MIRA
INFORM REPORT
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Report Date : |
25.04.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG CHEMICALS IMPORT & EXPORT CO., LTD. |
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Registered Office : |
5/F, Qingchun Foreign Trade Mansion, No. 37, Qingchun Road, Hangzhou City, Zhejiang Province 310009 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
10.09.1982 |
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Com. Reg. No.: |
330000000001627 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and exporting chemical products |
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No. of Employees : |
150 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 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 and address
zhejiang chemicals import
& export co., Ltd.
5/F, Qingchun
Foreign Trade Mansion, NO. 37, QINGCHUN ROAD,
HANGZHOU city,
ZHEJIANG PROVINCE 310009 PR CHINA
TEL: 86 (0)
571-87049996
FAX: 86 (0)
571-87046240
EXECUTIVE SUMMARY
INCORPORATION DATE : Sep. 10, 1982
REGISTRATION NO. : 330000000001627
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
150
REGISTERED CAPITAL : cny 60,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
CNY 1,005,941,000 (AS OF DEC.
31, 2010)
EQUITIES :
CNY 78,216,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.18 = 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 Ren Min Bi
Note: SC was formerly named Zhejiang Chemicals Import &
Export Corporation and adopted present name in 2003.
SC was initially reregistered as a State-owned enterprise at
provincial Administration for Industry & Commerce (AIC-The official body of
issuing and renewing business license) on Sep. 10, 1982 and has been under
present legal form since 2003.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered capital
of the co.
SC’s registered
business scopes include selling chemical products; wholesale of pre-packaged
foods; import and export business; industrial investment; selling textile materials,
general merchandise, hardware, for electricity, industrial art products, other
chemical products, electric products, agricultural
and sideline products; information consultation service.
SC is mainly
engaged in importing and exporting chemical products.
Mr. Guo Bin has been legal representative and chairman of
SC since 2009.
SC is known
to have approx. 150 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Hangzhou. Our checks reveal that SC
owns the total premise about 2,816 square meters.
http://www.zhechem.com
The design is professional and the content is well organized. At present, the web
is in both Chinese and English versions.
E-mail: info@zhechem.com
National Tax Registration Certificate No.: 330165124945907
Local Tax Registration Certificate No.: 330000100200506
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2003-10-31 |
Company name |
Zhejiang Chemicals Import & Export Corporation |
Present one |
|
Registered capital |
CNY 19,300,000 |
CNY 16,000,000 |
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|
Legal form |
State-owned enterprise |
Limited liabilities co. |
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|
2005-3-24 |
Registered capital |
CNY 16,000,000 |
CNY 22,000,000 |
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2007-7-12 |
Registered capital |
CNY 22,000,000 |
CNY 32,000,000 |
|
2007-7-17 |
Registration No. |
3300001002428 |
Present one |
|
2008-7-8 |
Registered capital |
CNY 32,000,000 |
CNY 38,500,000 |
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Shareholders |
Zhejiang
Orient Holdings Group Ltd 38%; Employee Shareholders Association of Zhejiang
Chemicals Import & Export Co., Ltd. 62% |
Present ones |
|
|
2009-2-24 |
Legal representative |
Jiang Limin |
Guo Bin |
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2009-8-6 |
Registered capital |
CNY 38,500,000 |
CNY 45,000,000 |
|
2010-7-20 |
Registered capital |
CNY 45,000,000 |
CNY 50,000,000 |
|
2011-9-19 |
Registered capital |
CNY 50,000,000 |
CNY 51,000,000 |
|
Unknown |
Registered capital |
CNY 51,000,000 |
Present amount |
SC has been awarded the certificate of ISO9001:2000 since July of 2006.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang International Business Group Co.,
Ltd. 38
Employee Shareholders Association of
Zhejiang Chemicals Import & Export Co.,
Ltd. 62
Zhejiang International Business Group Co.,
Ltd.
==================================
Zhejiang International Business Group Co.,
Ltd. was established in 2008. It is an individual state-owned company that the
provincial government investment establishes.
Legal representative: Wang Tingge
Registration No.: 330000000018008
Add: International Trade Building, No. 199
Qingchun Road, Hangzhou, Zhejiang Province
Tel: 86 0571-87385921
Fax: 86 0571-87385988
E-mail: info@zibchina.com
l
Legal representative and Chairman:
Mr. Guo Bin , born in 1959, with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 2009 to present Working
in SC as legal representative and chairman
l
General manager:
Mr. Zhang Bin, born in 1972, he is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager
Directors:
…………
Wang Fen
Ruan Yue
Fang Li
Supervisors:
……………
Wang Zheng
Xu Gewei
Zou Weiping
SC is mainly engaged
in importing and exporting chemical products.
SC’s products mainly include:
Pharmaceuticals
Agro-chemicals
Colorants
Dyestuff
Food additives
Herbal extracts
Intermediates
Veterinary
Inorganic compound
SC sources its materials
80% from domestic market, and 20% from overseas market. SC sells 40% of its
products in domestic market, and 60% to overseas market.
The buying terms of SC include Check, L/C, 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.
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.
Bank of China Zhejiang Branch
AC#：800100022708091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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as
of Dec. 31, 2010 |
|
Cash & bank |
106,770 |
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Inventory |
26,073 |
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Accounts
receivable |
230,312 |
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Notes receivable |
113 |
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Advances to suppliers |
22,979 |
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Other accounts
receivable |
32,916 |
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Other current
assets |
0 |
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------------------ |
|
419,163 |
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Description of available-for-sale financial
assets |
4,668 |
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Investment real estate |
6,579 |
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Fixed assets |
3,547 |
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Long term
investment |
9 |
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Intangible and
other assets |
7,990 |
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------------------ |
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Total assets |
441,956 |
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============= |
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Short loans |
34,916 |
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Accounts payable |
53,090 |
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Notes payable |
227,331 |
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Advances from
clients |
20,532 |
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Salaries and
welfare payable |
15,888 |
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Taxes unpaid |
3,780 |
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Other accounts
payable |
6,326 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
361,863 |
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Long term
liabilities |
1,877 |
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------------------ |
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Total liabilities |
363,740 |
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Equities |
78,216 |
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------------------ |
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Total
liabilities & equities |
441,956 |
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============= |
Income Statement
Unit: CNY’000
|
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as of Dec. 31,
2010 |
|
Turnover |
1,005,941 |
|
Cost of goods
sold |
948,072 |
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Taxes and additional of main operation |
570 |
|
Sales expense |
22,697 |
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Management expense |
11,062 |
|
Finance expense |
2,722 |
|
Asset impairment loss |
1,906 |
|
Investment
income |
82 |
|
Non-operating income |
2,213 |
|
Non-operating expenses |
757 |
|
Profit before
tax |
20,450 |
|
Less: profit tax |
5,294 |
|
Profits |
15,156 |
Note: SC’s
management refused to release SC’s latest financial information.
Important Ratios
=============
|
|
as of Dec. 31, 2010 |
|
*Current ratio |
1.16 |
|
*Quick ratio |
1.09 |
|
*Liabilities
to assets |
0.82 |
|
*Net profit
margin (%) |
1.51 |
|
*Return on
total assets (%) |
3.43 |
|
*Inventory
/Turnover ×365 |
9 days |
|
*Accounts receivable/Turnover
×365 |
84 days |
|
*Turnover/Total
assets |
2.28 |
|
* Cost of
goods sold/Turnover |
0.94 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears fairly large.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly Stable.
SC is well-known in its line with favorable background and a long development
history. Due to lack of the latest financial status, we are unable to recommend
accurate credit limit for SC. Taking into consideration of SC’s general
performance, reputation as well as market conditions we would rate SC as an
average credit risk company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.30 |
|
|
1 |
Rs.82.88 |
|
Euro |
1 |
Rs.70.80 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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 |
|
-- |
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.