|
Report Date : |
12.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
Zhejiang
Jianye Chemical Co., Ltd. |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
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|
|
|
Date of Incorporation : |
21.01.1999 |
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|
|
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Com. Reg. No.: |
330182000011086 |
|
|
|
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Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing plasticizer, acetate, and low carbon fatty
amine; importing and exporting commodities. |
|
|
|
|
No. of Employees : |
680 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No complaints |
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 Jianye Chemical Co., Ltd.
no. 48 fuxi
road, meicheng town
jiande,
zhejiang province 311604 PR CHINA
TEL: 86
(0) 571-64149210/64149273/64149234/64149267
FAX: 86
(0) 571-64141300
Date of Registration : january 21, 1999
REGISTRATION NO. : 330182000011086
LEGAL FORM : Shares
limited company
REGISTERED CAPITAL :
cny 120,000,000
staff : 680
BUSINESS CATEGORY :
manufacturing
Revenue :
CNY 1,735,344,000 (AS OF
DEC. 31, 2011)
EQUITIES : CNY 291,182,000 (AS OF DEC. 31, 2011)
WEBSITE : www.chinaorganicchem.com
E-MAIL : n/a
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.35 = USD
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
SC was
established as a shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 330182000011086 on
January 21, 1999.
SC’s Organization Code Certificate
No.: 70429041-3
SC’s Tax No.: 330182704290413
SC’s registered capital: cny 120,000,000
SC’s paid-in capital: cny 120,000,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Feng Lie |
63.00 |
|
Jiande State-owned Asset
Operation Co., Ltd. |
28.17 |
|
Other Shareholders |
8.83 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Feng Lie |
No recent development was found during our checks at
present.
Feng Lie
63.00
Jiande State-owned Asset
Operation Co., Ltd.
28.17
Other Shareholders
8.83
Feng Lie,
Legal Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification: Junior College
Ø
Working experience (s):
At present, working in SC as legal representative, chairman and general manager
SC’s registered business scope
includes manufacturing plasticizer, acetate, and low carbon fatty
amine; importing and exporting commodities.
SC is mainly
engaged in manufacturing and selling chemicals.
SC’s
products mainly include: chemical raw material (as below),
|
No. |
Name |
CAS# |
Specification |
Demand (T/A) |
|
1 |
Coal |
|
|
60000 |
|
2 |
ethanol |
64-17-5 |
GB/T10343-2002 |
70000 |
|
3 |
isopropanol |
67-63-0 |
GB/T7814-2008 |
3000 |
|
4 |
n-propyl
alcohol |
71-23-8 |
≥99.5%，without
benzene |
10000 |
|
5 |
butanol |
71-36-3 |
GB/T6027-1998 |
50000 |
|
6 |
isobutanol |
78-83-1 |
HG/T3270-2002 |
40000 |
|
7 |
Octanol |
104-76-7 |
GB/T6818-1993 |
15000 |
|
8 |
Acetone |
67-64-1 |
GB/T6026-1998 |
30000 |
|
9 |
Acetic
acid |
67-64-1 |
GB/T6026-1998 |
30000 |
|
10 |
Ammonia |
7664-41-7 |
GB536-1998 |
15000 |
|
11 |
Phthalic
anhydride |
85-44-9 |
Total
acidity 99.0% |
50000 |
|
12 |
Calcium
carbide |
75-20-7 |
Gas
evolution（L/kg）≥280 |
2000 |
|
13 |
Sodium
silicate |
13870-30-9 |
GB/T4209-1996 |
15000 |
|
14 |
Vitriol |
7664-93-9 |
GB534-2002 |
5000 |
|
15 |
Sulfur |
7704-34-9 |
Block,
powder, granules or flake≥99.0% |
10000 |
|
16 |
Limestone |
1317-65-3 |
|
30000 |
SC sources its materials 100%
from domestic market, mainly Zhejiang. SC sells 60% of its products in domestic
market, and 40% to overseas market, mainly Southeast Asia, etc.
The buying
terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of
SC include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 680
staff at present.
SC owns
an area as its operating office and factory, but the detailed information is
unknown.
SC is known to have
the following branch & subsidiaries at present:
Zhejiang Jianye Chemical Co., Ltd. Genghua Branch
Taizhou Jianye Organic Chemical Co., Ltd.
Zhejiang Jiande Jianye Thermoelectricity Co., Ltd.
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 records 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.
Basic Bank:
Bank of China Meicheng Office
AC#: 808001278708091001
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
61,141 |
153,138 |
|
|
Notes receivable |
24,403 |
76,611 |
|
Accounts
receivable |
16,397 |
18,686 |
|
Advances
to suppliers |
10,414 |
12,032 |
|
Dividend
Receivable |
0 |
0 |
|
Other
receivable |
45,808 |
94,696 |
|
Inventory |
77,337 |
88,254 |
|
Non-current
assets within one year |
0 |
0 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
235,500 |
443,415 |
|
Fixed
assets |
19,069 |
52,397 |
|
Construction
in progress |
44,846 |
50,009 |
|
Intangible
assets |
6,314 |
25,549 |
|
Long-term
investment |
95,000 |
85,000 |
|
Deferred
income tax assets |
145 |
168 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
assets |
400,874 |
656,538 |
|
|
============= |
============= |
|
Short-term
loans |
38,974 |
184,900 |
|
Notes
payable |
7,138 |
56,391 |
|
Accounts
payable |
53,071 |
87,566 |
|
Wages
payable |
1,128 |
1,368 |
|
Taxes
payable |
2,072 |
1,223 |
|
Interest
payable |
104 |
299 |
|
Dividend
payable |
1,003 |
960 |
|
Advances
from clients |
25,274 |
16,873 |
|
Other
payable |
80,982 |
12,052 |
|
Other
current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
209,746 |
361,632 |
|
Non-current
liabilities |
1,429 |
3,724 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
211,175 |
365,356 |
|
Equities |
189,699 |
291,182 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
400,874 |
656,538 |
|
|
============= |
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Revenue |
907,535 |
1,735,344 |
|
Cost of sales |
789,829 |
1,575,329 |
|
Taxes and surcharges |
1,230 |
2,261 |
|
Sales expense |
19,645 |
28,144 |
|
Management expense |
58,951 |
78,395 |
|
Finance expense |
2,768 |
4,720 |
|
Profit
before tax |
28,173 |
47,166 |
|
Less:
profit tax |
2,325 |
3,802 |
|
25,848 |
43,364 |
Important
Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
*Current
ratio |
1.12 |
1.23 |
|
*Quick
ratio |
0.75 |
0.98 |
|
*Liabilities
to assets |
0.53 |
0.56 |
|
*Net
profit margin (%) |
2.85 |
2.50 |
|
*Return
on total assets (%) |
6.45 |
6.60 |
|
*Inventory
/ Revenue ×365 |
32
days |
19
days |
|
*Accounts
receivable/ Revenue ×365 |
7
days |
4
days |
|
*
Revenue/Total assets |
2.26 |
2.64 |
|
*
Cost of sales / Revenue |
0.87 |
0.91 |
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good,
and it was rising in 2011.
l
SC’s net profit margin is average in
both years.
l
SC’s return on total assets is fairly
good in both years.
l
SC’s cost of sales is average,
comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level in both years.
l
SC’s quick ratio is maintained in a
normal level in 2011.
l
The inventory of SC is maintained in an
average level.
l
The accounts receivable of SC appears
average.
l
SC’s short-term loans appear large in
2011.
l
SC’s revenue is in an average level,
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 Good.
SC is considered medium-sized in its line with fairly good
financial conditions. The large amount of short-term loans may be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.52 |
|
|
1 |
Rs.88.84 |
|
Euro |
1 |
Rs.70.85 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.