MIRA
INFORM REPORT
|
Report Date : |
12.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG YUANDONG NEW POLYESTER CO. LTD. |
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Registered Office : |
Binhai
Industrial Zone, Shaoxing County, Shaoxing,
Zhejiang Province 312030 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
15.05.2000 |
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Com. Reg. No.: |
330621000056191 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling machinery and
equipment |
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No. of Employees : |
508 |
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 |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 & address
ZHEJIANG YUANDONG NEW
POLYESTER CO. LTD.
binhai industrial zone, shaoxing county, shaoxing
zhejiang PROVINCE 312030 PR CHINA
TEL: 86 (0) 575-85620386
FAX: 86 (0) 575-85620322
EXECUTIVE SUMMARY
Date of Registration : may 15, 2000
REGISTRATION NO. : 330621000056191
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
zhou jiyuan (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 306,000,000
staff : 508
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 3,129,439,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 854,557,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.21 = 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
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 330621000056191 on May 15,
2000.
SC’s Organization Code Certificate
No.: 72107978-3
SC’s Tax No.: 330621721079783
SC’s registered capital: cny 306,000,000
SC’s paid-in capital: cny 306,000,000
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 |
|
Shaoxing County Yuandong Real
Estate Development Co., Ltd. |
16 |
|
Xu Feng |
25 |
|
Zhejiang Yuandong Chemical
Fiber Group Co., Ltd. |
30 |
|
Zhou Jiyuan |
16 |
|
Zhu Huajuan |
13 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zhou
Jiyuan |
|
Vice Chairman |
Xu
Feng |
|
Liu Jun |
|
|
Deputy General Manager |
Yu Jianlong |
|
Director |
Zhu Huajuan |
|
Supervisor |
Li Guoliang |
|
Chen Zhiqin |
|
|
Xia Xingjuan |
|
|
Jiang Zhigen |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name
% of Shareholding
Shaoxing County Yuandong Real
Estate Development Co., Ltd. 16
Xu Feng 25
Zhejiang Yuandong Chemical Fiber
Group Co., Ltd. 30
Zhou Jiyuan 16
Zhu Huajuan 13
Shaoxing County Yuandong Real Estate
Development Co., Ltd.
----------------------------------------------------------------------------------
Registration No.: 330621000155085
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 100,000,000
Zhejiang Yuandong Chemical Fiber Group
Co., Ltd.
--------------------------------------------------------------------
Date of Registration: December 30, 1994
Registration No.: 330621000091422
Registered Capital: CNY 72,000,000
MANAGEMENT
Zhou
Jiyuan, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 48
Ø
ID# 330621640524393
Ø
Qualification:
University
Ø
Working
experience (s):
From 2000 to present, working in SC as legal representative,
chairman and general manager
Xu Feng, Vice Chairman
-----------------------------------------
Ø
Gender: M
Ø
Age: 30
Ø
ID# 33060219820603001X
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
Liu Jun, Vice Chairman
-----------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø
ID# 230206196206100939
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
Yu Jianlong Deputy General Manager
-------------------------------------------------------------
Ø
Gender: M
Ø
Age: 36
Ø
ID# 33062119760207393X
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
Director
----------
Zhu Huajuan ID#
330621690727394
Supervisor
--------------
Li Guoliang ID#
330621196511113938
Chen Zhiqin ID#
330621791201266
Xia Xingjuan ID#
330621630705394
Jiang Zhigen ID#
330621194411303954
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing
chemical fiber raw materials, textiles; exporting its products and technology;
importing materials, instrument, machinery and equipment, parts and technology
needed for its production; processing with imported materials, processing with
imported samples, assembling with imported parts, and compensation trade in
agreement; crop cultivation, aquaculture; import and export agent.
SC is
mainly engaged in manufacturing and selling machinery and equipment.
Brand: YD
SC’s
products mainly include: POY, FDY, DTY, Staple Fiber, PET, Printing Fabric,
etc.
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 20% of its products in domestic market, and
80% to overseas market, mainly USA, Europe, Mid East, 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.
*Major Customer:
==============
Jmax Global
Distributors Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 508
staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
SC is known to have 4
subsidiaries at present:
· Yuandong Chemical Fiber (Hong Kong) Co., Ltd.
· Zhejiang Beichen Investment & Development Co., Ltd.
· Shaoxing Binhai Investment Guarantee Company
· Shaoxing Yuandong Xinhexian Co., Ltd.
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:
Agricultural
Bank of China Ma’an Office
AC#:
512801040003016
Agricultural
Bank of China Yuecheng Sub-branch
AC#:
540101040003124
Bank of China
Shaoxing Branch
AC#:
018100120003
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
1,719,231 |
1,897,680 |
|
|
Notes receivable |
9,421 |
30,026 |
|
Accounts
receivable |
10,860 |
10,395 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
1,149,292 |
1,149,292 |
|
Inventory |
354,967 |
402,572 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
2 |
55,387 |
|
|
------------------ |
------------------ |
|
Current assets |
3,243,773 |
3,545,352 |
|
Long-term
investment |
299,439 |
124,828 |
|
Fixed assets |
471,987 |
369,055 |
|
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 |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
4,015,199 |
4,039,235 |
|
|
============= |
============= |
|
Short-term loans |
1,707,696 |
1,737,393 |
|
Notes payable |
820,962 |
381,000 |
|
Accounts payable |
639,731 |
940,396 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
20,553 |
5,223 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
29 |
0 |
|
Other current
liabilities |
1,373 |
666 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
3,190,344 |
3,064,678 |
|
Non-current
liabilities |
100,001 |
120,000 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
3,290,345 |
3,184,678 |
|
Equities |
724,854 |
854,557 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
4,015,199 |
4,039,235 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
2,534,135 |
3,129,439 |
|
Cost of sales |
2,407,292 |
2,975,086 |
|
Taxes and surcharges |
8,824 |
20,222 |
|
Sales expense |
11,476 |
0 |
|
Management expense |
13,246 |
15,012 |
|
Finance expense |
6,411 |
65,665 |
|
Non-business
income |
261 |
166 |
|
Non-business expenditure |
3,865 |
4,783 |
|
Profit before
tax |
197,238 |
148,061 |
|
Less: profit tax |
0 |
18,339 |
|
197,238 |
129,722 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.02 |
1.16 |
|
*Quick ratio |
0.91 |
1.03 |
|
*Liabilities
to assets |
0.76 |
0.79 |
|
*Net profit
margin (%) |
7.78 |
4.15 |
|
*Return on
total assets (%) |
4.91 |
3.21 |
|
*Inventory /
Revenue ×365 |
52 days |
47 days |
|
*Accounts
receivable/ Revenue ×365 |
2 days |
2 days |
|
*
Revenue/Total assets |
0.63 |
0.77 |
|
* Cost of
sales / Revenue |
0.95 |
0.95 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears good, and it was rising
in 2011.
l
SC’s net profit margin is fairly good in 2010 and
average in 2011.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
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:
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.
CONCLUSIONS
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.54.53 |
|
UK Pound |
1 |
Rs.83.59 |
|
Euro |
1 |
Rs.71.33 |
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.