MIRA
INFORM REPORT
|
Report Date : |
29.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG JIANYE CHEMICAL CO., LTD. |
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Registered Office : |
No. 48 Fuxi Road,
Meicheng Town, Jiande, Zhejiang Province 311604 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2013 |
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Date of Incorporation : |
21.01.1999 |
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Com. Reg. No.: |
330182000011086 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing plasticizer, acetate, and low carbon fatty amine;
importing and exporting commodities. Subject
is mainly engaged in manufacturing and selling chemicals
including coal, ethanol, isopropanol, n-propyl alcohol, butanol,
isobutanol, octanol, acetone, acetic acid, ammonia, phthalic anhydride,
calcium carbide, sodium silicate, vitriol & sulfur. |
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No. of Employees : |
920 |
RATING & COMMENTS
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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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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.
|
Source : CIA |
Company name & address
Zhejiang Jianye Chemical Co.,
Ltd.
no. 48
fuxi road, meicheng town
jiande,
zhejiang province 311604 PR CHINA
TEL: 86
(0) 571-64149210/64149273/64149234/64149267
FAX: 86
(0) 571-64141300
EXECUTIVE SUMMARY
Date of Registration : january 21, 1999
REGISTRATION NO. : 330182000011086
LEGAL FORM : Shares limited company
CHIEF EXECUTIVE : feng lie (LEGAL
REPRESENTATIVE)
REGISTERED
CAPITAL : cny 120,000,000
staff : 920
BUSINESS
CATEGORY : manufacturing & trading
REVENUE : CNY
763,541,000 (JAN. 1 2013 TO JUN. 30, 2013)
EQUITIES :
CNY 318,498,000 (AS OF JUN. 30, 2013)
WEBSITE : www.chinaorganicchem.com
E-MAIL : trade@chinaorganicchem.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.05 = 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
LEGAL
STATUS & HISTORY
SC was
established as a shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 330182000011086 on January
21, 1999.
SC’s Organization Code Certificate
No.: 70429041-3
SC’s Tax No.: 330182704290413
SC’s registered capital: cny 120,000,000
SC’s paid-in capital: cny 120,000,000
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) |
% of Shareholding |
|
Feng Lie |
63.00 |
|
Jiande State-owned Asset
Operation Co., Ltd. |
28.17 |
|
Shenzhen Dianshi Venture
Capital Partnership (Limited Partnership) |
2.35 |
|
Huzhou City Venture Capital
Co., Ltd. |
2.34 |
|
Jiande Jianye Investment Consulting Co., Ltd. |
1.68 |
|
Beijing Zhong’ansheng
Investment Consulting Co., Ltd. |
1.41 |
|
Xia Yizhong |
0.21 |
|
Xu Ning |
0.21 |
|
Sun Bin |
0.21 |
|
Luo Wei |
0.21 |
|
Ni Fukun |
0.21 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Feng Lie |
|
Director |
Ni Fukun |
|
Sun Bin |
|
|
Jiang Hongfang |
|
|
Wang Jiansheng |
|
|
Supervisor |
Chen Yunbin |
|
Wang Jianting |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name
%
of Shareholding
Feng Lie 63.00
Jiande State-owned Asset Operation Co., Ltd. 28.17
Shenzhen Dianshi Venture Capital Partnership
(Limited Partnership) 2.35
Huzhou City Venture Capital Co., Ltd. 2.34
Jiande Jianye Investment Consulting Co.,
Ltd. 1.68
Beijing Zhong’ansheng Investment Consulting
Co., Ltd. 1.41
Xia Yizhong 0.21
Xu Ning 0.21
Sun Bin 0.21
Luo Wei 0.21
Ni Fukun 0.21
Jiande State-owned Asset Operation Co., Ltd.
====================================
Registration No.: 330182000048102
Registered Capital: CNY 150,000,000
Shenzhen Dianshi Venture Capital Partnership
(Limited Partnership)
=====================================================
Date of Registration: February 10, 2010
Registration No.: 440305602217002
Legal Form: Limited Partnership
Huzhou City Venture Capital Co., Ltd.
===============================
Date of Registration: September 9, 2008
Registered Capital: CNY 52,500,000
Jiande Jianye Investment Consulting Co., Ltd.
====================================
Registered Capital: CNY 3,636,000
Beijing Zhong’ansheng Investment Consulting Co.,
Ltd.
===========================================
Date of Registration: May 28, 2003
Registration No.: 110108005724429
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 100,000
MANAGEMENT
Feng Lie, Legal Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 66
Ø
Qualification:
Junior College
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman and general manager
Also working in Taizhou Jianye Chemical Co., Ltd. and Zhejiang Jiande Jianye Thermal Power Co., Ltd. as legal representative
Director
-----------
Ni Fukun
Sun Bin
Jiang Hongfang
Wang Jiansheng
Supervisor
--------------
Chen Yunbin
Wang Jianting
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing
plasticizer, acetate, and low carbon fatty amine; importing and exporting
commodities.
SC is
mainly engaged in manufacturing and selling chemicals.
Brand: Jianyi
SC’s
products mainly include: coal, ethanol, isopropanol, n-propyl alcohol,
butanol, isobutanol, octanol, acetone, acetic acid, ammonia, phthalic anhydride,
calcium carbide, sodium silicate, vitriol & sulfur.
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 60% of its products in domestic market, and
40% to overseas market, mainly Southeast Asia, etc.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Benco
Chemical Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 920
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 branch & subsidiaries at present:
· Zhejiang Jianye Chemical Co., Ltd. Genghua Branch
Taizhou
Jianye Organic Chemical Co., Ltd.
Zhejiang
Jiande Jianye Thermoelectricity 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 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 China Meicheng Office
AC#:
808001278708091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
61,141 |
153,138 |
|
|
Notes receivable |
24,403 |
76,611 |
|
Accounts
receivable |
16,397 |
18,685 |
|
Advances to
suppliers |
10,414 |
12,031 |
|
Dividend
Receivable |
0 |
0 |
|
Other receivable |
45,808 |
94,696 |
|
Inventory |
77,337 |
88,254 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
235,500 |
443,415 |
|
Fixed assets |
19,069 |
52,397 |
|
Construction in
progress |
44,846 |
50,009 |
|
Intangible
assets |
6,314 |
25,549 |
|
Long-term
investment |
95,000 |
85,000 |
|
Deferred income
tax assets |
145 |
168 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
400,874 |
656,538 |
|
|
============= |
============= |
|
Short-term loans |
38,974 |
184,900 |
|
Notes payable |
7,138 |
56,391 |
|
Accounts payable |
53,071 |
87,566 |
|
Wages payable |
1,128 |
1,368 |
|
Taxes payable |
2,072 |
1,223 |
|
Interest payable |
104 |
299 |
|
Dividend payable |
1,003 |
960 |
|
Advances from
clients |
25,274 |
16,873 |
|
Other payable |
80,982 |
12,052 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
209,746 |
361,632 |
|
Non-current
liabilities |
1,429 |
3,724 |
|
|
------------------ |
------------------ |
|
Total liabilities |
211,175 |
365,356 |
|
Equities |
189,699 |
291,182 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
400,874 |
656,538 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
907,535 |
1,735,344 |
|
Cost of sales |
789,829 |
1,575,329 |
|
Taxes and surcharges |
1,230 |
2,261 |
|
Sales expense |
19,645 |
28,144 |
|
Management expense |
58,951 |
78,395 |
|
Finance expense |
2,768 |
4,720 |
|
Profit before
tax |
28,173 |
47,166 |
|
Less: profit tax |
2,325 |
3,802 |
|
25,848 |
43,364 |
Financial Summary
|
Unit: CNY’000 |
As
of Jun. 30, 2013 |
|
Total assets |
697,852 |
|
|
------------- |
|
Total
liabilities |
379,354 |
|
Equities |
318,498 |
|
|
------------- |
|
Unit: CNY’000 |
Jan. 1 2013 to Jun. 30, 2013 |
|
Revenue |
763,541 |
|
Profit before
tax |
16,871 |
|
Less: profit tax |
1,362 |
|
Profits |
15,509 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Jun. 30, 2013 |
|
*Current ratio |
1.12 |
1.23 |
-- |
|
*Quick ratio |
0.75 |
0.98 |
-- |
|
*Liabilities
to assets |
0.53 |
0.56 |
0.54 |
|
*Net profit
margin (%) |
2.85 |
2.50 |
2.03 |
|
*Return on
total assets (%) |
6.45 |
6.60 |
2.22 |
|
*Inventory /
Revenue ×365 |
32 days |
19 days |
-- |
|
*Accounts
receivable/ Revenue ×365 |
7 days |
4 days |
-- |
|
*
Revenue/Total assets |
2.26 |
2.64 |
1.09 |
|
* Cost of
sales / Revenue |
0.87 |
0.91 |
-- |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is average in 2010 and 2011, comparing
with its revenue.
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 appears average.
l
SC’s short-term loans appear large in 2011.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its
line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.99 |
|
UK Pound |
1 |
Rs.104.61 |
|
Euro |
1 |
Rs.86.17 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.