MIRA
INFORM REPORT
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Report Date : |
17.10.2013 |
IDENTIFICATION DETAILS
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Name : |
AKZO NOBEL ETHYLENE AMINES ( |
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Registered Office : |
No. 1801, Haitian Mid Road, |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
03.12.2008 |
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Com. Reg. No.: |
330200400034755 |
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Legal Form : |
Wholly
Foreign-Owned |
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Line of Business : |
Manufacturing and selling chemical products. |
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No. of Employees : |
115 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 |
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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
AKZO NOBEL ETHYLENE
AMINES (NINGBO) CO., LTD.
NO. 1801, HAITIAN MID
ROAD, XIEPU TOWN, ZHENHAI DISTRICT, NINGBO
ZHEJIANG PROVINCE
315204 PR CHINA
TEL: 86 (0) 574-86621088/86621011
FAX: 86 (0)
574-86501722
EXECUTIVE SUMMARY
Date of Registration : december 3, 2008
REGISTRATION NO. : 330200400034755
LEGAL FORM : Wholly foreign-owned enterprise
CHIEF EXECUTIVE : Steven Lance
Hunt (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : usd 67,000,000
staff :
115
BUSINESS CATEGORY :
manufacturing
Revenue :
CNY 903,087,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY -59,310,000 (AS OF
DEC. 31, 2012)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : POOR
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.12 = 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 wholly foreign-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 330200400034755 on December 3, 2008.
SC’s Organization
Code Certificate No.: 71788395-5
%20CO%20,%20LTD%20%20-%20239903%2017-Oct-2013_files/image002.jpg)
SC’s Tax No.:
330211717883955
SC’s Customs Registration
No.: 3302941327
SC’s registered
capital: usd 67,000,000
SC’s paid-in
capital: usd 67,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2012 |
Legal Representative |
Joern Seieroe |
Steven Lance Hunt |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Akzo Nobel Chemicals International B.V. (Holland) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Steven Lance Hunt |
|
Director |
Egbert Anton Henstra |
|
Sander Gerardus Marie Bovee |
|
|
Supervisor |
Robert E.Margevich |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Akzo Nobel Chemicals International B.V. (Holland) 100
MANAGEMENT
Steven Lance Hunt,
Legal Representative, Chairman and
General Manager
-------------------------------------------------------------------------------------------------
Gender: M
Passport No.: 761252448
Nationality: UK
Working experience (s):
At to present, working in SC as legal representative, chairman and general manager
Director
----------
Egbert Anton Henstra (Holland) Passport No.: NV0PB97H1
Sander Gerardus Marie Bovee (Holland) Passport No.: NU
Supervisor
--------------
Robert E.Margevich (USA) Passport No.: 027862683
BUSINESS OPERATION
SC’s registered business scope includes manufacturing triethanolamine, diethanolamine, 1,2 - ethylene diamine, diethylene triamine, piperazine, carbon dioxide, N-amino ethyl piperazine, ethylene oxide, crude triethanolamine, monoethanolamine, ethylene amines products, byproducts; import and export, wholesale and commission agent; product research and development, technology import and export, and supporting business; wholesale of compressed and liquefied gases, flammable liquids, corrosive substances.
SC is mainly engaged in
SC’s products mainly include: triethanolamine, diethanolamine, 1,2 - ethylene diamine, diethylene triamine, piperazine, carbon dioxide, N-amino ethyl piperazine, ethylene oxide, crude triethanolamine, monoethanolamine, etc.
SC sources its materials 87% from domestic market, mainly Zhejiang, and 13% from overseas market, mainly U.S.A. SC sells 95% of its products in domestic market, and 5% to overseas market, mainly U.S.A.
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:
=============
Akzo Nobel Functional Chemicals LLC. (U.S.A.)
Staff & Office:
--------------------------
SC is known to have approx. 115 staff at present.
SC rents an area as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have a
branch at present,
-----------------------------------------------------
Akzo Nobel Ethylene Amines (Ningbo) Co., Ltd. Shanghai Branch
Registration No.: 310000500263519
Date of Registration: December 22, 2010
Legal Form: Branch
Principal: Xia Yan
Tel: 86 (0) 21-22163719
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 Ningbo
Branch
AC#:
3901160019200092814
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
167,723 |
23,753 |
18,223 |
|
|
Notes receivable |
4,383 |
49,867 |
39,631 |
|
Accounts receivable |
1,791 |
41,985 |
56,707 |
|
Advances to suppliers |
16,980 |
537 |
646 |
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Other receivable |
219 |
34 |
188 |
|
Inventory |
36,640 |
60,882 |
65,282 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
78 |
464 |
72 |
|
|
------------------ |
------------------ |
------------------ |
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Current assets |
227,814 |
177,522 |
180,749 |
|
Fixed assets |
421 |
1,472,269 |
1,357,923 |
|
Construction in progress |
1,348,605 |
19,849 |
11,108 |
|
Intangible assets |
0 |
0 |
0 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
0 |
0 |
-265,170 |
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|
------------------ |
------------------ |
------------------ |
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Total assets |
1,576,840 |
1,669,640 |
1,284,610 |
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============= |
============= |
============= |
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Short-term loans |
318,757 |
342,054 |
310,565 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
28,091 |
88,480 |
92,817 |
|
Wages payable |
2,001 |
904 |
1,822 |
|
Welfare payable |
0 |
310 |
455 |
|
Taxes payable |
-122,371 |
-107,366 |
-75,330 |
|
Advances from clients |
0 |
3,816 |
1,732 |
|
Other payable |
198,667 |
65,399 |
59,901 |
|
Accrued expenses |
5,254 |
16,816 |
33,765 |
|
Other current liabilities |
0 |
190 |
179 |
|
|
------------------ |
------------------ |
------------------ |
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Current liabilities |
430,399 |
410,603 |
425,906 |
|
Non-current liabilities |
724,324 |
889,250 |
918,014 |
|
|
------------------ |
------------------ |
------------------ |
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Total liabilities |
1,154,723 |
1,299,853 |
1,343,920 |
|
Equities |
422,117 |
369,787 |
-59,310 |
|
|
------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
1,576,840 |
1,669,640 |
1,284,610 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Revenue |
9,594 |
607,567 |
903,087 |
|
Cost of sales |
8,831 |
609,291 |
913,726 |
|
Sales expense |
111 |
16,106 |
22,384 |
|
Management expense |
63,795 |
39,426 |
64,430 |
|
Finance expense |
-16 |
-4,627 |
52,750 |
|
Subsidy income |
26,764 |
0 |
0 |
|
Non-business income |
0 |
298 |
106 |
|
Non-business expenditure |
0 |
0 |
279,000 |
|
Profit before tax |
-36,362 |
-52,330 |
-429,097 |
|
Less: profit tax |
0 |
0 |
0 |
|
-36,362 |
-52,330 |
-429,097 |
Important Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
0.53 |
0.43 |
0.42 |
|
*Quick ratio |
0.44 |
0.28 |
0.27 |
|
*Liabilities to assets |
0.73 |
0.78 |
1.05 |
|
*Net profit margin (%) |
-379.01 |
-8.61 |
-47.51 |
|
*Return on total assets (%) |
-2.31 |
-3.13 |
-33.40 |
|
*Inventory / Revenue ×365 |
1,394 days |
37 days |
27 days |
|
*Accounts receivable/ Revenue ×365 |
69 days |
26 days |
23 days |
|
* Revenue/Total assets |
0.01 |
0.36 |
0.70 |
|
* Cost of sales / Revenue |
0.92 |
1.00 |
1.01 |
FINANCIAL COMMENTS
PROFITABILITY: FAIR
The revenue of SC appears fairly good in its line.
SC’s net profit margin is poor.
SC’s return on total assets is fair.
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a poor level.
SC’s quick ratio is maintained in a poor level.
The inventory of SC is maintained in an average level in 2011 and 2012.
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: POOR
The debt ratio of SC is high.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Poor.
CONCLUSIONS
SC is considered medium-sized in its line with poor financial conditions. The large amount of short-term loans may be a threat to SC’s financial condition. But taking into consideration of SC’s good background, credit dealings with SC should be confined into small amount at present.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.69 |
|
|
1 |
Rs.98.59 |
|
Euro |
1 |
Rs.83.67 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.