MIRA
INFORM REPORT
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Report Date : |
30.10.2014 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU
OLEOCHEMICALS CO., LTD. |
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Registered Office : |
No. 1188, Jingba
Road, Linjiang Industrial Zone,
Xiaoshan District, Hangzhou, Zhejiang Province, 311228 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
10.05.2001 |
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Com. Reg. No.: |
330181000207029 |
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Legal Form : |
Limited liabilities co. |
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Line of Business : |
Subject includes general business items: manufacturing and
processing hydrogenated oil, stearic acid, glycerin, stearic acid salt, monoglycerides,
composite heat stabilizer, fatty acid methyl esters, fatty acid, capric acid
glycerides Sim, 70S, fatty acid esters, caprylic acid, capric acid (the above
excluding chemical hazards chemicals and precursor chemicals); purchasing
natural plant and animal oils and fats |
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No. of Employees : |
300 |
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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 |
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, 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 resource
|
Source
: CIA |
Company name and address
HANGZHOU OLEOCHEMICALS
CO., LTD.
NO. 1188, JINGBA
ROAD, LINJIANG INDUSTRIAL ZONE,
XIAOSHAN DISTRICT,
HANGZHOU, ZHEJIANG PROVINCE, 311228 PR CHINA
TEL: 86 (0)
571-82900600/89969736
FAX: 86 (0)
571-86617540/89969731
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 10, 2001
REGISTRATION NO. : 330181000207029
REGISTERED LEGAL FORM
: LIMITED LIABILITIES CO.
CHIEF EXECUTIVE : MR. FANG YINJUN (CHAIRMAN)
STAFF STRENGTH : 300
REGISTERED CAPITAL :
CNY 15,200,000
BUSINESS LINE :
MANUFACTURING, PROCESSING AND TRADING
TURNOVER :
CNY 403,110,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 131,390,000 (AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
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
SC was registered as a Limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 10, 2001.
Company Status: Limited liabilities co. This form of business in PR China
is defined as a legal person. No more than fifty shareholders contribute
its registered capital jointly. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to extent
of its total assets. The characteristics of this form of co. are as
follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes general business items: manufacturing and processing hydrogenated oil, stearic acid, glycerin, stearic acid salt, monoglycerides, composite heat stabilizer, fatty acid methyl esters, fatty acid, capric acid glycerides Sim, 70S, fatty acid esters, caprylic acid, capric acid (the above excluding chemical hazards chemicals and precursor chemicals); purchasing natural plant and animal oils and fats (excluding the items require special approval of the State); import and export business (see provincial office (2003) registration system No. 2783 certificate)
SC is mainly engaged in manufacturing, processing and selling oleochemicals products.
Mr. Fang Yinjun is legal representative and chairman of SC at present.
SC is known to have approx. 300 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Hangzhou. Our checks reveal that SC owns the total premise, but SC’s accountant refused to release the gross area.
http://www.hofcc.com The design is professional and the content is well organized. At present it is in Chinese and English versions.
E-Mail: hyh@hofcc.com
No significant changes were found during our checks with the local Administration for Industry and Commerce.
According to SC’s website, SC’s predecessor was Hangzhou
Oil and Fat Chemical Factory
Honors:
One of top-100 companies in the food additive industry of China;
Director member unit of China washing association grease chemical application committee;
One of first-batch standard innovative enterprises of Zhejiang province;
A hi-tech enterprise of Hangzhou city
SC has successfully certificated to ISO9001:2008 quality system;
AAA standard enterprise with good behavior and measurement management system
Organization code: 253921094
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name Investment amount % of Shareholding
Hangzhou Industrial Investment Group Co., Ltd. CNY 2,000,000 13.16
Zhejiang Zanyu Technology Co., Ltd. CNY 13,200,000 86.84
Hangzhou Industrial Investment Group Co., Ltd.
================================
Hangzhou Industrial Investment Group Co., Ltd. is based on manufacturing, real estate, asset management investment industries, focusing on cultivating the cultural and creative industries. The business scope is involved in machinery and equipment, chemicals and pharmaceuticals, light appliances, hotel real estate, finance and securities, and other cultural and creative.
Registration no.: 330100000031027
Registered capital: CNY 3,000,000,000
Legal rep.: Fu Liqun
Legal form: Sole state-owned enterprise
Web: http://www.hziam.com
E-mail: gyzc@com.hz.cn
Zhejiang Zanyu Technology Co., Ltd.
==========================
Zhejiang Zanyu Technology Co., Ltd. is a hi-tech enterprise specialized in R&D and manufacture of daily chemical products, oleochemicals, surfactants, etc. Originally founded as Zhejiang Provincial Light Industry Research Institute in 1965, modified in 2000 as Zhejiang Approval Technology Development Co., Ltd., share-reformed in 2007 and changed its name to Zhejiang Zanyu Technology Co., Ltd. In Nov. 2011, it's successfully listed in Shenzhen stock exchange center (Stock Name: Zanyu Technology with stock No.:002637).The company has become outstanding in the fierce market competitions and one of the leading enterprises specialized in research and manufacture of surfactants in China due to its advanced idea, scientific management and its advantage of technology and talents.
Incorporation date: Sep. 19, 2000
Registration no.: 330000000002693
Registered capital: CNY 160,000,000
Legal rep.: Fang Yinjun
Legal form: Shares limited co.
E-mail: office@zzytech.com
Tel: 0571-87830848
Fax: 0571-87830847
Legal representative
and chairman:
Mr. Fang Yinjun, ID# 33010219630503****, born in 1963, with university education, professor senior engineer. He is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman
Also working in Zhejiang Zanyu Technology Co., Ltd. and Jiaxing Zanyu Technology Development Co., Ltd. as legal representative.
General manager:
Mr. Wang Xiaohui is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager
Supervisor:
…………..
Gao Hui
Directors:
………….
Xu Rongnian
Zou Huanjin
Xu Shuiming
SC is mainly engaged in manufacturing, processing and selling oleochemicals products.
SC’s products mainly include
Stearic acid Q/HYH008-2009
Glycerin GB13206-1991
Calcium Stearate HG/T2424-1993
Barium Stearate HG 2338-1992
Zinc Stearate HG/T3667-2000
Lead Stearate HG2337-1992
Heavy Calcium Stearate HG/T2424-1993
Heavy Zinc Stearate HG/T3667-2000
Food additive Glyceryl monostearate, Glyceryl distearate GB 1986-2007
Food additive Distilled glycerin monostearate GB 15612-95
Etc.
SC sources its materials 30% from domestic market and 70% from overseas market. SC sells 90% of its products in domestic market and 10% 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 declined to release its major clients and suppliers.
SC is known to invest in the following company:
Hangzhou Linjiang Environmental Thermoelectric Co., Ltd. (in Chinese Pinyin)
=========================================================
Incorporation date:
Registration no.: 330181000044694
Registered capital: CNY 180,000,000
Legal rep.: Zhang Zhiwen
Legal form: Limited liabilities co.
According to the website: http://www.zzytech.com
Jiaxing Zanyu Technology Development Co., Ltd.
=====================================
Incorporation Date : August 17, 2005
Registration No. : 330405000000683
Registered Legal Form : One-Person Limited Liability Company
Chief Executive : Mr. Fang Yinjun (Chairman)
Registered Capital : CNY 285,000,000
Add: Jiahua Industrial Park, Jiaxing Port Zone, Zhapu Town, Jiaxing,
Zhejiang Province
Tel: 86 (0) 573-85585261
Fax: 86 (0) 573-85585253
Sichuan Zanyu Technology Development Co., Ltd.
====================================
Incorporation date:
Registration no.: 511425000006077
Registered capital: CNY 30,000,000
Legal rep.: Zou Huanjin
Legal form: Limited liabilities co.
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.
Industrial and Commercial Bank of China Hangzhou Jiefang Road Sub-branch
AC#：N/A
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
Cash & bank |
7,320 |
3,320 |
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Inventory |
71,370 |
56,050 |
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Notes receivable |
26,110 |
8,840 |
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Accounts receivable |
10,120 |
17,440 |
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Advances to suppliers |
4,610 |
21,680 |
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Other receivables |
29,800 |
29,610 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
149,330 |
136,940 |
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Fixed assets net value |
245,230 |
237,390 |
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Long term investment |
9,000 |
9,000 |
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Projects under construction |
1,040 |
6,000 |
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Deferred income tax assets |
1,100 |
250 |
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Intangible and other assets |
40,660 |
39,690 |
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------------------ |
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Total assets |
446,360 |
429,270 |
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=========== |
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Short loan |
121,960 |
107,090 |
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Accounts payable |
31,160 |
21,500 |
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Notes payable |
14,500 |
0 |
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Advances from clients |
1,770 |
4,400 |
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Employee pay payable |
20 |
1,610 |
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Taxes payable |
7,980 |
2,930 |
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Interest payable |
200 |
190 |
|
Other Accounts payable |
128,850 |
160,010 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
306,440 |
297,730 |
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Long term liabilities |
0 |
150 |
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------------------ |
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Total liabilities |
306,440 |
297,880 |
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Equities |
139,920 |
131,390 |
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------------------ |
------------------ |
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Total liabilities & equities |
446,360 |
429,270 |
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=========== |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
Turnover |
318,660 |
403,110 |
|
Cost of goods sold |
/ |
371,730 |
|
Taxes and additional of main operation |
/ |
2,700 |
|
Sales expense |
/ |
9,350 |
|
Management expense |
/ |
18,320 |
|
Finance expense |
/ |
8,710 |
|
Impairment of assets |
/ |
590 |
|
Non-operating income |
/ |
1,070 |
|
Non-operating expense |
/ |
460 |
|
Profit before tax |
/ |
-7,680 |
|
Less: profit tax |
/ |
850 |
|
Profits |
-18,630 |
-8,530 |
Note: SC’s accountant refused to
release the detailed income statement for Yr2012
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
*Current ratio |
0.49 |
0.46 |
|
*Quick ratio |
0.25 |
0.27 |
|
*Liabilities to assets |
0.69 |
0.69 |
|
*Net profit margin (%) |
-5.85 |
-2.12 |
|
*Return on total assets (%) |
-4.17 |
-1.99 |
|
*Inventory /Turnover ×365 |
82 days |
51 days |
|
*Accounts receivable/Turnover ×365 |
12 days |
16 days |
|
*Turnover/Total assets |
0.71 |
0.94 |
|
* Cost of goods sold/Turnover |
/ |
0.92 |
PROFITABILITY: FAIR
The turnover of SC appears fairly good in its line in both years, and it increased in 2013.
SC’s net profit margin is fair in both years.
SC’s return on total assets is fair in both years.
SC’s cost of goods sold is average in 2013, comparing with its turnover.
LIQUIDITY: POOR
The current ratio of SC is maintained in a poor level in both years.
SC’s quick ratio is maintained in a poor level in both years.
The inventory of SC appears fairly large in both years.
The accounts receivable of SC appears average in both years.
The short-term loan of SC appears large in 2012 and 2013.
SC’s turnover is in a fair level in both years, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average in both years.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial conditions. The large amount of short loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.31 |
|
UK Pound |
1 |
Rs.99.00 |
|
Euro |
1 |
Rs.78.14 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
|
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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.