MIRA
INFORM REPORT
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Report Date : |
12.06.2012 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU LONGSHAN CHEMICAL CO., LTD. |
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Registered Office : |
No. 9899, Hongshiwu Road, Linjiang Industrial Park, Xiaoshan District, Hangzhou, Zhejiang Province, 311228 Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
29.04.2001 |
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Com. Reg. No.: |
330100000055147 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
manufacturing and selling soda ash, ammonium
chloride, nitric acid, nitrate. |
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No. of Employees : |
997 |
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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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 LONGSHAN CHEMICAL CO., LTD.
NO. 9899, HONGSHIWU ROAD, LINJIANG
INDUSTRIAL PARK, XIAOSHAN DISTRICT, HANGZHOU, ZHEJIANG PROVINCE, 311228 PR
CHINA
TEL: 86 (0) 571-86617638 FAX:
86 (0) 571-86618654
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 29, 2001
REGISTRATION NO. : 330100000055147
REGISTERED LEGAL FORM :
ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH :
997
REGISTERED CAPITAL : CNY 59,380,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,008,210,000 (AS OF DEC.
31, 2011)
EQUITIES :
CNY 158,470,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.375= 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
Note: the given address (Room No. 1103 Jiangnam Bldg Bintiang Dist. Hangzhou 310000 China) doesn’t belong to SC.
SC was registered as a One-person Limited Liability Company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Apr. 29, 2001.
Company Status: One-person
Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business
scope includes manufacturing and processing: liquid ammonia, ammonia, methanol,
nitric acid, sodium nitrate, sodium nitrite, sulfur (by-product), semi-water
gas (intermediate product), Mixture of nitric oxide and nitrogen tetroxide
(intermediate product), hydrogen (validity period as of November 13, 2014);
soda ash, ammonium chloride, baking soda, food additives (sodium nitrite,
sodium nitrate, soda ash, sodium bicarbonate), the pressure vessel;
installation the GC2 level pressure pipeline (validity period as of March 14,
2013); installation of pressure vessels of a (validity period as of May 23,
2015)**wholesaling and retailing: chemical raw materials and products
(excluding hazardous chemicals and precursor chemicals); importing and
exporting (excluding items prohibited by legal,
administrative rules and regulations, and operating the limited items after
obtaining the permits); including the business scope of subsidiaries
and branches
SC is mainly
engaged in manufacturing and selling soda ash, ammonium chloride, nitric acid,
nitrate.
Mr. Ruan Weixiang
is the legal representative and chairman of SC at present.
SC is known
to have approximately 997 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial park of Hangzhou. Our checks
reveal that SC owns the total premise about 500,000 square meters.
http://www.longshanchemical.com The design is professional and the content is
well organized. At present it is in Chinese and English versions.
E-mail: lshg@hi2000.com
No significant changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Longhua Holding Group Co., Ltd. 100
Registration no.: 330100000005621
Legal rep.: Ruan Weixiang
Legal form: Limited liabilities co.
Tel: 86-571-86617638/86617636
Add: No. 1, Puyan Road, Puyan Town, Binjiang
District, Hangzhou, Zhejiang Province
Legal representative
and chairman:
Mr. Ruan Weixiang, born in 1965. He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative and chairman;
Also working in Zhejiang Longhua Holding Group Co., Ltd. as legal representative.
General Manager:
Mr. Jin Peican , born in 1963. He is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager
Also working in Hangzhou Longshan Chemical Co., Ltd. Liquid Ammonia Cylinder Test Station as principal
Directors:
· Luo Bin
Gong
Han
Xu
Hongbing
Zhang
Hui
Chang
Sheng
Supervisors:
Wang Wencheng
Wang Zongmin
SC is mainly engaged
in manufacturing and selling soda ash, ammonium chloride, nitric acid, nitrate.
SC’s products mainly include: industrial sodium carbonate, ammonia
chloride, sodium nitrate (industrial), sodium nitrite, 40% nitric acid, 45%
nitric acid, liquid ammonia, industrial ammonia, sodium carbonate (food
additive), sodium bicarbonate, etc.
SC sources its materials 100% from domestic
market. SC sells 95% of its products in domestic market, and 5% to overseas
market.
The buying terms of SC include 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 refused to release its major suppliers and customers.
Branch:
Hangzhou Longshan Chemical Co., Ltd. Liquid Ammonia Cylinder Test
Station
According to SC’s website:
Hangzhou Longshan Fine Chemical Co., Ltd.
Shanghai Longshan Chemical Co., Ltd.
Hangzhou Longshan Chemical Vehicle Transportation Co., Ltd.
Hangzhou Longsheng Chemical Co., Ltd.
Hangzhou Changlong Chemical Co., Ltd.
Hangzhou Zhongshan Complete Automated Equipment Engineering Co., Ltd.
Zhonghao Alkali 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 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 Hangzhou Qianjiang Sub-branch
AC#N/A
Relationship: Normal.
Financial
Information
Unit: CNY’000
Note: We did not find SC’s detail financial reports.
Important Ratios
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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*Current ratio |
0.39 |
0.86 |
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*Quick ratio |
0.34 |
0.70 |
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*Liabilities
to assets |
0.91 |
0.92 |
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*Net profit
margin (%) |
/ |
-1.20 |
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*Return on total
assets (%) |
/ |
-0.61 |
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*Inventory
/Turnover ×365 |
/ |
32 days |
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*Accounts
receivable/Turnover ×365 |
/ |
13 days |
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*Turnover/Total
assets |
/ |
0.51 |
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* Cost of
goods sold/Turnover |
/ |
0.86 |
PROFITABILITY: AVERAGE
l
The turnover of SC appears good in its line in
2011.
l
SC’s net profit margin is fair in 2011.
l
SC’s return on total assets is fair in 2011.
l
SC’s cost of goods sold is average in 2011,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a poor
level in 2010, and fair in 2011.
l
SC’s quick ratio is maintained in a poor level in
2010, and fair in 2011.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loans appear too large in both
years.
l
SC’s turnover is in a fair level in 2011, 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 medium-sized in its line with fairly stable financial conditions.
The large amount of short loans could be a threat to SC’s financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.55.24 |
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UK Pound |
1 |
Rs.85.93 |
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Euro |
1 |
Rs.69.82 |
INFORMATION DETAILS
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Report Prepared
by : |
MNL |
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.