MIRA
INFORM REPORT
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Report Date : |
18.02.2013 |
IDENTIFICATION DETAILS
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Name : |
TONGKUN GROUP
ZHEJIANG HENGSHENG CHEMICAL FIBER CO., LTD. |
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Registered Office : |
Guangming Road, Economic Development Zone Tongxiang, Zhejiang
Province, 314500 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
13.11.2000 |
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Com. Reg. No.: |
330483000014807 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in manufacturing and selling polyester filament and
polyester chips. |
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No. of Employees : |
2,700 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
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 2010 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 near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. 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
TONGKUN GROUP
ZHEJIANG HENGSHENG CHEMICAL FIBER CO., LTD.
GUANGMING ROAD,
ECONOMIC DEVELOPMENT ZONE TONGXIANG, ZHEJIANG PROVINCE, 314500 PR CHINA
TEL: 86 (0)
573-88183613/88183638
FAX: 86 (0)
573-88187852
EXECUTIVE SUMMARY
Date of Registration : november 13, 2000
REGISTRATION NO. : 330483000014807
LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE :
xu jinxiang (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 390,000,000
staff :
2,700
BUSINESS CATEGORY : manufacturing
& trading
Revenue :
CNY 9,266,044,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 1,247,438,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.23 = 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 on November 13, 2000. However, SC changed to
present legal form, and was registered as one-person limited liabilities
company of PRC with State Administration for Industry & Commerce (SAIC)
under registration No.: 330483000014807 on January 18, 2008.
SC’s Organization Code Certificate No.:
72526246-2
SC’s Tax No.: 330483725262462
SC’s registered capital: CNY 390,000,000
SC’s paid-in capital: CNY 390,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Legal Representative |
Chen Shixian |
Chen Shiliang |
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|
Legal Representative |
Chen Shiliang |
Xu Jinxiang |
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|
Registered Capital |
CNY 1,000,000 |
CNY 20,000,000 |
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Company Name |
Tongxiang Hengsheng Chemical Fiber Co., Ltd. |
Tongkun Group Zhejiang Hengsheng Chemical
Fiber Co., Ltd. |
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Registered Capital |
CNY 20,000,000 |
CNY 100,000,000 |
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|
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Registered Capital |
CNY 100,000,000 |
CNY 220,000,000 |
|
Shareholder (s) (% of Shareholding) |
Zhejiang Tongkun Investment & Management
Co., Ltd. 49% Tong Kun Group Co., Ltd. 51% |
Zhejiang Tongkun Investment & Management
Co., Ltd. 23% Tongxiang Zhongzhou Chemical Fiber Co., Ltd. 9.27% Tong Kun Group Co., Ltd. 47.73% |
|
|
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Registered Capital |
CNY 220,000,000 |
CNY 390,000,000 |
|
Shareholder (s) (% of Shareholding) |
Zhejiang Tongkun Investment & Management
Co., Ltd. 23% Tongxiang Zhongzhou Chemical Fiber Co., Ltd. 9.27% Tong Kun Group Co., Ltd. 47.73% |
Tong Kun Group Co., Ltd. 100% |
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|
Legal Form |
Limited Liabilities Company |
One-Person Limited Liabilities Company |
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Registration No. |
3304832207723 |
330483000014807 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Tong Kun Group Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Xu Jinxiang |
|
Deputy General Manager |
Shen Jiansong |
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Director |
Chen Shiliang |
|
Shen Peixing |
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|
Chen Shinan |
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|
Wang Jiangen |
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Supervisor |
Yu Rusong |
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Chen Jianrong |
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|
Chen Dong |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Tong Kun Group Co., Ltd. 100
-------------------------------
Legal representative: Chen Shiliang
Registration No.: 330000000014744
Incorporation date: September 27, 1999
Website: www.zjtkjt.com
Add: No. 199 Guangming Road, Tongxiang Economic Development Zone,
Tongxiang City, Zhejiang Province
Tel: 86-573-88187815
Fax: 86-573-88187852
MANAGEMENT
Xu Jinxiang, Legal Representative, Chairman and General
Manager
----------------------------------------------------------------------------------------------------
Gender: M
Age: 49
ID# 330425640311121
Qualification: University
Working experience (s):
From 1983 to 2002, worked in Zhejiang Tong Kun Chemical Fiber Group Co.,
Ltd. as vice general manager
From 2002 to present, working in SC as legal representative, chairman,
and general manager
Shen Jiansong, Deputy General Manager
------------------------------------------------------------------
Gender: M
Age: 43
ID# 3304251970010191814
Qualification: University
Working experience (s):
At present, working in SC as deputy general manager
Director
------------
Chen Shiliang ID# 330425196301201213
Shen Peixing ID# 330425621116121
Chen Shinan ID# 330425680118441
Wang Jiangen ID# 330424640224001
Supervisor
--------------
Yu Rusong ID# 330425680531441
Chen Jianrong ID# 330425196412301217
Chen Dong ID# 33042519730615561X
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and selling
special chemical fiber, raw materials of modified polyester fiber, and
polyester yarn; wholesaling, importing and exporting chemical raw materials, textile
raw materials, textile machinery equipment and parts, import and export of
technology; economic information consulting.
SC is mainly engaged in manufacturing and selling polyester filament and
polyester chips.
SC’s products mainly include: polyester filament and polyester chips.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC
sells 60% of its products in domestic market, and 40% 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 T/T, L/C and Credit of 30-60 days.
Staff &
Office:
--------------------------
SC is known to have approx. 2,700
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED
COMPANY
Shanghai Tuoxin Investment Co., Ltd.
Jiaxing Tongkun Economic & Trade Co., Ltd.
Tongxiang Zhouquan Tongkun Garden Flowers & Trees Co., Ltd.
Zhejiang Maosen Real Estate Co., Ltd.
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:
Agricultural Bank of China Tongxiang Sub-branch
AC#: 370201040002749
China Construction Bank Tongxiang Sub-branch
AC#: 2210010020
Industrial & Commercial Bank of China Tongxiang
Sub-branch
AC#: 1204075019045016963
Bank of China Tongxiang Sub-branch
AC#: 1002010401
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
78,758 |
137,368 |
|
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Notes receivable |
164,365 |
765,256 |
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Accounts receivable |
18,604 |
32,115 |
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Advances to suppliers |
99,974 |
143,631 |
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Other receivable |
748,583 |
447,977 |
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Inventory |
389,422 |
368,457 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
0 |
0 |
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|
------------------ |
------------------ |
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Current assets |
1,499,706 |
1,894,804 |
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Fixed assets |
788,524 |
692,491 |
|
Construction in progress |
3,210 |
4,697 |
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Intangible assets |
47,891 |
47,618 |
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Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
607 |
1,097 |
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Other non-current assets |
0 |
0 |
|
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------------------ |
------------------ |
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Total assets |
2,339,938 |
2,640,707 |
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============= |
============= |
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Short-term loans |
579,442 |
679,159 |
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Notes payable |
90,000 |
140,000 |
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Accounts payable |
415,102 |
436,728 |
|
Payroll payable |
1,222 |
1,069 |
|
Taxes payable |
79,217 |
103,013 |
|
Interest payable |
613 |
4,377 |
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Advances from clients |
26,468 |
24,171 |
|
Other payable |
3,876 |
2,102 |
|
Other current liabilities |
3,050 |
2,650 |
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|
------------------ |
------------------ |
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Current liabilities |
1,198,990 |
1,393,269 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total liabilities |
1,198,990 |
1,393,269 |
|
Equities |
1,140,948 |
1,247,438 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
2,339,938 |
2,640,707 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
7,356,249 |
9,266,044 |
|
Cost of sales |
6,630,635 |
8,609,966 |
|
Business Taxes and Surcharges |
18,593 |
18,675 |
|
Sales expense |
10,534 |
893,868 |
|
Management expense |
80,801 |
96,056 |
|
Finance expense |
10,133 |
-5,725 |
|
Assets Devaluation |
2,330 |
-718 |
|
Non-operating income |
24,859 |
8,951 |
|
Non-operating expense |
11,259 |
9,827 |
|
Profit before tax |
616,824 |
537,977 |
|
Less: profit tax |
91,914 |
131,487 |
|
524,910 |
406,490 |
Important Ratios
=============
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
*Current ratio |
1.25 |
1.36 |
|
*Quick ratio |
0.93 |
1.10 |
|
*Liabilities to assets |
0.51 |
0.53 |
|
*Net profit margin (%) |
7.14 |
4.39 |
|
*Return on total assets (%) |
22.43 |
15.39 |
|
*Inventory / Revenue ×365 |
20 days |
15 days |
|
*Accounts receivable/ Revenue ×365 |
1 day |
2 days |
|
* Revenue/Total assets |
3.14 |
3.51 |
|
* Cost of sales / Revenue |
0.90 |
0.93 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good, and it was rising in 2011.
SC’s net profit margin is fairly good in both years.
SC’s return on total assets is good in both 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 appears average
The accounts receivable of SC appear average.
The short-term loans of SC appear average.
SC’s revenue is in a fairly good 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 Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.99 |
|
|
1 |
Rs.83.72 |
|
Euro |
1 |
Rs.72.08 |
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 |
---- |
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.