MIRA
INFORM REPORT
|
Report Date : |
28.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
JIAXING HEXIN CHEMICAL INDUSTRY CO., LTD. |
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Registered Office : |
Hexin Industrial Park, |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.03.1997 |
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Com. Reg. No.: |
330400400015357 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Manufacturing and selling polyurethane and PET. |
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No. of Employees : |
138 |
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 : |
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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
JIAXING HEXIN CHEMICAL INDUSTRY CO., LTD.
HEXIN INDUSTRIAL PARK, DONGFANG ROAD
ECONOMIC DEVELOPMENT ZONE, JIAXING
ZHEJIANG PROVINCE 314000 PR CHINA
TEL: 86 (0) 573-82228160/82228162/82228169
FAX: 86 (0) 573-82228167
EXECUTIVE SUMMARY
Date of Registration : march 12, 1997
REGISTRATION NO. : 330400400015357
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL : USD 2,049,234
staff :
138
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue :
CNY 618,414,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 227,764,000 (AS OF DEC. 31, 2012)
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 Chinese-foreign equity joint venture enterprise
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 330400400015357
on March 12, 1997.
SC’s Organization Code Certificate No.:
60945977-8
SC’s Tax No.: 330401609459778
SC’s registered capital: USD 2,049,234
SC’s paid-in capital: USD 2,049,234
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 |
|
Zhejiang Hexin Industry Group Co., Ltd. |
74.15 |
|
Chen Yifang (Taiwan) |
25.85 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Shen Yunping |
|
Vice Chairman |
Chen Yifang |
|
General Manager and Director |
Shen Liangen |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Zhejiang Hexin Industry Group Co., Ltd. 74.15
Chen Yifang (Taiwan) 25.85
n
Zhejiang Hexin Industry Group Co., Ltd.
------------------------------------------------------
Registration No.: 330000000048371
Legal Form: Shares Limited Company
Registered Capital: CNY 198,120,000
Legal Representative: Shen Yunping
Address: Hexin Industrial Park, Dongfang
Road, Economic Development Zone, Jiaxing, Zhejiang Province
Tel: 86 (0) 573-82228502
Fax: 86 (0) 573-82227388
MANAGEMENT
Shen Yunping , Legal Representative and Chairman
------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 330402195805310617
Ø
Age: 55
Ø
Qualification:
University
Ø
Working
experience (s):
At
present, working in SC as legal representative and chairman
Also
working in Zhejiang Hexin Industry Group Co., Ltd. and Jiaxing Heda Science and
Technology Chemistry Co., Ltd. as legal representative
Chen Yifang, Vice Chairman
--------------------------------------------------
Ø
Gender: M
Ø
ID# K100513879
Ø
Nationality: Taiwan
Ø
Qualification:
University
Ø
Working
experience (s):
At
present, working in SC as vice chairman
Shen Liangen , General Manager
and Director
-----------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 330106196607190013
Ø
Age: 47
Ø
Qualification:
University
Ø
Working
experience (s):
At
present, working in SC as general manager and director
BUSINESS OPERATION
SC’s
registered business scope includes manufacturing and selling polyurethane and
PET.
SC is mainly engaged
in manufacturing and selling polyurethane and PET.
SC’s products
mainly include:
Polyurethane
PET
SC sources its materials 95% from domestic market, and 5% from overseas market, mainly Taiwan, Hong Kong and Japan. SC sells 97% in domestic market and 3% to overseas market, mainly India, Turkey, and Taiwan.
The
import & export status of SC in 2012 is as follows,
|
Country |
Amount of
Exports (USD) |
Amount of Imports (USD) |
|
India |
546,458.0 |
|
|
Turkey |
2,161,860.6 |
|
|
Taiwan |
382,524.6 |
7,100.0 |
|
Hong Kong |
0 |
3,106,742.5 |
|
Japan |
0 |
827,120.0 |
|
|
----------------- |
----------------- |
|
Total |
3,090,843.2 |
3,940,962.5 |
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.
Staff & Office:
--------------------------
SC is known
to have approx. 138 staff at
present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to
have the following subsidiaries at present,
Shanghai
Lianjing Polyurethane Industrial Co., Ltd.
Jiaxing
Heda Science and Technology Chemistry 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
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 |
|
27,353 |
22,154 |
|
|
Notes receivable |
46,778 |
37,083 |
|
Accounts
receivable |
70,301 |
91,610 |
|
Advances to
suppliers |
15,641 |
29,632 |
|
Other receivable |
292 |
379 |
|
Inventory |
43,714 |
62,939 |
|
Deferred
expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
204,079 |
243,797 |
|
Long-term
investment |
12,227 |
12,523 |
|
Fixed assets |
19,537 |
17,448 |
|
Construction in
progress |
7,175 |
20,935 |
|
Intangible
assets |
8,596 |
8,416 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
72 |
56 |
|
Other
non-current assets |
778 |
1,055 |
|
|
------------------ |
------------------ |
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Total assets |
252,464 |
304,230 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
21,500 |
23,000 |
|
Accounts payable |
35,860 |
39,180 |
|
Wages payable |
577 |
583 |
|
Welfares payable |
192 |
192 |
|
Taxes payable |
2,943 |
1,680 |
|
Advances from
clients |
1,941 |
2,103 |
|
Other payable |
1,142 |
9,657 |
|
Other current
liabilities |
94 |
71 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
64,249 |
76,466 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
64,249 |
76,466 |
|
Equities |
188,215 |
227,764 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
252,464 |
304,230 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
653,323 |
618,414 |
|
Cost of sales |
560,154 |
510,976 |
|
Taxes and surcharges |
1,742 |
1,460 |
|
Sales expense |
24,332 |
27,297 |
|
Management expense |
36,570 |
39,706 |
|
Finance expense |
-74 |
355 |
|
Investment
income |
899 |
1,016 |
|
Non-operating
income |
563 |
351 |
|
Non-operating expense |
701 |
748 |
|
Profit before
tax |
34,433 |
41,609 |
|
Less: profit tax |
4,479 |
6,200 |
|
29,954 |
35,409 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
3.18 |
3.19 |
|
*Quick ratio |
2.50 |
2.37 |
|
*Liabilities
to assets |
0.25 |
0.25 |
|
*Net profit margin
(%) |
4.58 |
5.73 |
|
*Return on
total assets (%) |
11.86 |
11.64 |
|
*Inventory /
Revenue ×365 |
25 days |
38 days |
|
*Accounts
receivable / Revenue ×365 |
40 days |
55 days |
|
*Revenue /
Total assets |
2.59 |
2.03 |
|
*Cost of sales
/ Revenue |
0.86 |
0.83 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good in both
years.
l
SC’s net profit margin is average.
l
SC’s return on total assets is fairly good.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
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.59.70 |
|
|
1 |
Rs.92.25 |
|
Euro |
1 |
Rs.78.38 |
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.