MIRA
INFORM REPORT
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Report Date : |
08.11.2012 |
IDENTIFICATION DETAILS
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Name : |
QUZHOU JIANHUA DONGXU AGENT
CO., LTD. |
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Registered Office : |
No. 16, Lvyin Road, High-Tech Park Zone, Quzhou, Zhejiang Province 324012 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
12.09.2007 |
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Com. Reg. No.: |
330800000003710 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling tin methyl heat stabilizer. |
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No. of Employees : |
82 |
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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 – 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
QUZHOU
JIANHUA DONGXU AGENT CO., LTD.
NO. 16, LVYIN ROAD,
HIGH-TECH PARK ZONE,
QUZHOU, ZHEJIANG
PROVINCE 324012 PR CHINA
TEL: 86 (0)
570-8598690 FAX: 86 (0) 570-8598691
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 12, 2007
REGISTRATION NO. : 330800000003710
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
82
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 135,190,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 6,170,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.24= 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 co. at local
Administration for Industry & Commerce (AIC - The official body of issuing and
renewing business license) on Sep. 12, 2007.
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 manufacturing and selling 181 tin methyl
heat stabilizer; importing and exporting commodities. (with permit if needed)
SC is mainly
engaged in manufacturing and selling tin methyl heat stabilizer.
Mr. Xu
Guoliang is legal representative and
chairman of SC at present.
SC is known to
have approx. 82 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the high-tech park zone of Quzhou.
Our checks reveal that SC rents the total premise, but the gross area of the
premise is unspecific.
http://www.china181.com/
The design is professional and the content is well organized. At present the
web site is in Chinese and English versions.
E-mail: dongxu@china181.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Zhejiang Jianhua Group Co., Ltd. 55
Xu Guoliang 15
Qian Zhilong 15
Tang Jiyuan 15
Zhejiang Jianhua Group Co., Ltd.
=========================
Registered no.: 330105000045107
Establishment date:
Legal representative: Xu Ronggen
Add: No. 2, Shenban Road, Hangzhou, Zhejiang
Province
Tel: 0571-28822222
Fax: 0571-88022222
Web: http://www.zjjh.com/
Email: jh@zjjh.com
l
Legal representative and Chairman:
Mr. Xu Guoliang 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 Jianhua Group Shengtai
Plastic Co., Ltd. as legal representative.
SC is mainly
engaged in manufacturing and selling tin methyl heat stabilizer.
SC’s products mainly include Methyltin Mercaptide, Methyl Tin Organic Acid,
Composite Heat Stabilizer for PVC Pipe, etc.
SC sources its
materials 100% from domestic market. SC sells 20% of its products in domestic
market and 80% to overseas market.
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.
Note:
SC declined to release its major suppliers and clients.
Zhejiang Jianhua Group Shengtai Plastic Co., Ltd.
====================================
Registered no.: 330184000085437
Establishment date:
Legal representative: Xu Guoliang
According
to SC’s website:
Hangzhou
Sales Department
====================
Add:
No. 2, Shenban Road, Hangzhou, Zhejiang Province
Tel:
86-571-88283333
Fax:
86-571-88028105
E-mail:
hzdongxu@china181.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 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.
SC’s accountant
refused to release the bank details.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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Cash & bank |
5,690 |
2,670 |
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Inventory |
18,480 |
11,610 |
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Accounts
receivable |
13,510 |
22,800 |
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Other
receivables |
710 |
0 |
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Other current
assets |
2,100 |
2,240 |
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------------------ |
------------------ |
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Current assets |
40,490 |
39,320 |
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Fixed assets net
value |
6,850 |
770 |
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Long term
investment |
0 |
0 |
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Projects under
construction |
0 |
0 |
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Intangible and
other assets |
0 |
6,990 |
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Total assets |
47,340 |
47,080 |
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Short loan |
0 |
0 |
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Accounts payable |
11,490 |
7,990 |
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Bills payable |
17,000 |
5,200 |
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Taxes payable |
150 |
100 |
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Other Accounts
payable |
13,230 |
27,590 |
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Other current
liabilities |
30 |
30 |
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------------------ |
------------------ |
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Current
liabilities |
41,900 |
40,910 |
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Long term
liabilities |
0 |
0 |
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Total
liabilities |
41,900 |
40,910 |
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Equities |
5,440 |
6,170 |
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Total
liabilities & equities |
47,340 |
47,080 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2011 |
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Turnover |
135,190 |
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Cost of goods sold |
128,210 |
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Sales expense |
1,890 |
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Management expense |
2,350 |
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Finance expense |
1,330 |
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Profit before tax |
1,210 |
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Less: profit tax |
160 |
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Profits |
1,050 |
Important
Ratios
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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*Current ratio |
0.97 |
0.96 |
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*Quick ratio |
0.53 |
0.68 |
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*Liabilities
to assets |
0.89 |
0.87 |
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*Net profit
margin (%) |
/ |
0.78 |
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*Return on
total assets (%) |
/ |
2.23 |
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*Inventory
/Turnover ×365 |
/ |
32 days |
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*Accounts receivable/Turnover
×365 |
/ |
62 days |
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*Turnover/Total
assets |
/ |
2.87 |
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* Cost of
goods sold/Turnover |
/ |
0.95 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in 2011.
l
SC’s net profit margin is average in 2011.
l
SC’s return on total assets is average in 2011.
l
SC’s cost of goods sold is high, comparing with its
turnover in 2011.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average in
2010 but fairly large in 2011.
l
SC has no short-term loan in both years.
l
SC’s turnover is in an average level, comparing with
the size of its total assets in 2011.
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 could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.25 |
|
|
1 |
Rs.87.00 |
|
Euro |
1 |
Rs.69.83 |
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 |
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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.