MIRA INFORM REPORT
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Report No. : |
354043 |
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Report Date : |
12.12.2015 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU SINOLITE INDUSTRIAL CO., LTD. |
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Registered Office : |
19/F, Cibc Holley International Building,
No. 198, Wuxing Road, Jianggan District, Hangzhou, Zhejiang Province, 310020
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
17.02.2006 |
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Com. Reg. No.: |
330104000002849 |
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Legal Form : |
Limited liabilities co. |
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Line of Business : |
Subject engaged in permitted operation items: operating other
hazardous chemicals without storage (see the hazardous chemicals business
license). General operation items: wholesale & retailing: chemical raw
materials (excluding hazardous chemicals and precursor chemicals), textile
raw materials, silk, garments, feed, feed additives, hardware machinery,
electrical products, meters & instruments, light industrial products, art
crafts, building materials, package materials, paper, paper pulp; importing
& exporting goods |
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No. of Employee : |
60 |
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
|
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 SINOLITE INDUSTRIAL CO., LTD.
19/F,
CIBC HOLLEY INTERNATIONAL BUILDING, NO. 198, WUXING ROAD, JIANGGAN DISTRICT,
HANGZHOU, ZHEJIANG PROVINCE, 310020 PR CHINA
TEL:
86 (0) 571-86609816 FAX: 86
(0) 571-86609800
EXECUTIVE
SUMMARY
INCORPORATION
DATE : FEB. 17, 2006
REGISTRATION
NO. : 330104000002849
REGISTERED
LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF
EXECUTIVE : MR. CHEN
SIPING (LEGAL REPRESENTATIVE)
STAFF
STRENGTH : 60
REGISTERED
CAPITAL : CNY 5,000,000
BUSINESS
LINE : TRADING
TURNOVER : CNY 260,820,000
(AS OF DEC. 31, 2014)
EQUITIES : CNY 6,720,000
(AS OF DEC. 31, 2014)
PAYMENT
: NO COMPLAINTS
RECOMM.
CREDIT RANGE : UP TO USD 40,000
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : FAIRLY STABLE
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.426= 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 given name (Sinolite Industrial Co., Ltd.) belongs to SC’s related company
registered in Hong Kong, and SC also uses this name as its trading name.
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 Feb. 17, 2006.
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 permitted operation items: operating other
hazardous chemicals without storage (see the hazardous chemicals business
license). General operation items: wholesale & retailing: chemical raw
materials (excluding hazardous chemicals and precursor chemicals), textile raw
materials, silk, garments, feed, feed additives, hardware machinery, electrical
products, meters & instruments, light industrial products, art crafts,
building materials, package materials, paper, paper pulp; importing &
exporting goods (technologies) (with permit if needed, excluding those
prohibited by the law); other legal items without permission.
SC
is mainly engaged in selling API intermediates and fine chemical products.
Mr.
Chen Siping is legal representative, executive director and general manager of
SC at present.
SC is
known to have approx. 60 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Hangzhou. Our checks reveal that SC
owns the total premise, but the gross area of the premise is unspecific. SC has
an office at Zhejiang Material Industrial Building, No. 445 Kaixuan Road,
Hangzhou, Zhejiang Province
http://www.china-sinolite.com/
The design is professional and the content is well organized. At present it is
in Chinese, Korean and English versions.
E-mail: MichaelZheng@sinolite.net
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-7-20 |
Registration no. |
3301042001731 |
Present one |
Organization
Code: 785300010
For
the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Chen
Siping 51
Zheng
Zhanyun 49
Legal representative, Executive Director and General Manager:
Mr.
Chen Siping is currently responsible for the overall management of SC.
Working
Experience(s):
At
present Working in SC
as legal representative, executive director and general manager.
Supervisor:
Zheng
Zhanyun
SC
is mainly engaged in selling API intermediates and fine chemical products.
SC’s
products mainly include: APIs, pharm. intermediates, fine chemicals and others.
SC
sources its materials 100% from domestic market. SC sells 20% of its products
in domestic market and 80% to overseas market.
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.
Note: SC refused to
release its main clients and suppliers.
Sinolite
Industrial Co., Limited (Hong Kong)
=================================
CR No.: 1671873
Company Type:
Private company limited by shares
Date of Incorporation: 17-Oct.-2011
Active Status: Live
Zhejiang Tuhan Import and Export Co., Ltd. (In
Chinese Pinyin)
===========================
Incorporation Date: 2014-5-22
Registration No.: 330100000191913
Registered Legal Form: Limited Liabilities Co.
Legal representative: Cai Chengjian
Web: http://www.china-sinolite.com/
According to the staff, the said company also uses
Sinolite Industrial Co., Ltd. as its trading name.
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 declined to release the bank information of SC.
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
26,450 |
||
|
Inventory |
6,570 |
10,260 |
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Accounts receivable |
24,850 |
15,750 |
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Bills receivable |
300 |
0 |
|
Other Accounts
receivable |
4,130 |
3,500 |
|
Subsidy receivable |
7,240 |
3,060 |
|
Advances to suppliers |
8,760 |
4,700 |
|
|
------------------ |
------------------ |
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Current assets |
66,510 |
63,720 |
|
Fixed assets net value |
3,630 |
4,520 |
|
Long term prepaid expenses |
170 |
370 |
|
|
------------------ |
------------------ |
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Total assets |
70,310 |
68,610 |
|
|
============= |
============= |
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Short loans |
0 |
0 |
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Bills payable |
21,550 |
39,680 |
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Accounts payable |
32,270 |
19,660 |
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Advances from clients |
7,540 |
0 |
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Other accounts payable |
2,460 |
4,530 |
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Tax payable |
-230 |
-1,290 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
63,590 |
62,580 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
63,590 |
62,580 |
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Equities |
6,720 |
6,030 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
70,310 |
68,610 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
Turnover |
260,820 |
237,120 |
|
Cost of goods sold |
248,210 |
227,460 |
|
Taxes and additional of main operation |
30 |
90 |
|
Sales expense |
6,140 |
3,150 |
|
Management expense |
5,470 |
5,380 |
|
Finance expense |
-550 |
-270 |
|
Non-operating income |
110 |
70 |
|
Non-operating expense |
390 |
500 |
|
Profit before tax |
1,240 |
880 |
|
Less: profit tax |
380 |
300 |
|
Profits |
860 |
580 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
*Current ratio |
1.05 |
1.02 |
|
*Quick ratio |
0.94 |
0.85 |
|
*Liabilities to assets |
0.90 |
0.91 |
|
*Net profit margin (%) |
0.33 |
0.24 |
|
*Return on total assets (%) |
1.22 |
0.85 |
|
*Inventory /Turnover ×365 |
10 days |
16 days |
|
*Accounts receivable/Turnover ×365 |
35 days |
25 days |
|
*Turnover/Total assets |
3.71 |
3.46 |
|
* Cost of goods sold/Turnover |
0.95 |
0.96 |
PROFITABILITY: AVERAGE
The
turnover of SC appears fairly good in its line.
SC’s
net profit margin is average.
SC’s
return on total assets is average.
SC’s
cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
The
current ratio of SC is maintained in a fair level
SC’s
quick ratio is maintained in a normal level.
The
inventory of SC appears average.
The
accounts receivable of SC appears average.
SC
has no short-term loan in both years.
SC’s
turnover is in a fairly good level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The
debt ratio of SC is high.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.79 |
|
|
1 |
Rs.101.10 |
|
Euro |
1 |
Rs.73.10 |
|
CNY |
1 |
Rs.10.40 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
TRI |
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Report Prepared
by : |
TRU |
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 |
|
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.