MIRA INFORM REPORT
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Report Date : |
06.06.2014 |
IDENTIFICATION DETAILS
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Name : |
WANLONG CHEMICAL
CO., LTD. |
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Formerly Known As : |
Ruian
Wanlong Chemical Co., Ltd. |
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Registered Office : |
Pandai
Chemical Industrial Area, Jinhu Street, Ruian City Zhejiang Province 325200
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
26.07.1989 |
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Com. Reg. No.: |
330381000098688 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
· Engaged in manufacturing fluorescent paint (according to the Wenzhou dangerous chemicals production & storage approval certificate) · Engaged in manufacturing and selling pigments, paints, organic intermediates, dyes, additives (excluding hazardous chemicals and precursor chemicals), fluorescent plastic products; importing and exporting goods and technology. SC’s products
mainly include: · Printing coating FB series of fluorescent pigment · Dyeing / printing color paste series HB fluorescent pigments · Aqueous ink HF ink series of fluorescent pigment · Paint ink FT series of fluorescent pigment · Low temperature plastic AX series of fluorescent pigment · Injection drawing FZ series of fluorescent pigment · High temperature plastic FQ series of fluorescent pigment · Silk screen fluorescent ink · Advertising logo fluorescent paint · Solvent yellow 135 · Solvent yellow 160:1 · The butyl aniline · Tert butyl aniline |
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No of Employees : |
134 (Approximately) |
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 : |
Slow But Correct |
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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
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate 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.
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Source : CIA |
Company
name & address
WANLONG CHEMICAL CO., LTD.
PANDAI CHEMICAL INDUSTRIAL AREA,
JINHU STREET, RUIAN CITY
ZHEJIANG PROVINCE 325200 PR CHINA
TEL: 86 (0) 577-65092470/65095616/65092412
FAX: 86 (0) 577-65092546/65092431
EXECUTIVE
SUMMARY
Date of Registration : julY 26, 1989
REGISTRATION NO. : 330381000098688
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : CHEN QUANDI (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 50,000,000
staff : 134
BUSINESS CATEGORY : MANUFACTURING &
TRADING
Revenue : CNY 88,020,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 51,910,000 (AS OF DEC. 31, 2013)
WEBSITE : www.wanlongchemical.com
E-MAIL :
Sales2@wanlongchemical.com
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.25 = 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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 330381000098688.
SC’s Organization Code Certificate
No.: 14559065-4
SC’s Tax No.: 330381145590654
SC’s registered capital: cny 50,000,000
SC’s paid-in capital: cny 50,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2011 |
Registered Capital |
CNY 6,000,000 |
cny 50,000,000 |
|
Company Name |
Ruian Wanlong Chemical Co., Ltd. |
Wanlong Chemical Co., Ltd. |
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|
2013-07-23 |
Shareholder (s) (% of
Shareholding) |
Zhang Zhongmei 21% Xia Chunping 2% Chen Quandi 43% Cao Qiyao 2% Chi Mengnan 1% Wei Siming 1% Lou Xiaobin 30% |
Xia Chunping 3% Chen Quandi 56% Cao Qiyao 2% Chi Mengnan 1% Wei Siming 1% Lou Xiaobin 37% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Xia Chunping |
3 |
|
Chen Quandi |
56 |
|
Cao Qiyao |
2 |
|
Chi Mengnan |
1 |
|
Wei Siming |
1 |
|
Lou Xiaobin |
37 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Chen Quandi |
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Director |
Lou Xiaobin |
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Supervisor |
Cao Qiyao |
RECENT DEVELOPMENT
SC has passed GB/T19001-2008/ISO 9001:2008, and SC was awarded as “Advance
Enterprise”, “AAA Grade Tax Credit Enterprise”, “Science and Technology
Innovation Enterprise” and “Wanlong” was awarded as “Ruian Famous Trademark”,
etc.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Xia Chunping 3
Chen Quandi 56
Cao Qiyao 2
Chi Mengnan 1
Wei Siming 1
Lou Xiaobin 37
MANAGEMENT
Chen Quandi, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Lou Xiaobin , Director
----------------------------------------
Ø
Gender: M
Cao Qiyao, Supervisor
----------------------------------------
Ø
Gender: M
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing fluorescent paint (according to the
Wenzhou dangerous chemicals production & storage approval certificate);
manufacturing and selling pigments, paints, organic intermediates, dyes,
additives (excluding hazardous chemicals and precursor chemicals), fluorescent
plastic products; importing and exporting goods and technology.
SC is mainly
engaged in manufacturing and selling fluorescent pigment.
SC’s products
mainly include:
· Printing coating FB series of fluorescent pigment
· Dyeing / printing color paste series HB fluorescent pigments
· Aqueous ink HF ink series of fluorescent pigment
· Paint ink FT series of fluorescent pigment
· Low temperature plastic AX series of fluorescent pigment
· Injection drawing FZ series of fluorescent pigment
· High temperature plastic FQ series of fluorescent pigment
· Silk screen fluorescent ink
· Advertising logo fluorescent paint
· Solvent yellow 135
· Solvent yellow 160:1
· The butyl aniline
· Tert butyl aniline
Brand:
SC sources its materials 100% from domestic
market. SC sells 80% of its products in domestic market, and 20% to overseas
market, mainly U.S.A., etc.
The
buying terms of SC include Check, 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
Client*
------------------
New
Trading International Sas
Staff & Office:
--------------------------
SC is
known to have approx. 134 staff
at present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
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
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
15,190 |
|
|
Notes receivable |
0 |
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Accounts
receivable |
780 |
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Advances to
suppliers |
0 |
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Other receivable |
35,660 |
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Inventory |
5,560 |
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Non-current
assets within one year |
0 |
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Other current
assets |
8,000 |
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------------------ |
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Current assets |
65,190 |
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Fixed assets |
21,440 |
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Construction in
progress |
0 |
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Intangible
assets |
0 |
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Long-term
investment |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
11,290 |
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------------------ |
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Total assets |
97,920 |
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============= |
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Short-term loans |
27,000 |
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Notes payable |
0 |
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Accounts payable |
3,710 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Advances from
clients |
0 |
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Other payable |
560 |
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Other current
liabilities |
14,740 |
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------------------ |
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Current
liabilities |
46,010 |
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Non-current
liabilities |
0 |
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------------------ |
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Total
liabilities |
46,010 |
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Equities |
51,910 |
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------------------ |
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Total
liabilities & equities |
97,920 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
88,020 |
|
Cost of sales |
75,130 |
|
Sales expense |
2,810 |
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Management expense |
7,440 |
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Finance expense |
2,260 |
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Profit before
tax |
560 |
|
Less: profit tax |
140 |
|
420 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
|
*Current ratio |
1.42 |
|
*Quick ratio |
1.30 |
|
*Liabilities
to assets |
0.47 |
|
*Net profit
margin (%) |
0.48 |
|
*Return on
total assets (%) |
0.43 |
|
*Inventory /
Revenue ×365 |
24 days |
|
*Accounts
receivable / Revenue ×365 |
4 days |
|
*Revenue /
Total assets |
0.90 |
|
*Cost of sales
/ Revenue |
0.85 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears average 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, 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 fairly good
level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears small.
l
The short-term loans of SC appear large.
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. The large amount of short-term loans may be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.30 |
|
UK Pound |
1 |
Rs.99.34 |
|
Euro |
1 |
Rs.80.70 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
MNL |
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 |
|
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.