MIRA
INFORM REPORT
|
Report Date : |
09.04.2014 |
IDENTIFICATION DETAILS
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Name : |
XINJIANG ZHONGTAI CHEMICAL CO., LTD. |
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Registered Office : |
No. 78 Xishan Road, Urumqi, Xinjiang 830009 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
18.12.2001 |
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Com. Reg. No.: |
650000040000249 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in the manufacturing and selling food additive
sodium hydroxide, hydrochloric acid, sodium hydroxide, liquid chlorine,
hydrochloric acid, sodium hypochlorite, and sodium hypochlorite;
manufacturing and selling PVC resin, nano PVC, food containers, packaging
materials used in polyvinyl chloride resin; selling chemical products,
mechanical and electrical products, metallic materials and building material;
storage services; corrosion of metal products and LPG bottle detection;
importing and exporting commodities and technology; modern trade; modern
service; modern logistics; selling coal and its products; and renting houses.
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No. of Employees : |
10,041 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 2013 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
consumption; (b) facilitating higher-wage job opportunities for the aspiring
middle class, including rural migrants and increasing numbers of college
graduates; (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. Debt overhang from
its credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future.
However, China has made only marginal progress toward these rebalancing goals.
The new government of President XI Jinping has signaled a greater willingness
to undertake reforms that focus on China's long-term economic health, including
giving the market a more decisive role in allocating resources.
|
Source
: CIA |
Company name and address
XINJIANG ZHONGTAI CHEMICAL CO.,
LTD.
NO. 78 XISHAN ROAD, URUMQI, XINJIANG 830009 PR CHINA
TEL: 86 (0) 991-8775034
FAX: 86 (0) 991-8772646
EXECUTIVE SUMMARY
Date of Registration : december 18, 2001
REGISTRATION NO. : 650000040000249
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
wang hongxin (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 1,390,239,078
staff :
10,041
BUSINESS CATEGORY : MANUFACTURING
& TRADING
REVENUE :
CNY 12,045,853,000 (CONSOLIDATED, AS OF DEC. 31, 2013)
EQUITIES :
CNY 8,649,407,000 (CONSOLIDATED, AS OF DEC. 31, 2013)
WEBSITE : www.zthx.com
E-MAIL :
zthx@zthx.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
CNY 6.20 = 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 with State Administration of Industry &
Commerce (SAIC) under registration No.: 650000040000249
on December 18, 2001.
SC’s Organization Code Certificate No.:
73183631-1
SC’s registered capital: CNY 1,390,239,078
SC’s paid-in capital: CNY 1,390,239,078
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (as
of December 31, 2013) |
% of Shareholding |
|
Xinjiang Zhongtai (Group) Co., Ltd. |
24.49 |
|
Hua’an Fund-Agricultural Bank-Huarong International Trust-Huarong.Kaiyang
Equity Investment Single Fund Trust Plans |
6.36 |
|
Urumqi Huanpeng Co., Ltd. |
5.39 |
|
Xinjiang Sanlian Investment Group Co., Ltd. |
3.29 |
|
Urumqi State-owned Assets Operation Co., Ltd. |
1.94 |
|
National Council for Social Security Fund The People's Republic of
China No. 2 |
1.41 |
|
Mao Jihong |
0.59 |
|
China Life Insurance Company Limited-Bonus-Personal Bonus |
0.40 |
|
Zhu Dingxian |
0.37 |
|
Zhang Qingfeng |
0.35 |
|
Other Shareholders |
55.41 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Wang Hongxin |
|
General Manager |
Fan Xuefeng |
|
Deputy General Manager |
Yang Jianghong |
|
Lei Xia |
|
|
Ding Yongzhong |
|
|
Wang Quancheng |
|
|
Pan Yuying |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002092.
SHAREHOLDER CHART & BACKGROUND
Name (as of
December 31, 2013)
% of Shareholding
Xinjiang Zhongtai (Group) Co., Ltd. 24.49
Hua’an Fund-Agricultural Bank-Huarong International
Trust-Huarong.Kaiyang Equity Investment Single Fund Trust Plans 6.36
Urumqi Huanpeng Co., Ltd. 5.39
Xinjiang Sanlian Investment Group Co., Ltd. 3.29
Urumqi State-owned Assets Operation Co., Ltd. 1.94
National Council for Social Security Fund the People's Republic of China
No. 2 1.41
Mao Jihong 0.59
China Life Insurance Company Limited-Bonus-Personal Bonus
Zhu Dingxian 0.37
Zhang Qingfeng 0.35
Other Shareholders 55.41
Xinjiang Zhongtai (Group) Co., Ltd.
-------------------------------------------------
Registration No.: 650000038003638
Legal Form: Sole State-owned Enterprise
Registered Capital: CNY 1,000,000,000
Legal Representative: Wang Hongxin
Web: www.ts.cn
Urumqi Huanpeng Co., Ltd.
---------------------------------------
Registration No.: 650100030003070
Date of Registration: October 29, 1994
Legal Form: Sole State-owned Enterprise
Registered Capital: CNY 192,300,000
Legal Representative: Li Liangpu
Xinjiang Sanlian Investment Group Co., Ltd.
-----------------------------------------------------------
Registration No.: 650000058002564
Date of Registration: January 23, 2002
Legal Form: Limited Liabilities Company
Registered Capital: CNY 100,000,000
Legal Representative: Huang Wei
Urumqi State-owned Assets Operation Co., Ltd.
---------------------------------------------------------------
Registration No.: 650100030009100
Date of Registration: April 27, 1998
Legal Form: Sole State-owned Enterprise
Registered Capital: CNY 2,881,298,272
Legal Representative: Yuan Hongbin
MANAGEMENT
Wang Hongxin, Legal
Representative and Chairman
-------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
At present, working in SC as legal representative and chairman
Also working in Xinjiang Zhongtai (Group) Co., Ltd. as legal representative
Fan Xuefeng, General Manager
----------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
At present, working in SC as general manager
Deputy General Manager
---------------------------------
Yang Jianghong
Lei Xia
Ding Yongzhong
Wang Quancheng
Pan Yuying
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling food
additive sodium hydroxide, hydrochloric acid, sodium hydroxide, liquid
chlorine, hydrochloric acid, sodium hypochlorite, and sodium hypochlorite;
manufacturing and selling PVC resin, nano PVC, food containers, packaging
materials used in polyvinyl chloride resin; selling chemical products,
mechanical and electrical products, metallic materials and building material;
storage services; corrosion of metal products and LPG bottle detection;
importing and exporting commodities and technology; modern trade; modern
service; modern logistics; selling coal and its products; and renting houses.
SC is mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include:
Suspension Method Polyvinyl Chloride Resin
Ion Exchange membrane caustic soda
SC sources its materials 90% from domestic market, and 10% from overseas
market. SC sells 60% of its products in domestic market, and 40% to overseas
market.
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.
Staff &
Office:
--------------------------
SC is known to have approx. 10,041 staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is known to
have the following subsidiaries at present.
Xinjiang Huatai Heavy Chemical Co., Ltd.
Tuokexun Zhongtai Chemical & Salt Chemical Co., Ltd.
Qitai Zhongtai Chemical & Mineral Development Co., Ltd.
Xinjiang Zhongtai Import & Export Trade Co., Ltd.
Fukang Boda Coke & Chemicals Co., Ltd.
Xinjiang Zhongtai Mining & Metallurgy Co., Ltd.
Xinjiang Zhonglu Mining Co., Ltd.
Xinjiang Zhongtai Chemical Fukang Energy Co., Ltd.
Xinjiang Zhongtai Chemical Zhundong Mining Co., Ltd.
Xinjiang Zhongtai Chemical Zhundong Thermoelectric Co., Ltd.
Xinjiang Zhongtai Chemical Korla Chemical Co., Ltd.
Xinjiang Zhongtai Modern Logistic Development Co., Ltd.
Xinjiang Zhongtai Chemical Tockson Energy & Chemical Co., Ltd.
Shanghai Zhongtai Duojing International Trade Co., Ltd.
Beijing Zhongtai Qili International Economy & Trade Co., Ltd.
Xinjiang Zhongtai Information Technology & Engineering Co., Ltd.
Xinjiang Zhongtai New Materials
Co., Ltd.
Xinjiang Zhongtai Guoxin Environmental Protection New Materials Co.,
Ltd.
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’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.
BANKING
The bank information of SC is not filed in local SAIC.
FINANCIALS
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
921,260 |
434,554 |
|
|
Held for trading
financial assets |
0 |
0 |
|
Notes receivable |
1,076,977 |
1,170,473 |
|
Accounts receivable |
147,891 |
223,066 |
|
Advances to suppliers |
349,798 |
864,397 |
|
Interest receivable |
0 |
0 |
|
Other receivable |
35,988 |
29,057 |
|
Inventory |
427,600 |
659,969 |
|
Other current assets |
0 |
1,500,000 |
|
|
------------------ |
------------------ |
|
Current assets |
2,959,514 |
4,881,516 |
|
Long-term equity investment |
558,017 |
540,513 |
|
Fixed assets |
11,380,737 |
17,221,501 |
|
Construction in progress |
6,571,396 |
1,774,228 |
|
Project materials |
54,294 |
31,070 |
|
Intangible assets |
196,936 |
417,033 |
|
Development expenditure |
0 |
4,465 |
|
Goodwill |
0 |
0 |
|
Long-term prepaid expenses |
11,801 |
23,594 |
|
Deferred income tax assets |
37,376 |
28,674 |
|
Other non-current assets |
155,292 |
82,039 |
|
|
------------------ |
------------------ |
|
Total assets |
21,925,363 |
25,004,633 |
|
|
============= |
============= |
|
Short-term loans |
410,000 |
800,000 |
|
Held for trading financial liabilities |
0 |
0 |
|
Notes payable |
48,822 |
342,538 |
|
Accounts payable |
2,555,526 |
2,949,170 |
|
Advances from clients |
382,663 |
209,768 |
|
Payroll payable |
24,386 |
30,037 |
|
Tax payable |
-583,782 |
-369,664 |
|
Interest payable |
218,686 |
268,787 |
|
Dividend payable |
0 |
0 |
|
Other payable |
34,554 |
42,885 |
|
Current liabilities due within one year |
500,000 |
49,600 |
|
Other current liabilities |
2,093,008 |
521,210 |
|
|
------------------ |
------------------ |
|
Current liabilities |
5,683,863 |
4,844,331 |
|
Non-current liabilities |
9,057,754 |
11,510,895 |
|
|
------------------ |
------------------ |
|
Total liabilities |
14,741,617 |
16,355,226 |
|
Equities |
7,183,746 |
8,649,407 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
21,925,363 |
25,004,633 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Revenue |
7,112,888 |
12,045,853 |
|
Cost of sales |
5,682,461 |
9,381,491 |
|
Taxes and surcharges |
50,615 |
44,185 |
|
Sales expense |
742,669 |
1,401,748 |
|
Management expense |
281,716 |
393,888 |
|
Finance expense |
107,249 |
699,650 |
|
Investment income |
4,739 |
-23,210 |
|
Non-operating income |
94,029 |
60,235 |
|
Non-operating expense |
19,219 |
2,328 |
|
Profit before tax |
321,385 |
143,177 |
|
Less: profit tax |
42,404 |
38,808 |
|
Profits |
278,981 |
104,369 |
Important Ratios
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.52 |
1.01 |
|
*Quick ratio |
0.45 |
0.87 |
|
*Liabilities to assets |
0.67 |
0.65 |
|
*Net profit margin (%) |
3.92 |
0.87 |
|
*Return on total assets (%) |
1.27 |
0.42 |
|
*Inventory / Revenue ×365 |
22 days |
20 days |
|
*Accounts receivable / Revenue ×365 |
8 days |
7 days |
|
*Revenue / Total assets |
0.32 |
0.48 |
|
*Cost of sales / Revenue |
0.80 |
0.78 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
·
The revenue of SC appears fairly good in its line,
and it increased in 2013.
·
SC’s net profit margin is average in both years.
·
SC’s return on total assets is average in both
years.
·
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a fair
level in 2012, normal in 2013.
·
SC’s quick ratio is maintained in a fair level in
2012, normal in 2013.
·
The inventory of SC is maintained in an average
level.
·
The accounts receivable of SC is maintained in an
average level.
·
SC’s short-term loans are in an average level.
·
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 low.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered large-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.95 |
|
|
1 |
Rs.99.36 |
|
Euro |
1 |
Rs.82.15 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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|
Report Prepared
by : |
NNA |
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.