MIRA INFORM REPORT
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Report Date : |
15.05.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG
HENGYI PETROCHEMICALS CO., LTD. |
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Registered Office : |
Yaqian,
Xiaoshan District, Hangzhou City, Zhejiang Province 311209 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
26.07.2004 |
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Com. Reg. No.: |
330000000053603 |
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Legal Form : |
One-Person Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling chemical fibers and
chemical raw materials. |
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No. of Employees : |
2,000 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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) |
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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 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
ZHEJIANG HENGYI PETROCHEMICALS CO., LTD.
YAQIAN,
XIAOSHAN DISTRICT, HANGZHOU CITY, ZHEJIANG PROVINCE 311209 PR CHINA
TEL: 86 (0)
571-82759891/82797888
FAX: 86 (0) 571-82799149/82768559
EXECUTIVE SUMMARY
Date of Registration : JULY 26, 2004
REGISTRATION NO. : 330000000053603
LEGAL FORM : one-person Limited liabilities company
CHIEF EXECUTIVE :
qiu jianlin (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 900,000,000
staff :
2,000
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 4,222,053,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 2,428,728,000 (AS OF DEC. 31, 2012)
WEBSITE : www.hengyi.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE :
CNY 6.15 = 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 shares
limited company of PRC on July 26, 2004. 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.: 330000000053603 in 2011.
SC’s Organization Code Certificate No.:
76521594-3
SC’s registered capital: cny 900,000,000
SC’s paid-in capital: cny 900,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
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|
2011 |
Registration No. |
3300001010765 |
330000000053603 |
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||||
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Legal Form |
Shares Limited Company |
One-Person Limited Liabilities Company |
||
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Registered Capital |
cny 700,000,000 |
cny 900,000,000 |
||
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Shareholder (s) (% of Shareholding) |
Zhejiang Hengyi Group Co., Ltd. 90% Hangzhou Wanyong Industrial Investment Co., Ltd. 7% Zhejiang Southeast Space Frame Group Co., Ltd. 1% Qiu Jianlin 1% Fang Xianshui 1% |
Hengyi Petrochemical Co., Ltd. 100% |
||
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Hengyi Petrochemical Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Qiu Jianlin |
|
General Manager |
Fang Xianshui |
|
Director |
Gao Qinhong |
|
Guo Yi |
|
|
Lou Xiang |
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|
Fang Xianshui |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Hengyi Petrochemical Co., Ltd. 100
-------------------------------------
Registration No.: 450000000000189
Date of Registration: May 8, 1990
Legal Form: Shares Liabilities Company
Registered Capital: CNY 576,794,000
Legal Representative: Qiu Jianlin
It listed in Shenzhen Stock Exchange Market with the stock code 000703.
Hengyi Petrochemical Co., Ltd. is a global leader in fine terephthalic
acid (PTA) and polyester fiber manufacturer. It has formed a purified
terephthalic acid and polyester fiber on the downstream industry chain
integration and production capacity of large-scale industrial pattern, and the
scale of production capacity, equipment, technology, cost control, quality
management and product differentiation in similar enterprises is in a leading
position. It is committed to the development of the world's leading integrated
service provider for the petrochemical and chemical fiber.
Tel: 86 (0) 571-83871991
Fax: 86 (0) 571-83871992
E-mail: hysh@hengyi.com
Website: www.hengyishihua.com
MANAGEMENT
Qiu Jianlin, Legal
Representative and Chairman
--------------------------------------------------------------------------
Gender: M
ID# 330121196308136213
Age: 50
Qualification: Doctor’s Degree
Working experience (s):
At present, working in SC as legal representative and chairman
Also working in Zhejiang Hengyi Group Co., Ltd., Zhejiang Yisheng
Petrochemical Co., Ltd., Shanghai Hengyi Polyester Fiber Co., Ltd., and
Zhejiang Hengyi High New Materials Co., Ltd. as legal representative
Fang Xianshui,
General Manager
--------------------------------------------------------
Gender: M
Age: 49
ID# 33012119640328621X
Qualification: Master’s Degree
Working experience (s):
At present, working in SC as general manager
Also as director of SC
Director
-----------
Gao Qinhong ID#
330121196307250321
Guo Yi ID#
330121197407134912
Lou Xiang ID# 339005197903230316
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing,
processing, and selling chemical fibers, and chemical raw materials; import
& export business.
SC is mainly engaged in manufacturing and selling chemical fibers and
chemical raw materials.
Brand: HENGYI.
SC’s products mainly include: DTY, PTA, Polyester spinning, etc.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC
sells 30% of its products in domestic market, and 70% to overseas market,
mainly U.S.A., Europe and Southeast Asian market.
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. 2,000
staff at present.
SC owns an area as its operating office & factory of approx. 120,000
sq. meters at the heading address.
RELATED
COMPANY
SC is known to
have the following subsidiaries,
-----------------------------------------------------------
Hainan Hengyi Petrochemicals Co., Ltd.
Dalian Yisheng Investment Co., Ltd.
Zhejiang Baling Hengyi Caprolactam Co., Ltd.
Related Companies,
-------------------------
Zhejiang Hengyi Group Co., Ltd.
Date of Registration: October 18, 1994
Registration No.: 330181000108098
Registered Capital: CNY 51,800,000
Legal Representative: Qiu Jianlin
Legal form: Limited Liability Company
Zhejiang Yisheng Petrochemical Co., Ltd.
Date of Registration: March 3, 2003
Registration No.: 330200400000032
Registered Capital: USD 175,521,400
Legal Representative: Qiu Jianlin
Legal Form: Chinese-foreign equity joint venture enterprise
Shanghai Hengyi Polyester Fiber Co., Ltd.
Date of Registration: December 21, 2007
Registration No.: 310226000840469
Registered Capital: CNY 700,000,000
Legal Representative: Qiu Jianlin
Legal form: One-person Limited Liability Company
Zhejiang Hengyi High New Materials Co., Ltd.
Date of Registration: October 16, 2007
Registration No.: 330181000025489
Registered Capital: CNY 525,100,000
Legal Representative: Qiu Jianlin
Legal Form: One-person Limited Liability Company
Etc.
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:
Bank of China Xiaoshan Sub-branch
AC#: 398758327973
Agricultural Bank of China Yaqian Sub-branch
AC#: 083301040006639
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
282,758 |
354,460 |
|
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Notes receivable |
1,200 |
2,710 |
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Accounts receivable |
227,020 |
145,940 |
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Advances to suppliers |
21,550 |
11,950 |
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Other receivable |
119,070 |
7,360 |
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Inventory |
241,467 |
375,330 |
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Other current assets |
105 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
893,170 |
897,750 |
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Long-term investment |
4,100,880 |
5,370,970 |
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Fixed assets |
485,380 |
447,890 |
|
Construction in progress |
2,700 |
770 |
|
Engineering materials |
0 |
0 |
|
Intangible assets |
0 |
0 |
|
Long-term prepaid expenses |
0 |
120 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
62,080 |
62,200 |
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------------------ |
------------------ |
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Total assets |
5,544,210 |
6,779,700 |
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|
============= |
============= |
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Short-term loans |
833,370 |
652,550 |
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Trading financial liabilities |
0 |
0 |
|
Notes payable |
530,000 |
656,490 |
|
Accounts payable |
1,561,940 |
1,744,880 |
|
Wages payable |
17,610 |
14,300 |
|
Taxes payable |
-1,060 |
-3,920 |
|
Interest payable |
0 |
8,020 |
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Dividend payable |
0 |
200,000 |
|
Advances from clients |
14,730 |
33,820 |
|
Other payable |
167,590 |
5,070 |
|
Non-current liabilities within one year |
0 |
0 |
|
Other current liabilities |
43,100 |
0 |
|
|
------------------ |
------------------ |
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Current liabilities |
3,167,280 |
3,311,210 |
|
Non-current liabilities |
654,000 |
424,000 |
|
|
------------------ |
------------------ |
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Total liabilities |
3,821,280 |
3,735,210 |
|
Equities |
1,722,930 |
3,044,490 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
5,544,210 |
6,779,700 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
3,572,510 |
5,095,330 |
|
Cost of sales |
3,378,460 |
4,891,950 |
|
Taxes and surcharges |
3,640 |
9,940 |
|
Sales expense |
30,610 |
33,810 |
|
Management expense |
60,760 |
43,450 |
|
Finance expense |
68,190 |
59,970 |
|
Investment income |
698,500 |
880,830 |
|
Non-operating income |
3,140 |
1,030 |
|
Non-operating expenses |
6,550 |
2,030 |
|
Profit before tax |
725,940 |
936,040 |
|
Less: profit tax |
0 |
0 |
|
725,940 |
936,040 |
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Total assets |
6,438,625 |
|
|
------------- |
|
Total liabilities |
4,009,897 |
|
Equities |
2,428,728 |
|
|
------------- |
|
Revenue |
4,222,053 |
|
Profits |
134,976 |
Note: The detailed financials for Y2012 are not available in SAIC.
Important Ratios
=============
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
0.28 |
0.27 |
-- |
|
*Quick ratio |
0.21 |
0.16 |
-- |
|
*Liabilities to assets |
0.69 |
0.55 |
0.62 |
|
*Net profit margin (%) |
20.32 |
18.37 |
3.20 |
|
*Return on total assets (%) |
13.09 |
13.81 |
2.10 |
|
*Inventory / Revenue ×365 |
25 days |
27 days |
-- |
|
*Accounts receivable/ Revenue ×365 |
23 days |
11 days |
-- |
|
* Revenue/Total assets |
0.64 |
0.75 |
0.66 |
|
* Cost of sales / Revenue |
0.95 |
0.96 |
-- |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fairly good in 2010 and 2011, average in 2012.
SC’s return on total assets is fairly good in 2010 and 2011, average in
2012.
SC’s cost of goods sold is high, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a poor level in 2010 and 2011.
SC’s quick ratio is maintained in a poor level in 2010 and 2011.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
The short-term loans of SC appear large.
SC’s revenue is in a fair 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 Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.63 |
|
|
1 |
Rs.83.67 |
|
Euro |
1 |
Rs.71.02 |
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 |
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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.