MIRA
INFORM REPORT
|
Report Date : |
20.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG HUAXIN ADVANCED MATERIALS CO., LTD. |
|
|
|
|
Registered Office : |
Hezhuang Town
Industrial Zone, Xiaoshan District, Hangzhou, Zhejiang Province 311222 Pr |
|
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Country : |
China |
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|
|
Financials (as on) : |
31.12.2011 |
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|
|
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Date of Incorporation : |
11.09.2001 |
|
|
|
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Com. Reg. No.: |
330000000001660 |
|
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|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
manufacturing and selling textile
materials |
|
|
|
|
No. of Employees : |
1200 |
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 – 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 |
|
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 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 HUAXIN ADVANCED MATERIALS CO., LTD.
HEZHUANG TOWN
INDUSTRIAL ZONE, XIAOSHAN DISTRICT, HANGZHOU
ZHEJIANG
PROVINCE 311222 PR CHINA
TEL: 86 (0)
571-82173250/82174884
FAX: 86 (0)
571-82176208
EXECUTIVE SUMMARY
Date of Registration : SEPTEMBER 11, 2001
REGISTRATION NO. :
330000000001660
LEGAL FORM : SHARES
LIMITED COMPANY
REGISTERED CAPITAL :
CNY 190,000,000
staff : 1,200
BUSINESS CATEGORY :
manufacturing
Revenue : CNY 1,406,054,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 732,243,000 (AS OF DEC. 31, 2011)
WEBSITE : www.zjhxxc.cn
E-MAIL :
fengj@zjhxxc.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.18 = 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 on September 11, 2001. However, SC
changed to present legal form, and was registered as shares limited company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 330000000001660 in 2007.
SC’s Organization Code Certificate No.:
73200598-2
SC’s Tax No.: 330181732005982
SC’s registered capital: CNY
190,000,000
SC’s paid-in capital: CNY
190,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registered Capital |
CNY 10,000,000 |
CNY 50,000,000 |
|
Shareholder (s) (% of
Shareholding) |
Zhejiang Huaxin Holding Group Co., Ltd.(51%), Xu
Xingjuan(49%) |
Zhejiang Huaxin Holding Group Co., Ltd. (60%), Xu Xingjuan
(40%) |
|
|
|
Shareholder (s) (% of
Shareholding) |
Zhejiang Huaxin Holding Group Co., Ltd. (60%), Xu Xingjuan
(40%) |
Zhejiang Huaxin Holding Group Co., Ltd. (60%), Xu Xuan
(1%), Zhu Guoying (1%), Zhu Weiliang (1%), Cao Xinjian (6%), Gao Guanrong
(7%), Shen Yongqiao (7%), Wang Youshan7%), Cao Xinyang (10%) |
|
|
Company Name |
Hangzhou Huaxin Textiles Co.,
Ltd. |
Zhejiang Huaxin Advanced
Materials Co., Ltd. |
|
Legal Representative |
Cao Aluo |
Cao Xinyang |
|
|
Registered Capital |
CNY 50,000,000 |
CNY 82,000,000 |
|
|
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
|
|
Registration No. |
3301812610340 |
330000000001660 |
|
|
Registered Capital |
CNY 82,000,000 |
CNY 90,000,000 |
|
|
Shareholder (s) (% of Shareholding) |
Zhejiang Huaxin Holding Group
Co., Ltd. (60%), Xu Xuan (1%), Zhu Guoying (1%), Zhu Weiliang (1%), Cao
Xinjian (6%), Gao Guanrong (7%), Shen Yongqiao (7%), Wang Youshan (7%), Cao
Xinyang (10%) |
Xu Xuan (0.9111%), Zhu Guoying
(0.9111%), Zhu Weiliang (0.9111%), Zhejiang Spring Venture Capital Investment
Co., Ltd.(2.2222%), Cao Xinjian(5.4667%), Gao Guanrong (6.3778%), Shen
Yongqiao (6.3778%), Wang Youshan (6.3778%), Sunbridge Investment Management
Co., Ltd. (6.6667%), Cao Xinyang (9.1111%), Zhejiang Huaxin Holding Group
Co., Ltd. (54.6666%) |
|
2008-06 |
Registered Capital |
CNY 90,000,000 |
CNY 135,000,000 |
|
2009-08 |
Registered Capital |
CNY 135,000,000 |
CNY 160,000,000 |
|
Shareholder (s) (% of
Shareholding) |
Xu Xuan (0.9111%), Zhu Guoying(0.9111%),
Zhu Weiliang(0.9111%), Zhejiang Spring Venture Capital Investment Co., Ltd.
(2.2222%), |
Xu
Xuan (0.7687%), Zhu Guoying (0.7687%), Zhu0.7687%), Zhejiang Spring Venture
Capital Investment Co., Ltd. (1.875%), Cao Xinjian (4.6125%), Gao Guanrong
(5.3813%), Shen Yongqia(5.3813%), Wang Youshan (5.3813%), Sunbridge
Investment Management Co., Ltd.5.625%), Cao Xinyang (7.6875%), Zhejiang
Huaxin Holding Group Co., Ltd. (53.9375%), Zhejiang Anfeng Wenjian Venture
Capital Investment Co., Ltd. (in Chinese Pinyin) (7.8125%) |
|
|
2010-10 |
Registered Capital |
CNY 160,000,000 |
CNY 190,000,000 |
|
Shareholder (s) (% of
Shareholding) |
Xu Xuan 0.7687%), Zhu Guoying
(0.7687%), Zhu Weiliang(0.7687%), Zhejiang Spring Venture Capital Investment
Co., Ltd. (1.875%), Cao Xinjian (4.6125%), Gao Guanrong (5.3813%), Shen
Yongqiao (5.3813%),
Wang Youshan）(5.3813%),
Sunbridge Investment Management Co., Ltd. (5.625%), Cao Xinyang(7.6875%),
Zhejiang Huaxin Holding Group Co., Ltd）(53.9375%), Zhejiang Anfeng Wenjian
Venture Capital Investment Co., Ltd. (in Chinese Pinyin) (7.8125%) |
Zhejiang
Huaxin Holding Group Co., Ltd. (42.7895%) Sunbridge
Investment Management Co., Ltd. (4.7368%) Zhejiang
Spring Venture Capital Investment Co., Ltd. (1.5789%) Zhejiang
Anfeng Wenjian Venture Capital Investment Co., Ltd. (6.5789%) Zhejiang
Zheshang Industrial Development Fund Partnership Enterprise (Limited
Partnership) (7.8947%) Zhejiang
Zhuojing Venture Capital Investment Co., Ltd. (in Chinese Pinyin) (10.5263%) Cao Xinyang
(6.4737%) Wang
Youshan (4.5316%) Gao
Guanrong (4.5316%) Cao
Xinjian (3.8842%) Shen
Yongqiao (4.5316%) Xu
Xuan (0.6474%) Zhu
Weiliang (0.6474%) Zhu Guoying (0.6474%) |
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhejiang Huaxin Holding Group
Co., Ltd. |
42.7895 |
|
Sunbridge Investment
Management Co., Ltd. |
4.7368 |
|
Zhejiang Spring Venture
Capital Investment Co., Ltd. |
1.5789 |
|
Zhejiang Anfeng Wenjian
Venture Capital Investment Co., Ltd. |
6.5789 |
|
Zhejiang Zheshang Industrial
Development Fund Partnership Enterprise(Limited Partnership) |
7.8947 |
|
Zhejiang Zhuojing Venture
Capital Investment Co., Ltd. |
10.5263 |
|
|
6.4737 |
|
Wang Youshan |
4.5316 |
|
Gao Guanrong |
4.5316 |
|
|
3.8842 |
|
Shen Yongqiao |
4.5316 |
|
Xu Xuan |
0.6474 |
|
Zhu Weiliang |
0.6474 |
|
Zhu Guoying |
0.6474 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Cao
Xinyang |
|
Vice Chairman |
Qian
Zhangbao |
|
Deputy General Manager |
Feng
Jian |
|
Director |
Jiang Guoliang |
|
Li Jinbao |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhejiang Huaxin Holding Group
Co., Ltd. 42.7895
Sunbridge Investment Management
Co., Ltd. 4.7368
Zhejiang Spring Venture Capital
Investment Co., Ltd. 1.5789
Zhejiang Anfeng Wenjian Venture
Capital Investment Co., Ltd. 6.5789
Zhejiang Zheshang Industrial
Development Fund
Partnership Enterprise (Limited
Partnership) 7.8947
Zhejiang Zhuojing Venture
Capital Investment Co., Ltd. 10.5263
Cao Xinyang 6.4737
Wang Youshan 4.5316
Gao Guanrong 4.5316
Cao Xinjian 3.8842
Shen Yongqiao 4.5316
Xu Xuan 0.6474
Zhu Weiliang 0.6474
Zhu Guoying 0.6474
MANAGEMENT
----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 44
Ø
ID# 330121196906064213
Ø
Qualification:
University
Ø
Working
experience (s):
From 2007 to present, working in SC as legal representative, chairman and general manager, also working in Zhejiang Huaxin Holding Group Co., Ltd. as legal representative
Qian
Zhangbao, Vice Chairman
-----------------------------------------------------
Ø
Gender: M
Ø
Age: 74
Ø
ID# 330125390607183
Ø
Working
experience (s):
At present, working in SC as vice chairman
Feng Jian,
Deputy General Manager
--------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø
ID# 330121196307020315
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
Director
-----------
Jiang Guoliang ID# 110108197608251814
Li Jinbao ID# 310105194902152416
BUSINESS OPERATION
SC’s registered business scope includes researching and
developing new colorful pro-environment
textile materials, developing, manufacturing and selling chemical fiber
and textile fabrics; technology consulting services, importing and exporting
business (excluding export commodities limited or prohibited by the state).
SC is
mainly engaged in manufacturing and selling textile materials.
SC’s products mainly include: colorful PETE and crewel silk.
SC sources its materials 90% from domestic market and 10% from
the overseas market. SC sells 30% of its products to overseas market and 70% in domestic market.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
Staff & Office:
--------------------------
SC is
known to have approx. 1,200 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
invest in the following companies:
n
Hangzhou Huacheng Polymerization Chemical Fiber
Co., Ltd.
n
Zhejiang Huaxin High Technology Co., Ltd.
n
Hangzhou Lanfang Fiber Co., Ltd.
n
Xiaoshan Rural Cooperative Bank
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:
Zhejiang Xiaoshan Rural Cooperative Bank Yinfa Sub-branch
AC#: 1101023401201000136430
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
186,008 |
116,124 |
|
|
Trading
financial assets |
0 |
0 |
|
Notes
receivable |
8,766 |
27,426 |
|
Accounts
receivable |
109,667 |
95,251 |
|
Advances to
suppliers |
156,039 |
305,357 |
|
Other receivable |
111,657 |
166,843 |
|
Inventory |
382,592 |
434,124 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
954,729 |
1,145,125 |
|
Fixed assets |
205,074 |
209,831 |
|
Construction in
progress |
3,557 |
2,842 |
|
Long-term
investment |
244,786 |
244,786 |
|
Intangible
assets |
39,883 |
40,617 |
|
Deferred income
tax assets |
2,577 |
1,629 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
1,450,606 |
1,644,830 |
|
|
============= |
============= |
|
Short-term loans |
447,500 |
732,618 |
|
Notes payable |
267,000 |
136,000 |
|
Accounts payable |
28,824 |
23,115 |
|
Wages payable |
3,314 |
3,748 |
|
Taxes payable |
3,947 |
3,963 |
|
Advances from
clients |
25,829 |
11,070 |
|
Dividends
payable |
300 |
300 |
|
Other payable |
4,400 |
241 |
|
Other current
liabilities |
772 |
1,532 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
781,886 |
912,587 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
781,886 |
912,587 |
|
Equities |
668,720 |
732,243 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,450,606 |
1,644,830 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
1,067,496 |
1,406,054 |
|
Cost of sales |
920,659 |
1,235,294 |
|
Taxes and surcharges |
1,956 |
2,005 |
|
Sales expense |
5,871 |
6,518 |
|
Management expense |
52,073 |
62,779 |
|
Finance expense |
28,363 |
23,697 |
|
Investment
income |
303 |
444 |
|
Non-operating
income |
4,603 |
2,202 |
|
Non-operating
expense |
880 |
1,926 |
|
Profit before
tax |
63,461 |
72,897 |
|
Less: profit tax |
6,992 |
9,374 |
|
56,469 |
63,523 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.22 |
1.25 |
|
*Quick ratio |
0.73 |
0.78 |
|
*Liabilities
to assets |
0.54 |
0.55 |
|
*Net profit
margin (%) |
5.29 |
4.52 |
|
*Return on
total assets (%) |
3.89 |
3.86 |
|
*Inventory /
Revenue ×365 |
131 days |
113 days |
|
*Accounts
receivable/ Revenue ×365 |
38 days |
25 days |
|
*
Revenue/Total assets |
0.74 |
0.85 |
|
* Cost of
sales / Revenue |
0.86 |
0.88 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good in its line.
l
SC’s net profit margin is average
in both years.
l
SC’s return on total assets is average in both years.
l
SC’s cost of sales is average in both years,
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
both years.
l
The inventory of SC appears large in both years.
l
The accounts receivable of SC appears average in
both years.
l
The short-term loan of SC appears large in both
years.
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 Stable.
CONCLUSIONS
SC is considered large-sized in its line with
fairly stable financial conditions. The large amount of inventory and
short-term loans 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.