MIRA INFORM REPORT
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Report No. : |
351953 |
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Report Date : |
01.12.2015 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU ZHONGLI CHEMICAL FIBER CO., LTD. |
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Registered Office : |
Yonglian Village, Guali Town, Xiaoshan District, Hangzhou, Zhejiang
Province, 311241 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
21.11.2002 |
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Com. Reg. No.: |
330181000037247 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject includes general business items: chemical fiber spinning,
chemical fiber filament; weaving chemical fiber cloth; manufacturing and
processing garments, textiles, warp-knitted cloth; processing computer
embroidery; selling chemical raw materials and products (excluding dangerous
chemicals and precursor chemicals); exporting self-produced products and
importing self-used products |
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No. of Employees : |
300 |
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, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. 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 2014 stood as the largest economy in the world, surpassing the US for the first time in modern history. Still, China's per capita income is below the world average.
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. In 2014 the People’s Bank of China (PBOC) doubled the daily trading band within which the RMB is permitted to fluctuate.
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 2014 more than 274 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China also implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
name and address
HANGZHOU ZHONGLI CHEMICAL FIBER CO., LTD.
YONGLIAN VILLAGE,
GUALI TOWN, XIAOSHAN DISTRICT,
HANGZHOU, ZHEJIANG
PROVINCE, 311241 PR CHINA
TEL: 86 (0)
571-82571898 FAX: 86 (0)
571-82556761
EXECUTIVE
SUMMARY
INCORPORATION DATE : NOVEMBER 21, 2002
REGISTRATION NO. : 330181000037247
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
300
REGISTERED CAPITAL : CNY 80,000,000
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER :
CNY 416,360,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 181,260,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.3969 = 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
company at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on November 21, 2002.
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: chemical fiber spinning,
chemical fiber filament; weaving chemical fiber cloth; manufacturing and
processing garments, textiles, warp-knitted cloth; processing computer
embroidery; selling chemical raw materials and products (excluding dangerous
chemicals and precursor chemicals); exporting self-produced products and
importing self-used products (excluding items prohibited by legal,
administrative rules and regulations, and operating the limited items after
obtaining the permits).
SC is mainly
engaged in manufacturing and selling different sorts of polyester yarn.
Mr. Ren Yuekang
has been legal representative and chairman of SC since 2002.
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 about 50,000 square meters.
http://www.zlhx.cn
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
Email: info@zhongli-group.com
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2006-11-22 |
Registered capital |
CNY 20,000,000 |
CNY 50,000,000 |
|
Shareholders |
Wang Zhangjin 10% Xiang Tugen 10% Ren Yuekang 80% |
Wu Yuantong 0.6% Wang Zhangjin 1.86% Xiang Tugen 7.2% Cheng Bo 2.2% Ren Yuekang 88.14% |
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|
2007-12-17 |
Registration no. |
3301812510750 |
Present one |
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Registered capital |
CNY 50,000,000 |
Present amount |
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|
Shareholders |
Wu Yuantong 0.6% Wang Zhangjin 1.86% Xiang Tugen 7.2% Cheng Bo 2.2% Ren Yuekang 88.14% |
Present ones |
SC has won the title of Top Ten Development Enterprise in Xiaoshan, and it
is also regarded as AAA Grade Credit Enterprise by several banks, and so
on.
etc.
Tax Registration Certificate No.:
33018174506966X
Organization Code: 74506966X
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Ren Yuekang 56.00
Ren Bilei 27.51
Xiang Tugen 10.00
Wu Yuantong 0.84
Cheng Bo 3.06
Wu Yanyin 2.59
l Legal
representative and Chairman:
Mr. Ren Yuekang, born in 1955, with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2002 to present Working in SC as
chairman and legal representative.
l General Manager:
Xiang Tugen is currently responsible for the
daily management of SC.
Working Experience(s):
At present Working in SC as general
manager.
l Supervisor:
Cheng Bo
SC is mainly engaged
in manufacturing and selling different sorts of polyester yarn.
SC’s products
mainly include:
• POY 125D-1000D
• DTY 75D-600D
• FDY 150D-600D
• EMBROIDERY THREAD
SC sources its materials 25% from domestic
market, and 75% from overseas market, mainly Hong Kong and Britain. SC sells
50% of its products in domestic market, and 50% to overseas market, mainly
Egypt and Turkey.
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.
TRADEMARKS & PATENTS
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Registration No. |
5008815 |
9355685 |
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Registration Date |
2009-5-21 |
2012-5-7 |
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Trademark Design |
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Note: SC’s management declined to release its main clients and
suppliers.
SC
is known to invest in the following companies:
Hangzhou Zhongcai Chemical Fiber Co., Ltd.
=================================
Registered
no.: 330181000206157
Legal
representative: Shi Qingrong
Establishment
date:
Registered
capital: CNY 120,000,000
Legal
form: Limited liabilities co.
Add:
Changxiang Village, Guali Town, Xiaoshan District, Hangzhou, Zhejiang Province,
311241 PR China
Tel:
86 (0) 571- 83502661/ 83502639
Fax: 86 (0) 571-83502667/83502631
Web: http://www.coloryarn.com/
E-mail: info@coloryarn.com
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.
Xiaoshan Rural Commercial Bank Guali Sub-branch
AC#：201000010768395
Bank of Hangzhou
Xiaoshan Sub-branch
AC#：96318100017286
Bank of China
Hangzhou Xiaoshan Guali Sub-branch
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as of
Dec. 31, 2014 |
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Cash & bank |
66,520 |
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Notes receivable |
5,290 |
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Inventory |
119,470 |
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Accounts receivable |
34,060 |
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Advances to suppliers |
17,690 |
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Other receivables |
5,890 |
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Other current assets |
0 |
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------------------ |
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Current assets |
248,920 |
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Long-term investments |
48,000 |
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Fixed assets net value |
56,500 |
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Projects under construction |
60 |
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Intangible assets |
4,570 |
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Other assets |
0 |
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------------------ |
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Total assets |
358,050 |
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============= |
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Short loans |
40,000 |
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Notes payable |
75,380 |
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Accounts payable |
38,910 |
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Advances from customers |
0 |
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Accrued payroll |
1,140 |
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Taxes payable |
-1,820 |
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Other payable |
80 |
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Other accounts payable |
23,100 |
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Other current liabilities |
0 |
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----------------- |
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Current liabilities |
176,790 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
176,790 |
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Shareholders equities |
181,260 |
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------------------ |
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Total liabilities & equities |
358,050 |
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============= |
Income Statement
Unit: CNY’000
|
|
as of
Dec. 31, 2014 |
|
Turnover |
416,360 |
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Cost of
goods sold |
396,810 |
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Taxes and
additional of main operation |
2,070 |
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Income from other operation |
3,410 |
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Sales expense |
2,020 |
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Management expense |
13,480 |
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Finance expense |
3,680 |
|
Non-operating income |
310 |
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Non-operating
expense |
160 |
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Profit before tax |
1,860 |
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Less: profit tax |
470 |
|
Net profit |
1,390 |
Important Ratios
=============
|
|
as of Dec. 31, 2014 |
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*Current ratio |
1.41 |
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*Quick ratio |
0.73 |
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*Liabilities to assets |
0.49 |
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*Net profit margin (%) |
0.33 |
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*Return on total assets (%) |
0.39 |
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*Inventory /Turnover ×365 |
105 days |
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*Accounts receivable/Turnover ×365 |
30 days |
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*Turnover/Total assets |
1.16 |
|
* Cost of goods sold/Turnover |
0.95 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
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 inventory could be a threat to SC’s financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.81 |
|
|
1 |
Rs.100.37 |
|
Euro |
1 |
Rs.70.68 |
|
CNY |
1 |
Rs.10.39 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
HEE |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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.