporation majored in
internal and international trade with productive materials. For a long time,
ZJMI applies itself to developing modern Logistics industry and serving
economic development, sticks to deepen innovation, sticks to Logistics
oriented, sticks to improve diathesis, keeps coming up top in manage
outstanding achievement, and trains a first-class operation management group.
Email: office@zjmi.com.cn
Tel: 0571-87054509
Fax: 0571-87054509
Add: 9/F, No.78, Fengqi Road, Hangzhou,
Zhejiang, P.R.China
l
Chairman and General Manager:
Ms. Zhou Guannv, in her 40’s with university education. She is currently
responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman and general manager.
l
Vice General Manager:
Ms. Pang Cun, in her 40’s with university education. She is currently
responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working
in SC as vice general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: Ethylene Glycol (EG), Terephthalic Acid (PTA), PE (Polyethylene),
PP (Polypropylene), Pigments Dyes, Polyamide Fibre, Polyester Fibre.
Organic
Department
It is mainly
engaged in the operation of chemical fiber raw materials, including PX, PTA,
MEG, PET, the operation of organic chemicals, including mixed alcohol,
isopropyl alcohol, toluene and xylene etc. The department has established
business cooperation relationship with many large enterprises, such as China
National Petroleum Corp-oration, Zhejiang Hualian Sunshine Petro-chemical Co.,
Ltd., Samsung Corporation and ITOCHU Corporation etc. The turnover of PTA and
MEG business increases steadily reaching1.8 billion RMB in 2004.
Plastic Department
I
It is a business
department mainly focusing on the operation of plastic raw materials. Depending
on the idea of combining domestic trade with inter-national trade, the
department sells plastic raw materials more than 30,000 tons every year by ways
of agency, wholesale and retailing. It has provided plastic raw materials for
many companies in a long term, such as Shanghai Petrochemical, Jinfei
Petrochemical, Hua Jin Group, Beijin Yanshan Petrochemical, Qilu Petrochemical
and Maoming Petroc-Hemical. The products mainly include: LDPE、LLDPE、HDPE、PP、PP-B、PP-R、ABS、GPPS、HIPS,
etc.
Plastic Department
II
It is mainly
engaged in the operation of plastic products, including PVC, PP, PE, SM, PET
etc. In terms of PVC, it mainly operates SG-5 type Colophony Powder from Shanxi
Jin tai, Shanxi Bei yuan, Inner Mongolia Linhai，Ningxia Chlor-alkali. There are storehouses in Hangzhou, Jinhua, Huzhou,
Shanghai etc. Currently, it is said the exclusive dealer of Shanxi Bei Yuan
Chemical Industry Co., Ltd in Zhejiang Province.
Intermediates
&API Department
Intermediates
& API Department is mainly engaged in developing, manufacturing and selling
all kinds of chemical products with high added value. It is also engaged in
export of raw pharmaceutical, medicine intermediate, dyes, dressing, yarn and
other fine chemical products. The products are applied in many fields such as
medicine, textile, foods and electronic industry.
SC sources its
materials 80% from domestic market and 20% from the overseas markets mainly
USA, Europe. SC sells 20% of its products in domestic market and 80% to the
overseas markets, mainly Europe.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Clients:
============
Itochu,
Marubeni,
Samsung
Ryvce Incorporated.
Juhua Group Corp.
China Petroleum & Chemical Corporation
*Major Supplier:
=============
Quzhou Aifeimu Chemical Co., Ltd.
SC is
known to have 2 subsidiaries as below,
Zhejiang
Hongyuan Pharmaceutical & Chemical Co., Ltd.
Lianyungang
Hongye 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’s suppliers
declined to make any comments.
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.
China Construction Bank Hangzhou Branch
AC# 719031009301001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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Cash & bank |
41,050 |
69,640 |
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Inventory |
232,060 |
311,830 |
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Accounts
receivable |
10,740 |
29,990 |
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Advances to
suppliers |
123,650 |
213,380 |
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Other
receivables |
4,370 |
50,580 |
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Other current
assets |
33,290 |
29,270 |
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------------------ |
------------------ |
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Current assets |
445,160 |
704,690 |
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Fixed assets net
value |
1,810 |
2,470 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
320 |
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------------------ |
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Total assets |
446,970 |
707,480 |
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============ |
============= |
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Short loans |
50,000 |
316,960 |
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Accounts payable |
74,700 |
43,560 |
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Advances from
clients |
39,440 |
31,630 |
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Taxes payable |
-23,340 |
-14,960 |
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Salaries payable |
0 |
0 |
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Other payable |
95,640 |
140,070 |
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Other current
liabilities |
81,190 |
46,160 |
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------------------ |
------------------ |
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Current
liabilities |
317,630 |
563,420 |
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Long term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
317,630 |
563,420 |
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Equities |
129,340 |
144,060 |
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-------------------- |
------------------ |
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Total
liabilities & equities |
446,970 |
707,480 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2007 |
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Turnover |
3,539,260 |
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Cost of goods
sold |
3,425,630 |
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Sales expense |
42,640 |
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Management expense |
13,560 |
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Finance expense |
28,320 |
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Profit before
tax |
46,190 |
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Less: profit tax |
15,660 |
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Profits |
30,530 |
Important Ratios
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2006 |
2007 |
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*Current ratio |
1.40 |
1.25 |
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*Quick ratio |
0.67 |
0.70 |
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*Liabilities
to assets |
0.71 |
0.80 |
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*Net profit
margin (%) |
/ |
0.85 |
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*Return on
total assets (%) |
/ |
4.24 |
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*Inventory
/Turnover ×365 |
/ |
32days |
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*Accounts
receivable/Turnover ×365 |
/ |
3days |
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*Turnover/Total
assets |
/ |
5.01 |
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* Cost of
goods sold/Turnover |
/ |
0.97 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears good.
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SC’s net profit margin is average.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is fairly 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 fair level.
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The accounts receivable of SC is average.
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The inventory of SC appears fairly large.
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The short loans of SC are average in 2006 but fairly large in 2007.
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SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is well-known in its industry with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition. A credit line up to USD 1,000,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.47.71 |
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UK Pound |
1 |
Rs.83.30 |
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Euro |
1 |
Rs.65.12 |
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. |
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%)