MIRA
INFORM REPORT
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Report Date : |
21.05.2014 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG
XINNONG CHEMICAL CO., LTD. |
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Registered Office : |
Sanlixi, Yangfu, Xianju County,
Taizhou, Zhejiang Province 317306 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
28.12.2005 |
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Com. Reg. No.: |
330000000067607 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing, processing and selling chemical pesticide, intermediates, pharmaceutical raw materials, international trade, and technical consultation service Subject products ranges includes : · Agrochemicals Intermediates Fine Chemicals |
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No. of Employees |
750 (Approximately) |
RATING & COMMENTS
|
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 |
|
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) |
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China
|
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
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
ZHEJIANG XINNONG CHEMICAL CO., LTD.
SANLIXI,
YANGFU, XIANJU COUNTY, TAIZHOU
ZHEJIANG
PROVINCE 317306 PR CHINA
TEL: 86 (0)
576-87733616/87733610
FAX: 86
(0) 576-87733619
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 28, 2005
REGISTRATION NO. : 330000000067607
LEGAL FORM : shares limited company
REGISTERED CAPITAL :
cny 60,000,000
staff : 750
BUSINESS CATEGORY :
MANUFACTURING & trading
Revenue : CNY 456,050,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 84,040,000 (AS OF DEC. 31, 2013)
WEBSITE : www.xnchem.com
E-MAIL :
xnxz@xnchem.com & sales@xnchem.com
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.21 = 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.: 330000000067607 on December 28, 2005.
SC’s Organization Code Certificate
No.: 70472103-3
SC’s Tax No.: 331024704721033
SC’s registered capital: cny 60,000,000
SC’s paid-in capital: cny 60,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registration No. |
3300001011712 |
330000000067607 |
|
Registered Capital |
CNY 45,500,000 |
cny 60,000,000 |
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhejiang Xinhui Investment Co., Ltd. |
76 |
|
Hangzhou Xianju Investment
Co., Ltd. |
5 |
|
Other Individuals |
19 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Xu Qunhui |
|
Director |
Wang Zhanqin |
|
Zhang
Jianrong |
|
|
Cao Chengyu |
|
|
Xu Yuexing |
|
|
Qian Yonghui |
|
|
Wang Xianan |
|
|
Tu Bisheng |
|
|
Supervisor |
Wu Xiaodong |
|
Wu Jibo |
|
|
Dai Jingui |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhejiang Xinhui Investment Co., Ltd.
76
Hangzhou Xianju Investment Co., Ltd.
5
Other Individuals
19
Zhejiang Xinhui Investment Co., Ltd.
---------------------------------------------
Registration No.: 330100000082547
Date of Registration: August 4, 2005
Legal Form: Limited Liabilities Company
Registered Capital: CNY 20,000,000
Legal Representative: Xu Yuxing
Hangzhou Xianju Investment Co., Ltd.
-----------------------------------------------
Registration No.: 330102000097759
Legal Form: Limited Liabilities Company
Registered Capital: CNY 5,000,000
Legal Representative: Zhang Jianrong
MANAGEMENT
Xu Qunhui, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 43
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Also
working in Zhejiang Xinnong Chemical Co., Ltd. Taizhou Xinnong Fine Chemical
Factory as principal
Director
-----------
Wang Zhanqin
Zhang Jianrong
(Also working in Hangzhou Xianju Investment Co., Ltd. & Zhejiang
Xinnong Import and Export Co., Ltd. as legal representative)
Cao Chengyu
Xu Yuexing
(Also working in Zhejiang Xinhui Investment Co., Ltd. as legal
representative)
Qian Yonghui
Wang Xianan
Tu Bisheng
Supervisor
--------------
Wu Xiaodong
Wu Jibo
Dai Jingui
BUSINESS OPERATION
SC’s registered business scope includes manufacturing,
processing and selling chemical pesticide, intermediates, pharmaceutical raw materials,
international trade, and technical consultation service.
SC is
mainly engaged in manufacturing and selling chemical pesticide, pharmaceutical raw
materials, and intermediates.
SC’s
products mainly include:
Agrochemicals
Intermediates
Fine
Chemicals
SC sources its materials 100% from domestic
market. SC sells 60% of its products in domestic market, and 40% to overseas
market, mainly U.S.A., Southeast Asia, 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
Clients*
------------------
C.A.
Laboratorios Asociados
Aceto
Corporation
Staff & Office:
--------------------------
SC is
known to have approx. 750 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 subsidiary & branch at present,
Zhejiang Xinnong Import and Export Co., Ltd.
Registration
No.: 331024000035023
Date
of Registration: August 25, 2006
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 5,000,000
Legal
Representative: Zhang Jianrong
Zhejiang
Xinnong Chemical Co., Ltd. Taizhou Xinnong Fine Chemical Factory
Registration
No.: 331002000004470
Legal
Form: Branch
Principal:
Xu Qunhui
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:
China
Construction Bank
AC#:
33001667535056088888
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Cash |
32,220 |
50,510 |
|
Notes receivable |
15,840 |
7,600 |
|
Accounts
receivable |
39,360 |
70,910 |
|
Advances to
suppliers |
53,760 |
34,750 |
|
Other receivable |
4,960 |
30,830 |
|
Inventory |
32,460 |
28,220 |
|
Prepaid
expenses |
0 |
0 |
|
Other current
assets |
1,360 |
280 |
|
|
------------------ |
------------------ |
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Current assets |
179,960 |
223,100 |
|
Long-term
investment |
63,060 |
65,830 |
|
Fixed assets |
35,750 |
32,560 |
|
Construction in
progress |
1,820 |
4,350 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
940 |
910 |
|
Deferred income
tax assets |
0 |
0 |
|
Other non-current
assets |
9,320 |
-21,950 |
|
|
------------------ |
------------------ |
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Total assets |
290,850 |
304,800 |
|
|
============= |
============= |
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Short-term loans |
123,110 |
127,500 |
|
Notes payable |
31,300 |
40,000 |
|
Accounts payable |
17,110 |
29,530 |
|
Payroll payable |
2,350 |
10,950 |
|
Taxes payable |
-5,940 |
3,450 |
|
Advances from
clients |
4,160 |
3,720 |
|
Other payable |
2,630 |
4,010 |
|
Accrued expenses |
0 |
0 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
174,720 |
219,160 |
|
Non-current
liabilities |
10,810 |
1,600 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
185,530 |
220,760 |
|
Equities |
105,320 |
84,040 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
290,850 |
304,800 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
432,650 |
456,050 |
|
Cost of sales |
338,240 |
-- |
|
Taxes and surcharges |
880 |
-- |
|
Sales expense |
14,590 |
-- |
|
Management expense |
35,900 |
-- |
|
Finance expense |
5,610 |
-- |
|
Profit before
tax |
38,560 |
-- |
|
Less: profit tax |
9,640 |
-- |
|
Profits |
28,920 |
33,530 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.03 |
1.02 |
|
*Quick ratio |
0.84 |
0.89 |
|
*Liabilities
to assets |
0.64 |
0.72 |
|
*Net profit
margin (%) |
6.68 |
7.35 |
|
*Return on
total assets (%) |
9.94 |
11.00 |
|
*Inventory /
Revenue ×365 |
28 days |
23 days |
|
*Accounts
receivable / Revenue ×365 |
34 days |
57 days |
|
*Revenue /
Total assets |
1.49 |
1.50 |
|
*Cost of sales
/ Revenue |
0.78 |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears
fairly good in its line in both years.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
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 normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
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.58.75 |
|
UK Pound |
1 |
Rs.98.77 |
|
Euro |
1 |
Rs.80.53 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
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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.