MIRA
INFORM REPORT
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Report Date : |
22.12.2012 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG FUTURE PETROCHEMICAL CO., LTD. |
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Registered Office : |
6-7/F, Hi-Tech Mansion, No. 599 Jiangnan Road, Ningbo
Zhejiang Province 315040 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
01.08.2005 |
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Com. Reg. No.: |
330215000002969 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Selling Petrochemical Products |
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No. of Employees : |
285 |
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 : |
Good |
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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
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Country Name |
Previous Rating (31.03.2011) |
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 FUTURE PETROCHEMICAL CO., LTD.
6-7/F, HI-TECH MANSION, NO. 599 JIANGNAN ROAD, NINGBO
ZHEJIANG PROVINCE 315040 PR CHINA
TEL: 86 (0) 574-87780903/87791992
FAX: 86 (0) 574-87791996
EXECUTIVE SUMMARY
Date of Registration : august 1, 2005
REGISTRATION NO. : 330215000002969
LEGAL FORM : Shares limited company
REGISTERED CAPITAL : cny 216,000,000
staff :
285
BUSINESS CATEGORY : trading
Revenue :
CNY 15,818,266,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 557,384,000 (AS OF DEC. 31, 2011)
WEBSITE : www.cnfpc.com
E-MAIL :
fpc@cnfpc.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.23 = 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 shares limited company of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 330215000002969 on August 1, 2005.
SC’s Organization Code Certificate No.:
77821372-8
SC’s Tax No.: 330201778213728
SC’s registered capital: cny 216,000,000
SC’s paid-in capital: cny 216,000,000
Registration Change Record:-
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 |
|
Ningbo Zhihang Investment Consultation Co.,
Ltd. |
8.50 |
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Zhejiang Future Investment Holdings Co.,
Ltd. |
54.84 |
|
Zhejiang Hemei Investment Co., Ltd. |
36.66 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Wang Wenjie |
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Director |
Zhou Lijun |
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Ye Qiang |
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Wu Quanneng |
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Shen Zhihong |
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Yang Jiangying |
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Wu Zifu |
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Wu Jingzhi |
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Jin Haitao |
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Supervisor |
Ma Xiaoyong |
|
Fang Min |
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|
Qian Gang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Ningbo Zhihang Investment Consultation Co.,
Ltd. 8.50
Zhejiang Future Investment Holdings Co.,
Ltd. 54.84
Zhejiang Hemei Investment Co., Ltd. 36.66
Ningbo Zhihang
Investment Consultation Co., Ltd.
-------------------------------------------
Registration No.: 330203000080582
Legal Form: Limited Liabilities
Company
Registered Capital: CNY 1,500,000
Zhejiang Future
Investment Holdings Co., Ltd.
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Date of Registration: November 25, 2003
Registration No.: 330200000013886
Legal Form: Shares
Limited Company
Registered Capital: CNY 251,000,000
Zhejiang Hemei
Investment Co., Ltd.
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Registration No.: 330215000002821
Legal Form: Limited Liabilities
Company
Registered Capital: CNY 25,900,000
MANAGEMENT
Wang Wenjie , Legal Representative, Chairman and General
Manager
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Ø
Gender: M
Ø
Age: 41
Ø
ID# 330222197109039177
Ø Qualification:
University
Ø Working experience
(s):
From 2005 to present, working in SC as
legal representative, chairman and general manager
Also working in Ningbo Zhihang
Investment Consultation Co., Ltd. as legal representative
Director
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Zhou Lijun ID# 330203196504250040
Ye Qiang ID# 33010619681125001X
Wu Quanneng ID# 330222197204107377
Shen Zhihong ID# 330203196401302434
Yang Jiangying ID# 330211197009240720
Wu Zifu ID# 332527196610140012
Wu Jingzhi ID# 150404197301074612
Jin Haitao ID# 11010119540228203X
Supervisor
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Ma Xiaoyong ID# 350203196909294010
Fang Min ID# 330122197605180019
Qian Gang ID#
330203197809020013
BUSINESS OPERATION
SC’s registered business scope includes selling Class II
compressed gases and liquefied gases, Class III flammable liquids, Class IV
flammable solids, spontaneous combustion, and flammable substances, Class VI
toxic chemicals and infectious goods, Class VIII corrosive substances,
wholesale and retail of chemical products, natural rubber, natural latex,
textile raw materials and products, fuel oil; operating and acting as an agent
of importing and exporting various kinds of commodities and technology,
excluding the goods forbidden by the government.
SC is mainly
engaged in selling petrochemical products.
SC’s products
mainly include: HDPE, LDPE, LLDPE, PVC, CPE, Natural Rubber, Synthetic Rubber,
Homo Polymer, Impact Copolymer, Randam Copolymer, Pipe Grade, EVA, ABS General
Grade, ABS Speical Grade, HIPS, etc.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly U.S.A., Europe, Mid East, Southeast Asia, etc.
The buying terms of
SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include
T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Montachem
International S.A.
Nova Chemicals
(International) S.A.
Staff & Office:
--------------------------
SC is known
to have approx. 285 staff at
present.
SC owns an area as
its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is known to have
following subsidiaries at present,
n
Ningbo Future Logistics Co., Ltd.
n
Ningbo Kegu International Trade Co., Ltd.
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Zhejiang Golden Suntown Chemical Co., Ltd.
n
Shandong Golan Petrochemical Co., Ltd.
n
Shenzhen Future Kehong New Materials Co., Ltd.
n
Ningbo Bien International Logistics Co., Ltd.
n
Future Logistics Co., Ltd.
n
Shanghai Bien International Logistics Co., Ltd.
n
Kegu Group Co., Ltd.
n
Qianyuan Lifang (Beijing) Petrochemical Technology Co., Ltd.
n
Qingdao Bien International Logistics Co., Ltd.
n
Ningbo Future Supply Chain Co., Ltd.
n
Shanghai Polymers Co., Ltd.
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
Basic Bank:
Shanghai Pudong
Development Bank Ningbo Hi-tech Sub-branch
AC#:
94130154700000455
Industrial
and Commercial Bank of China Ningbo Sub-branch
AC#:
3901020019000073792
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
920,226 |
709,479 |
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Notes receivable |
72,697 |
136,140 |
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Accounts
receivable |
352,753 |
1,106,642 |
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Advances to
suppliers |
384,716 |
269,929 |
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Interest
receivable |
2,309 |
8,343 |
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Other receivable |
35,198 |
57,350 |
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Inventory |
645,715 |
383,442 |
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Non-current assets
within one year |
0 |
0 |
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Other current
assets |
7,419 |
49,282 |
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------------------ |
------------------ |
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Current assets |
2,421,033 |
2,720,607 |
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Long-term
investment |
329,796 |
416,796 |
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Fixed assets |
41,717 |
39,018 |
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Construction in
progress |
0 |
3,272 |
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Intangible
assets |
0 |
0 |
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Long-term
prepaid expenses |
9,187 |
7,793 |
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Deferred income
tax assets |
7,753 |
5,449 |
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Other
non-current assets |
0 |
0 |
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Total assets |
2,809,486 |
3,192,935 |
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============= |
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Short-term loans |
773,684 |
291,098 |
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Notes payable |
427,742 |
218,532 |
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Accounts payable |
1,019,224 |
1,996,189 |
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Wages payable |
27,416 |
15,095 |
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Taxes payable |
13,676 |
-5,550 |
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Interest payable |
1,862 |
2,653 |
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Advances from
clients |
55,113 |
83,008 |
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Other payable |
9,030 |
34,109 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
2,327,747 |
2,635,134 |
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Non-current liabilities |
261 |
417 |
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------------------ |
------------------ |
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Total
liabilities |
2,328,008 |
2,635,551 |
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Equities |
481,478 |
557,384 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
2,809,486 |
3,192,935 |
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Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
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Revenue |
13,898,520 |
15,818,266 |
|
Cost of sales |
13,532,826 |
15,527,047 |
|
Taxes and surcharges |
3,345 |
5,208 |
|
Sales expense |
215,882 |
194,894 |
|
Management expense |
43,706 |
45,572 |
|
Finance expense |
-6,405 |
-15,780 |
|
Investment
income |
74,058 |
72,227 |
|
Non-business
income |
37,720 |
47,615 |
|
Non-business expenditure |
12,445 |
7,058 |
|
Profit before
tax |
210,010 |
171,295 |
|
Less: profit tax |
53,196 |
41,390 |
|
156,814 |
129,905 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.04 |
1.03 |
|
*Quick ratio |
0.76 |
0.89 |
|
*Liabilities
to assets |
0.83 |
0.83 |
|
*Net profit
margin (%) |
1.13 |
0.82 |
|
*Return on
total assets (%) |
5.58 |
4.07 |
|
*Inventory /
Revenue ×365 |
17 days |
9 days |
|
*Accounts
receivable/ Revenue ×365 |
10 days |
26 days |
|
*
Revenue/Total assets |
4.95 |
4.95 |
|
* Cost of
sales / Revenue |
0.97 |
0.98 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears good, and it was rising in 2011.
l SC’s net profit
margin is average in both years.
l SC’s return on total
assets is average in both years.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
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 is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level in
2011.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.08 |
|
|
1 |
Rs.89.53 |
|
Euro |
1 |
Rs.72.77 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
|
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 |
-- |
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.