MIRA INFORM REPORT
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Report Date : |
31.01.2011 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG RUIHUA CHEMICAL CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
29.08.2006 |
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Com. Reg. No.: |
003767 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
manufacturing and Selling Reactive Dyes |
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 1,500,000 |
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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
zhejiang ruihua
chemical co., ltd.
TEL: 86 (0) 575-82049865/82518160 FAX: 86 (0) 575-82041281
EXECUTIVE SUMMARY
INCORPORATION DATE : august
29, 2006
REGISTRATION
NO. : 003767
REGISTERED
LEGAL FORM : Chinese-foreign equity joint venture
CHIEF
EXECUTIVE : MR. Ruan
jiachun
(CHAIRMAN)
STAFF
STRENGTH : 550
REGISTERED
CAPITAL :
usd 6,000,000
BUSINESS
LINE :
manufacturing
TURNOVER :
CNY 509,885,000 (AS OF DEC. 31, 2009)
EQUITIES :
CNY 236,904,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
RECOMM.
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : STABLE
OPERATIONAL
TREND :
STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.65346 =
USD 1
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 Chinese-foreign equity joint venture enterprise at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing
business license) on August 29, 2006.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR China
is defined as a legal person. It is a limited co. jointly invested by one
or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition position
in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing reactive dyes, selling its owned
products.
SC is mainly engaged
in manufacturing and selling reactive dyes.
Mr. Ruan Jiachun has
been chairman of SC since 2006.
SC is known to have
approx. 550 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 Shangyu. Our checks reveal that SC
rents the total premise about 20,000 square meters.
SC is
not known to host website of its own at present.
Changes of its
registered information:
|
Date of change |
Item |
Before the
change |
After the
change |
|
2007-02 |
Company’s name |
Shangyu Ruihua Chemical Co.,
Ltd. |
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SC started its
normal operation in January of 2007.
MAIN SHAREHOLDERS:
Name % of Shareholding
Zhejiang Runtu Co., Ltd. 75
(
Zhejiang Runtu Co., Ltd.:
==================
Zhejiang Runtu Co .Ltd. is a large-scaled enterprise. It is specialized
in manufacturing and selling disperse dyes, cationic dyes, reactive dyes, vat
dyes, sulphur dyes, acid dyes, chemical intermediates, printing & dyeing
auxiliary agents for textile, sodium hydrosulfite and sulfuric acid. At
present, it is one of "five- one- batch enterprises" supported by
Zhejiang Runtu Co., Ltd. is a listed company in Shenzhen Stock Exchange
Market with the code of 002440.
INCORPORATION
DATE : MAY 14, 1998
REGISTRATION
NO. : 330000000043601
REGISTERED
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED
CAPITAL : CNY 295,000,000
Add: Daoxu town,
Office: +86-575-82041282
Tel: +86-575-82042874
Sell: +86-575-82042753
Website: http://www.runtuchem.com
(
==============================
Incorporation Date : July 13, 2006
Registration No. : 1059071
Registered Legal
Form : Private
Active Status :
Live
l
Legal
representative and
chairman:
Mr.
Working Experience(s):
From 2006 to present Working in SC as chairman and legal representative.
At present Also working in Zhejiang Runtu Co., Ltd. as vice-president and director.
l
General manager:
Mr. Yang Guoqi, ID#
321283660501123, 44 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2006 to present
Working in SC as general
manager.
SC is mainly engaged in manufacturing and
selling reactive dyes.
SC’s products mainly include: reactive dyes
SC sources its materials 100% from domestic market, mainly
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 Customer:
=============
Zhejiang Runtu Co., Ltd.
SC is not known to have
any subsidiary at present.
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.
China Construction
Bank Shangyu Sub-Branch
AC# 33001656435053002946
Relationship:
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2008 |
as of Dec. 31, 2009 |
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Cash & bank |
21,150 |
27,389 |
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Notes receivable |
5,190 |
18,359 |
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Inventory |
93,777 |
88,406 |
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Accounts receivable |
103,977 |
130,702 |
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Advances to supplies |
5,152 |
13,042 |
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Other receivables |
3,472 |
115 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
232,718 |
278,013 |
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Fixed assets net value |
39,129 |
43,873 |
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Projects under construction |
1,669 |
0 |
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Long-term investments |
0 |
0 |
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Intangible assets |
1,927 |
1,841 |
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Deferred assets |
7,223 |
6,951 |
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Deferred tax debit |
1,347 |
967 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
284,013 |
331,645 |
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============= |
============= |
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Short loans |
54,000 |
50,000 |
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Notes payable |
26,000 |
20,000 |
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Accounts payable |
15,708 |
23,324 |
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Advances from customers |
7,086 |
567 |
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Other Accounts payable |
15,740 |
1,127 |
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Accrued payroll |
1,570 |
2,388 |
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Welfares payable |
0 |
0 |
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Taxes payable |
198 |
-2,736 |
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Accrued expenses |
79 |
71 |
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Other current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current liabilities |
120,381 |
94,741 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
120,381 |
94,741 |
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Shareholders equities |
163,632 |
236,904 |
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------------------ |
------------------ |
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Total liabilities & equities |
284,013 |
331,645 |
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============= |
============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2008 |
as of Dec. 31, 2009 |
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Turnover |
529,975 |
509,885 |
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Cost of goods sold |
428,964 |
415,480 |
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Taxes and additional of main operation |
305 |
372 |
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Income from other operations |
13 |
471 |
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Sales expense |
11,962 |
9,082 |
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Management expense |
13,075 |
9,010 |
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Finance expense |
6,129 |
2,809 |
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Non-operating income |
175 |
603 |
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Non-operating expense |
580 |
556 |
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Profit before tax |
69,148 |
73,651 |
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Less: profit tax |
-1,347 |
380 |
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Net profit |
70,495 |
73,271 |
Important Ratios
=============
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as of Dec. 31, 2008 |
as of Dec. 31, 2009 |
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*Current ratio |
1.93 |
2.93 |
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*Quick ratio |
1.15 |
2.00 |
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*Liabilities to assets |
0.42 |
0.29 |
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*Net profit margin (%) |
13.30 |
14.37 |
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*Return on total assets (%) |
24.82 |
22.09 |
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*Inventory /Turnover ×365 |
65 days |
64 days |
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*Accounts receivable/Turnover ×365 |
72 days |
94 days |
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*Turnover/Total assets |
1.87 |
1.54 |
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* Cost of goods sold/Turnover |
0.81 |
0.81 |
PROFITABILITY: FAIRLY GOOD
l
The
turnover of SC appears fairly good in its line, but it was declining in 2009.
l
SC’s net
profit margin is fairly good in both years.
l
SC’s
return on total assets is good in both years.
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SC’s
cost of goods sold is average, comparing with its turnover in both years.
LIQUIDITY: AVERAGE
l
The
current ratio of SC is maintained in a normal level in 2008 and fairly good in
2009.
l
SC’s
quick ratio is maintained in a normal level in 2008 and fairly good in 2009.
l
The inventory of SC appears fairly large.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan is in an average level.
l
SC’s turnover
is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
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The debt
ratio of SC is low.
l
The risk
for SC to go bankrupt is average.
Overall financial condition of the SC:
Stable.
SC is considered
medium-sized in its line with stable financial conditions. The given credit
amount would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.74 |
|
|
1 |
Rs.72.73 |
|
Euro |
1 |
Rs.62.73 |
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 |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.