MIRA
INFORM REPORT
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Report Date : |
01.08.2013 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU
COLORIFIC CHEMICALS CO., LTD. |
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Registered Office : |
Room 902/903,
Bldg. 3, (West Port/New Territories) No. 206 Zhenhua Road, Sandun Town,
Hangzhou Zhejiang Province 310030 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
22.03.2004 |
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Com. Reg. No.: |
330106000124555 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in importing and exporting chemicals. |
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No. of Employees : |
20 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
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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 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
HANGZHOU COLORIFIC CHEMICALS CO., LTD.
ROOM 902/903,
BLDG. 3, (WEST PORT/NEW TERRITORIES) NO. 206 ZHENHUA ROAD, SANDUN TOWN,
HANGZHOU ZHEJIANG PROVINCE 310030 PR CHINA
TEL: 86 (0)
571-89712988/89712977/89712978/89712979
FAX: 86 (0)
571-89712976
EXECUTIVE SUMMARY
Date of Registration : march 22, 2004
REGISTRATION NO. : 330106000124555
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
wu jian (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 1,500,000
staff :
20
BUSINESS CATEGORY : trading
Revenue :
CNY 237,282,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 30,150,000 (AS OF DEC. 31, 2012)
WEBSITE : www.colorific-chem.com
E-MAIL : zhu_xuguang@hotmail.com
& ni_yongbing@colorlic-chem.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.13 = 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
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.:
330106000124555 on March 22, 2004.
SC’s Organization Code Certificate No.:
75951883-3
SC’s Tax No.: 330106759518833
SC’s registered capital: CNY 1,500,000
SC’s paid-in capital: CNY 1,500,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010 |
Registration No. |
3301062006813 |
330106000124555 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wu Jian |
33.3 |
|
Zhu Xuguang |
33.4 |
|
Ni Yongbing |
33.3 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Wu Jian |
|
Supervisor |
Zhu Xuguang |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Wu Jian 33.3
Zhu Xuguang 33.4
Ni Yongbing 33.3
MANAGEMENT
Wu Jian, Legal Representative, Chairman and General
Manager
--------------------------------------------------------------------------------------------
Gender: M
Age: 44
ID# 330106691031121
Qualification: University
Working experience (s):
From 2004 to present, working in SC as legal representative, chairman
and general manager
Zhu Xuguang,
Supervisor
---------------------------------------------
Gender: M
Age: 37
ID# 330105197611082515
BUSINESS
OPERATION
SC’s registered business scope includes wholesaling and retailing
benzene, methyl benzene, morpholine, morpholine benzene, chemical products and
materials, chemical machinery, hardware, building materials, textile materials;
importing and exporting commodities and technology; other legal operation items
without the need for examination and approval.
SC is mainly engaged in importing and exporting chemicals.
SC’s products mainly include: dyes, intermediates of benzene series.
SC sources its materials 80% from domestic market, mainly Zhejiang and
Shanghai, and 20% from overseas market, mainly Singapore; SC sells its products
80% to overseas market, mainly India, and 20% in domestic market, mainly
Zhejiang and Tianjin.
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers*
-----------------------
Biporin (Tianjin) Color Industries Co., Ltd.
Hong Yuan (HK) Limited
Prime Colors Corporation
Sajmil Corporation
*Major Supplier*
--------------------
Zhejiang Yongtai Technology Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 20
staff at present.
SC owns an area as its operating office of approx. 300 sq. meters at the
heading address.
RELATED
COMPANY
Hong Yuan (HK) Limited
------------------------------
CR No.: 0895457
Date of Incorporation: 15-APR-2004
Company Status: Private
Active Status: Live
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:
Bank of Hangzhou High-Tech Development Zone Sub-branch
AC#: 78508100109070
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
3,874 |
8,171 |
7,612 |
|
|
Notes receivable |
0 |
0 |
0 |
|
Accounts receivable |
30,764 |
50,195 |
63,591 |
|
Advances to suppliers |
0 |
0 |
0 |
|
Other receivable |
112 |
86 |
3,679 |
|
Inventory |
908 |
1,993 |
1,239 |
|
Deferred expenses |
208 |
101 |
10 |
|
Other current assets |
2,627 |
1,387 |
1,690 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
38,493 |
61,933 |
77,821 |
|
Fixed assets |
5,203 |
4,125 |
4,498 |
|
Construction in progress |
0 |
0 |
0 |
|
Intangible assets |
0 |
0 |
0 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Total assets |
43,696 |
66,058 |
82,319 |
|
|
============= |
============= |
============= |
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Short-term loans |
0 |
0 |
0 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
21,695 |
38,210 |
50,338 |
|
Wages payable |
0 |
0 |
0 |
|
Taxes payable |
-39 |
13 |
271 |
|
Advances from clients |
0 |
0 |
0 |
|
Other payable |
926 |
962 |
1,560 |
|
Accrued expenses |
0 |
50 |
0 |
|
Other current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
22,582 |
39,235 |
52,169 |
|
Non-current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Total liabilities |
22,582 |
39,235 |
52,169 |
|
Equities |
21,114 |
26,823 |
30,150 |
|
|
------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
43,696 |
66,058 |
82,319 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
266,490 |
226,975 |
237,282 |
|
Cost of sales |
247,978 |
207,622 |
221,529 |
|
Taxes and surcharges |
186 |
165 |
141 |
|
Sales expense |
3,658 |
3,178 |
2,998 |
|
Management expense |
6,306 |
7,390 |
6,644 |
|
Finance expense |
471 |
705 |
371 |
|
Profit before tax |
7,949 |
7,925 |
5,592 |
|
Less: profit tax |
608 |
2,004 |
832 |
|
7,341 |
5,921 |
4,760 |
Important Ratios
=============
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
1.70 |
1.58 |
1.49 |
|
*Quick ratio |
1.66 |
1.53 |
1.47 |
|
*Liabilities to assets |
0.52 |
0.59 |
0.63 |
|
*Net profit margin (%) |
2.75 |
2.61 |
2.01 |
|
*Return on total assets (%) |
16.80 |
8.96 |
5.78 |
|
*Inventory / Revenue ×365 |
2 days |
4 days |
2 days |
|
*Accounts receivable/ Revenue ×365 |
43 days |
81 days |
98 days |
|
* Revenue/Total assets |
6.10 |
3.44 |
2.88 |
|
* Cost of sales / Revenue |
0.93 |
0.91 |
0.93 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average in three years.
SC’s return on total assets is fairly good in three years.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC appear large.
SC has no short-term loans in three years.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions. The 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.61.11 |
|
|
1 |
Rs.92.97 |
|
Euro |
1 |
Rs.80.93 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
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NB |
New Business |
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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.