MIRA
INFORM REPORT
|
Report Date : |
15.01.2013 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU ZHONGLI CHEMICAL FIBER CO., LTD. |
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Registered Office : |
Yonglian Village, Guali Town, Xiaoshan
District, Hangzhou, Zhejiang Province, 311241 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
21.11. 2002 |
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Com. Reg. No.: |
330181000037247 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling different sorts of polyester yarn. |
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No. of Employees : |
385 |
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 : |
Slow but correct |
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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 (31.03.2011) |
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
HANGZHOU ZHONGLI CHEMICAL FIBER CO., LTD.
YONGLIAN VILLAGE,
GUALI TOWN, XIAOSHAN DISTRICT,
HANGZHOU, ZHEJIANG
PROVINCE, 311241 PR CHINA
TEL: 86 (0)
571-82571898 FAX: 86 (0)
571-82556761
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOVEMBER 21, 2002
REGISTRATION NO. : 330181000037247
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
385
REGISTERED CAPITAL : CNY 80,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 433,550,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 174,710,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.24 = USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
Note: SC’s correct name should be the heading one.
SC was registered as a limited liabilities company at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on November 21, 2002.
Company Status: Limited liabilities co. This
form of business in PR China is defined as a legal person. No more than
fifty shareholders contribute its registered capital jointly. Shareholders
bear limited liability to the extent of shareholding, and the co. is liable
for its debts only to extent of its total assets. The characteristics of
this form of co. are as follows: Upon the establishment of the co., an investment
certificate is issued to the each of shareholders. The
board of directors is comprised of three to thirteen members. The
minimum registered capital for a co. is CNY 30,000. Shareholders
may take their capital contributions in cash or by means of tangible assets
or intangible assets such as industrial property and non-patented
technology. Cash
contributed by all shareholders must account for at least 30% of the
registered capital. Existing
shareholders have pre-exemption right to purchase shares of the co. offered
for sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s registered business
scope includes chemical fiber spinning, chemical fiber filament; weaving
chemical fiber cloth; manufacturing and processing garments, textiles,
warp-knitted cloth; processing computer embroidery; selling chemical raw
materials and products (excluding dangerous chemicals and precursor chemicals);
importing and exporting own products (with permit if needed).
SC is mainly
engaged in manufacturing and selling different sorts of polyester yarn.
Mr. Ren
Yuekang has been legal representative
and chairman of SC since 2002.
SC is known
to have approx. 385 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Hangzhou. Our checks
reveal that SC owns the total premise about 50,000 square meters.
http://www.zlhx.cn
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
Email: info@zhongli-group.com
Changes
of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
|
Registered capital |
CNY 20,000,000 |
CNY 50,000,000 |
|
Shareholders |
Wang Zhangjin 10% Xiang Tugen 10% Ren Yuekang 80% |
Wu Yuantong 0.6% Wang Zhangjin 1.86% Xiang Tugen 7.2% Cheng Bo 2.2% Ren Yuekang 88.14% |
|
|
|
Registration no. |
3301812510750 |
Present one |
|
Registered capital |
CNY 50,000,000 |
Present amount |
|
|
Shareholders |
Wu Yuantong 0.6% Wang Zhangjin 1.86% Xiang Tugen 7.2% Cheng Bo 2.2% Ren Yuekang 88.14% |
Present ones |
SC has won the title of Top Ten Development Enterprise in Xiaoshan, and
it is also regarded as AAA Grade Credit Enterprise by several banks, and so
on.
Tax Registration Certificate No.:
33018174506966X
Organization Code: 74506966X
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ren Yuekang 56.00
Ren Bilei 27.51
Xiang Tugen 10.00
Wu Yuantong 0.84
Cheng Bo 3.06
Wu Yanyin 2.59
l
Legal representative and Chairman:
Mr. Ren Yuekang , born in 1955, with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working
in SC as chairman and legal representative.
l
Supervisor:
Cheng Bo
SC is mainly
engaged in manufacturing and selling different sorts of polyester yarn.
SC produce kinds
of raw white and dope-dyed polyester yarns for over 40,000 tons, polyester
embroider threads for over 10,000 tons per year. It has developed more than 10
specifications and 300 different colors of FDY.
SC sources its materials 25% from domestic
market, and 75% from overseas market, mainly Hong Kong and Britain. SC sells
60% of its products in domestic market, and 40% to overseas market, mainly
Egypt and Turkey.
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 Supplier:
=============
Poly Plastic Masterbach (Suzhou) Co., Ltd.
*Major Customer:
==============
Shaoxing Mansige
Textiles Co., Ltd.
SC
is known to invest in the following companies:
Hangzhou Zhongcai Special Fiber Co., Ltd. (Literal Translation)
Registered
no.: 330181000206157
Legal
representative: Shi Qingrong施清荣
Establishment
date:
Etc.
Overall payment appraisal:
( ) Excellent (
) Good (X) Average (
) Fair ( ) Poor
( ) Not yet 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’s supplier
declined to make any comments.
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.
Xiaoshan Rural Cooperative Bank Guali Sub-branch
AC#：201000010768395
Bank of Hangzhou
Xiaoshan Sub-branch
AC#：96318100017286
Bank of China
Guali Sub-branch
AC#：803027982208093001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
Cash & bank |
103,967 |
94,800 |
|
Notes receivable |
2,917 |
19,090 |
|
Inventory |
126,873 |
119,040 |
|
Accounts
receivable |
25,330 |
37,200 |
|
Advances to suppliers |
550 |
550 |
|
Other
receivables |
12,479 |
7,990 |
|
Prepaid expense |
0 |
0 |
|
Other current
assets |
0 |
10 |
|
|
------------------ |
------------------ |
|
Current assets |
272,116 |
278,680 |
|
Fixed assets net
value |
80,255 |
74,420 |
|
Long term
investment |
16,800 |
32,000 |
|
Intangible
assets |
5,455 |
5,270 |
|
Long term
prepaid expense |
55 |
0 |
|
Deferred charges |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
374,681 |
390,370 |
|
|
============= |
============= |
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Short loans |
57,000 |
61,000 |
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Notes payable |
80,038 |
55,840 |
|
Accounts payable |
72,831 |
77,700 |
|
Advances from
customers |
0 |
0 |
|
Accrued payroll |
221 |
/ |
|
Taxes payable |
3,023 |
2,090 |
|
Other account
payable |
17,946 |
18,190 |
|
Other current
liabilities |
0 |
840 |
|
|
------------------ |
------------------ |
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Current
liabilities |
231,059 |
215,660 |
|
Long term
liabilities |
0 |
0 |
|
Deferred income
tax liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
231,059 |
215,660 |
|
Equities |
143,622 |
174,710 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
374,681 |
390,370 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
|
Turnover |
622,176 |
433,550 |
|
Cost of goods
sold |
557,692 |
408,800 |
|
Taxes and
additional of main operation |
2,390 |
1,370 |
|
Sales expense |
3,177 |
2,550 |
|
Management expense |
20,051 |
11,830 |
|
Finance expense |
4,993 |
4,190 |
|
Net change in
fair value |
-1 |
0 |
|
Non-operating
income |
369 |
70 |
|
Non-operating expense |
10 |
0 |
|
Profit before
tax |
34,231 |
4,880 |
|
Less: profit tax |
8,558 |
1,220 |
|
Profits |
25,673 |
3,660 |
Important Ratios
=============
|
|
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
*Current ratio |
1.18 |
1.29 |
|
*Quick ratio |
0.63 |
0.74 |
|
*Liabilities
to assets |
0.62 |
0.55 |
|
*Net profit margin
(%) |
4.13 |
0.84 |
|
*Return on
total assets (%) |
6.85 |
0.94 |
|
*Inventory
/Turnover ×365 |
75 days |
101 days |
|
*Accounts
receivable/Turnover ×365 |
15 days |
32 days |
|
*Turnover/Total
assets |
1.66 |
1.11 |
|
* Cost of
goods sold/Turnover |
0.90 |
0.94 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line,
but it decreased in 2011.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is fairly good in 2010
but average in 2011.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears fairly large in both
years.
l
The accounts receivable of SC appears average in
both years.
l
SC’s short-term loan is in an average level in both
years.
l
SC’s turnover is in an average level in both years,
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 Stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.63 |
|
|
1 |
Rs.88.17 |
|
Euro |
1 |
Rs.73.13 |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.