MIRA
INFORM REPORT
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Report Date : |
23.10.2012 |
IDENTIFICATION DETAILS
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Name : |
TONGXIANG HONGYU
CHEMICAL CO., LTD. |
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Registered Office : |
Room 301, Building 1, North Of Maodun Road, Wutong Street, Tongxiang,
Zhejiang Province, 314500 Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
26.03.2008 |
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Com. Reg. No.: |
330483000017889 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling chemical raw materials and products. |
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No. of Employees : |
6 |
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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 : |
Slow |
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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
TONGXIANG HONGYU CHEMICAL
CO., LTD.
ROOM 301, BUILDING 1, NORTH OF MAODUN ROAD,
WUTONG STREET, TONGXIANG, ZHEJIANG province, 314500 PR CHINA
TEL: 86 (0) 573-88078999/13758328996 FAX: 86 (0) 573-88521508/88020187
EXECUTIVE SUMMARY
INCORPORATION DATE : march 26, 2008
REGISTRATION NO. : 330483000017889
REGISTERED LEGAL FORM : Limited liabilities
company
chief executive :
MR. hu jianxiang (CHAIRMAN)
STAFF STRENGTH :
6
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 19,490,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 670,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.25 = 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 March 26, 2008.
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 selling chemical raw materials and
products (excluding hazardous chemicals and precursor chemicals), textile raw
materials and products (excluding acquisition of cotton, Fresh Cocoon),
building materials, building decoration materials (excluding hazardous
chemicals and precursor chemicals), hardware, shoes and hats, knitwear,
bedding, leather products; importing and exporting commodities and technology.
SC is mainly engaged in selling chemical raw materials and products.
Mr. Hu Jianxiang is legal representative, chairman and general manager
of SC at present.
SC is known to have approx. 6 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in Tongxiang. SC’s employee refused to release the detailed information of the premise.
Note: SC also has the other operating office located at Room 428,
Xianglong Building, Zhenxing East Road, Tongxiang, Zhejiang Province
http://www.hyfoodchem.com/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: gemini.davel@gmail.com
Qualifications:
SC has passed ISO 9001: 2000.
Tax Registration Certificate No.: 330483673850704
Note: The given vat No. (330483673830704) is wrong.
No significant changes were found during our checks with the local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hu Minxia 25
Hu Jianxiang 75
Legal
representative, chairman and general manager:
Mr. Hu Jianxiang is currently responsible for the overall management of
SC.
Working Experience(s):
At present
Working in SC as legal representative, chairman and general manager.
Supervisor:
Hu Minxia
SC is mainly engaged in selling chemical raw materials and products.
SC’s products mainly include: Cobalt Oxide, Sodium Saccharin, Ascorbic
Acid, Zinc Gluconate, Inositol, Gluconic Acid, Sodium Gluconate, Ferrous
Gluconate, Calcium Gluconate, Glucono-Delta-Lactone, etc.
SC sources its materials 100% from domestic market. SC sells 100% of its
products 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’s
management refused to release its main suppliers and clients.
SC is not known to have any subsidiary at present.
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 declined to release its banking details.
Financial Summary
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Unit: CNY’000
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As
of Dec. 31, 2011 |
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Current assets |
5,560 |
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Fixed assets net value |
100 |
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Total assets |
5,660 |
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========= |
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Current liabilities |
4,990 |
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Long term liabilities |
0 |
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Total liabilities |
4,990 |
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Equities |
670 |
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Total liabilities & equities |
5,660 |
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========= |
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Turnover |
19,490 |
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Cost of goods sold |
18,410 |
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Profit before tax |
-290 |
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Less: profit tax |
0 |
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Profits |
-290 |
Note:
we did not find SC’s detailed financial reports for Yr 2011.
Important Ratios
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As
of Dec. 31, 2011 |
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*Current ratio |
1.11 |
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*Liabilities to assets |
0.88 |
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*Net profit margin (%) |
-1.49 |
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*Return on total assets (%) |
-5.12 |
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*Turnover/Total assets |
3.44 |
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* Cost of goods sold/Turnover |
0.94 |
PROFITABILITY:
FAIR
The turnover of SC appears average in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.67 |
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1 |
Rs.86.04 |
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Euro |
1 |
Rs.70.06 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.