MIRA INFORM REPORT
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Report Date : |
18.05.2013 |
IDENTIFICATION DETAILS
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Name : |
NINGBO HONOR CHEMTECH CO., LTD. |
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Registered Office : |
Room 1011, Building 11, East Section Of New World Business
Building, Jiangdong District, Ningbo City, Zhejiang Province 315040 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
23.08.2007 |
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Com. Reg. No.: |
330204000004860 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
International Trade |
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No. of Employees : |
07 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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 – March 31st 2013
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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 & address
NINGBO
HONOR CHEMTECH CO., LTD.
ROOM 1011, BUILDING
11, east section of NEW WORLD BUSINESS BUILDING,
JIANGDONG DISTRICT,
NINGBO CITY, ZHEJIANG PROVINCE 315040 PR CHINA
TEL: 86 (0)
574-56118786/87336598 FAX: 86 (0)
574-56118710
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 23, 2007
REGISTRATION NO. : 330204000004860
REGISTERED LEGAL FORM :
ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH : 7
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
CNY 12,450,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 478,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1506 = 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
SC was registered as a one-person limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Aug. 23, 2007.
Company Status: One-person
Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY 100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s
registered business scope includes wholesaling of Type 2 compressed gas and
liquefied gas (inflammable gas, non-flammable gas and poisonous gas) Type 3 flammable
gas (low flash point liquid, flash point liquid and high flash point liquid)
Type 4 inflammable solid, spontaneously combustible and flammable objects when
wet (inflammable solid, spontaneously combustible and flammable objects when
wet) Type 5 oxidizer and organic peroxides (oxidizer and organic peroxides)
Type 6 toxicant article and infectious substances (toxicant article) Type 8
corrosion products (acidic corrosion products, alkaline corrosion products and
other corrosion products) (excluding highly toxic product, A class of precursor
chemicals and product oil) (operating in the date of period of validity).
Wholesaling and retailing of chemical materials and products (excluding
hazardous chemicals), hardware, electromechanical appliance (excluding
automobile), commodities, garments, textiles, agricultural and animal products;
import and export of various goods and technologies, excluding the good
prohibited or limited by the country.
SC is mainly
engaged in international trade.
Mr. Nie An is legal
representative, chairman and general manager of SC at present.
SC is known to
have approx. 7 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Ningbo. Our checks reveal that SC rents the total premise about 155
square meters.
www.sinopharmchem.com The
design is professional and the content is well organized. At present the web
site is in both Chinese and English versions.
E-mail: info@sinopharmchem.com
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2012-4 |
Registered capital |
CNY 500,000 |
Present amount |
MAIN SHAREHOLDERS:
Name
% of Shareholding
Nie An 100
Legal representative,
chairman and general manager:
Mr. Nie An is currently
responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative, chairman and general manager.
SC is mainly
engaged in international trade.
SC’s products mainly include:
HERBAL MEDICINE
·Black Garlic Extract (Flavones 5%)
·Ellagic Acid
·Feverfew Extract (Parthenolide 0.2%~0.8%)
·Ginkgo Biloba extract
·L-α-Phosphatidyl-L-Serine
·Luteolin
·Lycopene (5%~90%)
·Myricetin
·Rose Hips Extract (Flavones 10%~15%)
·Tongkat Ali extract
·Troxerutin
·White Willow bark extract (Salicin 25%~75%)
NUTRIENT SUPPLEMENT
·Acetyl-L-Carnitine
Hydrochloride
·DL-Carnitine HCl
·DL-Lysine
Monohydrate
·L-Arginine
L-Aspartate
·L-Arginine
Nitrate
·L-Carnitine
·L-Carnitine
Fumarate
·L-Carnitine
L-Tartrate
·L-Glutamine
·L-Lysine
L-Aspartate
·L-Ornithine
Acetate
·L-Ornithine HCl
·L-Ornithine
L-Aspartate
·N-Acetyl-DL-Leucine
·N-Acetyl-L-Cysteine
·Neotame
API
·6-Dehydroprogesterone
·Carbocysteine
(S-Carboxy Methyl-L-Cysteine)
·Deflazacort
·Fluocinolone
Acetonide
·Mifepristone
·Prednisolone
·Propionyl-L-carnitine
HCl
SC sources its
materials 90% from domestic market and 10% from the overseas market. SC sells
20% of its products in domestic market and 80% to overseas market, mainly
Vietnam and Argentina, etc.
The buying terms of SC include Check, L/C, T/T 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*
==============
Vacopharm Pharmaceutical Joint Stock Company
(Vietnam)
*Major Supplier*
=============
Shanghai Hanfei Biochemical Technology Co.,
Ltd.
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’s supplier
declined to make any commends.
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.
Bank of China Ningbo
Zhongshan Sub-branch
AC#：385758329568
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
104 |
174 |
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Inventory |
60 |
196 |
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Accounts receivable |
370 |
2,084 |
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Advances to suppliers |
194 |
825 |
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A receivable tax rebate of export |
571 |
320 |
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Other receivables |
10 |
239 |
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Prepaid expenses |
0 |
9 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
1,309 |
3,847 |
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Fixed assets net
value |
5 |
15 |
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Long term
investment |
0 |
0 |
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Projects under
construction |
0 |
0 |
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Intangible
assets |
0 |
0 |
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Long-term
deferred expenses |
0 |
0 |
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other assets |
0 |
1 |
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------------------ |
------------------ |
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Total assets |
1,314 |
3,863 |
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=========== |
=========== |
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Short loan |
0 |
0 |
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Accounts payable |
176 |
2,179 |
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Advances from
clients |
947 |
1,204 |
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Accrued payroll |
0 |
0 |
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Welfare expenses
payable |
0 |
0 |
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Taxes payable |
3 |
2 |
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Other Accounts
payable |
127 |
0 |
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Accrued expenses |
54 |
0 |
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Other current
liabilities |
1 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
1,308 |
3,385 |
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Long-term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
1,308 |
3,385 |
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Equities |
6 |
478 |
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------------------ |
------------------ |
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Total
liabilities & equities |
1,314 |
3,863 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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Turnover |
10,177 |
12,450 |
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Cost of goods sold |
8,848 |
11,080 |
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Taxes and additional of main
operation |
2 |
2 |
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Sales expense |
740 |
791 |
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Management expense |
336 |
575 |
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Finance expense |
246 |
7 |
|
Non-operating income |
40 |
67 |
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Non-operating expense |
54 |
0 |
|
Profit before tax |
-9 |
62 |
|
Less: profit tax |
0 |
11 |
|
Profits |
-9 |
51 |
Important
Ratios
=============
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
1.00 |
1.14 |
|
*Quick ratio |
0.95 |
1.08 |
|
*Liabilities
to assets |
1.00 |
0.88 |
|
*Net profit
margin (%) |
-0.09 |
0.41 |
|
*Return on
total assets (%) |
-0.68 |
1.32 |
|
*Inventory
/Turnover ×365 |
2days |
6days |
|
*Accounts
receivable/Turnover ×365 |
13days |
61days |
|
*Turnover/Total
assets |
7.75 |
3.22 |
|
* Cost of
goods sold/Turnover |
0.87 |
0.89 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears average and it increased in 2012.
l SC’s net profit
margin is fair in 2011 and average in 2012.
l SC’s return on
total assets is fair in 2011 and average in 2012.
l
SC’s cost of goods sold is average, comparing with
its turnover in both years.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average in
2011 but fairly large in 2012.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is too high in 2011, and high
in 2012.
l
The risk for SC to go bankrupt is average.
Overall financial condition
of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The fairly large amount of account receivable could be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.89 |
|
UK Pound |
1 |
Rs.83.66 |
|
Euro |
1 |
Rs.70.58 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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.