MIRA
INFORM REPORT
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Report Date : |
07.12.2012 |
IDENTIFICATION DETAILS
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Name : |
zhejiang
chemicals import & export co., Ltd. |
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Registered Office : |
5/F, Qingchun
Foreign Trade Mansion, No. 37 Qingchun Road, Hangzhou City, Zhejiang Province
310009 PR |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
10.09.1982 |
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Com. Reg. No.: |
330000000001627 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in importing and exporting chemical products |
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No. of Employees : |
120 |
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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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 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.
Source : CIA
Company name and address
zhejiang
chemicals import & export co., Ltd.
5/F, Qingchun Foreign Trade
Mansion, NO. 37 QINGCHUN ROAD,
HANGZHOU city, ZHEJIANG PROVINCE
310009 PR CHINA
TEL: 86 (0) 571-87049996 / 28968569 FAX: 86 (0) 571-87046240
EXECUTIVE SUMMARY
INCORPORATION DATE : Sep. 10, 1982
REGISTRATION NO. : 330000000001627
REGISTERED LEGAL FORM :
Limited liabilities company
STAFF STRENGTH : 120
REGISTERED CAPITAL :
cny 51,000,000
BUSINESS LINE : INTERNATIONAL TRADE
TURNOVER :
CNY 1,005,941,000 (AS OF DEC.
31, 2010)
EQUITIES :
CNY 78,216,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.34 = USD
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
Note: SC was formerly named Zhejiang
Chemicals Import & Export Corporation and adopted present name in 2003.
SC was initially reregistered as a
State-owned enterprise at provincial Administration for Industry & Commerce
(AIC-The official body of issuing and renewing business license) on Sep. 10,
1982 and has been under present legal form since 2003.
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 scopes include selling chemical products; wholesale of pre-packaged foods;
import and export business; industrial investment; selling textile materials,
general merchandise, hardware, for electricity, industrial art products, other
chemical products, electric products, agricultural
and sideline products; information consultation service.
SC is mainly
engaged international trade.
Mr. Guo Bin has
been legal representative and chairman of SC since 2009.
SC is known
to have approx. 120 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Hangzhou. Our checks reveal that SC
owns the total premise about 2,816 square meters.
http://www.zhechem.com The design is
professional and the content is well organized. At present, the web is in both
Chinese and English versions.
E-mail: info@zhechem.com
National Tax Registration Certificate No.: 330165124945907
Local Tax Registration Certificate No.: 330000100200506
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
|
Company name |
Zhejiang Chemicals Import & Export Corporation |
The present one |
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Registered capital |
CNY 19,300,000 |
CNY 16,000,000 |
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Legal form |
State-owned enterprise |
Limited liabilities co. |
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Registered capital |
CNY 16,000,000 |
CNY 22,000,000 |
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|
Registered capital |
CNY 22,000,000 |
CNY 32,000,000 |
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Registration No. |
3300001002428 |
330000000001627 |
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Registered capital |
CNY 32,000,000 |
CNY 38,500,000 |
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Shareholders |
Zhejiang Orient
Holdings Group Ltd 38%; Employee Shareholders Association of Zhejiang
Chemicals Import & Export Co., Ltd. 62% |
The present ones. |
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Legal representative |
Jiang Limin |
Guo Bin |
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Registered capital |
CNY 38,500,000 |
CNY 45,000,000 |
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Registered capital |
CNY 45,000,000 |
CNY 50,000,000 |
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Registered capital |
CNY 50,000,000 |
Present amount |
SC has been awarded the certificate of ISO9001:2000 since July of 2006.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang International Business Group Co.,
Ltd. 38
Employee Shareholders Association of
Zhejiang Chemicals Import & Export Co.,
Ltd. 62
Zhejiang International Business Group Co.,
Ltd.
==================================
Zhejiang International Business Group Co.,
Ltd. was established in 2008. It is an individual state-owned company that the
provincial government investment establishes.
The registered capital of the group is CNY
980 million, which comes form the capital of original Zhejiang Rongda Group
Holding Co., Ltd., Zhejiang Zhongda Group Holding Co., Ltd. and Zhejiang
Dongfang Group Holding Co., Ltd.
Legal representative: Wang Tingge
Registration No.: 330000000018008
Add: International Trade Building, No. 199
Qingchun Road, Hangzhou, Zhejiang Province
Tel: 86 0571-87385921
Fax: 86 0571-87385988
E-mail: info@zibchina.com
l
Legal representative and Chairman:
Mr. Guo Bin, ID # 330105195903011015, born in 1959, with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 2009 to present Working
in SC as legal representative and chairman
l
General manager:
Mr. Zhang Bin, ID # 33010219721214031X, born in 1972, he is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager
Directors:
…………
Wang Fen ID# 33262719711003204X
Li Tianlin ID# 33010619531115123X
Fang Li ID# 330102197009250011
Supervisors:
……………
Xie Fulian ID# 330102196810223268
Xie Weiran ID# 330106196504100134
Etc.
SC is mainly
engaged in importing and exporting chemical products.
SC’s products mainly include:
Pharmaceuticals
Agro-chemicals
Colorants
Dyestuff
Food additives
Herbal extracts
Intermediates
Veterinary
Inorganic compound
SC sources its
materials 80% from domestic market, and 20% from overseas market. SC sells 40% of
its products in domestic market, and 60% to overseas market.
The buying terms of SC include Check, L/C, 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 Xiaoshan Qianjin Chemical Co., Ltd.
Note: SC’s management declined to release
its customer and supplier details.
Zhejiang
Chemicals Imports & Exports Jinda Trading Co., Ltd.
Etc.
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.
Bank of China Zhejiang Branch
AC#：800100022708091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2010 |
|
Cash & bank |
106,770 |
|
Inventory |
26,073 |
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Accounts
receivable |
230,312 |
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Notes receivable |
113 |
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Advances to
suppliers |
22,979 |
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Other
accounts receivable |
32,916 |
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Other current
assets |
0 |
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------------------ |
|
419,163 |
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Description of available-for-sale financial
assets |
4,668 |
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Investment real estate |
6,579 |
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Fixed
assets |
3,547 |
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Long
term investment |
9 |
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Intangible
and other assets |
7,990 |
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Total
assets |
441,956 |
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============= |
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Short loans |
34,916 |
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Accounts payable |
53,090 |
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Notes payable |
227,331 |
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Advances from
clients |
20,532 |
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Salaries and
welfare payable |
15,888 |
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Taxes unpaid |
3,780 |
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Other accounts
payable |
6,326 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
361,863 |
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Long term
liabilities |
1,877 |
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------------------ |
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Total
liabilities |
363,740 |
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Equities |
78,216 |
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------------------ |
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Total
liabilities & equities |
441,956 |
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============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2010 |
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Turnover |
1,005,941 |
|
Cost of goods
sold |
948,072 |
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Taxes and additional of main
operation |
570 |
|
Sales expense |
22,697 |
|
Management expense |
11,062 |
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Finance expense |
2,722 |
|
Asset impairment loss |
1,906 |
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Investment
income |
82 |
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Non-operating
income |
2,213 |
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Non-operating expenses |
757 |
|
Profit before
tax |
20,450 |
|
Less: profit tax |
5,294 |
|
Profits |
15,156 |
Note: SC has not lodged the latest annual returns in
the local registry, hence no up-to-date detailed financial information could be
provided.
Important Ratios
=============
|
|
as of Dec. 31, 2010 |
|
*Current ratio |
1.16 |
|
*Quick ratio |
1.09 |
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*Liabilities
to assets |
0.82 |
|
*Net profit
margin (%) |
1.51 |
|
*Return on
total assets (%) |
3.43 |
|
*Inventory /Turnover
×365 |
9 days |
|
*Accounts
receivable/Turnover ×365 |
84 days |
|
*Turnover/Total
assets |
2.28 |
|
* Cost of
goods sold/Turnover |
0.94 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears fairly good in its line.
l
SC’s
net profit margin is average.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears fairly large.
l
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: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly Stable.
SC is well-known in its line with favorable background and fairly stable
financial conditions. The large amount of accounts receivable could be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.47 |
|
UK Pound |
1 |
Rs.87.63 |
|
Euro |
1 |
Rs.71.12 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
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 |
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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 |
|
<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.