MIRA
INFORM REPORT
|
Report Date : |
05.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG
TRANSFAR CO., LTD. |
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Registered Office : |
Xiaoshan Economy And Technology Development Zone, |
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Country : |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
06.07.2001 |
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Com. Reg. No.: |
330000000005534 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing and selling chemical products. |
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No. of Employees : |
2,142 |
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 : |
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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
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, 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 and address
ZHEJIANG TRANSFAR CO., LTD.
XIAOSHAN ECONOMY AND TECHNOLOGY DEVELOPMENT ZONE
HANGZHOU CITY, ZHEJIANG PROVINCE, 311215 PR CHINA
TEL: 86 (0) 571-82872991 FAX:
86 (0) 571-83782070
EXECUTIVE SUMMARY
INCORPORATION DATE : july 6, 2001
REGISTRATION NO. :
330000000005534
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 2,142
REGISTERED CAPITAL : CNY
487,980,000
BUSINESS LINE :
MANUFACTURING & SELLING
TURNOVER :
CNY 2,573,554,000 (Consolidated, JAN. 1
TO June 30, 2014)
EQUITIES :
CNY 2,024,643,000 (Consolidated, AS OF
June 30, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND :
steady
GENERAL REPUTATION : well known
EXCHANGE RATE :
CNY 6.1469= 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 shares limited company at Zhejiang Provincial Administration for
Industry & Commerce (AIC-The official body of issuing and renewing business
license) on July 6, 2001.
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: wholesaling hazardous chemicals without storage (see the range of
"dangerous chemicals business license", valid until May 17, 2015).
General business items: manufacturing, processing, and selling organic silicon,
organ fluorine fine chemicals (excluding hazardous products), surface active
agents, printing and dyeing textile accessory ingredients, conning oils,
auxiliary raw materials; selling dyestuff (excluding hazardous chemicals);
import & export business (see the range of economic and trade department
approval).
SC
is mainly engaged in manufacturing and selling chemical products.
Mr.
Xu Guanju has been the chairman and legal
representative of SC since 2001.
SC is known to
have approx. 2,142 employees at present, including 1,148 production staff, 370 sales
staff, 304 technical staff, 114 financial staff and 206 administration staff.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the development zone of Hangzhou. Our checks
reveal that SC owns the total premise about 138,500
square meters.
SC
is also operating its fine chemicals and chemicals departments in No. 58,
Jianshe No. 1 Road, Xiaoshan Economy and Technology Development Zone, Hangzhou,
Zhejiang
http://www.transfarchem.com
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
E-mail: zqb@etransfar.com
SC has already been at the first position on aspects of
scientific R&D, productivity and scale. SC has got the certificate of
ISO9001: 2000, ISO14001: 1996,
OHSAS18001.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2005 |
Registered capital |
CNY 80,000,000 |
CNY 120,000,000 |
|
2007 |
Registered capital |
CNY 120,000,000 |
CNY 156,000,000 |
|
2008 |
Registered capital |
CNY 156,000,000 |
CNY 202,800,000 |
|
Registration No. |
3300001007981 |
330000000005534 |
|
|
2010-6 |
Registered capital |
CNY 202,800,000 |
CNY 243,990,000 |
|
2011-4 |
Registered capital |
CNY 243,990,000 |
Present amount |
In 2004, SC was listed in Shenzhen Stock Exchange Market (stock code
002010).
Organization code: 609301348
Tax No.: 330181609301348
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS: (as of June 30,
2014)
Name %
of shareholdings
Transfar Group Co., Ltd. 22.95
Xu Guanju 13.03
Xu Guanbao 7.51
China Construction Bank
Corporation- Huashang Dynamic Alpha Flexible Allocation Mixed Securities
Investment Fund 4.44
Zhongrong International Trust
Co., Ltd.- Zhongrong Enhancement
No. 15 3.23
China Resources SZITIC Trust
Co., Ltd.- No. 56 Golden Wisdom Capital Trust Scheme 3.13
China Construction Bank Corporation
-Huashang Theme Selected Securities Investment Fund 1.69
Sun Renjing 1.2
Shen Youbing 1.12
Zhongrong International Trust
Co., Ltd.- 08 Rongxin No. 51 1.06
Other shareholders 40.64
Transfar Group Co., Ltd.
===================
Transfar Group is a renowned cross-industry non-state-owned
enterprise group in China. Our business involves chemicals, logistics,
agriculture and investment. Transfar have kept carrying out foresighted
practice in all of these areas where transformation, upgrade, innovation and
development are required. In the chemical area, by integrating and extending
the industrial chain, Transfar is committed to be a global influential system
integration supplier of chemicals for specific purposes. The market shares of
main products are in the top position in the industry. In the logistic area,
Transfar created the “road port logistic” mode, which has become the most
valuable innovation in China’s logistic industry and rectified the low
efficiency in China’s road logistics. In the agricultural area, Transfar
successfully helped farmers eliminate business risks and market risks and
promoted the structure adjustment of the regional horticultural and vegetable
growing industry by creating a biotechnology innovation platform which
integrates business, academy and research in one.
Registration No.: 330181000055960
Incorporation Date: Jun. 29, 1995
Chairman: Xu Guanju
Registered Capital: CNY 510,000,000
Add.: Economic & Technological
Development Zone, Xiaoshan, Hangzhou, Zhejiang
Tel.: +86-0571-82602688
Fax: +86-0571-82602700
Website: http://www.etransfar.com/
E-mail: job@etransfar.com
l
Chairman and Legal representative:
Mr. Xu Guanju, born in 1961,
with Master’s degree, Senior Economist. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 2001 to present Working in SC as chairman and legal
representative;
Also working in Transfar Group Co., Ltd., Hangzhou Transfar
Fine Chemical Co., Ltd. and etc. as chairman.
l
Vice Chairman:
Mr. Xu Guanbao, born in 1957, with junior college
education, Senior Economist, he is currently
responsible for the daily management of SC.
Working Experience(s):
From 2014 to present Working in SC as vice chairman.
l
General Manager:
Mr. Wu Jianhua, born in 1965,
with Master’s degree, Senior Economist. He is currently responsible
for the daily management of SC.
Working Experience(s):
From 2001 to present Working in
SC as general manager;
Also working in Zhejiang Transfar Whyyon Chemical Co., Ltd., Hangzhou
Transfar Chemicals Co., Ltd. and Hangzhou Hunter Biotechnology, Inc. as
chairman.
l
Vice General Managers:
Ms. Zhu Jiangying, born in 1972, with
Master’s degree, senior accountant;
Mr. Luo Jutao, born in 1961, with
Master’s degree, professor senior engineer;
Mr.
Zhao Yiming, born in 1957, with junior college education.
They are currently responsible for the
daily management of SC.
Working Experience(s):
At present Working
in SC as vice general managers.
l
Directors:
Chen
Wensen
Fei
Zhongxin
He
Shengdong
Yang
Wanqing
l
Supervisors:
Ying
Tiangen
Zhu Chunyan
Huang Jian
SC
is mainly engaged in manufacturing and selling chemical products.
SC’s
main products include: pre-treatment series, textile chemicals, finishing
treating auxiliaries, conning oil series, and water and oil
repellents, eather chemicals and water chemicals, etc.
SC
sources its materials 95% from domestic market, mainly Zhejiang, and 5% from
overseas market. SC sells 100% of its products in domestic
market.
Trademark & Patents
|
Registration No. |
11611334 |
11611326 |
10096172 |
|
Registration Date |
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|
Trademark Design |
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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 and Credit of 30-60
days.
*Major
Suppliers:
==============
Zhejiang Jielun Lubricant Co., Ltd.
Taixing Jinhui Chemical Co., Ltd.
Daikin Industries International Trade (Shanghai) Ltd.
*Major Customers:
===============
Jiangsu Shenghong Science and Technology
Corporation Limited
Shanghai Jianyan Building Material
Technology Co., Ltd.
Zhejiang Transfar Whyyon Chemical Co., Ltd.
=================================
Registration No.: 330181000023916
Incorporation Date:
Chairman:
Wu Jianhua
http://www.transfarwhyyon.com/
SC is known to
invest in the following companies:
Hangzhou Transfar Fine Chemical Co., Ltd.
======================
Registration No.: 3301811040333
Incorporation Date:
Chairman: Xu Guanju
Hangzhou Transfar Chemicals Co., Ltd.
======================
Registration No.: 330181000038983
Incorporation Date:
Chairman:
Wu Jianhua
Transfar (Hong Kong) Ltd.
==================
CR No.: 1387579
Date of Incorporation:
Company Status:
Private company limited by share
Active Status:
Live
Hangzhou Hunter Biotechnology, Inc.
======================
Registration No.: 330181000180984
Incorporation Date:
Chairman:
Wu Jianhua
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’s suppliers
declined to make any comments.
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 Xiaoshan Sub-branch Development Zone Office
AC#: 1202092009900028828
Agricultural
Bank of China Zhejiang Branch
AC#: 19-048101040024135
Relationship:
Normal.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2013 |
As of June 30, 2014 |
|
Cash & bank |
274,158 |
263,123 |
|
Notes receivable |
924,500 |
419,874 |
|
Accounts
receivable |
502,568 |
1,072,094 |
|
Advances to
suppliers |
21,740 |
50,988 |
|
Inventory |
475,479 |
533,404 |
|
Other accounts
receivable |
20,336 |
16,811 |
|
Other current
assets |
75,770 |
93,425 |
|
|
------------------ |
------------------ |
|
Current assets |
2,294,551 |
2,449,719 |
|
Fixed assets net
value |
796,009 |
789,985 |
|
Projects under
construction |
84,500 |
115,007 |
|
Project
materials |
528 |
517 |
|
Long term
investment |
144,457 |
155,204 |
|
Intangible
assets |
230,130 |
281,268 |
|
Goodwill |
10,053 |
10,053 |
|
Long-term deferred
expenses |
3,595 |
2,506 |
|
Deferred assets
debits |
24,964 |
30,836 |
|
Other assets |
45,057 |
17,894 |
|
|
------------------ |
------------------ |
|
Total assets |
3,633,844 |
3,852,989 |
|
|
============= |
============= |
|
Short loans |
184,616 |
256,054 |
|
Notes payable |
79,000 |
73,000 |
|
Accounts payable |
361,294 |
429,803 |
|
Employee pay
payable |
106,297 |
71,731 |
|
Taxes payable |
40,009 |
53,750 |
|
Advances from
clients |
59,163 |
24,901 |
|
Interest payable |
473 |
1,772 |
|
Dividends
payable |
3,696 |
64,964 |
|
Non-current
liabilities due within one year |
8,724 |
4,402 |
|
Other accounts
payable |
37,525 |
62,176 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
880,797 |
1,042,553 |
|
Long term
liabilities |
691,229 |
785,793 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,572,026 |
1,828,346 |
|
Equities |
2,061,818 |
2,024,643 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
3,633,844 |
3,852,989 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
Jan. 1 to June 30, 2014 |
|
Turnover |
4,095,279 |
2,573,554 |
|
Cost of goods sold |
3,227,529 |
2,024,735 |
|
Taxes and additional of main operation |
18,068 |
8,989 |
|
Sales expense |
243,152 |
144,850 |
|
Management expense |
263,430 |
142,750 |
|
Finance expense |
38,021 |
31,851 |
|
Asset impairment loss |
44,354 |
49,887 |
|
Investment income |
7,886 |
7,604 |
|
Non-operating income |
20,102 |
11,824 |
|
Non-operating expense |
7,028 |
3,761 |
|
Profit before tax |
281,685 |
186,159 |
|
Less: profit tax |
50,159 |
41,997 |
|
Profits |
231,526 |
144,162 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of June 30, 2014 |
|
*Current ratio |
2.61 |
2.35 |
|
*Quick ratio |
2.07 |
1.84 |
|
*Liabilities to assets |
0.43 |
0.47 |
|
*Net profit margin (%) |
5.65 |
5.60 |
|
*Return on total assets (%) |
6.37 |
3.74 |
|
*Inventory /Turnover ×365 |
42 days |
/ |
|
*Accounts receivable/Turnover ×365 |
45 days |
/ |
|
*Turnover/Total assets |
1.13 |
0.67 |
|
* Cost of goods sold/Turnover |
0.79 |
0.79 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good in 2013
and average in the first half year of 2014.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is fairly good.
l
SC’s quick ratio is fairly good.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears average.
l
SC’s turnover is in an average 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.60.45 |
|
|
1 |
Rs.99.45 |
|
Euro |
1 |
Rs.79.46 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
PDT |
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.