MIRA INFORM REPORT
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Report Date : |
19.02.2011 |
IDENTIFICATION DETAILS
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Name : |
HENAN ZHENGTONG CHEMICAL CO., LTD. |
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Registered Office : |
No. 10 Gongye Road, Mazhai Food Industrial Park, Erqi, District, Zhengzhou City, Henan Province, 450064 Pr |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
26.12.1996 |
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Com. Reg. No.: |
410103000001091 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and Selling Chemical Raw Material |
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 100,000 |
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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 – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
HENAN
ZHENGTONG CHEMICAL CO., LTD.
NO. 10 GONGYE ROAD, MAZHAI FOOD INDUSTRIAL
PARK, ERQI DISTRICT, ZHENGZHOU CITY, HENAN PROVINCE, 450064 PR CHINA
10
TEL: 86 (0) 371-67169960/67816618-8636 FAX: 86 (0) 371-67861207
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC.
26, 1996
REGISTRATION NO. :
410103000001091
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 90
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE : MANUFACTURING AND TRADING
TURNOVER :
CNY 25,250,000 (UNAUDITED, AS OF DEC. 31, 2010)
EQUITIES :
CNY 6,030,000 (UNAUDITED, AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.58113=USD 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY –
Note: SC’s complete name should be the heading one, instead of the given one “Henan Zhengtong Chem Co., Ltd.”.
SC was registered as a limited liabilities co. at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Dec. 26, 1996.
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 developing, manufacturing, selling and providing technological service for chemical raw material; importing and exporting self-made products and self-needed machinery equipment; manufacturing and selling zhengtong brand diacetyl tartaric acid ester of monoglyceride (DATEM), sodium stearyl l2-lactylate (SSL), tripolyglyceryl monosterates, sorbitan monostearate, sorbitan monooleate, citric acid glyceryl ester, decyl giycerate, glyceryl stearate, glycerol monolaurate, capryl mono glyceride, SMG, complex emulsifying agent, PGPR, acetylceted monoand diglycerides, LACTEM and CSL.
SC is mainly engaged in manufacturing and selling chemical raw material.
Mr.
SC is known to have approx. 90 employees 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 Zhengzhou. Our checks
reveal that SC owns the total premise, but SC’s accountant refused to release
the gross area.
http://www.ztcc.com/
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
Email: info@ztcc.com
/ sales@ztcc.com
Certificate:
========
SC owns the ISO9001:2000 certification, HACCP, HALAL food certification,
OU kosher certification and “National Standard Qualified Food” certification.
SC was also honored as “Henan High-Tech Enterprise” by Henan Province
Science & Technology Dept.
No significant events or changes were found during our checks with the
local AIC.
MAIN
SHAREHOLDERS:
Name
%
of shareholdings
Wang Haoqin 23
Wang Qing 5
l
Legal representative, Chairman and General Manager:
Mr. Chu Junzheng, in his
Working Experience(s):
From 1996 to present Working in SC as legal representative, chairman and general manager.
SC
is mainly engaged in manufacturing and selling chemical raw material.
SC’s products
mainly include: Stearoyl-2-Lactylates Series, Acid Esters of Mono- and
Diglycerides Series, Polyglycerol Esters of Fatty Acids Series, Mono- and Diglycerides
of Fatty AcidsSeries, Sorbitan Esters and Polysorbates, and etc.
SC sources its
materials 99% from domestic market, and 1% from overseas markets. SC sells 80%
of its products in domestic market, and 20% to overseas market, mainly
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, L/C, T/T, and Credit of 30-60 days.
Note: SC’s management refused to release its
major customers or suppliers.
Tel: 020-87671907
Fax: 020-87608537
Email: guangzhou@ztcc.com
Shanghai Office
Tel: 021-64920196
Fax: 021-54940769
Email: shanghai@ztcc.com
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 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.
Industrial and
Commercial Bank of
AC#:
1702020609006750265
Relationship:
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2009 |
As of Dec. 31, 2010 (unaudited) |
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Cash & bank |
1,270 |
760 |
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Notes receivable |
0 |
0 |
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Inventory |
2,310 |
2,780 |
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Accounts
receivable |
2,320 |
1,590 |
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Advances to
suppliers |
1,870 |
7,560 |
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Prepaid expenses |
20 |
200 |
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Other accounts receivable |
3,080 |
3,290 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
10,870 |
16,180 |
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Fixed assets net
value |
1,830 |
1,780 |
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Project under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Intangible and
other assets |
10 |
10 |
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------------------ |
------------------ |
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Total assets |
12,710 |
17,970 |
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============= |
============= |
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Short loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
710 |
620 |
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Advances from clients |
0 |
0 |
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Accrued payroll |
0 |
50 |
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Taxes payable |
140 |
90 |
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Other accounts
payable |
6,190 |
10,220 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
7,040 |
10,980 |
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Specified payables |
740 |
960 |
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------------------ |
------------------ |
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Total
liabilities |
7,780 |
11,940 |
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Equities |
4,930 |
6,030 |
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------------------ |
------------------ |
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Total
liabilities & equities |
12,710 |
17,970 |
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============= |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2009 |
As of Dec. 31,
2010 (unaudited) |
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Turnover |
17,300 |
25,250 |
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Cost of goods sold |
13,330 |
20,100 |
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Taxes and additional of main operation |
80 |
50 |
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Sales expense |
1,330 |
1,720 |
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Management expense |
1,660 |
1,600 |
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Finance expense |
-20 |
20 |
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Non-operating
income |
0 |
10 |
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Non-operating expense |
0 |
40 |
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Profit before
tax |
920 |
1,740 |
|
390 |
640 |
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Profits |
530 |
1,100 |
Important
Ratios
=============
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
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*Current ratio |
1.54 |
1.47 |
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*Quick ratio |
1.22 |
1.22 |
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*Liabilities
to assets |
0.61 |
0.66 |
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*Net profit
margin (%) |
3.06 |
4.36 |
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*Return on
total assets (%) |
4.17 |
6.12 |
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*Inventory
/Turnover ×365 |
49 days |
41 days |
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*Accounts
receivable/Turnover ×365 |
49 days |
23 days |
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*Turnover/Total
assets |
1.36 |
1.41 |
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* Cost of
goods sold/Turnover |
0.77 |
0.80 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line in
2009, and it increased in 2010.
l
SC’s net profit margin appears average in both 2
years.
l
SC’s return on total assets appears average in
2009, and it increased in 2010.
l
SC’s cost of goods sold is average in both 2 years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both 2 years.
l
SC’s quick ratio is maintained in a normal level in
both 2 years.
l
The inventory of SC appears average in both 2
years.
l
The accounts receivable of SC appears average in
both 2 years.
l
SC has no short-term loan in both 2 years.
l
SC’s turnover is in an average level in both 2
years, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both 2 years.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable
SC is considered small-sized in its line with stable financial
conditions. A credit line up to USD 100,000 appears to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.18 |
|
|
1 |
Rs.73.04 |
|
Euro |
1 |
Rs.61.43 |
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 |
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 |
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.