MIRA
INFORM REPORT
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Report Date : |
30.10.2012 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG HUAKE FINE CHEMICALS CO., LTD. |
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Registered Office : |
Huake
Industrial Zone, Longgang
Plastics-Weaving Industrial Zone, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
03.12.1997 |
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Com. Reg. No.: |
330327000019380 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is
engaged in manufacturing, processing and selling pearl pigment, pearl powder |
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No. of Employees : |
158 employees |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 but Correct |
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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 (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
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.
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Source : CIA |
Company name & address
ZHEJIANG HUAKE FINE CHEMICALS CO., LTD.
HUAKE INDUSTRIAL ZONE
LONGGANG PLASTICS-WEAVING INDUSTRIAL ZONE
CANGNAN county, WENZHOU, ZHEJIANG PROVINCE 310003 PR CHINA
TEL: 86 (0)
577-64359666/64359608/13750917733
FAX: 86 (0)
577-64359822/64359588
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 3, 1997
REGISTRATION NO. : 330327000019380
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL : CNY 8,880,000
staff : 158
BUSINESS CATEGORY :
manufacturing & processing & trading
Revenue : CNY 40,200,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 6,020,000 (AS OF DEC. 31, 2011)
WEBSITE : www.huakepigment.com
E-MAIL :
lxg88481350@yahoo.com
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.24 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
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
LEGAL STATUS & HISTORY
***Note: The given telephone number (0086 577
6435000) is not complete.
SC was
established as a limited liability company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 330327000019380
on December 3, 1997.
SC’s Organization Code Certificate No.:
25468666-3
SC’s Tax No.: 330327254686663
SC’s registered capital: CNY 8,880,000
SC’s paid-in capital: CNY 8,880,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
-- |
Registration No. |
3303271005114 |
330327000019380 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wu Changjin |
73 |
|
Wu Changzi |
27 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Wu Changjin |
|
Supervisor |
Wu Changzi |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Wu Changjin 73
Wu Changzi 27
MANAGEMENT
Wu Changjin , Legal Representative, Chairman and General
Manager
------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 330326196605041432
Ø
Age: 46
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Wu Changzi, Supervisor
--------------------------------------------
Ø
Gender: M
Ø
ID# 330326196807121414
Ø
Age: 44
Ø
Qualification:
University
BUSINESS
OPERATION
SC’s registered business
scope includes manufacturing, processing and selling pearl pigment, plastic
products, mica products; selling pearl pigment, mica raw materials; importing
and exporting (with permits if needed) .
SC is mainly
engaged in manufacturing, processing and selling pearl pigment, pearl powder.
SC’s
products mainly include: pearl pigment, pearl powder.
SC sources its materials 100%
from domestic market. SC sells 70% of its products in domestic market, and 30%
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.
Staff & Office:
--------------------------
SC is
known to have approx. 158 staff
at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
PAYMENT
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 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.
BANKING
Basic Bank:
Zhejiang Cangnan Rural Cooperative Bank Longgang Sub-branch
AC#:
201000021082127
Bank of China
Cangnan Sub-branch Longyue Office
AC#:
355858333110
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
4,040 |
9,570 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
17,220 |
11,140 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
10,080 |
470 |
|
Inventory |
12,170 |
16,880 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
610 |
4,210 |
|
|
------------------ |
------------------ |
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Current assets |
44,120 |
42,270 |
|
Fixed assets |
7,220 |
6,160 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
1,280 |
1,280 |
|
|
------------------ |
------------------ |
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Total assets |
52,620 |
49,710 |
|
|
============= |
============= |
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Short-term loans |
35,000 |
32,700 |
|
Notes payable |
8,000 |
11,000 |
|
Accounts payable |
1,660 |
-460 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
0 |
0 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
80 |
80 |
|
Other current
liabilities |
670 |
370 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
45,410 |
43,690 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
45,410 |
43,690 |
|
Equities |
7,210 |
6,020 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
52,620 |
49,710 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
40,200 |
|
Cost of sales |
33,890 |
|
Sales expense |
1,440 |
|
Management expense |
3,880 |
|
Finance expense |
1,700 |
|
Profit before
tax |
-934 |
|
Less: profit tax |
126 |
|
-1,060 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
0.97 |
0.97 |
|
*Quick ratio |
0.70 |
0.58 |
|
*Liabilities
to assets |
0.86 |
0.88 |
|
*Net profit
margin (%) |
-- |
-2.64 |
|
*Return on
total assets (%) |
-- |
-2.13 |
|
*Inventory /
Revenue ×365 |
-- |
154 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
102 days |
|
*
Revenue/Total assets |
-- |
0.81 |
|
* Cost of
sales / Revenue |
-- |
0.84 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
average 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 sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair level
in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears fairly large.
l
The short-term loans of SC appear large.
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is high in both years.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair
financial conditions. The large amount of inventory & accounts
receivable & short-term loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.81 |
|
UK Pound |
1 |
Rs.86.52 |
|
Euro |
1 |
Rs.69.50 |
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.