MIRA INFORM REPORT
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Report Date : |
26.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG
SOUTH PETROLEUM & CHEMICAL INDUSTRY CO., LTD. |
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Registered Office : |
Binhai Industry Area, Shaoxing
County, Shaoxing City, Zhejiang
Province 312073 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
15.01.2004 |
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Com. Reg. No.: |
330600400000829 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing
and selling chemical fiber materials and products. |
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No. of Employees : |
1,650 |
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 |
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Status : |
Good |
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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) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
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
ZHEJIANG SOUTH PETROLEUM &
CHEMICAL INDUSTRY CO., LTD.
BINHAI INDUSTRY
AREA, SHAOXING COUNTY
SHAOXING
CITY, ZHEJIANG PROVINCE 312073 PR CHINA
TEL: 86
(0) 575-85624088
FAX: 86
(0) 575-85621886
EXECUTIVE SUMMARY
Date of Registration : JANUARY 15, 2004
REGISTRATION NO. :
330600400000829
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT
VENTURE ENTERPRISE
REGISTERED CAPITAL : USD 60,000,000
staff : 1,650
BUSINESS CATEGORY : manufacturing
Revenue : CNY 5,061,455,000 (AS
OF DEC. 31, 2011)
EQUITIES : CNY 579,056,000 (AS OF DEC. 31,
2011)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE : CNY 6.22 = 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.:
330600400000829 on January 15, 2004.
SC’s Organization Code Certificate
No.: 75806061-3
SC’s registered capital: USD
60,000,000
SC’s paid-in capital: USD
60,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Legal Representative |
Li Leyong |
Xu Shunxing |
|
Shareholder (s) (% of
Shareholding) |
(B.V.I.) Hongli Development Ltd. 61.6667% Zhejiang South Holding Group Co., Ltd. 38.3333% |
(B.V.I.) Hongli Development Ltd. 25% Zhejiang South Holding Group Co., Ltd. 45% Zhejiang Materials Industry Chemical Group Co., Ltd. 20% Zhejiang Nanhong Trading Co., Ltd. 10% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
(B.V.I.) Hongli Development Ltd. |
25 |
|
Zhejiang South Holding Group Co., Ltd. |
45 |
|
Zhejiang Materials Industry Chemical Group Co., Ltd. |
20 |
|
Zhejiang Nanhong Trading Co., Ltd. |
10 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Xu
Shunxing |
|
Vice Chairman |
Cheng
Xinhua |
|
General Manager |
Li Leyong |
|
Deputy General Manager |
Ding Yonghua |
|
Li Jun |
|
|
Yu Feipeng |
|
|
Wang Jiancai |
|
|
Director |
Li Leyong |
|
Li Jun |
|
|
Yu Feipeng |
|
|
Supervisor |
Shen Guojian |
|
Tang Yuqing |
|
|
Li Yiming |
RECENT DEVELOPMENT
No recent development was found during our checks at
present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(B.V.I.) Hongli Development Ltd.
25
Zhejiang South Holding Group
Co., Ltd.
45
Zhejiang Materials Industry
Chemical Group Co., Ltd.
20
Zhejiang Nanhong Trading Co.,
Ltd.
10
Zhejiang
South Holding Group Co., Ltd.
------------------------------------------------------
Date of Registration: December 21, 1999
Registration No.: 330000000029654
Legal Form: Limited Liabilities Company
Registered Capital: CNY 260,000,000
Zhejiang
Materials Industry Chemical Group Co., Ltd.
----------------------------------------------------------------------
Date of Registration: December 8, 2005
Registration No.: 330000000023122
Legal Form: Limited Liabilities Company
Registered Capital: CNY 100,000,000
Zhejiang
Nanhong Trading Co., Ltd.
-------------------------------------------------
Date of Registration: January 24, 2011
Registration No.: 330621000142361
Legal Form: Limited Liabilities Company
Registered Capital: CNY 50,000,000
MANAGEMENT
Xu
Shunxing, Legal Representative and Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: Hong Kong
Ø
ID# P462001 (5)
Ø
Age: 54
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC as
legal representative and chairman
Also working in Zhejiang South
Holding Group Co., Ltd. as legal representative
Cheng
Xinhua, Vice Chairman
----------------------------------------------------
Ø
Gender: M
Ø
ID# 330106196511300038
Ø
Age: 48
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC as vice
chairman
Li Leyong, General Manager
-------------------------------------------------
Ø
Gender: M
Ø
ID# 330621196312025775
Ø
Age: 50
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC as
general manager
Deputy General Manager
---------------------------------
Ding Yonghua ID#
330621196903293966
Li Jun ID#
330621197310055772
Yu Feipeng ID#
33260219780724693X
Wang Jiancai ID#
330107196911270938
Director
------------
Li Leyong ID#
330621196312025775
Li Jun ID#
330621197310055772
Yu Feipeng ID#
33260219780724693X
Supervisor
--------------
Shen Guojian ID#
31010519690916243X
Tang Yuqing ID#
340403197106180021
Li Yiming ID#
330621196311135358
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
processing chemical fiber materials and products; selling its products.
Wholesaling, commission, importing and exporting dimethylbenzene, pure
terephthalic acid, ethanediol, polyester chip and nylon chips; the above
commodities not related to state trade, import and export quota license, export
quota bidding, or export license, and other special management products.
SC is
mainly engaged in manufacturing and selling chemical fiber materials and
products.
SC’s products mainly include: chemical fiber materials and
products.
SC sources its materials 30%
from domestic market, and 70% from overseas market, mainly Taiwan, Korea,
Japan, Pakistan and Thailand. SC sells 85% of its products in domestic market,
and 15% to overseas market, mainly India and Pakistan.
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:
=============
Shaoxing Xuyu Weaving Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 1,650 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
following subsidiaries at present:
n
Shaoxing Binhai Guarantee Co., Ltd.
n
Zhejiang Hongxiang Trading 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:
Industrial
and Commercial Bank of China Shaoxing Sub-branch
AC#: 1211012019200035542
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
1,053,950 |
1,029,689 |
|
|
Held for trading financial assets |
0 |
1,455 |
|
Short-term
investments |
0 |
0 |
|
Notes
receivable |
58,820 |
202,519 |
|
Accounts
receivable |
2,340 |
26,757 |
|
Advances
to suppliers |
0 |
144,622 |
|
Other
receivable |
0 |
510 |
|
Inventory |
184,420 |
166,861 |
|
Non-current
assets within one year |
0 |
0 |
|
Other
current assets |
1,250 |
1,159 |
|
|
------------------ |
------------------ |
|
Current
assets |
1,300,780 |
1,573,572 |
|
Long-term
investment |
0 |
104,198 |
|
Fixed
assets |
1,062,000 |
1,003,082 |
|
Construction
in progress |
0 |
3,948 |
|
Intangible
assets |
0 |
10,356 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred
income tax assets |
0 |
0 |
|
Other
non-current assets |
15,940 |
0 |
|
|
------------------ |
------------------ |
|
Total
assets |
2,378,720 |
2,695,156 |
|
|
============= |
============= |
|
Short-term
loans |
491,280 |
735,908 |
|
Notes
payable |
785,000 |
220,200 |
|
Accounts
payable |
134,210 |
929,504 |
|
Payroll
payable |
0 |
6,828 |
|
Taxes
payable |
57,070 |
32,828 |
|
Dividends
payable |
0 |
78,467 |
|
Advances
from clients |
0 |
24,638 |
|
Other
payable |
0 |
5,722 |
|
Non-current
liabilities maturing within one year |
0 |
80,000 |
|
Other
current liabilities |
5,610 |
2,005 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,473,170 |
2,116,100 |
|
Non-current
liabilities |
140,010 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,613,180 |
2,116,100 |
|
Equities |
765,540 |
579,056 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
2,378,720 |
2,695,156 |
|
|
============= |
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Revenue |
3,912,290 |
5,061,455 |
|
Cost of sales |
3,508,850 |
4,806,383 |
|
Taxes and surcharges |
3,350 |
8,199 |
|
Sales expense |
13,100 |
4,041 |
|
Management expense |
25,280 |
28,876 |
|
Finance expense |
74,150 |
68,118 |
|
Profit
before tax |
285,590 |
167,970 |
|
Less:
profit tax |
35,700 |
42,074 |
|
249,890 |
125,896 |
Important
Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
*Current
ratio |
0.88 |
0.74 |
|
*Quick
ratio |
0.76 |
0.66 |
|
*Liabilities
to assets |
0.68 |
0.79 |
|
*Net
profit margin (%) |
6.39 |
2.49 |
|
*Return
on total assets (%) |
10.51 |
4.67 |
|
*Inventory
/ Revenue ×365 |
18 days |
13
days |
|
*Accounts
receivable/ Revenue ×365 |
1 day |
2
days |
|
*Revenue/Total
assets |
1.64 |
1.88 |
|
*Cost
of sales / Revenue |
0.90 |
0.95 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The
revenue of SC appears good in its line,
and it increased in 2011.
l SC’s
net profit margin is fairly good in 2010,
average in 2011.
l SC’s
return on total assets is fairly good in
2010, average in 2011.
l
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained
in a fair level.
l
SC’s quick ratio is maintained in a
fair level.
l
The inventory of SC is maintained in an
average level.
l
The accounts receivable of SC is
maintained in an average level.
l
The short-term loans of SC appear
large.
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 Stable.
CONCLUSIONS
SC is considered large-sized in its line with fairly stable
financial conditions. The large amount of short-term loans could be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.09 |
|
|
1 |
Rs.82.46 |
|
Euro |
1 |
Rs.70.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.