MIRA INFORM REPORT
|
Report Date : |
04.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG NHU COMPANY LTD. |
|
|
|
|
Registered Office : |
No. 418 Dadao West Road, Qixing Street, Xinchang County, Zhejiang
Province, 312500 PR |
|
|
|
|
Country : |
China |
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|
|
Financials (as on) : |
31.12.2013 |
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|
|
|
Date of Incorporation : |
05.04.1999 |
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|
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Com. Reg. No.: |
330000000012366 |
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|
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Legal Form : |
Shares Limited Co. |
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|
|
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Line of Business : |
Subject is mainly engaged in researching, developing, manufacturing
and selling pharmaceutical chemicals, nutritional supplements, flavors and
fragrances. |
|
|
|
|
No of Employees : |
5,385 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
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, growth of the
private sector, development of stock markets and a modern banking system, 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 considered important to "economic
security," explicitly looking to foster globally competitive industries.
After keeping its currency tightly linked to the US dollar for years, in July
2005 China 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 and
expanded the daily trading band within which the RMB is permitted to fluctuate.
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. Several factors
are converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and
reiterated at the Communist Party's "Third Plenum" meeting in
November 2013, emphasizes continued economic reforms and the need to increase
domestic consumption in order to make the economy less dependent in the future
on fixed investments, exports, and heavy industry. 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 & ADDRESS
ZHEJIANG NHU COMPANY LTD.
NO. 418 DADAO WEST ROAD, QIXING STREET, XINCHANG COUNTY,
ZHEJIANG PROVINCE, 312500 PR CHINA
TEL: 86 (0) 575-86125377/86017157
FAX: 86 (0) 575-86125377/86131560
EXECUTIVE
SUMMARY
INCORPORATION DATE :
APR. 5, 1999
REGISTRATION NO. :
330000000012366
REGISTERED LEGAL
FORM : SHARES LIMITED CO.
STAFF STRENGTH :
5,385
REGISTERED CAPITAL : CNY 725,946,000
BUSINESS LINE :
RESEARCHING, DEVELOPING, MANUFACTURING AND TRADING
TURNOVER :
CNY 4,237,635,000 (CONSOLIDATED,
AS OF DEC. 31, 2013)
EQUITIES :
CNY 6,570,558,000 (CONSOLIDATED, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE :
CNY 6.13 = 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 “No. 4 Jiangbei Road, Yulin Street, Xinchang
County, Zhejiang Province,
SC was registered as a Shares limited co. at Zhejiang Provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Apr. 5, 1999.
Company Status: Shares Limited Co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be
domiciled in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business
scope includes permit business items: manufacturing and selling bulk
pharmaceutical chemicals (scope as shown in the pharmaceutical production
license, valid as of Feb. 25, 2018), food additives (production with valid
permit) and feed additive; manufacturing hazardous chemicals (scope as shown in
Zhejiang Province Hazardous Chemicals Manufacturing and Storing Certificate of
Approval and Safe Production License, valid as of Aug. 2, 2016 ) and
wholesaling hazardous chemicals (scope as shown in Hazardous Chemicals Business
License, valid as of Jan. 27 2016); selling non-drug class precursor chemicals
(scope as shown in Non-Drug Class Precursor Chemicals Business Record Proof,
valid as of Jan. 27 2016). General business items: manufacturing and selling organic
chemicals (excluding hazardous and precursor chemicals), importing and
exporting business.
SC is mainly
engaged in researching, developing, manufacturing and selling pharmaceutical
chemicals, nutritional supplements, flavors and fragrances.
Mr. Hu Baifan is
legal representative and chairman of SC at present.
SC is known to have approx. 5,385 employees at present,
including 3,903 production workers, 95 procurement and sales staff, 740
technical staff, 64 financial staff, and 583 administration staff.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Xinchang County. The detailed information about the premise is
unspecified.
http://www.cnhu.com/
The design is professional and the content is well-organized. At present it is
in both Chinese and English versions.
Email: investor@cnhu.com
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002001.
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration no. |
3300001005563 |
Present one |
Certificates and
honors:
ISO 9001
GPM Authentication
Food addictive FAMIQS Authentication
Etc.
2007:
Technology innovation demonstration enterprise in China's chemical
industry
The NHU brand feed vitamin was awarded China Famous Product
Science and Technology Award in China Petroleum and Chemical Industry
2008:
The national high-tech industrialization decade Achievement Award
Top 50 of the most development force listed companies in cutting-edge
enterprise
2009:
Top 50 feed enterprises in China
2010:
National science and technology innovation base
China's chemical industry innovation demonstration enterprise
Quality integrity enterprise in China
2011:
China's top 100 listed companies Award
Outstanding units of the national corporate culture construction
Etc.
Tax Registration Certificate No.: 330624712560575
Organization Code: 71256057-5
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS: (As of Dec. 31, 2013)
Name %
of Shareholding
NHU Holding Group Co., Ltd. 56.36
China Construction Bank-Huaan Hongli
Stock-type Securities Investment Fund 2.11
China Life Insurance Co., Ltd. - Traditional
- Ordinary Insurance
Products
Bank of Communications - Anshun Securities
Investment Fund 1.22
China Life Insurance Co., Ltd. -
Bonus-Personal Bonus
Shanghai Pudong Development Bank - GF Small
Cap Growth Stock Securities
Investment Fund 0.91
APS Asset Management Pte Ltd. - APS China A
Share Fund 0.77
China Pacific Life Insurance Co., Ltd.-
Bonus-Personal Bonus 0.7
Hu Baiyan 0.55
China Minsheng Banking Corp. Ltd.- Yinhua
SZSE 100 ETF Classified
Securities Investment Fund 0.54
Other shareholders 34.04
NHU Holding Group Co., Ltd.
=======================
Incorporation
date: Feb. 14, 1989
Registration
no.: 330624000015577
Legal
rep.: Hu Baifan
Legal
form: Limited liabilities co.
l
Legal representative and chairman:
Mr. Hu Baifan,
born in 1962 with master’s degree, senior economist, deputy to the People’s
Congress of Shaoxing City, excellent enterprise operator of Zhejiang Province.
He is currently responsible for the overall management of SC.
Working
Experience(s):
At
present Working in SC
as chairman and legal representative;
Also working in NHU Holding Group Co., Ltd., Xinchang NHU Vitamin Co., Ltd., Zhejiang
Xinweipu Additive Co., Ltd. Zhejiang Hecheng Huizhi Investment Management Co.,
Ltd. (in Chinese pinyin), Xinchang Hefeng Investment Co., Ltd., etc. as legal
representative.
Major honors:
Model workers in Zhejiang Province
Excellent education entrepreneurs in Zhejiang
Province
Zhejiang Petrochemical Technology advanced
workers
Zhejiang outstanding entrepreneur
Outstanding Youth entrepreneurs in Zhejiang
province
Zhejiang Charity (Individual) Award
Etc.
l
President:
Mr. Hu Baiyan, born in 1967, with junior college education, engineer. He
is currently responsible for the daily management of SC.
Working Experience(s):
From April of 2005 to present Working in SC as president
Also working in Zhejiang NHU Import &
Export Co., Ltd., Shangyu NHU Bio-Chemical Co., Ltd., Shandong NHU Pharmaceutical
Co., Ltd., etc. as legal representative.
l
Vice Presidents:
Mr. Wang Xuewen, born in 1969, with junior college education.
Mr. Shi Guanqun, born in 1971, with junior college education,
accountant.
Mr. Cui Xinrong, born in 1964, with master’s degree, senior economist.
They are currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as vice presidents.
Directors:
Chen Jin
Wang Yonghai
Li Bogeng
Han Lingli
Wang Zhengjiang
Zhou Guiyang
Supervisors:
Dong Xiaofang
Lv Jinmei
Ye Yueheng
Liang Xiaodong
Qiu Jinzhuo
SC is mainly
engaged in researching, developing, manufacturing and selling pharmaceutical
chemicals, nutritional supplements, flavors and fragrances.
Main Products:
Feed additive, Food additive, Fragrances, Active pharmaceutical ingredients,
Pharmaceutical intermediates.
SC sources its materials 40% from domestic
market, and 60% from overseas market. SC sells 40% of its products in domestic
market, and 60% to overseas market, mainly USA and Europe.
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 declined to release its major clients and suppliers.
Zhejiang Hecheng Huizhi Investment Management Co., Ltd. (in Chinese pinyin)
===================================================
Incorporation date:
Registration no.: 330100000142576
Legal rep.: Hu Baifan
Legal form: Limited liabilities co.
Xinchang Hefeng Investment Co., Ltd.
============================
Incorporation date:
Registration no.: 330624000001709
Legal rep.: Hu Baifan
Legal form: Limited liabilities co.
Etc.
SC is known to have
the following subsidiaries:
Xinchang NHU Vitamin
Co., Ltd.
========================
Incorporation date:
Registration no.: 330624000011453
Legal rep.: Hu Baifan
Legal form: One-person Limited Liability Company
Zhejiang NHU Import & Export Co., Ltd.
==============================
Incorporation date:
Registration no.: 330624000049649
Legal rep.: Hu Baiyan
Legal form: Limited liabilities co.
Zhejiang Xinweipu Additive Co., Ltd.
===========================
Incorporation date:
Registration no.: 330600400012844
Legal rep.: Hu Baifan
Shangyu NHU Bio-Chemical Co., Ltd.
============================
Incorporation date:
Registration no.: 330682000005549
Legal rep.: Hu Baiyan
Legal form: One-person Limited Liability Company
Shandong NHU Pharmaceutical Co., Ltd.
==============================
Incorporation date:
Registration no.: 370700018066431
Registered capital: CNY 586,000,000
Legal rep.: Hu Baiyan
Legal form: One-person Limited Liability Company
Etc.
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.
SC’s management
refused to release its banking information.
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
Cash & bank |
2,664,711 |
2,368,520 |
|
Inventory |
1,142,193 |
1,231,530 |
|
Trading
financial assets |
3,655 |
2,421 |
|
Notes receivable |
213,454 |
153,389 |
|
Accounts
receivable |
856,806 |
712,099 |
|
Advances to
suppliers |
22,121 |
38,796 |
|
Dividends
receivable |
3,600 |
0 |
|
Other
receivables |
103,601 |
54,710 |
|
Other current
assets |
52,362 |
115,248 |
|
|
------------------ |
------------------ |
|
Current assets |
5,062,503 |
4,676,713 |
|
Fixed assets net
value |
2,432,413 |
2,033,982 |
|
Projects under
construction |
455,508 |
485,835 |
|
Long term
investment |
146,525 |
174,500 |
|
Intangible
assets |
354,604 |
387,831 |
|
Goodwill |
0 |
3,912 |
|
Deferred tax assets |
77,078 |
48,300 |
|
Other assets |
27,244 |
24,003 |
|
|
------------------ |
------------------ |
|
Total assets |
8,555,875 |
7,835,076 |
|
|
============= |
============= |
|
Short loans |
171,454 |
107,000 |
|
Notes payable |
192,378 |
185,518 |
|
Accounts payable |
504,716 |
344,766 |
|
Advances from
customers |
11,357 |
87,936 |
|
Employee pay
payable |
78,868 |
53,422 |
|
Taxes payable |
134,241 |
94,404 |
|
Interest payable |
1,632 |
1,099 |
|
Other payable |
46,477 |
42,849 |
|
Non- current
liabilities due within one year |
427,870 |
332,417 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,568,993 |
1,249,411 |
|
Non-current
liabilities |
416,324 |
533,336 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,985,317 |
1,782,747 |
|
Equities |
6,570,558 |
6,052,329 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
8,555,875 |
7,835,076 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2012 |
|
Turnover |
4,237,635 |
3,631,417 |
|
Cost of goods sold |
2,627,627 |
2,045,045 |
|
Taxes and additional of main operation |
60,422 |
29,002 |
|
Sales expense |
97,908 |
65,290 |
|
Management expense |
359,972 |
308,128 |
|
Finance expense |
46,329 |
26,483 |
|
Loss from asset devaluation |
9,430 |
25,675 |
|
Sound value
flexible profit |
1,009 |
2,031 |
|
Investment
income |
1,735 |
-13,165 |
|
Non-operating
income |
45,496 |
21,317 |
|
Non-operating expense |
25,050 |
122,774 |
|
Profit before
tax |
1,059,137 |
1,019,203 |
|
Less: profit tax |
177,016 |
169,030 |
|
Profits |
882,121 |
850,173 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
*Current ratio |
3.23 |
3.74 |
|
*Quick ratio |
2.50 |
2.76 |
|
*Liabilities
to assets |
0.23 |
0.23 |
|
*Net profit
margin (%) |
20.82 |
23.41 |
|
*Return on
total assets (%) |
10.31 |
10.85 |
|
*Inventory
/Turnover ×365 |
99 days |
124 days |
|
*Accounts
receivable/Turnover ×365 |
74 days |
72 days |
|
*Turnover/Total
assets |
0.50 |
0.46 |
|
* Cost of
goods sold/Turnover |
0.62 |
0.56 |
PROFITABILITY:
GOOD
l
The turnover of SC appears good in its line in both
years and it increased in 2013.
l
SC’s net profit margin is good in both years.
l
SC’s return on total assets is good in both years.
l
SC’s cost of goods sold is low in both years,
comparing with its turnover.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good level in both years.
l
SC’s quick ratio is maintained in a fairly good
level in both years.
l
The inventory of SC is fairly large in both years.
l
The accounts receivable of SC appears average in
both years.
l
The short-term loan is average in both years.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.41 |
|
|
1 |
Rs.98.06 |
|
Euro |
1 |
Rs.76.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SMN |
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.