MIRA INFORM REPORT
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Report Date : |
25.02.2014 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU COLORIFIC CHEMICALS CO., LTD. |
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Registered Office : |
Room 902/903, Bldg. 3, (West Port/New Territories) No. 206 Zhenhua Road,
Sandun Town, Hangzhou Zhejiang Province 310030 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
22.03.2004 |
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Com. Reg. No.: |
330106000124555 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in importing and exporting chemicals. |
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No. of Employees : |
20 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – december 01, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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.
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Source
: CIA |
Company
name and address
HANGZHOU COLORIFIC CHEMICALS CO.,
LTD.
ROOM 902/903, BLDG. 3, (WEST PORT/NEW TERRITORIES) NO. 206 ZHENHUA
ROAD, SANDUN TOWN, HANGZHOU ZHEJIANG PROVINCE 310030 PR CHINA
TEL: 86 (0) 571-89712988/89712977/89712978/89712979
FAX: 86 (0) 571-89712976
EXECUTIVE
SUMMARY
Date of Registration : march 22, 2004
REGISTRATION NO. : 330106000124555
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
wu jian (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 1,500,000
staff :
20
BUSINESS CATEGORY : trading
Revenue :
CNY 237,282,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 30,150,000 (AS OF DEC. 31, 2012)
WEBSITE : www.colorific-chem.com
E-MAIL : zhu_xuguang@hotmail.com
& ni_yongbing@colorlic-chem.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.13 = 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 limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
330106000124555 on March 22, 2004.
SC’s Organization Code Certificate No.:
75951883-3
SC’s Tax No.: 330106759518833
SC’s registered capital: CNY 1,500,000
SC’s paid-in capital: CNY 1,500,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010 |
Registration No. |
3301062006813 |
330106000124555 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wu Jian |
33.3 |
|
Zhu Xuguang |
33.4 |
|
Ni Yongbing |
33.3 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Wu Jian |
|
Supervisor |
Zhu Xuguang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Wu Jian 33.3
Zhu Xuguang 33.4
Ni Yongbing 33.3
MANAGEMENT
Wu Jian, Legal Representative, Chairman and General
Manager
--------------------------------------------------------------------------------------------
Gender: M
Age: 44
ID# 330106691031121
Qualification: University
Working experience (s):
From 2004 to present, working in SC as legal representative, chairman
and general manager
Zhu Xuguang,
Supervisor
---------------------------------------------
Gender: M
Age: 37
ID# 330105197611082515
BUSINESS OPERATION
SC’s registered business scope includes wholesaling and retailing
benzene, methyl benzene, morpholine, morpholine benzene, chemical products and
materials, chemical machinery, hardware, building materials, textile materials;
importing and exporting commodities and technology; other legal operation items
without the need for examination and approval.
SC is mainly engaged in importing and exporting chemicals.
SC’s products mainly include: dyes, intermediates of benzene series.
SC sources its materials 80% from domestic market, mainly Zhejiang and
Shanghai, and 20% from overseas market, mainly Singapore; SC sells its products
80% to overseas market, mainly India, and 20% in domestic market, mainly
Zhejiang and Tianjin.
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers*
-----------------------
Biporin (Tianjin) Color Industries Co., Ltd.
Hong Yuan (HK) Limited
Prime Colors Corporation
Sajmil Corporation
*Major Supplier*
--------------------
Zhejiang Yongtai Technology Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 20
staff at present.
SC owns an area as its operating office of approx. 300 sq. meters at the
heading address.
RELATED COMPANY
Hong Yuan (HK) Limited
------------------------------
CR No.: 0895457
Date of Incorporation: 15-APR-2004
Company Status: Private
Active Status: Live
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:
Bank of Hangzhou High-Tech Development Zone Sub-branch
AC#: 78508100109070
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
3,874 |
8,171 |
7,612 |
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Notes receivable |
0 |
0 |
0 |
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Accounts receivable |
30,764 |
50,195 |
63,591 |
|
Advances to suppliers |
0 |
0 |
0 |
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Other receivable |
112 |
86 |
3,679 |
|
Inventory |
908 |
1,993 |
1,239 |
|
Deferred expenses |
208 |
101 |
10 |
|
Other current assets |
2,627 |
1,387 |
1,690 |
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|
------------------ |
------------------ |
------------------ |
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Current assets |
38,493 |
61,933 |
77,821 |
|
Fixed assets |
5,203 |
4,125 |
4,498 |
|
Construction in progress |
0 |
0 |
0 |
|
Intangible assets |
0 |
0 |
0 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
0 |
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Other non-current assets |
0 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Total assets |
43,696 |
66,058 |
82,319 |
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============= |
============= |
============= |
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Short-term loans |
0 |
0 |
0 |
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Notes payable |
0 |
0 |
0 |
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Accounts payable |
21,695 |
38,210 |
50,338 |
|
Wages payable |
0 |
0 |
0 |
|
Taxes payable |
-39 |
13 |
271 |
|
Advances from clients |
0 |
0 |
0 |
|
Other payable |
926 |
962 |
1,560 |
|
Accrued expenses |
0 |
50 |
0 |
|
Other current liabilities |
0 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Current liabilities |
22,582 |
39,235 |
52,169 |
|
Non-current liabilities |
0 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Total liabilities |
22,582 |
39,235 |
52,169 |
|
Equities |
21,114 |
26,823 |
30,150 |
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------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
43,696 |
66,058 |
82,319 |
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============= |
============= |
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Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Revenue |
266,490 |
226,975 |
237,282 |
|
Cost of sales |
247,978 |
207,622 |
221,529 |
|
Taxes and surcharges |
186 |
165 |
141 |
|
Sales expense |
3,658 |
3,178 |
2,998 |
|
Management expense |
6,306 |
7,390 |
6,644 |
|
Finance expense |
471 |
705 |
371 |
|
Profit before tax |
7,949 |
7,925 |
5,592 |
|
Less: profit tax |
608 |
2,004 |
832 |
|
7,341 |
5,921 |
4,760 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.70 |
1.58 |
1.49 |
|
*Quick ratio |
1.66 |
1.53 |
1.47 |
|
*Liabilities to assets |
0.52 |
0.59 |
0.63 |
|
*Net profit margin (%) |
2.75 |
2.61 |
2.01 |
|
*Return on total assets (%) |
16.80 |
8.96 |
5.78 |
|
*Inventory / Revenue ×365 |
2 days |
4 days |
2 days |
|
*Accounts receivable/ Revenue ×365 |
43 days |
81 days |
98 days |
|
* Revenue/Total assets |
6.10 |
3.44 |
2.88 |
|
* Cost of sales / Revenue |
0.93 |
0.91 |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY: FAIRLY
GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average in three years.
SC’s return on total assets is fairly good in three years.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC appear large.
SC has no short-term loans in three years.
SC’s revenue is in an average 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 average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.11 |
|
|
1 |
Rs. 103.38 |
|
Euro |
1 |
Rs. 85.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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.