MIRA
INFORM REPORT
|
Report Date : |
28.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG LONGSHENG DYESTUFF CHEMICALS CO.,
LTD. |
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Registered Office : |
Hangzhou Gulf Fine Chemical Zone, |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
25.04.2006 |
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Com. Reg. No.: |
330600400000790 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
manufacturing and selling dyestuff chemicals |
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No. of Employees : |
1,200 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
Company name & address
ZHEJIANG LONGSHENG
DYESTUFF CHEMICALS CO., LTD.
HANGZHOU GULF FINE CHEMICAL ZONE, SHANGYU,
ZHEJIANG PROVINCE, 312369 PR CHINA
TEL: 86 (0) 575-82516004/82516286 FAX: 86 (0) 575-82516911
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 25, 2006
REGISTRATION NO. : 330600400000790
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
CHIEF EXECUTIVE : MR. RUAN WEIXIANG
(CHAIRMAN)
STAFF STRENGTH :
1,200
REGISTERED CAPITAL : USD 28,500,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,610,430,000 (AS OF DEC.
31, 2010)
EQUITIES :
CNY 547,340,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.30 = 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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Apr. 25, 2006.
Company Status:
Chinese-Foreign Equity Joint Venture This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing
dispersion dyes, diffusant MF, N-bromoacetanilide, N- diethylaniline; selling
its products (not engage in any items prohibited by laws, administrative
regulation).
SC is
mainly engaged in manufacturing and selling dyestuff chemicals.
Mr.
Ruan Weixiang has been legal representative and chairman of SC since 2006.
SC is known to have approx. 1,200 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.
SC is not known to host website of its own at present.
Changes of its
registered information are as follows:
|
Date
of change |
Item |
Before
the change |
After
the change |
|
Unknown |
Registered capital |
USD 19,000,000 |
USD 28,500,000 |
|
Shareholders |
Zhejiang Longsheng Group Co., Ltd. 52.63% Yorkshire Investment Limited (Hong
Kong) 47.37% |
Zhejiang Longsheng Group Co., Ltd. 47.37% Yorkshire Investment Limited (Hong
Kong) 52.63% |
|
|
|
Shareholder’s name |
Yorkshire Investment Limited (Hong
Kong) |
Wealth Investment Management Limited (Hong Kong) |
MAIN SHAREHOLDERS:
Name % of Shareholding
Zhejiang Longsheng Group Co.,
Ltd.
47.37
Wealth Investment Management
Limited (Hong Kong)
52.63
Zhejiang Longsheng Group Co.,
Ltd.
===========================
Zhejiang Longsheng Group Co., Ltd.
is a listed company in Shanghai Stock Exchange Market with the code of 600352.
Incorporation Date :
Mar. 23, 1998
Registration No. :
330000000013705
Registered Legal Form :
Shares Limited Co.
Chief Executive :
Mr. Ruan Weixiang (Chairman)
Add: Daoxu Town, Shangyu,
Zhejiang Province.
Tel: 86 0575-82048616
Fax: 86 0575-82041589
Wealth Investment Management
Limited (Hong Kong)
=======================================
CR No. : 0999340
Registered Legal Form: Private
Active Status: Live
Incorporation Date: Oct. 4, 2005
Legal
representative and chairman:
Mr. Ruan Weixiang, born in 1965, with
Master’s degree, engineer. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 2006 to present Working in SC as legal representative and chairman;
Also working in Zhejiang Longsheng Group Co., Ltd. as legal representative, and working in Zhejiang Longsheng Holding Co., Ltd. as vice chairman.
SC is
mainly engaged in manufacturing and selling dyestuff chemicals.
SC’s products mainly include: reactive dyestuff.
SC sources its materials 90% from domestic market and 10%
from the overseas market. SC sells 30% of its products to overseas market and 70% in domestic
market.
The buying terms of SC include Check, T/T, L/C 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.
Zhejiang Longsheng Real Estate Co., Ltd.
Zhejiang Longsheng Sheet Co., Ltd.
Etc.
The ultimate parent company:
Zhejiang Longsheng Holding Co., Ltd.
SC is known 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.
China Construction Bank Shangyu Sub-branch
AC#:
33001656435053002410
Relationship:
normal.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
Cash
& bank |
351,420 |
194,280 |
|
Bills
receivable |
350,780 |
231,840 |
|
Accounts
receivable |
325,330 |
267,450 |
|
Other
receivables |
1,130 |
11,180 |
|
Advances to
suppliers |
27,190 |
365,850 |
|
Inventory |
268,790 |
280,440 |
|
Other
current assets |
5,440 |
30 |
|
|
------------------ |
------------------ |
|
Current
assets |
1,330,080 |
1,351,070 |
|
Fixed
assets net value |
74,290 |
91,910 |
|
Projects
under construction |
53,260 |
0 |
|
Long
term investment |
170,460 |
223,870 |
|
Intangible
assets |
0 |
7,310 |
|
Other
assets |
96,210 |
3,540 |
|
|
------------------ |
------------------ |
|
Total
assets |
1,724,300 |
1,677,700 |
|
|
============= |
============= |
|
Short
loans |
85,000 |
293,630 |
|
Bills
payable |
574,120 |
553,000 |
|
Accounts
payable |
360,200 |
147,620 |
|
Advances from
clients |
47,280 |
8,860 |
|
Accrued Wages |
/ |
13,940 |
|
Tax payable |
/ |
-660 |
|
Other payable |
/ |
113,760 |
|
Other
current liabilities |
165,040 |
210 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,231,640 |
1,130,360 |
|
Specified
payables |
0 |
0 |
|
Other
liabilities |
1,130 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,232,770 |
1,130,360 |
|
Equities |
491,530 |
547,340 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,724,300 |
1,677,700 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
|
Turnover |
1,402,540 |
1,610,430 |
|
Cost of goods sold |
1,248,260 |
1,459,120 |
|
Taxes and additional of main
operation |
890 |
690 |
|
Sales expense |
53,620 |
34,280 |
|
Management expense |
23,310 |
27,310 |
|
Finance expense |
12,730 |
31,960 |
|
Investment
income |
10,340 |
7,110 |
|
Non-operation
income |
0 |
380 |
|
Non-operation expense |
19,030 |
1,940 |
|
Profit before
tax |
55,040 |
62,620 |
|
Less: profit tax |
11,090 |
2,560 |
|
Profits |
43,950 |
60,060 |
Important Ratios
=============
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
*Current ratio |
1.08 |
1.20 |
|
*Quick ratio |
0.86 |
0.95 |
|
*Liabilities
to assets |
0.71 |
0.67 |
|
*Net profit
margin (%) |
3.13 |
3.73 |
|
*Return on
total assets (%) |
2.55 |
3.58 |
|
*Inventory
/Turnover ×365 |
70 days |
64 days |
|
*Accounts receivable/Turnover
×365 |
85 days |
61 days |
|
*Turnover/Total
assets |
0.81 |
0.96 |
|
* Cost of
goods sold/Turnover |
0.89 |
0.91 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line,
and it was rising in 2010.
l
SC’s net profit margin is average in both 2 years.
l
SC’s return on total assets is average in both 2
years.
l
SC’s cost of goods sold is average in
both 2 years, comparing with its turnover.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level in both 2 years.
l
SC’s quick ratio is maintained in a
normal level in both 2 years.
l
The inventory of SC appears average in
both 2 years.
l
The accounts receivable of SC appears
average in both 2 years.
l
SC’s short-term loan is average in 2009
but fairly large in 2010.
l
SC’s turnover is in an average level in
both 2 years, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average in both
2 years.
l
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Fairly Stable.
SC is considered large-sized in its line with fairly stable
financial conditions. The large amount of short-term loan
could be a threat to SC’s financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.73 |
|
UK Pound |
1 |
Rs.87.26 |
|
Euro |
1 |
Rs.69.89 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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 |
|
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 |
|
---- |
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.