MIRA
INFORM REPORT
|
Report No. : |
356342 |
|
Report Date : |
24.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG CHEMICALS IMPORT & EXPORT CO., LTD. |
|
|
|
|
Registered Office : |
No. 37 Qingchun Road, Hangzhou, Zhejiang Province 310009 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.06.2015 |
|
|
|
|
Date of Incorporation : |
10.09.1982 |
|
|
|
|
Com. Reg. No.: |
330000000001627 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Selling chemical
products; wholesale of pre-packaged foods; import and export business;
industrial investment; selling textile materials, general merchandise,
hardware, for electricity, industrial art products, other chemical products, electric products, agricultural and
sideline products; information consultation service. |
|
|
|
|
No. of Employee : |
150 |
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 |
|
|
|
|
Payment Behaviour : |
Sow but correct |
|
|
|
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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. 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.
|
Source
: CIA |
COMPANY NAME AND ADDRES
ZHEJIANG CHEMICALS IMPORT & EXPORT CO., LTD.
NO. 37 QINGCHUN ROAD, HANGZHOU, ZHEJIANG PROVINCE 310009 PR CHINA
TEL: 86 (0) 571-87048515/28968570/87046080
FAX: 86 (0) 571-87046240
***Note: SC was
formerly named Zhejiang Chemicals Import & Export Corporation and adopted
present name in 2003.
EXECUTIVE SUMMARY
Date of Registration : SepTEMBER 10, 1982
REGISTRATION NO. : 330000000001627
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 72,500,000
staff : 150
BUSINESS CATEGORY : TRADING
REVENUE : CNY 1,637,580,000 (FROM JAN. 1, 2015 TO JUN.
30, 2015)
EQUITIES : www.zhechem.com
E-MAIL : info@zhechem.com
PAYMENT : slow but correct
Recommended Credit Limit : UP TO USD 2,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE : CNY 6.48 = USD 1
ADOPTED ABBREVIATIONS (AS FOLLOWS)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a state-owned enterprise of PRC on September 10, 1982. However, SC changed
to present legal form, and was registered as a limited liabilities company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 330000000001627
on October 31, 2003.
SC’s Organization Code Certificate No.:
14294590-7
SC’s Tax No.: 330165142945907
SC’s registered capital: CNY 72,500,000
SC’s paid-in capital: CNY 72,500,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Company Name |
Zhejiang Chemicals Import & Export Corporation |
Zhejiang Chemicals Import & Export Co., Ltd. |
|
Registered Capital |
CNY 19,300,000 |
CNY 16,000,000 |
|
|
Legal Form |
State-Owned Enterprise |
Limited Liabilities Company |
|
|
|
Registered Capital |
CNY 16,000,000 |
CNY 22,000,000 |
|
|
Registered Capital |
CNY 22,000,000 |
CNY 32,000,000 |
|
|
Registration No. |
3300001002428 |
330000000001627 |
|
|
Registered Capital |
CNY 32,000,000 |
CNY 38,500,000 |
|
Shareholders (% of
Shareholding) |
Zhejiang Orient Holdings Group Ltd. 38% Employee Shareholders Association of Zhejiang Chemicals
Import & Export Co., Ltd 62% |
Zhejiang International Business Group Co., Ltd. 38% Employee Shareholders Association of Zhejiang Chemicals Import
& Export Co., Ltd. 62% |
|
|
|
Legal Representative |
Jiang Limin |
Guo Bin |
|
|
Registered Capital |
CNY 38,500,000 |
CNY 45,000,000 |
|
|
Registered Capital |
CNY 45,000,000 |
CNY 50,000,000 |
|
|
Registered Capital |
CNY 50,000,000 |
cny 51,000,000 |
|
-- |
Registered Capital |
cny 51,000,000 |
cny 60,000,000 |
|
2013 |
Registered Capital |
cny 60,000,000 |
CNY 72,500,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhejiang International Business Group Co., Ltd. |
38 |
|
Employee Shareholders Association of Zhejiang Chemicals Import
& Export Co., Ltd. |
62 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Guo Bin |
|
General Manager and Director |
Zhang Bin |
|
Deputy General Manager |
Fang Li |
|
Director |
Wang Fen |
|
Ruan Yue |
|
|
Fang Li |
|
|
Supervisor |
Wang Zheng |
|
Xe Gewei |
|
|
Zou Weiping |
RECENT DEVELOPMENT
SC has been awarded the certificate of ISO9001:2000 since July of 2006.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhejiang International Business Group Co.,
Ltd. 38
Employee Shareholders Association of
Zhejiang Chemicals
Import & Export Co., Ltd. 62
Zhejiang
International Business Group Co., Ltd.
---------------------------------------
Zhejiang International Business Group Co.,
Ltd. was established in 2008. It is a sole
state-owned enterprise that the provincial government investment
establishes.
The registered capital of the group is CNY
980 million, which comes from the capital of original Zhejiang Rongda Group Holding Co., Ltd. Zhejiang Zhongda Group Holding Co., Ltd. and Zhejiang Dongfang Group Holding Co., Ltd.
Date of Registration: February 14, 2008
Legal Representative: Wang Tingge
Registration No.: 330000000018008
Legal Form: Sole State-Owned Enterprise
Registered Capital: cny 980,000,000
Add: International Trade Building, No. 199
Qingchun Road, Hangzhou, Zhejiang Province 199
Tel: 86 0571-87385921
Fax: 86 0571-87385988
E-mail: info@zibchina.com
Web: www.zibchina.com
MANAGEMENT
Guo Bin,
Legal Representative and Chairman
--------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø
Age: 56
Ø
ID# 330105195903011015
Ø Qualification:
University
Ø Working experience
(s):
From 2009 to present, working in SC as legal
representative and chairman
Zhang Bin,
General Manager and Director
---------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø
Age: 43
Ø
ID# 33010219721214031X
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general manager
and director
Fang Li,
Deputy General Manager
-----------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø
Age: 44
Ø
ID# 33262719711003204X
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as deputy general
manager
Director
-----------
Wang Fen ID#
33262719711003204X
Ruan Yue ID#
330522197303077034
Fang Li ID#
330102197009250011
Supervisor
-------------
Wang Zheng
ID# 330105197507030010
Xe Gewei
ID# 330106196808090035
Zou Weiping
ID# 330104196901041630
BUSINESS OPERATION
SC’s registered
business scopes include selling chemical products; wholesale of pre-packaged
foods; import and export business; industrial investment; selling textile
materials, general merchandise, hardware, for electricity, industrial art
products, other chemical products, electric
products, agricultural and sideline products; information consultation
service.
SC is mainly engaged international trade.
SC’s products mainly include:
Pharmaceuticals
Agro-chemicals
Colorants
Dyestuff
Food additives
Herbal extracts
Intermediates
Veterinary
Inorganic compound
SC sources its products
80% from domestic market, and 20% from overseas market. SC sells 40% of its
products in domestic market, and 60% to overseas market, mainly U.S.A.,
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.
*Major Supplier*
--------------------
Hangzhou Xiaoshan Qianjin Chemical Co., Ltd.
*Major Client*
------------------
Rainbow Chemicals
Co.
Staff & Office:
--------------------------
SC is known
to have approx. 150 staff at
present.
SC owns an area as
its operating office of approx. 2,816 sq. meters at the heading address.
RELATED COMPANY
Zhejiang Chemicals Imports & Exports Jinda Trading Co., Ltd.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
Bank of China Zhejiang Branch
AC#:
800100022708091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
As
of Jun. 30, 2015 |
|
125,910 |
170,070 |
316,000 |
|
|
Accounts
receivable |
508,100 |
713,340 |
812,080 |
|
Notes receivable |
950 |
4,550 |
2,250 |
|
Advances to
suppliers |
0 |
0 |
0 |
|
Other receivable |
125,900 |
181,750 |
310,980 |
|
Inventory |
58,290 |
52,970 |
94,380 |
|
Non-current
assets within one year |
0 |
0 |
0 |
|
Other current
assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
819,150 |
1,122,680 |
1,535,690 |
|
Long-term
investment |
0 |
8,420 |
10 |
|
Investment real
estate |
5,370 |
5,030 |
4,960 |
|
Fixed assets |
2,570 |
1,850 |
1,640 |
|
Construction in
progress |
0 |
0 |
0 |
|
Intangible
assets |
3,010 |
2,910 |
2,850 |
|
Deferred income
tax assets |
0 |
0 |
0 |
|
Other non-current
assets |
15,790 |
17,060 |
32,320 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
845,890 |
1,157,950 |
1,577,470 |
|
|
============= |
============= |
============= |
|
Short-term loans |
137,990 |
180,930 |
398,710 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
115,010 |
160,610 |
291,080 |
|
Wages payable |
0 |
0 |
0 |
|
Taxes payable |
0 |
0 |
19,970 |
|
Advances from
clients |
0 |
0 |
0 |
|
Other payable |
458,620 |
601,230 |
642,410 |
|
Other current liabilities |
12,020 |
62,710 |
57,010 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
723,640 |
1,005,480 |
1,409,180 |
|
Non-current
liabilities |
1,120 |
1,270 |
7,200 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
724,760 |
1,006,750 |
1,416,380 |
|
Equities |
121,130 |
151,200 |
161,090 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
845,890 |
1,157,950 |
1,577,470 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
From
Jan. 1, 2015 to Jun. 30, 2015 |
|
Revenue |
2,036,060 |
3,099,440 |
1,637,580 |
|
Cost of sales |
1,958,840 |
2,985,360 |
1,587,400 |
|
Taxes and surcharges |
960 |
610 |
340 |
|
Sales expense |
38,640 |
43,770 |
19,170 |
|
Management expense |
12,490 |
17,790 |
11,280 |
|
Finance expense |
-14,460 |
-1,460 |
-1,580 |
|
Asset impairment loss |
6,520 |
14,370 |
0 |
|
Investment
income |
220 |
30 |
120 |
|
Non-operating
income |
4,950 |
4,120 |
40 |
|
Non-operating expenses |
1,240 |
2,350 |
1,560 |
|
Profit before
tax |
36,600 |
40,340 |
19,570 |
|
Less: profit tax |
9,400 |
10,110 |
4,940 |
|
27,200 |
30,230 |
14,630 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
As
of Jun. 30, 2015 |
|
*Current ratio |
1.13 |
1.12 |
1.09 |
|
*Quick ratio |
1.05 |
1.06 |
1.02 |
|
*Liabilities
to assets |
0.86 |
0.87 |
0.90 |
|
*Net profit
margin (%) |
1.34 |
0.98 |
0.89 |
|
*Return on
total assets (%) |
3.22 |
2.61 |
0.93 |
|
*Inventory /
Revenue ×365/180 |
11 days |
7 days |
11 days |
|
*Accounts
receivable / Revenue ×365/180 |
92 days |
85 days |
90 days |
|
*Revenue /
Total assets |
2.41 |
2.68 |
1.04 |
|
*Cost of sales
/ Revenue |
0.96 |
0.96 |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is fairly good.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears large.
l
SC’s short-term loans appear large.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable conditions.
The large amount of accounts receivable and short-term loans may be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.20 |
|
|
1 |
Rs.98.30 |
|
Euro |
1 |
Rs.72.41 |
|
CNY |
1 |
Rs.10.19 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
ANK |
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.