MIRA INFORM REPORT
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Report Date : |
17.04.2012 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU HENGYUAN CHEMICALS CO., LTD. |
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Registered Office : |
Room 305, Building 3, No. 58 Xixiang Road, Puyan Town, Binjiang District, Hangzhou, Zhejiang Province, 310053 Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
20.07.2005 |
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Com. Reg. No.: |
330108000030811 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling hazardous chemicals |
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No. of Employees
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09 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
usd 4,000 |
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Status : |
Moderate |
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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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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
Hangzhou Hengyuan Chemicals Co., Ltd.
room 305, building
3, No. 58 Xixiang Road, Puyan Town, Binjiang District, hangzhou, Zhejiang
Province, 310053 PR CHINA
TEL: 86 (0) 571-28982588/86618327 FAX: 86 (0) 571-28929302
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 20, 2005
REGISTRATION NO. :
330108000030811
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 9
REGISTERED CAPITAL :
CNY 1,000,000
BUSINESS LINE : trading
TURNOVER : CNY 36,360,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 890,000 (AS OF DEC. 31, 2011)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 4,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.3108 = 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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jul. 20, 2005.
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 wholesaling (non-storage business):
hazardous chemicals. Importing and exporting of goods and technology (excluding
those prohibited by the law and regulations); other items without approvals.
SC is mainly
engaged in selling hazardous chemicals.
Mr.
Zhou Zhixiang is legal representative, chairman and
general manager of SC at present.
SC is
known to have approx. 9 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in Hangzhou. Our checks reveal that SC rents the total premise about
50 square meters.
http://www.hzhychem.com The
design is professional and the content is well organized. At present it is in
English version.
E-mail: david@hzhychem.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhou Zhixiang 40
Wei Kai 30
He Zhicheng 30
Legal
Representative, Chairman and General
manager:
Mr. Zhou Zhixiang,
in his
Working Experience(s):
At present Working in SC as legal representative, chairman and general manager.
Also working in Hangzhou Hengmao Chemical Industry Co., Ltd. and Lianyungang Hengmao Chemicals Co., Ltd. as legal representative.
SC is mainly
engaged in selling hazardous chemicals.
SC’s products mainly include: Pesticides, Dyestuffs, Pigment, Intermediates, Food Additives,
(APIs), Aromatic Spices and Other Chemicals, etc.
SC sources its materials 100% from domestic
market. SC sells 80% of its products in domestic market, and 20% to overseas
market, mainly to India and Thailand.
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
===========
Hangzhou Hengmao Chemical
Industry Co., Ltd.
Hangzhou Hengmao Chemical
Industry Co., Ltd.
Lianyungang Hengmao Chemicals Co., Ltd.
Web: http://www.hengmaochem.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’s suppliers declined to make any comments.
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.
Hangzhou United Bank Puyan Sub-Branch
AC#:
201000007435653
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2011 |
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Cash & bank |
1,130 |
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Inventory |
240 |
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Accounts
receivable |
3,400 |
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Note receivable |
670 |
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Advances to
suppliers |
0 |
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Other
receivables |
300 |
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Dividends
receivable |
0 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
5,740 |
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Fixed assets net
value |
80 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Intangible
assets |
0 |
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Other assets |
0 |
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Total assets |
5,820 |
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============= |
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Short loans |
2,000 |
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Accounts payable |
-710 |
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Other accounts
payable |
3,420 |
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Notes payable |
0 |
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Taxes payable |
50 |
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Advances from
clients |
170 |
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Accrued payroll |
0 |
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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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Current
liabilities |
4,930 |
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Long term
liabilities |
0 |
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Total
liabilities |
4,930 |
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Equities |
890 |
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Total
liabilities & equities |
5,820 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31,
2011 |
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Turnover |
36,360 |
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Cost of goods
sold |
35,130 |
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Taxes
and additional of main operation |
100 |
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Sales expense |
0 |
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Management expense |
690 |
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Finance expense |
680 |
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Profit before
tax |
-240 |
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Less: profit tax |
20 |
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Profits |
-260 |
Important Ratios
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as
of Dec. 31, 2011 |
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*Current ratio |
1.16 |
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*Quick ratio |
1.12 |
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*Liabilities
to assets |
0.85 |
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*Net profit
margin (%) |
-0.72 |
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*Return on
total assets (%) |
-4.47 |
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*Inventory
/Turnover ×365 |
3 days |
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*Accounts
receivable/Turnover ×365 |
35 days |
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*Turnover/Total
assets |
6.25 |
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* Cost of
goods sold/Turnover |
0.97 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is normal.
l
SC’s quick ratio is maintained in a normal level.
l
SC’s inventory is average in 2011.
l
The accounts receivable of SC appears
large in 2011.
l
SC’s short-term loan appears large in 2011.
l
SC’s turnover is fairly good, comparing with the
size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable
financial conditions. The large amount of accounts receivable and short-term
loans could be a threat to SC’s financial condition. The given credit
line appears to be beyond SC’s capacities, while a credit line up to USD 4,000
is recommended.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.51.66 |
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UK Pound |
1 |
Rs.81.80 |
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Euro |
1 |
Rs.67.18 |
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.