MIRA INFORM REPORT
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Report Date : |
30.09.2011 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG SHUNLONG CHEMICAL CO., LTD. |
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Registered Office : |
No. 9 Weisan East Road, Shangyu Fine Chemical Zone,
Hangzhou Bay, Shangyu, Zhejiang Province, 312369 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
13.06.2000 |
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Com. Reg. No.: |
330600400007377 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
producing and selling
reactive dye and dye intermediates |
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 : |
Satisfactory |
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Payment
Behaviour : |
Usually Correct |
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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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
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
& address
ZHEJIANG SHUNLONG CHEMICAL CO., LTD.
NO. 9 WEISAN EAST ROAD, SHANGYU FINE CHEMICAL ZONE, HANGZHOU
BAY, SHANGYU, ZHEJIANG PROVINCE, 312369 PR CHINA
TEL: 86 (0) 575-82733296
FAX: 86 (0) 575-82733737
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUN. 13, 2000
REGISTRATION NO. :
330600400007377
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
STAFF STRENGTH : 240
REGISTERED CAPITAL : USD 17,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 301,060,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 185,600,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 1,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.3974=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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Jun. 13, 2000.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered business scope includes producing and
selling reactive dye and dye intermediates (with permit if needed).
SC is mainly
engaged in producing and selling reactive dye and dye intermediates.
Mr.
Zhu Haigen is chairman and legal representative of SC at present.
SC is known
to have approx. 240 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 owns the total premise, but SC’s accountant
refused to release the gross area of the premise.
http://www.shunlongchem.com
The
design is professional and the content is well organized. At present it is both
in Chinese and English versions.
E-mail: gm@shunlongchem.com
SC had passed ISO 9001:2000, ISO 1 4001:1996 and ISO 1
4001:2004 Certificate of Quality/Environmental Integration Management System
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration No. |
001577 |
Present one |
MAIN
SHAREHOLDERS:
Name
% of
shareholdings
Mega
Dragon (China) Limited (Hong Kong) 100
Registration No. :
1233616
Registered Legal Form :
private
l
Chairman and legal representative:
Mr. Zhu Haigen, ID#: 330622630326001, born in 1963, with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC as chairman and legal representative.
SC is mainly
engaged in producing and selling reactive dye and dye intermediates.
SC’s products mainly include: reactive dyes.
Brand: “SLONG”
SC sources its materials 100% from domestic market. SC sells
20% of its products to overseas market
and 80% in domestic 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.
*Major Supplier*
=============
Shangyu Xinhe Chemical Supplies Co., Ltd.
*Major Customer*
==============
Shanghai Fangke Chemical Co., Ltd.
SC is said to have subsidiaries, but the
details are not available.
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.
Industrial and
Commercial Bank of China
AC#: N/A
Relationship:
Normal
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2010 |
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Cash & bank |
132,380 |
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Short-term
investments |
0 |
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Inventory |
26,990 |
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Accounts
receivable |
125,400 |
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Notes receivable |
42,360 |
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Advances to
suppliers |
27,440 |
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Other accounts
receivable |
3,960 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
358,530 |
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Fixed assets net
value |
43,610 |
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Project under
construction |
59,760 |
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Long term
investment |
750 |
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Intangible and
other assets |
17,730 |
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------------------ |
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Total assets |
480,380 |
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============= |
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Short loans |
141,050 |
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Notes payable |
65,440 |
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Accounts payable |
28,270 |
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Advances from
clients |
1,180 |
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Accrued payroll |
910 |
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Taxes payable |
9,240 |
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Surcharge payable |
220 |
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Other accounts
payable |
190 |
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Accrued expenses |
280 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
246,780 |
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Long-term
liabilities |
48,000 |
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------------------ |
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Total
liabilities |
294,780 |
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Equities |
185,600 |
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------------------ |
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Total
liabilities & equities |
480,380 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2010 |
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Turnover |
301,060 |
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Cost of goods sold |
228,930 |
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Taxes and additional of main operations |
390 |
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Sales expense |
4,320 |
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Management expense |
17,150 |
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Finance expense |
5,980 |
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Income from
other operations |
2,360 |
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Investment
income |
70 |
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Subsidy income |
1,090 |
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Non-operating
income |
40 |
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Non-operating expense |
550 |
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Profit before
tax |
47,300 |
|
6,390 |
|
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Profits |
40,910 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2010 |
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*Current ratio |
1.45 |
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*Quick ratio |
1.34 |
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*Liabilities
to assets |
0.61 |
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*Net profit
margin (%) |
13.59 |
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*Return on
total assets (%) |
8.52 |
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*Inventory
/Turnover ×365 |
33 days |
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*Accounts
receivable/Turnover ×365 |
152 days |
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*Turnover/Total
assets |
0.63 |
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* Cost of
goods sold/Turnover |
0.76 |
PROFITABILITY: FAIRLY GOOD
l
The turnover of SC appears fairly good in 2010.
l
SC’s net profit margin appears fairly good in 2010.
l
SC’s return on total assets appears fairly good in
2010.
l
SC’s cost of goods sold is average in 2010,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2010.
l
SC’s quick ratio is maintained in a normal level in
2010.
l
The inventory of SC appears average in 2010.
l
The accounts receivable of SC appears fairly large
in 2010.
l
SC’s short-term loan appears fairly large in 2010.
l
SC’s turnover is in a fair level in 2010, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
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 accounts receivable and short-term
loan 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.93 |
|
UK Pound |
1 |
Rs.76.52 |
|
Euro |
1 |
Rs.66.65 |
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 |
|
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.