MIRA
INFORM REPORT
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Report Date : |
07.09.2012 |
IDENTIFICATION DETAILS
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Name : |
NINGBO LONGXIN FINE
CHEMICAL CO., LTD. |
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Registered Office : |
No. 189, Fengxiang Road, Chemical Industrial Zone, Ningbo, Zhejiang Province 315204 Pr |
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Country : |
China |
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Date of Incorporation : |
31.12.2001 |
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Com. Reg. No.: |
330200400030586 |
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Legal Form : |
Chinese-Foreign Contractual Joint Venture Enterprise |
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Line of Business : |
Manufacturing and selling chemical products |
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No. of Employees : |
200 |
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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 : |
Unknown |
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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
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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.
Source
: CIA
Company name and address
NINGBO LONGXIN FINE CHEMICAL CO., LTD.
NO. 189, FENGXIANG
ROAD, CHEMICAL INDUSTRIAL ZONE,
NINGBO, ZHEJIANG
PROVINCE 315204 PR CHINA
TEL: 86 (0) 574-86505090/28872667 FAX: 86 (0) 574-28872666
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 31, 2001
REGISTRATION NO. :
330200400030586
REGISTERED LEGAL FORM : CHINESE-FOREIGN CONTRACTUAL JOINT
VENTURE ENTERPRISE
STAFF STRENGTH :
200
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
N/A
EQUITIES :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : N/A
OPERATIONAL TREND : FAIRLY 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 Renminbi
SC was registered as a Chinese-foreign contractual joint venture
enterprise at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on Dec. 31, 2001.
Company Status: Chinese-foreign contractual joint venture
enterprise This form of business in PR China is
defined as a legal person. It is a limited co. jointly invested by one or
more foreign companies and one or more PR China controlled companies within
the territories of PR China. The investing parties are free to agree on the
proportion of profit and product distribution and liabilities bearing
according to the provisions of the contract. If the ownership of all fixed
assets is to be given to the Chinese party upon expiration of the term of
cooperation as agreed upon by the Chinese and foreign parties in the
contract, the foreign party may recover its investment during the term of
cooperation according to the provisions of the contract. The foreign party
may recover its investment before the venture has paid its income tax upon
examination and approval of the finance and tax authorities according to
State taxation regulations. In case the foreign party recovers its
investment within the term of cooperation according to the above
paragraphs, the foreign and Chinese parties shall be liable to the debts of
the venture in accordance with laws and the contract. The joint venture
usually has a limited duration of 10 to 50 years.
SC’s registered business scope includes manufacturing and processing dye
and organic intermediates (excluding hazardous chemicals).
SC is mainly engaged in manufacturing and selling
chemical products.
Zhou
Anjing is the legal representative and
chairman of SC at present.
SC is known
to have approx. 200 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 Ningbo. The
detailed premise information is unknown.
http://www.chinadyechem.com/ The design is professional and the content is
well organized. At present the web site is in Chinese and English versions.
Email: nblx@chinadyechem.com
; ln@longxinchem.cn
Qualification:
● National high-tech enterprises, the provincial-level high-tech R &
D center
● Advanced technology enterprises with foreign investment
● Advanced manufacturing enterprises of Ningbo,
● Safety standards standardized enterprises of Ningbo
● Blue green enterprises of Ningbo
● Passed ISO9001 and ISO14001 certification
MAIN SHAREHOLDERS:
Name % of Shareholding
Hong Kong Power Foundation Shares Limited 64.17
Zhou Anjing 25
Zhou Weiliang 1
Huang Zhaolong 4
Zhou Jianjun 3.33
Ningbo Longxin Dyestuff Chemical Co., Ltd. 2.5
Hong Kong Power Foundation Shares Limited
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Registration No. : 1657144
Legal Form: Private
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Legal Representative and Chairman:
Zhou Anjing is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and
chairman.
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Vice chairman:
Huang Zhaolong
Wu Jianwen
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Supervisor:
Zhou Weiwei
Note: The given contact person Ms. Rebecca is SC’s employee.
SC is mainly engaged in manufacturing and
selling chemical products.
SC’s products mainly include: acid dyes, solvent dyes,
intermediates, etc.
SC sources its
materials 60% from domestic market and 40% from overseas market. SC sells 70%
of its products in domestic market and 30% 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 T/T, L/C, Check and Credit of 30-60 days.
Note: SC declined
to release its major suppliers and clients.
SC is not known to have the 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’s management declined to release whether it has account in Bank of
China.
SC’s management declined to release any financial information.
Investigations were made with the local AIC, but the financial records were
not available.
SC is considered medium-sized in its line with a development history of
11 years. Due to lack of financial status, we are unable to recommend accurate
credit limit for SC.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.55.97 |
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1 |
Rs.89.02 |
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Euro |
1 |
Rs.70.61 |
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.