MIRA
INFORM REPORT
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Report Date : |
25.10.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG YIDE CHEMICAL CO., LTD. |
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Registered Office : |
No. 9, Weisan Road, Fine Chemical Zone, Hangzhou Bay, Shangyu,
Zhejiang Province, 312369 Pr |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
21.06.2001 |
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Com. Reg. No.: |
330682000008730 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is engaged in producing and selling chemical products. |
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No. of Employees : |
310 |
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 : |
Moderate |
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Payment Behaviour : |
Unknown |
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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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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 |
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.
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Source
: CIA |
company name and address
ZHEJIANG YIDE CHEMICAL CO., LTD.
NO. 9, WEISAN ROAD, FINE CHEMICAL ZONE, HANGZHOU BAY, SHANGYU, ZHEJIANG
PROVINCE, 312369 PR CHINA
TEL: 86 (0) 575-82735656
FAX: 86 (0) 575-82736969
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUNE 21, 2001
REGISTRATION NO. : 330682000008730
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. JIANG ZHIPING (CHAIRMAN)
STAFF STRENGTH :
310
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 376,400,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 113,920,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE (AS OF DEC. 31, 2011)
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.10 = 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 limited liabilities co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on June 21, 2001.
Company Status:
Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes manufacturing, selling, R &
D, technology transfer and technical consultation services silk wool with
reactive dyes (according to environmental certificate, excluding hazardous
chemicals); selling other chemical products (excluding hazardous chemicals and precursor chemicals);
importing and exporting business (excluding the
items prohibited by state laws and regulations, with permit if needed).
SC is mainly engaged in producing and selling chemical products.
Mr. Jiang Zhiping has been legal representative and chairman of SC since
2001.
SC is known to have approx. 310 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 Shangyu. Our
checks reveal that SC owns the total premise, but SC’s accountant refused to
release the gross area of the premise.
http://www.yidechem.com/
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
E-mail: yidechem@chemnet.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2011 |
Company name |
Shangyu Yide Chemical Co., Ltd. |
Present one |
|
Registered capital |
CNY 30,000,000 |
Present amount |
SC’s quality system meets the international standards of ISO 9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiang Zhiping 80
ID # 330121640504083
Jing Genfa 10
ID # 330622195912105017
Yang Lifeng 10
ID # 330622720606001
Legal representative and chairman:
Mr. Jiang Zhiping, ID # 330121640504083, born in 1964, with university
education. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2001 to present Working
in SC as legal representative and chairman;
General manager:
Mr. Yang Lifeng, ID # 330622720606001, born in 1972, with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager
Supervisor:
========
Jing Genfa
SC is mainly engaged in producing and selling chemical products.
SC’s products mainly include: reactive dyes regular series, reactive
dyes rongalite series, reactive dyes printing series, reactive dyes high-temp series,
high-grade direct dyes, disperse dyestuff and acid dyestuff.
SC sources its materials 90% from domestic market and 10% from the
overseas market. SC sells 30% of its products to overseas market and 70% in domestic market.
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 Supplier*
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Yuyao Erlian Thin-Film Plant
*Major Customer*
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Zhejiang Tianma Industrial Share Co., Ltd.
SC is known to have the following branch:
Zhejiang Yide Chemical Co., Ltd. Fine Chemical Institute
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 suppliers declined to make any
comments.
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.
Agriculture Bank of China Shangyu Sub-branch
AC#：517001040000071
Relationship: Normal.
Balance Sheet (as of Dec. 31, 2010)
Unit: CNY’000
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Cash & bank |
121,420 |
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Inventory |
12,680 |
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Accounts receivable |
170,780 |
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Notes receivable |
2,070 |
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Other receivables |
19,560 |
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Other current assets |
30 |
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------------------ |
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Current assets |
326,540 |
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Fixed assets net value |
33,860 |
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Projects under construction |
11,530 |
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Long term investment |
15,200 |
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Other assets |
4,340 |
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Total assets |
391,470 |
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============= |
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Short loans |
93,410 |
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Accounts payable |
35,070 |
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Notes payable |
168,900 |
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Other payable |
10,840 |
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Taxes payable |
910 |
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Other current liabilities |
80 |
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Current liabilities |
309,210 |
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Long term liabilities |
0 |
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Total liabilities |
309,210 |
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Equities |
82,260 |
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------------------ |
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Total liabilities & equities |
391,470 |
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============= |
Income Statement (as of Dec. 31, 2010)
Unit: CNY’000
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Turnover |
500,880 |
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Cost of goods sold |
407,460 |
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Sales expense |
11,350 |
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Management expense |
27,810 |
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Finance expense |
12,090 |
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Non-operating expense |
4,760 |
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Profit before tax |
37,310 |
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Less: profit tax |
1,280 |
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Profits |
36,030 |
Financial
Information
Unit: CNY’000
Note:
SC’s management declined to release the latest financial information.
Important Ratios
=============
|
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as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
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*Current ratio |
1.06 |
/ |
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*Quick ratio |
1.02 |
/ |
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*Liabilities to assets |
0.79 |
0.78 |
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*Net profit margin (%) |
7.19 |
3.18 |
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*Return on total assets (%) |
9.20 |
2.31 |
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*Inventory /Turnover ×365 |
10 days |
/ |
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*Accounts receivable/Turnover ×365 |
125 days |
/ |
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*Turnover/Total assets |
1.28 |
0.73 |
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* Cost of goods sold/Turnover |
0.81 |
0.81 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good in its line in both years, but it
decreased in 2011.
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 in both years, comparing with its
turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in 2010.
SC’s quick ratio is maintained in a normal level in 2010.
The inventory of SC appears average in 2010.
The accounts receivable of SC appears large in 2010.
SC’s short-term loan appears large in 2010.
SC’s turnover is in an average level in 2010 but fair in 2011, comparing
with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.41 |
|
|
1 |
Rs.99.53 |
|
Euro |
1 |
Rs.84.82 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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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.