MIRA INFORM REPORT
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Report No. : |
308603 |
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Report Date : |
28.02.2015 |
IDENTIFICATION DETAILS
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Name : |
zhejiang ruihua
chemical co., ltd. |
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Registered Office : |
Inner Chemical Area, Daoxu Town, Shangyu District, Shaoxing City, Zhejiang
Province, 312368 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
29.08.2006 |
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Com. Reg. No.: |
330600400021267 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and selling reactive dyes. |
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No. of Employee : |
Not Available |
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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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.
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.
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Source
: CIA |
Company
name & address
zhejiang ruihua chemical co., ltd.
INNER CHEMICAL AREA, daoxu town, shangyu
district, shaoxing city, zhejiang PROVINCE, 312368 PR CHINA
TEL: 86 (0) 575-82519736 FAX: 86 (0) 575-82041281
EXECUTIVE
SUMMARY
INCORPORATION DATE : august 29, 2006
REGISTRATION NO. : 330600400021267
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
CHIEF EXECUTIVE :
MR. Ruan jiachun (legal representative)
STAFF STRENGTH :
N/A
REGISTERED CAPITAL : usd 26,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 725,240,000 (JAN. 1~jUN. 30, 2014)
EQUITIES :
CNY 535,530,000 (AS OF jUN. 30, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.2723 = 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 Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on August 29, 2006.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacture of reactive dye
series, sales of own products. Operation without storage: import, export and
wholesale of N,N'-Dimethyl-propanediamine, activated carbon, hydrogen peroxide
(content <27.5%), sodium nitrate, copper sulfate, 2,4-Dichlorotoluene,
2,5-Dichlorotoluene,
2,6-dichlorotoluene, 3,4-dichlorotoluene, aniline, N- ethyl aniline,
2-dichloroaniline, p-Methoxyaniline, 1,3-Diaminobenzene, thiourea, sulphuric
acid, hydrochloric acid, amino sulfonic acid, acetic acid [content >80%],
acetic anhydride, malatic acid [CIS], phthalic anhydride, cyanuric chloride,
sodium hydroxide, lithium hydroxide, ammonia solution [10%< containing
ammonia ≤ 35%], formaldehyde solution, sodium hypochlorite solution
[containing available chlorine >5%] (hazardous chemicals business license is
valid until July 9, 2017) (excluding the state-run trade, import and export
quota license, export quota bidding, export license and other special
management goods) (if needed with permit).
SC is mainly engaged in manufacturing and selling reactive dyes.
Mr. Ruan Jiachun has been the legal representative and chairman of SC
since 2006.
SC’s employee’s information is unavailable 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 Shaoxing. Our
checks reveal that SC rents the total premise about 20,000 square meters.
SC is not known to host website of its own at present.
For the past two years there is no record of litigation.
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-2-2 |
Company’s name |
Shangyu Ruihua Chemical Co., Ltd. |
Present one |
|
2011-7-11 |
Registered capital |
USD 6,000,000 |
Present amount |
|
2011-7-13 |
Registration No. |
003767 |
Present one |
Organization Code: 792095764
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Runtu Co., Ltd. 75
(Hong Kong) G-Max Chem Group Limited 25
Zhejiang Runtu Co., Ltd.
==================
Zhejiang Runtu Co .Ltd. is a large-scaled enterprise. It is specialized
in manufacturing and selling disperse dyes, cationic dyes, reactive dyes, vat
dyes, sulphur dyes, acid dyes, chemical intermediates, printing & dyeing
auxiliary agents for textile, sodium hydrosulfite and sulfuric acid. At
present, it is one of "five- one- batch enterprises" supported by
Zhejiang government, the executive director unit of China dyes industry
association, one of top-100 companies of Zhejiang province and AAA taxpayer of
Zhejiang province.
Zhejiang Runtu Co., Ltd. is a listed company in Shenzhen Stock Exchange
Market with the code of 002440.
Incorporation Date: May 14, 1998
Registration No.: 330000000043601
Registered Legal Form: Shares
Limited Company
Chief Executive: Ruan Jingbo(Chairman)
Tel: 0575-82519278
Fax: 0575-82045165
Website: http://www.runtuchem.com
(Hong Kong) G-Max Chem Group Limited
==============================
CR No.: 1059071
Company Type: Private company limited by shares
Date of Incorporation: 13-Jul.-2006
Active Status: Live
Legal Representative and Chairman:
Mr. Ruan Jiachun, ID# 33062219630708xxx, born in 1963, with MBA degree,
senior economist. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2006 to present Working
in SC as chairman and legal representative;
Also working in Zhejiang Runtu Co., Ltd. as vice chairman.
General Manager:
Mr. Yang Guoqi, born in 1966 with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2006 to present Working in SC as general manager
Directors:
………….
Zhang Aijuan
Meng Huaming
Supervisor:
……………
Han Mingjuan
SC is mainly engaged in manufacturing and selling reactive dyes.
SC’s products mainly include: reactive dyes.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC
sells 70% of its products in domestic market, and 30% 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’s
management declined to release its major suppliers and customer.
TRADEMARKS & PATENTS
Registration No.: 6873866
Registration Date:
Trademark Design: 
Jiangsu Mingsheng Chemical Co., Ltd.
============================
Incorporation Date:
Registration No.: 320723000011264
Legal representative: Ruan Haixing
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.
China Construction Bank Shangyu Sub-Branch
AC#：33001656435053002946
Relationship: Normal.
Financial Summary
Unit: CNY’000
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As of Jun. 30,
2014 |
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Total Liabilities |
462,650 |
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Shareholders equities |
535,530 |
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Total Assets |
998,180 |
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Jan. 1~Jun. 30, 2014 |
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Turnover |
725,240 |
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Net profit |
104,890 |
Note:
We did not find SC’s detailed financial reports.
Important Ratios
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as of Jun. 30, 2014 |
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*Liabilities to assets |
0.46 |
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*Net profit margin (%) |
14.46 |
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*Return on total assets (%) |
10.51 |
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*Turnover/Total assets |
0.73 |
PROFITABILITY:
GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin is good.
SC’s return on total assets is good.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly good.
SC has developed for 9 years.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.79 |
|
|
1 |
Rs.95.42 |
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Euro |
1 |
Rs.69.29 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
SDA |
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 |
|
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 |
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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 |
|
-- |
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.