MIRA
INFORM REPORT
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Report Date : |
29.11.2011 |
IDENTIFICATION DETAILS
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Name : |
HAINING ZHONGLIAN CHEMICAL CO., LTD. |
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Registered Office : |
Lingtao Road, Haining Compound Development For Foreign Trade
Zone, Jiaxing, Zhejiang Proviince, 314422 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
19.11.2002 |
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Com. Reg. No.: |
002130 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing And Selling Chemical Products |
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No. of Employees : |
102 |
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 200,000 |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
China |
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 and address
Haining Zhonglian Chemical Co., Ltd.
LINGTAO ROAD, Haining Compound Development For Foreign Trade Zone, JIAXING, Zhejiang PROVIINCE, 314422 PR CHINA
TEL: 86 (0) 573-87966889/87966899
FAX: 86 (0) 573-87966797
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 19, 2002
REGISTRATION NO. : 002130
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
CHIEF EXECUTIVE :
MR. zhang minlong (CHAIRMAN)
STAFF STRENGTH :
102
REGISTERED CAPITAL : USD 960,000
BUSINESS LINE :
Manufacturing & SELLING
TURNOVER :
CNY 89,520,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 29,480,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 200,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.3874 = 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 Renminbi
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 Nov. 19, 2002.
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 and selling bis (trichloromethyl)
carbonate, toluene sulfochloride and its byproduct- hydrochloric acid/ photo
initiators 907.
SC is mainly engaged in manufacturing and selling chemical products.
Mr. Zhang Minlong is legal representative, chairman and general manager
of SC at present.
SC is known to have approx. 102 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the compound development for foreign
trade zone of Jiaxing. Our checks reveal that SC occupies an area of 12,525
square meters.
www.zlchemical.com The design is professional
and the content is well organized. At present it is in both Chinese and English
versions.
E-mail: info@zlchemical.com
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unspecified |
Shareholder’s name |
Haining Lianzu Rubber Co., Ltd. |
Haining Lianzu Industrial Co., Ltd. |
MAIN SHAREHOLDERS:
Name % of
Shareholding
Haining Lianzu Industrial Co., Ltd. 75
Shen Zhenggu (Canadian) 25
Passport # VK347730
Haining Lianzu Industrial Co., Ltd.
=========================
Registration No.: 330481000047829
Incorporation Date: Jun.
23, 1998
Chairman: Zhang
Minlong
Registered Capital: CNY
10,000,000
Legal
Representative, Chairman and General Manager:
Mr. Zhang Minlong, ID# 330419196002233816, born in 1960, with junior
college education, he is currently responsible for the overall and daily
management of SC.
Working Experience(s):
At present Working in SC as legal representative, chairman and general
manager.
Also working in Haining Lianzu Industrial Co., Ltd. as legal
representative.
SC is mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include: biocides and disinfection chemicals, fine
chemicals and intermediates and photo initiators, etc.
SC sources its materials 100% from domestic market; SC sells 30% of its
products in domestic market, and 70% to overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note: SC’s management declined to release its major clients and
suppliers.
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.
Haining Rural Credit Cooperative Yanguan Branch
AC#: 201000001894838
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31,
2010 |
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Cash & bank |
6,530 |
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Inventory |
12,880 |
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Note receivable |
40 |
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Accounts receivable |
11,560 |
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Advances to suppliers |
17,540 |
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Other receivables |
31,580 |
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Other current assets |
0 |
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------------------ |
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Current assets |
80,130 |
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Fixed assets net value |
17,210 |
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Projects under construction |
0 |
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Long term prepaid expenses |
1,540 |
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Long term investment |
0 |
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Intangible assets |
1,050 |
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Other assets |
0 |
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------------------ |
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Total assets |
99,930 |
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============= |
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Short loans |
43,400 |
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Accounts payable |
9,940 |
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Other accounts payable |
520 |
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Notes payable |
14,790 |
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Taxes payable |
0 |
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Advances from clients |
0 |
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Accrued payroll |
380 |
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Taxes payable |
1,420 |
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Dividends payable |
0 |
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Other payable |
0 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
70,450 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
70,450 |
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Equities |
29,480 |
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------------------ |
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Total liabilities & equities |
99,930 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31,
2010 |
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Turnover |
89,520 |
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Cost of goods sold |
65,300 |
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Taxes and additional of main operation |
110 |
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Sales expense |
3,320 |
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Management expense |
9,010 |
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Finance expense |
2,750 |
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Profit before tax |
9,030 |
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Less: profit tax |
2,550 |
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Profits |
6,480 |
Important Ratios
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as of Dec. 31,
2010 |
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*Current ratio |
1.14 |
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*Quick ratio |
0.95 |
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*Liabilities to assets |
0.70 |
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*Net profit margin (%) |
7.24 |
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*Return on total assets (%) |
6.48 |
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*Inventory /Turnover ×365 |
53 days |
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*Accounts receivable/Turnover ×365 |
48 days |
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*Turnover/Total assets |
0.90 |
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* Cost of goods sold/Turnover |
0.73 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears average in its line in 2010.
SC’s net profit margin is fairly good in 2010.
SC’s return on total assets is fairly good in 2010.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is normal in 2010.
SC’s quick ratio is maintained in a normal level in 2010.
SC’s inventory is average in 2010.
SC’s accounts receivable is average in 2010.
SC’s short-term loan appears large in 2010.
SC’s turnover is fair in 2010, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly Stable.
SC is considered medium-sized in its line 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 200,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.51.93 |
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|
1 |
Rs.80.62 |
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Euro |
1 |
Rs.69.36 |
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.