MIRA INFORM REPORT

 

 

Report Date :

10.08.2013

 

IDENTIFICATION DETAILS

 

Name :

ETERNAL SPECIALTY CHEMICAL (ZHUHAI) CO., LTD.

 

 

Registered Office :

Biyang Road, Gaolan Petrochemical Sector Of Harbor Industrial Zone, Zhuhai, Guangdong Province 519050 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

23.04.2003

 

 

Com. Reg. No.:

440400400022424

 

 

Legal Form :

Wholly Foreign-Owned Enterprise

 

 

Line of Business :

Subject engaged in manufacturing and selling coating material and its processed products.

 

 

No. of Employees :

294

 

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 :

Good

Payment Behaviour :

Regular

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

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 and address

 

ETERNAL SPECIALTY CHEMICAL (ZHUHAI) CO., LTD.

BIYANG ROAD, GAOLAN PETROCHEMICAL SECTOR OF HARBOR INDUSTRIAL ZONE, ZHUHAI, GUANGDONG PROVINCE 519050 PR CHINA

TEL: 86 (0) 756-3985888

FAX: 86 (0) 756-3985111

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : april 23, 2003

REGISTRATION NO.                  : 440400400022424

LEGAL FORM                           : Wholly foreign-owned enterprise

CHIEF EXECUTIVE                    : zhao yuwen (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : usd 19,441,000

staff                                      : 294

BUSINESS CATEGORY             : MANUFACTURING & TRADING

Revenue                                : CNY 889,520,000 (AS OF DEC. 31, 2012)

EQUITIES                                 : CNY 451,820,000 (AS OF DEC. 31, 2012)

WEBSITE                                 : N/A

E-MAIL                                     : N/A

PAYMENT                                : AVERAGE

MARKET CONDITION                : COMPETITIVE

FINANCIAL CONDITION             : fairLY GOOD

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 wholly foreign-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 440400400022424 on April 23, 2003.

 

SC’s Organization Code Certificate No.: 74084930-9

 

SC’s Tax No.: 440401740849309

 

SC’s registered capital: usd 19,441,000

 

SC’s paid-in capital: usd 19,441,000

 

Registration Change Record:-

 

No significant changes of SC have been noted in SAIC since its incorporation.

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

E-Cem Corporation (Western Samoa)

90

Cognis B.V. (Holland)

10

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative and General Manager

Zhao Yuwen

Chairman

Chen Jinyuan

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                               % of Shareholding

 

E-Cem Corporation (Western Samoa)                  90

 

Cognis B.V. (Holland)                                         10

 

 

MANAGEMENT

 

Zhao Yuwen , Legal Representative and General Manager

--------------------------------------------------------------------------------------

Ø         Gender: M

Ø         Qualification: University

Ø         Working experience (s):

 

At present, working in SC as legal representative and general manager

 

Chen Jinyuan , Chairman

---------------------------------------------

Ø         Gender: M

Ø         Qualification: University

Ø         Working experience (s):

 

At present, working in SC as chairman

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing and selling high performance coating material and its processed products; wholesaling, retailing, importing, and exporting chemical materials and its processed products.

 

SC is mainly engaged in manufacturing and selling coating material and its processed products.

 

SC’s products mainly include:

Specialty Monomer

Oligomer

OPV

Etc.

 

SC sources its materials 100% from domestic market. SC sells 66% in domestic market and 34% to overseas market, mainly Southeast Asia, etc.

 

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.

 

Staff & Office:

--------------------------

SC is known to have approx. 294 staff at present.

 

SC owns an area as its operating office and factory, but the detailed information is unknown.

 

RELATED COMPANY

 

Eternal Photoelectric Material Industry (Yingkou) Co., Ltd.

Main Product: Dry Film Photoresist

No.102 Xinhai Street, Coastal Industrial Base, Yingkou, Liaoning, China

Tel.:+86-417-293-5000

Fax: +86-417-292-7938

E-mail: vovo_cheng@email.eternal-group.com

 

Eternal Chemical (Tianjin) Co., Ltd.

Main Product: Acrylic Resin、Alkyd Resin

652, Jinyuan Road, Dagang Petroleum and Chemical Industries Park, Binhai New District, Tianjin, China

Tel.: +86-22-5972-3366

Fax: +86-22-5972-3377

E-mail: albert_huang@email.eternal-group.com

Eternal Chemical (China) Co., Ltd.

Main Product: General Purpose Resins, Synthetic Resins for Coatings,

                         Unsaturated Polyester Resins

566 Qingyang N. Road, Zhoushi Town, Kunshan, Jiangsu, China

Tel.: +86-512-5762-2168

Fax: +86-512-5762-1859

E-mail: linus_lin@email.eternal-group.com

 

Eternal Electronic Materials (Kunshan) Co., Ltd.

Main Product: Epoxy Molding Compound

267 Qingyang Road, Zhoushi Town, Kunshan, Jiangsu, China

Tel.: +86-512-5771-7512

Fax: +86-512-5771-8011

 

Eternal Photoelectric Material Industry (Kunshan) Co., Ltd.

Main Product: Dry Film Photoresist

363 Changjiang N. Road, Kunshan, Jiangsu, China

Tel.: +86-512-5766-9486

Fax: +86-512-5766-9489

E-mail: vovo_cheng@email.eternal-group.com

 

Eternal Synthetic Resins (Changshu) Co., Ltd.

Main Product: Unsaturated Polyester Resins

15 Xinggang Road, Riverside Industrial Park Changshu, Jiangsu, China

Tel.: +86-512-5286-0006

Fax: +86-512-5286-0007

E-mail: wangzheng@email.eternal-group.com

 

Eternal Optical Material (Suzhou) Co., Ltd.

Main Product: Optical Material

111 Songshan Road, SND, Suzhou, Jiangsu, China

Tel.: +86-512-6805-0026

Fax: +86-512-6805-0025

E-mail: shihhsien_chuang@email.eternal-group.com

 

ESCO Specialty Coatings (Shanghai) Co., Ltd.

Main Product: Specialty Coating

NO.1269, linxian Road, Jinshan Lndustrial Zone, Shanghai

Tel.: +86-21-3369-2188

Fax: +86-21-3369-2269

E-mail: dexter_huang@email.eternal-group.com

 

Eternal Chemical (Chengdu) Co., Ltd. (in preparation)

Main Product: Synthetic Resin and Electronic Chemicals

Yang An Chemical Industrial Park, Qinglai, Sichuan, China

Tel.: +86-28-8533-1086

Fax: +86-28-8533-1158

E-mail: nick_pan@email.eternal-group.com

 

Eternal Chemical (Guangdong) Co., Ltd.

Main Product: General Purpose Resins, Synthetic Resins for Coatings,

                         Unsaturated Polyester Resins

Dalang Bay Industrial Zone, Nanshui Town, Zhuhai, Guangdong, China

Tel.: +86-756-726-5566

Fax: +86-756-398-5577

E-mail: king_huang@email.eternal-group.com

 

Eternal Electronic Material (Guangzhou) Co., Ltd.

Main Product: Dry Film Photoresist

69 Dongpeng Road, Eastern Zone, GETDD, Guangzhou, Guangdong, China

Tel.: +86-20-8226-4378

Fax: +86-20-8226-4593

E-mail: jc_wen@email.eternal-group.com

 

ESCO Specialty Coatings (Guangzhou) Co., Ltd.

Main Product：Specialty Coating

182 Junda Road, Eastern Zone, GETDD, Guangzhou, Guangdong, China

Tel.: +86-20-2820-7118

Fax: +86-20-2820-7001

E-mail: kiven_wu@email.eternal-group.com

 

Eternal Photo Electronic Materials (Guangzhou) Co., Ltd.

Main Product: Dry Film Photoresist

No. 8, Ruihe Road, Science City, New and High Technology Industrial Development Zone, Guangzhou, Guangdong, China

Tel.: +86-20-3220-6688

Fax: +86-20-3220-3226

E-mail: jc_wen@email.eternal-group.com

 

Branches,

 

Eternal Specialty Chemical (Zhuhai) Co., Ltd. Guangzhou Branch

Eternal Specialty Chemical (Zhuhai) Co., Ltd. Kunshan Branch

Eternal Specialty Chemical (Zhuhai) Co., Ltd. Kunshan Tianjin Branch

Eternal Specialty Chemical (Zhuhai) Co., Ltd. Changsha Branch

Eternal Specialty Chemical (Zhuhai) Co., Ltd. Shanghai Branch

 

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

 

The bank information of SC is not filed in local SAIC.

FINANCIALS

 

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2011

As of Dec. 31, 2012

Cash

32,230

54,340

Notes receivable

53,490

26,820

Accounts receivable

195,790

234,570

Advances to suppliers

0

0

Other receivable

3,670

4,390

Inventory

126,570

163,540

Prepaid expenses

0

0

Other current assets

37,910

6,120

 

------------------

------------------

Current assets

449,660

489,780

Fixed assets

214,390

257,060

Construction in progress

47,630

5,690

Intangible assets

0

0

Long-term prepaid expenses

0

0

Deferred income tax assets

0

0

Other non-current assets

520

610

 

------------------

------------------

Total assets

712,200

753,140

 

=============

=============

Short-term loans

170,750

138,280

Notes payable

0

0

Accounts payable

84,740

90,070

Wages payable

0

0

Taxes payable

0

0

Advances from clients

0

0

Other payable

3,390

4,270

Accrued expenses

0

0

Other current liabilities

1,050

4,910

 

------------------

------------------

Current liabilities

259,930

237,530

Non-current liabilities

63,000

63,790

 

------------------

------------------

Total liabilities

322,930

301,320

Equities

389,270

451,820

 

------------------

------------------

Total liabilities & equities

712,200

753,140

 

=============

=============

 

Income Statement

Unit: CNY’000

As of Dec. 31, 2012

Revenue

889,520

     Cost of sales

735,970

     Taxes and surcharges

2,640

     Sales expense

42,080

     Management expense

28,570

     Finance expense

11,370

Profit before tax

73,380

Less: profit tax

10,820

Profits

62,560

 

Important Ratios

=============

 

As of Dec. 31, 2011

As of Dec. 31, 2012

*Current ratio

1.73

2.06

*Quick ratio

1.24

1.37

*Liabilities to assets

0.45

0.40

*Net profit margin (%)

--

7.03

*Return on total assets (%)

--

8.31

*Inventory / Revenue ×365

--

68 days

*Accounts receivable / Revenue ×365

--

97 days

*Revenue / Total assets

--

1.18

*Cost of sales / Revenue

--

0.83

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: FAIRLY GOOD

l         The revenue of SC appears fairly good in its line in 2012.

l         SC’s net profit margin is fairly good in 2012.

l         SC’s return on total assets is fairly good in 2012.

l         SC’s cost of sales is average, comparing with its revenue.

 

LIQUIDITY: AVERAGE

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 appears average.

l         The accounts receivable of SC is maintained in an average level.

l         SC’s short-term loans appear average.

l         SC’s revenue is in an average 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 Good.

 

 

CONCLUSIONS

 

SC is considered medium-sized in its line with fairly good financial conditions.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.11

UK Pound

1

Rs.94.77

Euro

1

Rs.81.54

 

 

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

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.