MIRA INFORM REPORT
|
Report Date : |
04.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
HANGZHOU JLS FLAME RETARDANTS CHEMICAL CO.,
LTD. |
|
|
|
|
Registered Office : |
Shangcheng Industrial Park, No. 1418
Moganshan Road, Hangzhou, Zhejiang
Province 310003 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
12.04.2001 |
|
|
|
|
Com. Reg. No.: |
330100400034570 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
|
|
|
|
Line of Business : |
Manufacturing
and Selling Flame Retardant Products. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1,000,000 |
|
Status : |
Satisfactory |
|
Payment
Behaviour : |
No Complaints |
|
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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
China |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name & address
Hangzhou Jls Flame Retardants Chemical Co.,
Ltd.
shangcheng industrial
park, no. 1418 moganshan road
hangzhou, zhejiang
province 310003 PR CHINA
TEL: 86 (0)
571-87250386/87250387
FAX: 86 (0)
571-87250388
EXECUTIVE SUMMARY
Date of Registration : april 12, 2001
REGISTRATION NO. : 330100400034570
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL :
cny 5,000,000
staff : 150
BUSINESS CATEGORY :
manufacturing
Revenue :
CNY 137,867,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 61,018,000 (AS OF DEC. 31, 2010)
WEBSITE : www.jlschemical.com
E-MAIL :
sales@jlschemical.com
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD
1,000,000
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.36 = USD 1
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 a Chinese-foreign equity joint venture enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 330100400034570 on April 12,
2001.
SC’s Organization Code Certificate
No.: 72845226-1
SC’s tax No.: 330102728452261
SC’s registered capital: cny 5,000,000
SC’s paid-in capital: cny 5,000,000
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Qiu Xueyang |
22.2 |
|
Li Zhigui |
14.8 |
|
Wang Yougui |
11.1 |
|
Zhang Miaoshun |
3.7 |
|
Wu Weijun |
7.4 |
|
Zhu Feng |
7.4 |
|
Zhang Guoqiang |
7.4 |
|
Yang Xiaoming (USA) |
13.0 |
|
Pu Jiyong (Korea) |
13.0 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Qiu
Xueyang |
|
Vice Chairman |
Li
Zhigui |
|
Director |
Wu
Weijun |
|
Pu
Jiyong |
|
|
Yang
Xiaoming |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Qiu Xueyang 22.2
Li Zhigui 14.8
Wang Yougui 11.1
Zhang Miaoshun 3.7
Wu Weijun 7.4
Zhu Feng 7.4
Zhang Guoqiang 7.4
Yang Xiaoming (USA) 13.0
Pu Jiyong (Korea) 13.0
MANAGEMENT
Qiu
Xueyang, Legal
Representative, Chairman, and General Manager
------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 47
Ø
ID# 33010619641225243X
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Li
Zhigui, Vice Chairman
---------------------------------------------
Ø
Gender: M
Ø
Age: 48
Ø
ID# 330102196306230418
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
Also as principal of Hangzhou Jls Flame Retardants Chemical Co., Ltd.
Jiubao Branch
Director
-----------
Wu Weijun ID#
330107196103130611
Pu Jiyong
Certificate No.: C80329947
Yang Xiaoming Certificate
No.: 301758819
BUSINESS OPERATION
SC’s registered business scope includes R&D and
manufacturing flame retardant products; selling its owned products and
providing related technical service.
SC is
mainly engaged in manufacturing and selling flame retardant products.
Brand: JLS
SC’s products
mainly include:
Flame retardant
Cable Compound
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 100% of its products in to overseas market,
mainly Japan, Korea, Taiwan, USA, etc.
The
import & export status of SC in 2010 is as follows,
|
Country |
Amount
of Exports (USD) |
Amount of Imports (USD) |
|
Japan |
494,000 |
-- |
|
Korea |
1,517,800 |
-- |
|
Taiwan |
658,000 |
-- |
|
USA |
1,634,300 |
-- |
|
Russia |
2,813,200 |
-- |
|
UK |
200,000 |
-- |
|
Slovakia |
200,000 |
-- |
|
Germany |
200,000 |
-- |
|
Turkey |
200,000 |
-- |
|
|
------------------- |
------------------- |
|
Total Amount |
7,917,300 |
-- |
The
buying terms of SC include T/T and Credit of 30-60 days. The payment terms of
SC include L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 150
staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is
known to have a branch at present:
Hangzhou
Jls Flame Retardants Chemical Co., Ltd. Jiubao Branch
--------------------------------------------------------------------------------
Date of Registration: December 9, 2002
Registration No.: 330100500005685
Legal Form: Branch Company
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 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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
20,019 |
8,094 |
|
|
Trading financial assets |
0 |
10,000 |
|
Note receivable |
0 |
4,540 |
|
Accounts
receivable |
7,697 |
7,865 |
|
Advances to
suppliers |
2,916 |
1,042 |
|
Other receivable |
6 |
833 |
|
Inventory |
8,691 |
15,762 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
39,329 |
48,136 |
|
Fixed assets |
10,071 |
10,502 |
|
Construction in
progress |
0 |
8,383 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other non-current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
49,400 |
67,021 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
7,866 |
4,863 |
|
Wages payable |
1,781 |
0 |
|
Dividends
payable |
195 |
195 |
|
Tax payable |
809 |
139 |
|
Advances from
clients |
99 |
533 |
|
Other payable |
85 |
273 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
10,835 |
6,003 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
10,835 |
6,003 |
|
Equities |
38,565 |
61,018 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
49,400 |
67,021 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Revenue |
93,099 |
137,867 |
|
Cost of sales |
61,625 |
93,898 |
|
Taxes and surcharges |
127 |
205 |
|
Sales expense |
3,671 |
3,856 |
|
Management expense |
10,501 |
15,074 |
|
Finance expense |
-663 |
897 |
|
Non-business
income |
403 |
1,062 |
|
Non-business expense |
1 |
11 |
|
Profit before
tax |
18,239 |
24,987 |
|
Less: profit tax |
1,820 |
2,535 |
|
16,419 |
22,452 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
3.63 |
8.02 |
|
*Quick ratio |
2.83 |
5.39 |
|
*Liabilities
to assets |
0.22 |
0.09 |
|
*Net profit
margin (%) |
17.64 |
16.29 |
|
*Return on
total assets (%) |
33.24 |
33.50 |
|
*Inventory /
Revenue ×365 |
35 days |
42 days |
|
*Accounts
receivable/ Revenue ×365 |
31 days |
21 days |
|
*
Revenue/Total assets |
1.88 |
2.06 |
|
* Cost of
sales / Revenue |
0.66 |
0.68 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears average, and it was
rising in 2010.
l
SC’s net profit margin is fairly good in both
years.
l
SC’s return on total assets is good in both years.
l
SC’s cost of goods sold is low, comparing with its revenue.
LIQUIDITY:
FAIRLY GOOD
l
The current ratio of SC is maintained in a fairly
good 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 has no short-term loan in both years.
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: Fairly good.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly good financial conditions. A credit line up to USD 1,000,000 would appear to be within
SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.37 |
|
UK Pound |
1 |
Rs.78.50 |
|
Euro |
1 |
Rs.67.59 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
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.