MIRA
INFORM REPORT
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Report Date : |
08.08.2013 |
IDENTIFICATION DETAILS
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Name : |
HAINING PAULYUAN DYESTUFFS CO., LTD. |
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Registered Office : |
Agriculture Foreign Integrated Development Area
Haining City, Zhejiang Province 314422 Pr |
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Country : |
CHINA |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
22.11.1994 |
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Com. Reg. No.: |
330400400011851 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and
selling dyestuffs and intermediates. |
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No. of Employees : |
310 |
RATING & COMMENTS
|
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 |
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Risk Category |
ECGC
Classification |
|
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
HAINING
PAULYUAN DYESTUFFS CO., LTD.
AGRICULTURE FOREIGN INTEGRATED DEVELOPMENT AREA
HAINING CITY, ZHEJIANG PROVINCE 314422 PR CHINA
TEL: 86 (0) 573-87966265
FAX: 86 (0) 573-87966164
EXECUTIVE SUMMARY
Date of Registration : NOVEMBER 22, 1994
REGISTRATION NO. : 330400400011851
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
Yu Buxiao (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 9,150,000
staff :
310
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 238,213,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 119,603,000 (AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.14 = 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 Chinese-foreign equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 330400400011851 on November 22, 1994.
SC’s Organization Code Certificate No.:
60945619-8
SC’s Tax No.: 330481609456198
SC’s Customs Registration No.: 3313930130
SC’s registered capital: USD 9,150,000
SC’s paid-in capital: USD 9,150,000 (CNY 76,176,966.82)
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Legal Representative |
SIAUW SUFAN |
Ka Di |
|
|
Legal Representative |
Ka Di |
Gu Hongying |
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|
Legal Representative |
Gu Hongying |
SUFAN SIAUW |
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|
Registration Number |
000776 |
330400400011851 |
|
Shareholders |
Hangzhou Garden Trading Co., Ltd. 15% SUFAN SIAUW (INDONESIAN) 85% |
Zhejiang Lakehill Corporation 15% SUFAN SIAUW (INDONESIAN) 85% |
|
|
2013 |
Legal Representative |
SUFAN SIAUW |
Yu Buxiao |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhejiang Lakehill Corporation |
15 |
|
SUFAN SIAUW (Indonesia) |
85 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Yu Buxiao |
|
Directors |
Ka Di |
|
Gu Hongying |
|
|
Supervisor |
Lu Jianfei |
RECENT
DEVELOPMENT
Honors:
----------
SC is a key enterprise in Haining Municipal, with good corporate image
and successively appraised as “Nationwide Foreign Investment Enterprise with
Dual Excellent”, “ ‘AAA’ Rank Credited Enterprise”, “Credited Company Regarding
Contract and Keep Faith”, “Large Ratepaying Family”, and “A Rank Enterprise
with Ratepaying Credit", etc.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Zhejiang Lakehill Corporation 15
SUFAN SIAUW (Indonesia) 85
Zhejiang Lakehill
Corporation
--------------------------------------------
Zhejiang Lakehill Corporation is a large corporate group consisted of
enterprises engaged in international trade, financial investment, chemical
manufacturing, golf course and touring program development.
Address: 7/F, Sanxin Building, No. 33 Xintang Road, Jianggan District,
Hangzhou, Zhejiang Province
Tel: 86 0571-28928925/28057020
Registration No.: 330100000109964
Date of Registration: June 8, 2006
Legal Form: Limited Liabilities Company
Registered Capital: CNY 70,000,000
Legal Representative: Yu Buxiao
MANAGEMENT
Yu Buxiao, Legal
Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------
Gender: M
Age: 50
ID# 330106196306101515
Qualification: University
Working experience (s):
Before, worked in SC as chairman and general manager
At present, working in SC as legal representative, chairman and general
manager
Also working in Zhejiang Lakehill Corporation and Haining Baoxing Textile
Materials Co., Ltd.as legal representative
Ka Di, Director
----------------------------
Gender: M
Nationality: Indonesia
ID# K230796
Gu Hongying,
Director
-----------------------------------------
Gender: F
Age: 47
ID# 330103196611171641
Working experience (s):
At present, as director of SC
Also working in Haining Hangzhou Bay Green Village Co., Ltd. as legal
representative
Lu Jianfei,
Supervisor
----------------------------------------
Gender: M
Age: 42
ID# 330419197112052412
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and selling dyestuffs and intermediate products.
SC is mainly engaged in manufacturing and
selling dyestuffs and intermediates.
SC’s products mainly include: dispersion dyestuff.
SC sources its materials 90% from domestic market, and 10% from overseas
market, mainly Japan. SC sells 88% of its products in domestic market, and 12%
to overseas market, mainly Japan, South Korea, Indonesia, Taiwan, etc.
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 Customer:
----------------------
Shandong Huatai Paper Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 310 staff at present.
SC owns an area as its operating office & factory of approx. 160,000
sq. meters at the heading address.
RELATED
COMPANY
SC is known to
have 2 subsidiaries at present,
Haining Hangzhou Bay Green Village Co., Ltd.
Registration No.: 330400400011423
Date of Registration: October 25, 2002
Legal Form: Chinese-foreign equity joint venture enterprise
Registered Capital: USD 2,689,500
Legal Representative: Gu Hongying
Haining Baoxing Textile Materials Co., Ltd.
Registration No.: 330400400011474
Date of Registration: March 22, 2002
Legal Form: Chinese-foreign equity joint venture enterprise
Registered Capital: USD 2,000,000
Legal Representative: Yu Buxiao
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 China Haining Chang’an Sub-Branch
AC#: 860014904808091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31,
2012 |
|
11,095 |
7,346 |
|
|
Accounts receivable |
147,316 |
182,078 |
|
Advances to suppliers |
2,012 |
1,481 |
|
Other receivable |
287 |
214 |
|
Inventory |
54,018 |
46,260 |
|
Deferred expenses |
76 |
4 |
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Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
214,804 |
237,383 |
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Long-term investments |
6,625 |
6,625 |
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Fixed assets |
43,099 |
38,472 |
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Construction in progress |
0 |
0 |
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Intangible assets |
6,548 |
6,361 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
271,076 |
288,841 |
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|
============= |
============= |
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Short-term loans |
76,000 |
76,000 |
|
Notes payable |
0 |
2,290 |
|
Accounts payable |
58,225 |
75,192 |
|
Welfare payable |
1,348 |
0 |
|
Welfare expenses payable |
10,815 |
10,815 |
|
Taxes payable |
4,681 |
170 |
|
Unpaid profit |
2,988 |
2,988 |
|
Advances from clients |
185 |
703 |
|
Other payable |
839 |
1,058 |
|
Accrued expenses |
150 |
0 |
|
Other current liabilities |
37 |
22 |
|
|
------------------ |
------------------ |
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Current liabilities |
155,268 |
169,238 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total liabilities |
155,268 |
169,238 |
|
Equities |
115,808 |
119,603 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
271,076 |
288,841 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
284,581 |
238,213 |
|
Cost of sales |
241,472 |
208,936 |
|
Tax and associate charge |
835 |
972 |
|
Sales expense |
10,651 |
9,108 |
|
Management expense |
12,272 |
10,402 |
|
Finance expense |
5,392 |
5,470 |
|
Investment income |
2,313 |
0 |
|
Subsidy income |
30 |
0 |
|
Non-business income |
1 |
5 |
|
Non-business expenditure |
1,012 |
278 |
|
Profit before tax |
18,237 |
5,189 |
|
Less: profit tax |
4,773 |
1,394 |
|
13,464 |
3,795 |
Important Ratios
=============
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
1.38 |
1.40 |
|
*Quick ratio |
1.04 |
1.13 |
|
*Liabilities to assets |
0.57 |
0.58 |
|
*Net profit margin (%) |
4.73 |
1.59 |
|
*Return on total assets (%) |
4.97 |
1.31 |
|
*Inventory / Revenue ×365 |
70 days |
71 days |
|
*Accounts receivable/ Revenue ×365 |
189 days |
279 days |
|
* Revenue/Total assets |
1.05 |
0.82 |
|
* Cost of sales / Revenue |
0.85 |
0.88 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average in both years.
SC’s return on total assets is average in both years.
SC’s cost of goods sold is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in both years.
SC’s quick ratio is maintained in a fairly good level in both years.
The inventory of SC is maintained in an average level.
The accounts receivable of SC appears large.
SC’s short-term loan is in an average level.
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 in both years.
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 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.61.39 |
|
|
1 |
Rs.94.17 |
|
Euro |
1 |
Rs.81.70 |
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 |
|
---- |
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.