MIRA
INFORM REPORT
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Report Date : |
11.06.2014 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU PLASTIC INDUSTRY CO., LTD. |
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Registered Office : |
No. 63 Donghuan Road, Economic Development Zone, Lin’an, Zhejiang Province 311305 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
27.09.2000 |
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Com. Reg. No.: |
330185000073286 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject is engaged in the processing and selling pharmaceutical
packaging materials, food packaging materials, cosmetics packaging materials
(PVC rigid film, composite film), plastics (PVC granules, PTFE products);
Services: Plastics technology consulting; importing and exporting commodities |
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No. of Employees : |
370 |
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 – 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 PLASTIC INDUSTRY CO., LTD.
NO. 63 donghuan road, economic development
zone, lin’an,
ZHEJIANG province 311305 PR CHINA
TEL: 86 (0) 571-88067450/88825668
FAX: 86 (0) 571-88825668
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 27, 2000
REGISTRATION NO. : 330185000073286
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
CHIEF EXECUTIVE :
Mr. YANG YEGEN (CHAIRMAN)
STAFF STRENGTH :
370
REGISTERED CAPITAL : cny 50,000,000
BUSINESS LINE :
PROCESSING & TRADING
TURNOVER :
CNY 225,790,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 231,820,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2348 = 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
Note: The “Room
According to SC’s website, SC is also known as Hangzhou Plastics
Industrial Co., Ltd.
SC was registered as a Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Sep. 27, 2000.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes processing and selling
pharmaceutical packaging materials, food packaging materials, cosmetics
packaging materials (PVC rigid film, composite film), plastics (PVC granules,
PTFE products); Services: Plastics technology consulting; importing and
exporting commodities (excluding the items prohibited or limited by the
country, with permit if needed).
SC is mainly engaged in processing and selling packaging materials.
Mr. Yang Yegen is legal representative, chairman and general manager of
SC at present.
SC is known to have approx. 370 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the economic development zone of
Lin’an. SC’s accountant refused to release the detailed information of the
area.
Former address: No. 95, Yuhangtang Road, Gongshu District, Hangzhou,
Zhejiang Province 310011 Pr China
http://www.hs-zj.com/ The design is
professional and the content is well organized. At present it is in Chinese and
English versions.
Email: film.packaging@hs-zj.com export@hs-zj.com sales@hs-zj.com
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration no. |
330100000033969 |
Present one |
|
Registered capital |
CNY 20,000,000 |
Present amount |
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Shareholders |
(Hong Kong) Chiefdo Limited 5% Hangzhou Industrial Assets Management Investment Group Co., Ltd. 20% Employee Shareholders Association of Hangzhou Plastic Industry Co.,
Ltd. 35.45% Yang Yegen 22.25% Hong Minsu 3% Zhong Chengpu 1% Wang Jin 1.9% Shen Yunhan 1.9% Song Yanmin 1.9% Wu Guohua 1.9% Cao Xiaoru
1.9% Shen Yongliang 1.9% Wu Guoping1.9% |
(Hong Kong) Chiefdo Limited 5% Hangzhou Industrial Assets Management Investment Group Co., Ltd. 20% Employee Shareholders Association of Hangzhou Plastic Industry Co.,
Ltd. 35.45% Yang Deming 2% Yang Yegen 20.25% Hong Minsu 3% Zhong Chengpu 1% Wang Jin.9% Shen Yunhan 1.9% Song Yanmin 1.9% Wu Guohua 1.9% Cao Xiaoru 1.9% Shen Yongliang 1.9% Wu Guoping 1.9% |
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2013 |
Shareholder’s name |
Hangzhou Industrial Assets Management Investment Group Co., Ltd. |
Hangzhou Industrial Investment Group Co., Ltd. |
SC has got honors as follows: Credit rating AAA, ISO 14001:2004 Standard
Certificate, ISO 9001:2000 Standard Certificate
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 143062188
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name % of Shareholding
(Hong Kong) Chiefdo Limited 5
Hangzhou Industrial Investment Group Co., Ltd. 20
Employee Shareholders Association of Hangzhou Plastic Industry Co., Ltd. 35.45
Yang Yegen 20.25
Yang Deming 2
Hong Minsu 3
Zhong Chengpu 1
Wang Jin 1.9
Shen Yunhan 1.9
Song Yanmin 1.9
Wu Guohua 1.9
Cao Xiaoru 1.9
Shen Yongliang 1.9
Wu Guoping 1.9
(Hong Kong) Chiefdo Limited
========================================
Registration No. : 0218545
Establishment Date: Jun. 16, 1988
Legal Form: Private Company limited by shares
Hangzhou Industrial Investment Group Co., Ltd.
=====================================
It was formerly named as Hangzhou Industrial Assets Management
Investment Group Co., Ltd.
Registration no.: 330100000031027
Registered capital: CNY 3,000,000,000
Legal representative: Fu Liqun
Add: No. 13, Lane 4, Baoshishanxia, Baochu Road, Hangzhou, Zhejiang
Province
Tel: 0571-85211062
Website: http://www.hziam.com
Legal
representative, chairman and general manager:
Mr. Yang Yegen, in his
Working
Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
Also working in Hangzhou Shengyingbao Plastic Co., Ltd. as legal
representative.
Vice
chairmen:
Yang Deming
Lv Zhongxin
They are currently responsible for the daily management of SC.
Working
Experience(s):
At present Working
in SC as vice chairmen.
Yang Deming is also working in Lin’an Desheng Plastic Industry Co., Ltd.
(in Chinese pinyin) as legal representative.
Directors:
Wu Guoping
Luo Jinrong
Xu Jun
Supervisors:
Wang Qinggang
Yu Guoping
SC is mainly engaged in processing and selling packaging materials.
SC’s products mainly include:
PVC/PVDC composite film
Pharmaceutical grade
PVC film
PET series laminated film
PS series laminated film
Common PVC rigid film
PVC granules
PTFE products
SC sources its materials 70% from domestic market and 30% from overseas
market. SC sells 30% of its products in domestic market, and 70% 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 refused to release its main suppliers and clients.
Lin’an Desheng Plastic Industry Co., Ltd. (in Chinese pinyin)
=======================
Registration no.: 330185000083595
Legal representative: Yang Deming
Incorporation date:
SC
is known to invest in the following company:
Hangzhou Shengyingbao Plastic Co., Ltd.
=============================
Registration no.: 330100400020516
Incorporation date:
Legal representative: Yang Yegen
Add: 63# Donghuan Road, Linan Economic Development Park, Zhejiang, China
Tel: +86-571-88175116
Fax: +86-571-88076115
E-mail: film.packaging@hs-zj.com
SC is known to have the following office:
Shanghai Office
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Add: Unit C, 21/F, Qianjiang Building, No. 971 Dongfang Road, Shanghai
Tel: 021-68406231
Fax: 021-68406233
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.
Industrial and Commercial Bank of China
AC#: N/A
Relationship: Normal
Balance
Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Cash & bank |
35,170 |
/ |
|
Inventory |
32,650 |
/ |
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Accounts receivable |
40,810 |
/ |
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Bill receivable |
11,580 |
/ |
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Advances to suppliers |
310 |
/ |
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Other receivables |
14,620 |
/ |
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To be apportioned expense |
180 |
/ |
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Other current assets |
0 |
/ |
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------------------ |
------------------ |
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Current assets |
135,320 |
/ |
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Fixed assets net value |
125,150 |
/ |
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Long term investment |
11,090 |
/ |
|
Projects under construction |
1,810 |
/ |
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Intangible and other assets |
16,870 |
/ |
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------------------ |
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Total assets |
290,240 |
290,600 |
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============= |
============= |
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Short loan |
0 |
/ |
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Accounts payable |
15,500 |
/ |
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Bills payable |
0 |
/ |
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Advances from clients |
1,900 |
/ |
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Taxes payable |
7,080 |
/ |
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Surcharge payable |
60 |
/ |
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Dividend payable |
3,970 |
/ |
|
Other Accounts payable |
19,180 |
/ |
|
Other current liabilities |
0 |
/ |
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------------------ |
------------------ |
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Current liabilities |
47,690 |
/ |
|
Specified payables |
35,930 |
/ |
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Long term Accounts payable |
1,070 |
/ |
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Long term liabilities |
8,460 |
/ |
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|
------------------ |
------------------ |
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Total liabilities |
93,150 |
58,780 |
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Equities |
197,090 |
231,820 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
290,240 |
290,600 |
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============= |
============= |
Income
Statement
Unit: CNY’000
|
|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Turnover |
203,090 |
225,790 |
|
Cost of goods sold |
145,660 |
/ |
|
Taxes and additional of main operation |
1,570 |
/ |
|
Incomes from other operations |
3,550 |
/ |
|
Sales expense |
4,680 |
/ |
|
Management expense |
33,720 |
/ |
|
Finance expense |
80 |
/ |
|
Investment income |
3,470 |
/ |
|
Non-operational income |
0 |
/ |
|
Non-operational expense |
100 |
/ |
|
Profit before tax |
24,290 |
/ |
|
Less: profit tax |
6,440 |
/ |
|
Profits |
17,850 |
23,430 |
Note:
SC’s management refused to release its detailed financial reports for Yr 2013.
Important
Ratios
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
2.84 |
/ |
|
*Quick ratio |
2.15 |
/ |
|
*Liabilities to assets |
0.32 |
0.20 |
|
*Net profit margin (%) |
8.79 |
10.38 |
|
*Return on total assets (%) |
6.15 |
8.06 |
|
*Inventory /Turnover ×365 |
59 days |
/ |
|
*Accounts receivable/Turnover ×365 |
74 days |
/ |
|
*Turnover/Total assets |
0.70 |
0.78 |
|
* Cost of goods sold/Turnover |
0.72 |
/ |
PROFITABILITY:
FAIRLY GOOD
·
The turnover of SC appears fairly good in its line.
·
SC’s net profit margin is fairly good.
·
SC’s return on total assets is fairly good.
·
SC’s cost of goods sold is average in 2012,
comparing with its turnover.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a fairly
good level in 2012.
·
SC’s quick ratio is maintained in a fairly good
level in 2012.
·
The inventory of SC appears average in 2012.
·
The accounts receivable of SC appears average in
2012.
·
SC has no short-term loan in 2012.
·
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
·
The debt ratio of SC is low.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.26 |
|
|
1 |
Rs.99.63 |
|
Euro |
1 |
Rs.80.59 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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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.