MIRA
INFORM REPORT
|
Report No. : |
307826 |
|
Report Date : |
16.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
AKZO NOBEL ETHYLENE AMINES ( |
|
|
|
|
Registered Office : |
No. 1801, Haitian Mid Road, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
03.12.2008 |
|
|
|
|
Com. Reg. No.: |
330200400034755 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned |
|
|
|
|
Line of Business : |
Manufacturing and selling chemical products |
|
|
|
|
No. of Employee : |
125 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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. 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
AKZO NOBEL
ETHYLENE AMINES (NINGBO) CO., LTD.
NO. 1801, HAITIAN MID ROAD, XIEPU TOWN, ZHENHAI DISTRICT, NINGBO
ZHEJIANG PROVINCE 315204 PR CHINA
TEL: 86 (0) 574-86621088/86621011/86621012
FAX: 86 (0) 574-86501722
EXECUTIVE SUMMARY
Date of Registration : december
3, 2008
REGISTRATION NO. : 330200400034755
LEGAL FORM : Wholly foreign-owned enterprise
REGISTERED CAPITAL : usd 67,000,000
staff : 125
BUSINESS CATEGORY : manufacturing & TRADING
Revenue : CNY 969,620,000 (AS OF
DEC. 31, 2014)
EQUITIES : CNY -315,200,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : SLOW
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : poor
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.25 = 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 wholly foreign-owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 330200400034755 on December
3, 2008.
SC’s Organization Code Certificate
No.: 71788395-5
%20CO%20,%20LTD%20%20-%20307826%2016-Feb-2015_files/image002.jpg)
SC’s Tax No.: 330211717883955
SC’s Customs Registration No.:
3302941327
SC’s registered capital: usd 67,000,000
SC’s paid-in capital: usd 67,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2012 |
Legal Representative |
Joern Seieroe |
Steven Lance Hunt |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Akzo Nobel Chemicals
International B.V. (Holland) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Steven Lance
Hunt |
|
Director |
Egbert Anton
Henstra |
|
Sander Gerardus
Marie Bovee |
|
|
Supervisor |
Robert
E.Margevich |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name % of Shareholding
Akzo Nobel Chemicals
International B.V. (Holland) 100
MANAGEMENT
Steven Lance Hunt, Legal
Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Passport No.: 761252448
Ø
Nationality: UK
Ø
Working
experience (s):
At to present, working in SC as legal representative,
chairman and general manager
Director
----------
Egbert Anton Henstra (Holland) Passport
No.: NV0PB97H1
Sander Gerardus Marie Bovee (Holland) Passport
No.: NU
Supervisor
--------------
Robert E.Margevich (USA) Passport
No.: 027862683
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
triethanolamine, diethanolamine, 1,2 - ethylene diamine, diethylene triamine,
piperazine, carbon dioxide, N-amino ethyl piperazine, ethylene oxide, crude
triethanolamine, monoethanolamine, ethylene amines products, byproducts; import
and export, wholesale and commission agent; product research and development,
technology import and export, and supporting business; wholesale of compressed
and liquefied gases, flammable liquids, corrosive substances.
SC is
mainly engaged in manufacturing and selling chemical products.
SC’s
products mainly include: triethanolamine, diethanolamine, 1,2 - ethylene
diamine, diethylene triamine, piperazine, carbon dioxide, N-amino ethyl
piperazine, ethylene oxide, crude triethanolamine, monoethanolamine, etc.
SC sources its materials 87% from domestic market, mainly Zhejiang, and 13% from overseas market, mainly U.S.A., etc. SC sells 95% of its products in domestic market, and 5% to overseas market, mainly U.S.A., etc.
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 Customer*
----------------------
Akzo Nobel
Functional Chemicals LLC. (U.S.A.)
Staff & Office:
--------------------------
SC is
known to have approx. 125
staff at present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have a
branch at present,
-----------------------------------------------------
n
Akzo Nobel Ethylene Amines (Ningbo) Co., Ltd. Shanghai Branch
Registration
No.: 310000500263519
Date
of Registration: December 22, 2010
Legal
Form: Branch
Principal:
Xia Yan
Tel: 86 (0) 21-22163719
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 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.
BANKING
Basic Bank:
Industrial
and Commercial Bank of China Ningbo Branch
AC#:
3901160019200092814
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2014 |
|
Cash |
13,950 |
|
Notes receivable |
0 |
|
Accounts
receivable |
113,620 |
|
Advances to
suppliers |
0 |
|
Other receivable |
25 |
|
Inventory |
68,830 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
24,465 |
|
|
------------------ |
|
Current assets |
220,890 |
|
Fixed assets |
884,570 |
|
Construction in
progress |
7,490 |
|
Intangible
assets |
0 |
|
Long-term
investment |
0 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
0 |
|
|
------------------ |
|
Total assets |
1,112,950 |
|
|
============= |
|
Short-term loans |
331,970 |
|
Notes payable |
0 |
|
Accounts payable |
226,160 |
|
Welfares payable |
0 |
|
Taxes payable |
-15,920 |
|
Advances from
clients |
0 |
|
Other payable |
3,560 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
545,770 |
|
Non-current
liabilities |
882,380 |
|
|
------------------ |
|
Total
liabilities |
1,428,150 |
|
Equities |
-315,200 |
|
|
------------------ |
|
Total
liabilities & equities |
1,112,950 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
|
Revenue |
969,620 |
|
Cost of sales |
958,130 |
|
Sales expense |
16,740 |
|
Management expense |
69,030 |
|
Finance expense |
32,310 |
|
Profit before
tax |
-98,420 |
|
Less: profit tax |
0 |
|
Profits |
-98,420 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
|
*Current ratio |
0.40 |
|
*Quick ratio |
0.28 |
|
*Liabilities
to assets |
1.28 |
|
*Net profit
margin (%) |
-10.15 |
|
*Return on
total assets (%) |
-8.84 |
|
*Inventory /
Revenue ×365 |
26 days |
|
*Accounts receivable
/ Revenue ×365 |
43 days |
|
*Revenue /
Total assets |
0.87 |
|
*Cost of sales
/ Revenue |
0.99 |
FINANCIAL COMMENTS
PROFITABILITY:
POOR
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is poor.
l
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY:
POOR
l
The current ratio of SC is maintained in a poor
level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear large.
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
POOR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Poor.
CONCLUSIONS
SC is considered medium-sized in its line with
poor financial conditions. The large amount of short-term loans may be a threat
to SC’s financial condition. But taking into consideration of SC’s good
background, credit dealings with SC should be confined into small amount at
present.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
|
|
1 |
Rs.95.78 |
|
Euro |
1 |
Rs.71.05 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.