MIRA
INFORM REPORT
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Report Date : |
10.12.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG RONGXIANG CHEMICAL FIBRE CO., LTD. |
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Registered Office : |
NO. 98 Hongyang Road, Yinong Town, Xiaoshan District Hangzhou, Zhejiang Province 311247 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
11.10.2002 |
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Com. Reg. No.: |
330100400013774 |
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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 chemical
fiber products |
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No. of Employees : |
2,565 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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) |
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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 RONGXIANG CHEMICAL
FIBRE CO., LTD.
NO. 98 HONGYANG ROAD, YINONG TOWN, XIAOSHAN DISTRICT
HANGZHOU, ZHEJIANG PROVINCE 311247 PR CHINA
TEL: 86 (0) 571-82520090 / 82520338
FAX: 86 (0) 571-82598833
EXECUTIVE SUMMARY
Date of Registration : OCTOBER 11, 2002
REGISTRATION NO. : 330100400013774
LEGAL FORM : Chinese-foreign equity joint venture enterprise
CHIEF EXECUTIVE : LI CAI’E (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 63,800,000
STAFF : 2,565
BUSINESS CATEGORY : MANUFACTURING
REVENUE : CNY 3,559,710,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 1,099,131,000 (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 6.10 = 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.: 330100400013774 on October 11, 2002.
SC’s Organization Code Certificate No.: 74348997-8
SC’s Tax No.: 330181743489978
SC’s Customs Registration No.: 3316930582
SC’s registered capital: USD 63,800,000
SC’s paid-in capital: USD 63,800,000 (CNY 514,635,888.07)
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 |
|
Rongsheng Petrochemical Co., Ltd. |
73.95 |
|
Hong Kong Sheng Hui Limited |
26.05 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Li Cai’e |
|
Director |
Li Shuirong |
|
Quan Weiying |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name % of Shareholding
Rongsheng Petrochemical Co., Ltd. 73.95
Hong Kong Sheng Hui Limited 26.05
Rongsheng Petrochemical Co., Ltd.
=============================
Rongsheng Petrochemical has formed a full rang of industrial chain, which is specialized in PTA, polyester, spinning and texturing. It currently has two PTA production bases in Ningbo and Dalian, of which Zhejiang Yisheng Petrochemical Co., Ltd. in Ningbo has an annual production capacity of 2.56 million tons and Yisheng Dahua Petrochemical Co., Ltd. has an annual production capacity of 1.7 million tons.
Date of Registration: September 15, 1995
Registration No.: 330000000008840
Legal Form: Shares Limited Company
Chief Executive: Li Shuirong
Registered Capital: CNY 1,112,000,000
Address: No. 98 Hongyang Road, Yinong Town, Xiaoshan District, Hangzhou, Zhejiang Province
Tel: 86-571-82520189
Fax: 86-571-82527208-8150
Web: www.cnrspc.com
E-mail: rspc@cnrspc.com
Hong Kong Sheng Hui Limited
==========================
CR No.: 1146834
Legal Form: Private
MANAGEMENT
Li Cai’e , Legal Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------
Gender: M
Age: 50
ID# 330121631111432
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general manager, also working in Rongsheng Petrochemical Co., Ltd. as chief financial officer and director
Director
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Li Shuirong ID# 330121560701431
Quan Weiying ID# 339005197809145465
BUSINESS OPERATION
SC’s registered business scope includes manufacturing: differential chemical fiber, chemical fiber cloth and polyester chips; selling: self-produced products.
SC is mainly engaged in manufacturing and selling chemical fiber products.
SC’s products mainly include: chemical fiber products.
SC sources its materials 25% from domestic market, and 75% from overseas market. SC sells 95% of its products in domestic market, and 5% to overseas market.
The import & export status of SC in 2012 is as follows,
|
Country |
Amount of Exports (USD) |
Amount of Imports (USD) |
|
Saudi Arabia |
-- |
57,811,063 |
|
Hong Kong |
2,159,021 |
66,194,606 |
|
Germany |
-- |
2,798,272 |
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Japan |
-- |
2,364,854 |
|
Brazil |
2,224,488 |
-- |
|
Iran |
1,193,706 |
-- |
|
Korea |
1,079,721 |
-- |
|
South Africa |
934,360 |
-- |
|
Spain |
362,546 |
-- |
|
Poland |
252,682 |
-- |
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.
*Major Customer:
=============
Platinium Textil, C.A.
Staff & Office:
--------------------------
SC is known to have approx. 2,565 staff at present.
SC owns an area as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
Zhejiang Rongsheng Holding Group Co., Ltd.
Zhejiang Shengyuan Chemical Fiber Co., Ltd.
Hangzhou Rongsheng Chemical Fiber Sales Co., Ltd.
Dalian Yisheng Investment Co., Ltd.
Yisheng Dahua Petrochemical Co., Ltd.
Etc.
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:
Industrial and Commercial Bank of China Hangzhou
Xiaoshan Sub-branch
AC#:
1202090109900091908
AC#:
1202090109814012937
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
410,153 |
327,309 |
|
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Notes receivable |
248,874 |
437,229 |
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Accounts receivable |
53,454 |
189,177 |
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Advances to suppliers |
85,819 |
183,640 |
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Other receivable |
177,170 |
318,438 |
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Inventory |
308,853 |
276,916 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
0 |
1,003 |
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------------------ |
------------------ |
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Current assets |
1,284,323 |
1,733,712 |
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Fixed assets |
730,824 |
659,000 |
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Construction in progress |
0 |
0 |
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Intangible assets |
8,115 |
7,283 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
375 |
7,500 |
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Other non-current assets |
0 |
0 |
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------------------ |
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Total assets |
2,023,637 |
2,407,495 |
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============= |
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Short-term loans |
557,579 |
977,052 |
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Notes payable |
0 |
0 |
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Accounts payable |
77,355 |
276,519 |
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Wages payable |
36,403 |
34,287 |
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Taxes payable |
6,254 |
12,511 |
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Advances from clients |
1,234 |
564 |
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Interest payable |
596 |
5,179 |
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Other payable |
5,133 |
978 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
684,554 |
1,307,090 |
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Non-current liabilities |
172,660 |
1,274 |
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------------------ |
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Total liabilities |
857,214 |
1,308,364 |
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Equities |
1,166,423 |
1,099,131 |
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------------------ |
------------------ |
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Total liabilities & equities |
2,023,637 |
2,407,495 |
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Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Revenue |
4,039,726 |
3,559,710 |
|
Cost of sales |
3,802,963 |
3,579,810 |
|
Taxes and surcharges |
10,797 |
7,163 |
|
Sales expense |
1,432 |
1,233 |
|
Management expense |
8,091 |
12,128 |
|
Finance expense |
-2,739 |
40,636 |
|
Investment income |
5,384 |
4,811 |
|
Non-business income |
449 |
5,331 |
|
Non-business expenditure |
4,150 |
3,559 |
|
Profit before tax |
220,782 |
-74,019 |
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Less: profit tax |
53,481 |
-6,728 |
|
167,301 |
-67,291 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
1.88 |
1.33 |
|
*Quick ratio |
1.42 |
1.11 |
|
*Liabilities to assets |
0.42 |
0.54 |
|
*Net profit margin (%) |
4.14 |
-1.89 |
|
*Return on total assets (%) |
8.27 |
-2.80 |
|
*Inventory / Revenue ×365 |
28 days |
29 days |
|
*Accounts receivable/ Revenue ×365 |
5 days |
20 days |
|
* Revenue/Total assets |
2.00 |
1.48 |
|
* Cost of sales / Revenue |
0.94 |
1.01 |
FINANCIAL COMMENTS
PROFITABILITY: FAIR
The revenue of SC appears fairly good, but it was decreasing in 2012.
SC’s net profit margin is average in 2011 and fair in 2012.
SC’s return on total assets is average in 2011 and fair in 2012.
SC’s cost of sales is 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 is maintained in an average level.
The short-term loans of SC appear large.
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 large-sized in its line with fairly stable financial conditions. The large amount of short-term loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.18 |
|
|
1 |
Rs.100.01 |
|
Euro |
1 |
Rs.83.82 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
|
<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.