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Report Date : |
22.11.2012 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG RUNTU CO., LTD. |
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Registered Office : |
Runtu Mansion, No. 1 Building, Fortune Plaza, No. 1009 Shimin
Road Shangyu, Zhejiang Province 312300 Pr |
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Country : |
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Financials (as on) : |
30.09.2012 |
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Date of Incorporation : |
14.05.1998 |
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Com. Reg. No.: |
330000000043601 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in researching, developing, manufacturing and
selling textile dyes, dyeing and printing auxiliaries, and chemical raw
materials. |
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No. of Employees : |
3,436 |
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RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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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 (31.03.2011) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
|
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 |
ZHEJIANG RUNTU CO.,
LTD.
RUNTU MANSION, NO. 1
BUILDING, FORTUNE PLAZA, NO. 1009 SHIMIN ROAD
SHANGYU, ZHEJIANG PROVINCE
312300 PR CHINA
TEL: 86 (0)
575-82519218/81289819
FAX: 86 (0)
575-82519111/82045165
Date of Registration : MAY 14, 1998
REGISTRATION NO. : 330000000043601
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
RUAN JIAGEN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 383,500,000
staff :
3,436
BUSINESS CATEGORY : manufacturing & TRADING
REVENUE :
CNY 2,659,693,000 (CONSOLIDATED, JAN. 1, 2012 TO SEP. 30,
2012)
EQUITIES :
CNY 4,237,568,000 (CONSOLIDATED,
AS OF SEP. 30, 2012)
WEBSITE : www.runtuchem.com
E-MAIL :
runtu@runtuchem.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : fairly 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
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
***Note: SC’s
headquarters address should be the heading one, while SC’s factory locates in
the given address (Daoxu Town, Shangyu, Zhejiang Province).
SC was established as a limited liabilities company of PRC on May 14,
1998. However, SC changed to present legal form, and was registered as a Shares
limited company of PRC with State Administration for Industry & Commerce
(SAIC) under registration No.: 330000000043601
on December 16, 2004.
SC’s Organization Code Certificate No.:
14618323-3
SC’s Tax No.: 330682146183233
SC’s registered capital: CNY 383,500,000
SC’s paid-in capital: CNY 383,500,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Company Name |
Zhejiang Runtu Chemical Industrial Group Co., Ltd. |
Zhejiang Runtu Co., Ltd. |
|
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
|
|
Registration No. |
3300001011049 |
330000000043601 |
|
|
Registered Capital |
CNY 221,180,000 |
CNY 295,000,000 |
|
|
Registered Capital |
CNY 295,000,000 |
CNY 383,500,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of June 30, 2012) |
% of Shareholding |
|
Ruan Jiagen |
35.18 |
|
Ruan Jiachun |
9.64 |
|
Ruan Jingbo |
3.39 |
|
Zhang Aijuan |
2.71 |
|
Ruan Hualin |
2.46 |
|
Ruan Xingxiang |
2.44 |
|
Shangyu Huilian Investment Consulting Co., Ltd. |
1.97 |
|
Xu Wanfu |
1.79 |
|
Ruan Yuncheng |
1.36 |
|
Ruan Jiming |
1.26 |
|
Other Shareholders |
37.8 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Ruan Jiagen |
|
Vice Chairman and General Manager |
Ruan Jiachun |
|
Independent Director |
Zhao Wanyi |
|
Huang Weixing |
|
|
Zhang Tianfu |
|
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Director |
Ruan Jiagen |
|
Zhao Guosheng |
|
|
Ruan Hualin |
|
|
Ruan Xingxiang |
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|
Xu Wanfu |
|
|
Ruan Jiachun |
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002440.
SC has passed ISO9001:2000 and ISO14001:2004 and acceptance check of Zhejiang
provincial clean production unit.
Name %
of Shareholding
(As of June 30, 2012)
----------------------------------
Ruan Jiagen 35.18
Ruan Jiachun 9.64
Ruan Jingbo 3.39
Zhang Aijuan 2.71
Ruan Hualin 2.46
Ruan Xingxiang 2.44
Shangyu Huilian Investment Consulting Co., Ltd. 1.97
Xu Wanfu 1.79
Ruan Yuncheng 1.36
Ruan Jiming 1.26
Other Shareholders 37.8
Shangyu Huilian Investment Consulting Co., Ltd.
-----------------------------------------------------------------
Registration No.: 330682000113976
Legal Form: Limited Liabilities Company
Registered Capital: CNY 5,814,354
Legal Representative: Xiang Dong
Ruan Jiagen, Legal
Representative and Chairman
----------------------------------------------------------------------------
Gender: M
Age: 52
Qualification: University
Senior Economist
Working experience (s):
At present, working in SC as legal representative and chairman
Also working in Zhejiang Runtu Real Estate Development Co., Ltd., Runtu
Holding Group Co., Ltd., Shangyu Runtu Packaging Products Co., Ltd. as legal
representative
As director of SC
Ruan Jiachun, Vice
Chairman and General Manager
--------------------------------------------------------------------------------
Gender: M
Age: 49
Qualification: University
Senior Economist
Working experience (s):
At present, working in SC as vice chairman and general manager
Also as director of SC
Independent
Directors
-----------------------------
Zhao Wanyi
Huang Weixing
Zhang Tianfu
Directors
------------
Zhao Guosheng
Ruan Hualin
Ruan Xingxiang
Xu Wanfu
SC’s registered business scope includes non-storage wholesaling sodium
hydrosulfite (valid until Apr. 25, 2015); manufacturing dyes, pigments,
chemical additives (excluding dangerous chemicals and precursor chemicals),
water reducing agent, and plastic products; selling chemicals (excluding
dangerous chemicals and precursor chemicals), hardware products and plastic
products; import and export business (excluding the items limited or prohibited
by state).
SC is mainly engaged in researching, developing, manufacturing and
selling textile dyes, dyeing and printing auxiliaries, and chemical raw
materials.
Main Products: disperse dyes, high fastness disperse dyes, reactive
dyes, cationic dyes, vat dyes, intermediates, dyeing and printing auxiliaries,
sodium hydrosulfite, efficient water reducer, etc.
(According to SC’s website) SC has internationally advanced sealed and
automatic dyestuff production line, which has annual production capacity of
more than 150,000 tons. It annually produces disperse dyestuff of 100,000 tons
and reactive dyestuff of 30,000 tons.
The trademarks of products are "RUNTU", "LONGYU" and
"DRAGONPERS".
SC sources its materials 80% from domestic market, and 20% from overseas
market. SC sells 90% of its products in domestic market, and 10% to overseas
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.
Main customers:
-------------------
Shangyu Dongda Dyes Trading Co., Ltd.
Shangyu Kexin Chemical Co., Ltd.
Main suppliers:
------------------
Jiangsu Yuanzheng Chemical Co., Ltd.
Ningxia Mingsheng Dye Chemical Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 3,436
staff at present.
SC owns an area as its operating office, but the detailed information is
unknown.
SC’s factory is located in Daoxu Town, Shangyu, Zhejiang Province.
According to SC’s website, SC covers an area of more than 1,800,000 square
meters.
Zhejiang Runtu Real Estate Development Co., Ltd.
Runtu Holding Group Co., Ltd.
Shangyu Runtu Packaging Products Co., Ltd.
SC is known to
have the following subsidiaries:
Zhejiang Jiacheng Chemical Co., Ltd.
Zhejiang Dibang Chemical Co., Ltd.
Zhejiang Ruihua Chemical Co., Ltd.
Runtu International Limited (Hong Kong)
Zhejiang Runtu Dyes Co., Ltd.
Jiangsu Helirui Technology Development Co., Ltd.
Jiangsu Mingsheng Chemical Co., Ltd.
Yorkshire Chemicals Holdings Limited (Hong Kong)
Etc.
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’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.
The bank information of SC is not filed in local SAIC.
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Jun. 30, 2012 |
As
of Sep. 30, 2012 |
|
1,483,288 |
1,460,109 |
1,309,607 |
|
|
Trading
financial assets |
0 |
0 |
10,000 |
|
Accounts receivable |
684,632 |
955,959 |
988,659 |
|
Notes receivable |
652,963 |
549,971 |
579,464 |
|
Advances to suppliers |
64,385 |
64,218 |
74,848 |
|
Other receivable |
37,423 |
25,309 |
43,129 |
|
Interest receivable |
28,773 |
29,156 |
11,267 |
|
Inventory |
767,374 |
784,503 |
762,487 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
24,000 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
3,742,838 |
3,869,225 |
3,779,461 |
|
Real estate investment |
0 |
9,878 |
9,503 |
|
Fixed assets |
1,010,471 |
1,029,733 |
1,034,612 |
|
Construction in progress |
118,247 |
108,820 |
123,492 |
|
Intangible assets |
158,005 |
155,997 |
122,320 |
|
Long-term investments |
1,800 |
1,800 |
1,800 |
|
Goodwill |
31,468 |
31,468 |
31,468 |
|
Long-term deferred expense |
11,952 |
11,964 |
11,594 |
|
Deferred income tax assets |
13,441 |
12,309 |
12,398 |
|
Other non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
5,088,222 |
5,231,194 |
5,126,648 |
|
|
============= |
============= |
============= |
|
Short-term loans |
418,717 |
292,450 |
195,124 |
|
Notes payable |
25,000 |
289,340 |
291,544 |
|
Accounts payable |
316,589 |
204,459 |
243,262 |
|
Payroll payable |
30,984 |
20,880 |
19,983 |
|
Taxes payable |
40,871 |
34,467 |
24,774 |
|
Interest payable |
1,403 |
183 |
117 |
|
Dividends payable |
583 |
583 |
0 |
|
Advances from clients |
18,475 |
20,037 |
17,944 |
|
Other payable |
61,345 |
38,944 |
74,540 |
|
Other current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
913,967 |
901,343 |
867,288 |
|
Non-current liabilities |
20,462 |
21,792 |
21,792 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
934,429 |
923,135 |
889,080 |
|
Equities |
4,153,793 |
4,308,059 |
4,237,568 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
5,088,222 |
5,231,194 |
5,126,648 |
|
|
============= |
============= |
============= |
Consolidated Income
Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
Jan.
1, 2012 to Jun. 30, 2012 |
Jan.
1, 2012 to Sep. 30, 2012 |
|
Revenue |
3,066,280 |
1,820,508 |
2,659,693 |
|
Cost of sales |
2,142,736 |
1,379,788 |
2,007,567 |
|
Business Taxes and Surcharges |
14,244 |
8,479 |
12,452 |
|
Sales expense |
79,594 |
62,596 |
87,761 |
|
Management expense |
251,516 |
150,237 |
228,617 |
|
Finance expense |
-2,126 |
7,628 |
-2,563 |
|
Asset impairment loss |
23,923 |
18,115 |
28,744 |
|
Investment income |
9,926 |
3,442 |
424 |
|
Non-operating income |
16,008 |
8,474 |
12,628 |
|
Non-operating expense |
7,523 |
5,109 |
6,562 |
|
Profit before tax |
574,805 |
200,471 |
303,606 |
|
Less: profit tax |
91,569 |
46,246 |
66,293 |
|
483,236 |
154,225 |
237,313 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Jun. 30, 2012 |
As
of Sep. 30, 2012 |
|
*Current ratio |
4.10 |
4.29 |
4.36 |
|
*Quick ratio |
3.26 |
3.42 |
3.48 |
|
*Liabilities to assets |
0.18 |
0.18 |
0.17 |
|
*Net profit margin (%) |
15.76 |
8.47 |
8.92 |
|
*Return on total assets (%) |
9.50 |
2.95 |
4.63 |
|
*Inventory / Revenue ×365/180/270 |
92 days |
78 days |
78 days |
|
*Accounts receivable/ Revenue ×365/180/270 |
82 days |
95 days |
101 days |
|
* Revenue/Total assets |
0.60 |
0.35 |
0.52 |
|
* Cost of sales / Revenue |
0.70 |
0.76 |
0.75 |
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
The short-term loans of SC appear average.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
SC is considered large-sized in its line with fairly good financial
conditions. Taking into consideration of SC’s general performance, reputation
as well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.20 |
|
|
1 |
Rs.87.79 |
|
Euro |
1 |
Rs.70.42 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.