MIRA INFORM REPORT
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Report Date : |
18.04.2014 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU
SINO-HOLDING CHEMICALS Co., Ltd. |
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Registered Office : |
rm. 1520 & 1812, Jingui
Mansion, No. 387, Gudun Road, Xihu
District, Hangzhou, Zhejiang Province,
310012 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
18.08.2009 |
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Com. Reg. No.: |
330106000102149 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling chemical raw materials and chemical
products. |
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No. of Employees |
7 |
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 : |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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
HANGZHOU SINO-HOLDING CHEMICALS
Co., Ltd.
rm. 1520 & 1812, jingui
mansion, No. 387, gudun road,
xihu district, hangzhou, zhejiang
PROVINCE, 310012 PR CHINA
TEL: 86 (0) 571-88051375 FAX: 86 (0) 571-88822631
EXECUTIVE
SUMMARY
INCORPORATION DATE : aug. 18, 2009
REGISTRATION NO. : 330106000102149
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 7
REGISTERED CAPITAL : CNY 1,200,000
BUSINESS LINE : TRADING
TURNOVER : CNY 28,616,000 (UNaudited, AS OF DEC. 31, 2013)
EQUITIES : CNY 1,386,000 (UNaudited, AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.22 = 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 Aug. 18, 2009.
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 wholesaling and retailing
chemical raw materials and chemicals (excluding the hazard chemicals and the 1st
Class precursor chemicals), environmental equipment, energy-saving materials,
water-proof materials, textile assistant (excluding the hazard chemicals and
the 1st Class precursor chemicals), rubber and plastic products,
antirust additives and lubricant and packing materials; import and export of
goods (excluding items prohibited or limited by the
laws and regulations); serving: technology development of chemical raw
materials and chemicals, environmental equipment, energy-saving materials,
water-proof materials, textile assistant, rubber and plastic products, antirust
additives and lubricant and packing materials; business information
consultation; investment consultation and technology information consultation.
SC is mainly
engaged in selling chemical raw materials and chemical products.
Ms. Mei Qiaofang is legal representative and chairman 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 Hangzhou.
The detailed information of the premise is unspecified.
http://www.nanoclay.net/ The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
Email: sales@nanoclay.net organoclay@nanoclay.net
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
Organization Code: 691742934
Subject passed the annual
inspection of 2012 with Administration for Industry & Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Mei Qiaofang 90
Pan Limei 10
l Legal
representative and Chairman:
Ms. Mei Qiaofang is currently responsible for
the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and
chairman
SC is mainly
engaged in selling chemical raw materials and chemical products.
SC’s products
mainly include: chemical raw materials and chemical products.
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 70% of its
products in domestic market, and 30% 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.
Note: SC’s management declined to release its customer and supplier
details.
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 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.
SC’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2013 |
|
Cash & bank |
1,877 |
|
Notes receivable |
100 |
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Inventory |
105 |
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Accounts
receivable |
1,354 |
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Other receivables |
299 |
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Receivable
drawback for export |
299 |
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Short-term
investments |
2,000 |
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Other current
assets |
29 |
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|
------------------ |
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Current assets |
6,063 |
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Fixed assets net
value |
388 |
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Projects under
construction |
0 |
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Long term investment |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
6,451 |
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============= |
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Short loans |
0 |
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Accounts payable |
4,982 |
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Other payable |
44 |
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Taxes payable |
-48 |
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Advances from
clients |
83 |
|
Other current
liabilities |
4 |
|
|
------------------ |
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Current
liabilities |
5,065 |
|
Long term
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
5,065 |
|
Equities |
1,386 |
|
|
------------------ |
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Total
liabilities & equities |
6,451 |
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|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2013 |
|
Turnover |
28,616 |
|
Cost of goods
sold |
25,392 |
|
Sales expense |
2,085 |
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Management expense |
863 |
|
Finance expense |
301 |
|
Profit before
tax |
-41 |
|
Less: profit tax |
0 |
|
Profits |
-41 |
Note:
The above financial have not been audited.
Important Ratios
=============
|
|
as
of Dec. 31, 2013 |
|
*Current ratio |
1.20 |
|
*Quick ratio |
1.18 |
|
*Liabilities
to assets |
0.79 |
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*Net profit
margin (%) |
-0.14 |
|
*Return on
total assets (%) |
-0.64 |
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*Inventory
/Turnover ×365 |
2 days |
|
*Accounts
receivable/Turnover ×365 |
18 days |
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*Turnover/Total
assets |
4.44 |
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* Cost of
goods sold/Turnover |
0.89 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loan in
2013.
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 fairly high.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.38 |
|
|
1 |
Rs.101.63 |
|
Euro |
1 |
Rs.83.57 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
PDT |
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.