MIRA INFORM REPORT
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Report Date : |
19.04.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG AMINO-CHEM CO., LTD. |
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Registered Office : |
No. 15 Weisan Road, Hangzhou Bay Fine Chemical Industrial Park, Shangyu City, Zhejiang Province 312369 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
22.11.2005 |
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Com. Reg. No.: |
330600400004586 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
manufacturing and selling chemical products |
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No. of Employees : |
740 |
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 : |
Good |
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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 |
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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 2012 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 under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
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 AMINO-CHEM CO., LTD.
NO. 15 WEISAN ROAD, HANGZHOU BAY FINE CHEMICAL INDUSTRIAL PARK
SHANGYU CITY, ZHEJIANG PROVINCE 312369 PR CHINA
TEL: 86 (0) 575-82738363/82516060
FAX: 86 (0) 575-82516033/82516911
EXECUTIVE SUMMARY
Date of Registration : november 22, 2005
REGISTRATION NO. : 330600400004586
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
CHIEF EXECUTIVE : gong han (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : usd 38,390,000
staff : 740
BUSINESS CATEGORY : manufacturing
Revenue : CNY 866,635,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 716,927,000 (AS OF DEC. 31, 2011)
WEBSITE : www.amino-chem.cn
E-MAIL : Market@amino-chem.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.17 = 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 Chinese-foreign equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 330600400004586 on November 22, 2005.
SC’s Organization Code Certificate
No.: 78181486-6
SC’s Tax No.: 330682781814866
SC’s registered capital: USD 38,390,000
SC’s paid-in capital: USD 38,390,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After the change |
|
2009-12 |
Registered Capital |
usd 21,808,400 |
USD 33,800,000 |
|
% of Shareholding |
Zhejiang
Longsheng Group Co., Ltd. 75% Metrogem
Holdings Limited (Hong Kong) 25% |
Zhejiang
Longsheng Group Co., Ltd. 48.37% Metrogem
Holdings Limited (Hong Kong) 51.63% |
|
|
-- |
Legal Representative |
Ruan Weixiang |
Gong Han |
|
Registered Capital |
USD 33,800,000 |
USD 38,390,000 |
|
|
Shareholder’s Name |
Metrogem Holdings Limited (Hong Kong) |
Amino-Chem (HK) Co Limited |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhejiang Longsheng Group Co., Ltd. |
48.37 |
|
Amino-Chem (HK) Co Limited |
51.63 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Gong Han |
|
General Manager |
Liu Yufeng |
|
Director |
Luo Bin |
|
Chen Guojiang |
RECENT DEVELOPMENT
SC has obtained ISO9001:2000 and ISO14001 certificates.
SHAREHOLDER CHART &
BACKGROUND
Name
%
of Shareholding
Zhejiang Longsheng Group Co., Ltd. 48.37
Amino-Chem (HK) Co Limited 51.63
Zhejiang Longsheng
Group Co., Ltd.
==============================
Zhejiang Longsheng Group Co., Ltd., the key subsidiary
of Zhejiang Longsheng Holding, is one of the national first type private
enterprises with self-managed import and export rights. The Group got many
awards and honor in the past several years. It is in 500 tops of countrywide
private enterprises and 50 tops of private enterprises in Zhejiang Province,
the 27th enterprise in china’s petroleum and chemical industry, the
demonstrating enterprise of good faith in Zhejiang, one of the
outstanding-scaled enterprises, excellent taxation credit of AAA distinction,
and etc. On August 1, 2004, the stock “Zhejiang Longsheng” listed on the
Shanghai Stock Exchange (SSE) successfully.
Legal Representative: Ruan Weixiang
Incorporation date: March 23, 1998
Registration No.: 330000000013705
Registered Capital: CNY 1,468,415,930
Stock code: 600352
Address: Daoxu Town, Shangyu, Zhejiang
Province
Phone: 0086-575-82042778/82042779
Fax: 0086-575-82042878
Http: www.longsheng.com
Amino-Chem (HK) Co
Limited
==========================
Executive Summary
Incorporation Date : April
28, 2005
Registration No. :
0966872
Legal Form : Private
Status : Live
MANAGEMENT
Gong Han, Legal Representative and Chairman
----------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 42
Ø
ID# 330102197109190036
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal representative and chairman
Also working in Zhejiang Hongsheng Chemical Co., Ltd. and Zhejiang Baosheng Chemical Co., Ltd. as legal representative
Liu Yufeng, General Manager
---------------------------------------------------
Ø
Gender: M
Ø
Age: 44
Ø
ID# 320830196909086410
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general manager
Luo Bin, Director
--------------------------------
Ø
Gender: M
Ø
Age: 42
Ø
ID# 510824197111070076
Chen Guojiang, Director
-------------------------------------------
Ø
Gender: M
Ø
Age: 35
Ø
ID# 330682197811018091
BUSINESS OPERATION
SC’s registered
business scope includes annual production capacity of 3,4 - dichloroaniline
3000 tons, inter-phenylenediamine 20,000 tons, p-phenylenediamine 500 tons,
o-phenylenediamine 2600 tons, hydrogen 7500Nm3/h; selling self-made products;
general chemical products wholesale, commission agency (excluding auction) and
its import and export business (excluding hazardous chemicals); import and
export of the above products (with permit if needed).
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s main products
and capacities:
M-Phenylene Diamine 55, 000MT/Y
O-Phenylene Diamine 7, 500MT/Y
P-Phenylene Diamine 20, 000MT/Y
Resorcinol 30,
000MT/Y
MPDSA 5,000MT/Y
Etc.
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 75% of its products in domestic market, and
25% to overseas market, mainly U.S.A., Japan, India, Korea, Brazil and Spain.
The
import & export status of SC in 2011 is as follows,
|
Country |
Amount
of Exports (USD) |
Amount of Imports (USD) |
|
U.S.A. |
12,246,445.90 |
-- |
|
Japan |
7,761,310.30 |
-- |
|
India |
7,920,594.00 |
-- |
|
Korea |
3,811,049.74 |
-- |
|
Brazil |
1,210,130.00 |
-- |
|
Spain |
1,202,372.30 |
-- |
|
|
----------------- |
----------------- |
|
Total |
34,151,902.24 |
-- |
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.
*Major Customers:
==============
Zhejiang Sanmen Xie’s Chemical Industrial Co., Ltd.
Biddle Sawyer Corporation
First Continental International (NJ) Inc.
Passaic Color And Chemical Co.
*Major Supplier:
============
Hangzhou Xianjin Fuchun Chemical Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 740 staff
at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.
RELATED COMPANY
u
Shanghai Amino-Chem Co., Ltd.
--------------------------------------------
Add.: 01-04/31F King Tower, No. 28 Xinjinqiao Road,
Pudong, Shanghai
Tel: 86 21 50306558
Fax: 86 21 50306881/50306882
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’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.
BANKING
Basic Bank:
Agricultural Bank of China Shangyu Branch
AC#: 515201040014591
fINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
19,642 |
95,860 |
|
|
Note receivable |
17,929 |
68,651 |
|
Accounts
receivable |
106,075 |
477,735 |
|
Advances to
suppliers |
42,879 |
79,349 |
|
Dividend
Receivable |
0 |
0 |
|
Other receivable |
382,154 |
10,142 |
|
Inventory |
84,778 |
66,414 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
653,457 |
798,151 |
|
Fixed assets |
244,835 |
270,260 |
|
Construction in
progress |
13,888 |
24,671 |
|
Fixed assets
liquidation |
0 |
205 |
|
Intangible
assets |
0 |
0 |
|
Long-term
investment |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
3,026 |
752 |
|
|
------------------ |
------------------ |
|
Total assets |
915,206 |
1,094,039 |
|
|
============= |
============= |
|
Short-term loans |
130,000 |
128,028 |
|
Notes payable |
0 |
95,949 |
|
Accounts payable |
50,484 |
36,763 |
|
Wages payable |
7,298 |
7,124 |
|
Taxes payable |
2,041 |
5,057 |
|
Interest payable |
202 |
435 |
|
Advances from
clients |
1,744 |
19,647 |
|
Other payable |
74,901 |
83,910 |
|
Other current
liabilities |
38 |
199 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
266,708 |
377,112 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
266,708 |
377,112 |
|
Equities |
648,498 |
716,927 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
915,206 |
1,094,039 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
785,613 |
866,635 |
|
Cost of sales |
560,216 |
742,474 |
|
Taxes and surcharges |
1,008 |
3,214 |
|
Sales expense |
13,772 |
11,292 |
|
Management expense |
21,740 |
33,554 |
|
Finance expense |
6,103 |
3,613 |
|
Profit before
tax |
173,398 |
94,480 |
|
Less: profit tax |
22,847 |
18,909 |
|
150,551 |
75,571 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
2.45 |
2.12 |
|
*Quick ratio |
2.13 |
1.94 |
|
*Liabilities
to assets |
0.29 |
0.34 |
|
*Net profit
margin (%) |
19.16 |
8.72 |
|
*Return on
total assets (%) |
16.45 |
6.91 |
|
*Inventory /
Revenue ×365 |
40 days |
28 days |
|
*Accounts
receivable/ Revenue ×365 |
50 days |
202 days |
|
*
Revenue/Total assets |
0.86 |
0.79 |
|
* Cost of sales
/ Revenue |
0.71 |
0.86 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly good, and it was rising in 2011.
l SC’s net profit
margin is good in 2010, and fairly good in 2011.
l SC’s return on
total assets is good in 2010, and fairly good 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 fairly
good level in both years.
l
SC’s quick ratio is maintained in a fairly good
level in both years.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears fairly large
in 2011.
l
SC’s short-term loans are in an average level.
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 in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its
line with fairly stable financial conditions.
The fairly large amount of accounts receivable may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
UK Pound |
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
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.