MIRA INFORM REPORT
|
Report Date : |
28.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG YONGJIN PAPER CO., LTD. |
|
|
|
|
Registered Office : |
Linjiang Village, Chunjiang Street, Fuyang, Zhejiang Province, 311421
Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
06.05.2003 |
|
|
|
|
Com. Reg. No.: |
330100400011598 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing and selling coated duplex board. |
|
|
|
|
No. of Employees : |
280 |
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 |
|
Payment Behaviour : |
No Complaints |
|
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 YONGJIN PAPER CO., LTD.
LINJIANG VILLAGE, CHUNJIANG STREET, FUYANG, ZHEJIANG PROVINCE, 311421 PR
CHINA
TEL: 86 (0) 571-63151202/63585408 FAX: 86 (0) 571-63151222
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 6, 2003
REGISTRATION NO. : 330100400011598
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. YU YIHONG (CHAIRMAN)
STAFF STRENGTH :
280
REGISTERED CAPITAL : CNY 33,350,000
BUSINESS LINE :
MANUFACTURING AND trading
TURNOVER :
CNY 252,630,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 61,030,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.22 = USD 1
In case of unlimited companies, newly established companies, or lack of
financial data, more weight is given to ‘Ownership background’ and ‘Payment
record’ in our analysis.
Adopted
abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY
- China Yuan Ren Min Bi
SC was registered as a Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on May 6, 2003.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit
SC’s registered business scope includes manufacturing coated duplex
board; selling self-made products.
SC is mainly engaged in manufacturing and selling coated duplex board.
Mr. Yu Yihong is the legal representative, chairman and general manager
of SC at present.
SC is known to have approx. 280 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 Fuyang. Our
checks reveal that SC owns the total premise, but SC’s accountant Mr. Zhang
Mingquan refused to release the gross area of the premise.
http://www.zjyjpaper.com/about.asp The design is professional
and the content is well organized. At present it is both in Chinese and English
versions.
Email: jianxun_hu@yahoo.cn
; yj@zjyjpaper.com
SC has obtained ISO 9001:2000, ISO 14001 certificates.
Honors:
======
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yu Yihong 59.97
ID#: 330102195806201512
Wonder International Group Limited (Hong Kong) 25.04
Zheng Liping
14.99
ID#: 330102195709241563
Wonder International Group Limited (Hong Kong)
====================================
CR No.: 0859780
Company Status: Private
Legal Representative,
Chairman and General Manager:
Mr. Yu Yihong, born in 1958, with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
Supervisor:
Zheng Liping, born in 1957
SC is mainly engaged in manufacturing and selling coated duplex board.
SC’s products mainly include: grade A coated duplex board,
SC sources its materials 10% from domestic market, and 90% from the
overseas market, mainly from America, Japan and Canada. SC sells 99% of its
products in domestic market, and 1% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-90 days.
The payment terms of SC include T/T, L/C and Credit of 30-90 days.
Note: SC declined
to release its major suppliers and clients.
SC is not known to have any subsidiary at present.
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 refused to release any information of
its domestic suppliers and the trade reference was not available.
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.
China Construction Bank Fuyang Sub-branch
AC#：33001617235050000726
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
Cash & bank |
36,510 |
56,260 |
|
Bills receivable |
45,810 |
38,750 |
|
Inventory |
16,830 |
13,270 |
|
Accounts receivable |
34,280 |
33,070 |
|
Advances to supplies |
-- |
1810 |
|
Other receivables |
2,360 |
19,420 |
|
Other current assets |
1,730 |
40 |
|
|
------------------ |
------------------ |
|
Current assets |
137,520 |
162,620 |
|
Fixed assets net value |
59,710 |
56,140 |
|
Projects under construction |
0 |
2,230 |
|
Long-term investments |
0 |
0 |
|
Intangible assets |
0 |
0 |
|
Other assets |
5,750 |
4,000 |
|
|
------------------ |
------------------ |
|
Total assets |
202,980 |
224,990 |
|
|
============= |
============= |
|
Short loans |
58,500 |
107,000 |
|
Bills payable |
37,850 |
13,870 |
|
Accounts payable |
27,150 |
25,530 |
|
Other accounts payable |
19,090 |
14,170 |
|
Advances from clients |
500 |
2,110 |
|
Taxes unpaid |
-- |
1,130 |
|
Salaries and welfare payable |
-- |
0 |
|
Other current liabilities |
2,020 |
150 |
|
|
----------------- |
----------------- |
|
Current liabilities |
145,110 |
163,960 |
|
Long term liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
145,110 |
163,960 |
|
Shareholders equities |
57,870 |
61,030 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
202,980 |
224,990 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
Turnover |
225,250 |
252,630 |
|
Cost of goods sold |
196,190 |
231,060 |
|
Taxes and additional of main operation |
250 |
1,130 |
|
Sales expense |
1,410 |
1,030 |
|
Management expense |
9,060 |
12,940 |
|
Finance expense |
4,970 |
5,930 |
|
Other business profit |
460 |
1,020 |
|
Non-operating income |
0 |
530 |
|
Non-operating expense |
0 |
800 |
|
Total profits before tax |
13,830 |
1,290 |
|
Less: profit tax |
1,740 |
-1,360 |
|
Net profit |
12,090 |
2,650 |
Important Ratios
=============
|
|
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
*Current ratio |
0.95 |
0.99 |
|
*Quick ratio |
0.83 |
0.91 |
|
*Liabilities to assets |
0.71 |
0.73 |
|
*Net profit margin (%) |
5.37 |
1.05 |
|
*Return on total assets (%) |
5.96 |
1.18 |
|
*Inventory /Turnover ×365 |
28 days |
20 days |
|
*Accounts receivable/Turnover ×365 |
56 days |
48 days |
|
*Turnover/Total assets |
1.11 |
1.12 |
|
* Cost of goods sold/Turnover |
0.87 |
0.91 |
PROFITABILITY: AVERAGE
The turnover of SC
appears fairly good in both years, and appears a rising trend.
SC’s net profit
margin is fairly good in 2010, but average in 2011.
SC’s return on total assets is fairly good in 2010, but average in 2011.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level in both years.
SC’s quick ratio is maintained in normal level in both years.
The inventory of
SC appears average in both years.
The accounts receivable
of SC appears average in both years.
The short-term
loan of SC appears large in both years.
SC’s turnover is
in an average level in both years, 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
SC is considered medium-sized in its line with fairly stable financial conditions.
The large amount of short loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.27 |
|
|
1 |
Rs.82.49 |
|
Euro |
1 |
Rs.69.88 |
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 |
|
---- |
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.