MIRA
INFORM REPORT
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Report Date : |
06.09.2012 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG XINNONG CHEMICAL CO., LTD. |
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Registered Office : |
Sanlixi, Yangfu, Xianju County, Taizhou City
Zhejiang Province, 317306 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
28.12.2005 |
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Com. Reg. No.: |
3300001011712 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling chemical pesticide, pharmaceutical raw
materials, and intermediates |
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No. of Employees : |
730 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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) |
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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.
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Source : CIA |
Company name & address
ZHEJIANG XINNONG CHEMICAL
CO., LTD.
sanlixi, YANGFU,
xianju county, taizhou city
zhejiang province, 317306 PR CHINA
TEL: 86 (0)
576-87733616/87733612 FAX: 86 (0)
576-87733619
EXECUTIVE SUMMARY
INCORPORATION DATE : Dec.
28, 2005
REGISTRATION NO. : 3300001011712
REGISTERED LEGAL FORM : shares limited company
STAFF STRENGTH :
730
REGISTERED CAPITAL : cny
45,500,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 451,010,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 106,260,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.35 = 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 Ren Min Bi
SC was registered as a shares limited company at Zhejiang
Provincial Administration for Industry & Commerce (The official body of issuing
and renewing business license) on December 28, 2005.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The
board of directors must consist of five to nineteen directors. If the co. raises capital by public
offer, the promoters must not subscribe less than 35% of the total shares.
the promoters’ shares are restricted to transfer- within one year of the
offer. A
state-owned enterprise that is restructured into a shares limited co. must
comply with the conditions & requirements specified under the law &
administrative rule.
SC’s
registered business scope includes manufacturing, processing and selling chemical
pesticide, intermediates, pharmaceutical raw materials, international trade,
and technical consultation service.
SC is
mainly engaged in manufacturing and selling chemical pesticide, pharmaceutical raw
materials, and intermediates.
Mr. Xu Qunhui has
been legal representative and general manager of SC since 2005.
SC is known to
have approx. 730 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 Xianju
County. Our checks reveal that SC owns the total premise about 200,000 square
meters.
http://www.xnchem.com/ The design is professional and the content is
well organized. At present, the web is in both Chinese and English versions.
E-mail: xnxz@xnchem.com
; sales@xnchem.com
wards
& Achievements:
Awards & Achievements 
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Xinhui Investment Co., Ltd. (in Chinese Pinyin) 70.0
Xianju Huizhong Industrial Trade Co., Ltd. (in Chinese Pinyin) 8.0
Xu Qunhui 9.0
Jiang Weimin 9.0
Xu Zhenyuan 1.0
Zhang Weilan 1.0
Wang Zhanqin 0.5
Tong Xianming 0.5
Zhang Jianrong 0.5
Dai Jingui 0.5
Zhejiang Xinhui Investment Co., Ltd. (in Chinese Pinyin)
========================================
Legal representative: Xu Yuexing
Registration No.: 330100000082547
Incorporation date: Aug. 4, 2005
Address: Room 202, 8# Building,
Huangqinyuan, Xiacheng District, Hangzhou, Zhejiang Province
Tel: 86 0571-87216670/87223148
Xianju Huizhong Industrial Trade Co., Ltd. (in Chinese Pinyin)
=============================================
Legal representative: Liang Zheng
Registration No.: 331024000020643
Incorporation date: Aug. 23, 2005
Address: No. 21 West Chengbei Road, Xianju
County, Taizhou City, Zhejiang Province
Tel: 86 0576-7733689
Chairman:
Mr. Xu Yuexing, born in 1948, he is currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working in SC as chairman
Legal
Representative and General Manager:
Mr. Xu Qunhui, born in 1971, with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working in SC as legal
representative and general manager;
Also working in Zhejiang Xinnong Chemical Co., Ltd. Taizhou Xinnong Fine Chemical Factory as principal, working in Hangzhou Zheda Xinnong Pesticide Science and Technology Co., Ltd. as legal representative.
SC is
mainly engaged in manufacturing and selling chemical pesticide, pharmaceutical raw
materials, and intermediates.
SC’s products mainly include: chemical pesticide,
biological pesticide, intermediates of pharmaceutical, dye and pesticide, fine
chemicals, etc.
SC sources its materials 100%
from domestic market, mainly Zhejiang. SC sells 20% of its
products in domestic market, mainly Zhejiang, and 80% to overseas market,
mainly Pakistan and India.
The buying terms
of SC include T/T and Credit of 30-60 days. The payment terms of SC include
T/T, L/C and Credit of 30-60 days.
*Major Supplier:
=============
Zhejiang
Xinnong Chemical Co., Ltd. Taizhou Xinnong Fine Chemical Factory
*Major Customer:
==============
Taizhou Suzhong Agricultural Development Co., Ltd.
SC is known to have 3 subsidiaries and an office at present:
Zhejiang
Xinnong Chemical Co., Ltd. Taizhou Xinnong Fine Chemical Factory
Hangzhou Zheda Xinnong Pesticide Science and Technology Co., Ltd.
Zhejiang Xinnong Import and Export Co., Ltd.
Hangzhou Office
Address: 18/F Richful International Trade Plaza, No. 258 Zhonghe (M)
Road, Hangzhou, Zhejiang Province
Tel: 86 0571-87223148
Fax: 86 0571-87243169
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 records 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.
China
Construction Bank
AC#33001667535056088888
Relationship:
Normal.
Balance Sheet
|
Unit: CNY’000 |
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
Cash & bank |
45,110 |
55,680 |
|
Inventory |
49,830 |
48,500 |
|
Accounts
receivable |
40,590 |
54,790 |
|
Advances to
suppliers |
3,260 |
2,550 |
|
Notes receivable |
8,010 |
1,620 |
|
Other Accounts
receivable |
8,520 |
11,410 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
155,320 |
174,550 |
|
Fixed assets net
value |
52,740 |
52,580 |
|
Projects under
construction |
3,630 |
4,730 |
|
Long term
investment |
60,780 |
60,780 |
|
Intangible
assets |
10,370 |
10,910 |
|
Long-term
prepaid expenses |
0 |
870 |
|
Other assets |
1,830 |
1,240 |
|
|
------------------ |
------------------ |
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Total assets |
284,670 |
305,660 |
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|
============= |
============= |
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Short loans |
125,000 |
137,840 |
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Accounts payable |
8,440 |
37,850 |
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Notes payable |
26,000 |
44,050 |
|
Advances from
clients |
160 |
10 |
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Salaries and
welfare payable |
1,260 |
2,630 |
|
Other Accounts
payable |
1,790 |
1,100 |
|
Tax payable |
-1,160 |
-600 |
|
Other current
liabilities |
-490 |
-47,530 |
|
|
------------------ |
------------------ |
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Current
liabilities |
161,000 |
175,350 |
|
Long term
liabilities |
24,260 |
0 |
|
Other
liabilities |
0 |
24,050 |
|
|
------------------ |
------------------ |
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Total liabilities |
185,260 |
199,400 |
|
Equities |
99,410 |
106,260 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
284,670 |
305,660 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
|
Turnover |
323,600 |
451,010 |
|
Cost of goods sold |
251,830 |
341,990 |
|
Taxes and additional of main
operation |
840 |
1,320 |
|
Sales expense |
23,280 |
22,010 |
|
Management expense |
37,330 |
53,480 |
|
Finance expense |
10,300 |
8,750 |
|
Investment
income |
1,580 |
360 |
|
Non-operating
income |
4,990 |
4,580 |
|
Non-operating expense |
1,140 |
1,130 |
|
Other income |
400 |
0 |
|
Profit before
tax |
5,850 |
27,270 |
|
Less: profit tax |
1,450 |
4,120 |
|
Profits |
4,400 |
23,150 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
0.96 |
1.00 |
|
*Quick ratio |
0.66 |
0.72 |
|
*Liabilities
to assets |
0.65 |
0.65 |
|
*Net profit
margin (%) |
1.36 |
5.13 |
|
*Return on
total assets (%) |
1.55 |
7.57 |
|
*Inventory
/Turnover ×365 |
57 days |
40 days |
|
*Accounts
receivable/Turnover ×365 |
46 days |
45 days |
|
*Turnover/Total
assets |
1.14 |
1.48 |
|
* Cost of
goods sold/Turnover |
0.78 |
0.76 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line
in both years, and appears a rising trend.
l
SC’s net profit margin is average in 2010, and
fairly good in 2011.
l
SC’s return on total assets is average in 2010, and
fairly good in 2011.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover.
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 is maintained in an average
level in both years.
l
The accounts receivable of SC is maintained in an
average level in both years.
l
The short-term loan of SC appears large in both
years.
l
SC’s turnover is in an average level in both years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC
is considered medium-sized in its line with fairly stable financial conditions.
The large amount of short-term loan could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.89 |
|
UK Pound |
1 |
Rs.88.63 |
|
Euro |
1 |
Rs.70.03 |
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.