MIRA INFORM REPORT
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Report No. : |
329781 |
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Report Date : |
04.07.2015 |
IDENTIFICATION DETAILS
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Name : |
AKZO NOBEL CHEMICALS (NINGBO) CO., LTD. |
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Registered Office : |
No. 1801 Haitian Middle Road, Xiepu Town, Zhenhai
District, Ningbo, Zhejiang Province 315000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
330200400016260 |
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Com. Reg. No.: |
13.12.2007 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is manufacturing chelating agents, cellulose ethers and their
auxiliary products (excluding dangerous chemicals), ammonium sulfate, 25% aqueous
ammonia (by-product), industrial water,
organic amine alkoxylate, alcohol alkoxylate, grease alkoxy compounds
and non-ionic surfactant; sales and after-sales service of the above
self-made products; research and development; commission agent (except
auction); dispensing; plant facilities rental; general cargo warehouse
leasing; wastewater pretreatment. Wholesale of Class 3 flammable liquids (low
flash point liquid, middle flash point liquids, high flash point liquids),
Class 5 oxidizers and organic peroxides (oxidants, organic peroxide), Class 8
corrosive substances (acidic corrosive substances alkaline corrosive
substances, other corrosive substances) (not including virulent, a kind of
precursor chemicals, refined oil); wholesale and after-sale service of
thiokol; import and export of various kinds of products and technology;
security management information consulting. |
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No. of Employee : |
225 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year... 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 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 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 address
AKZO NOBEL CHEMICALS
(NINGBO) CO., LTD.
NO. 1801 HAITIAN MIDDLE ROAD, XIEPU TOWN, ZHENHAI DISTRICT
NINGBO, ZHEJIANG PROVINCE 315000 PR CHINA
TEL: 86 (0) 574-86621276/86621088
FAX: 86 (0) 574-86621088
EXECUTIVE
SUMMARY
Date of Registration : december 13, 2007
REGISTRATION NO. : 330200400016260
LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
REGISTERED CAPITAL : USD 95,601,440
staff :
225
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue :
cny 635,840,000 (AS OF DEC. 31,
2014)
EQUITIES :
cny -125,410,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
Slow but correct
MARKET CONDITION : average
FINANCIAL CONDITION : poor
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.20 = USD
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.: 330200400016260 on December
13, 2007.
SC’s Organization Code Certificate No.:
66848137-7
%20CO.,%20LTD.%20%20-%20329781%2004-Jul-2015_files/image006.jpg)
SC’s Tax No.: 330211668481377
SC’s registered capital: USD 95,601,440
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2009-03-10 |
Registered Capital |
USD 49,000,000 |
USD 54,101,440 |
|
% of Shareholding |
Akzo Nobel Chemicals International B.V. (Holland) 45.26% Akzo Nobel (C.) Holdings B.V. (Holland) 54.74% |
Akzo Nobel Chemicals International B.V. (Holland) 64.57% Akzo Nobel (C.) Holdings B.V. (Holland) 35.43% |
|
|
2011-11-21 |
Registered Capital |
USD 54,101,440 |
USD 83,601,440 |
|
2012-01-20 |
Legal Representative |
Geert Hofman |
Jin Yonghuan |
|
2013-09-10 |
Legal Representative |
Jin Yonghuan |
Jin Weixin |
|
2015-02-12 |
Registered Capital |
USD 83,601,400 |
USD 95,601,440 |
|
Shareholder (s) (% of Shareholding) |
Akzo Nobel Chemicals International B.V. (Holland) 64.57% Akzo Nobel (C.) Holdings B.V. (Holland) 35.43% |
Akzo Nobel (China) Investment Co., Ltd. 12.55% Akzo Nobel (C.) Holdings B.V (Holland) 30.98% Akzo Nobel Chemicals International B.V (Holland) 56.47% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Akzo Nobel (China) Investment Co.,
Ltd. |
12.55 |
|
Akzo Nobel (C.) Holdings B.V (Holland) |
30.98 |
|
Akzo Nobel Chemicals International B.V
(Holland) |
56.47 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Jin Weixin |
|
General Manager |
Arie H.Kooij |
|
Director |
Egbert Anton
Henstra |
|
Paul Alan
Radlinski |
|
|
Supervisor |
Sander Gerardus
Marie Bovee |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Akzo Nobel (China) Investment Co., Ltd. 12.55
Akzo Nobel (C.) Holdings B.V (Holland) 30.98
Akzo Nobel Chemicals International B.V
(Holland) 56.47
Akzo Nobel (China) Investment Co., Ltd.
-------------------------------------------------
Registration No.: 310000400410496
Date of Registration:
Legal Representative: Lin Liang Qi
MANAGEMENT
Jin
Weixin , Legal Representative and
Chairman
--------------------------------------------------------------------------
Ø Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Arie
H.Kooij, General Manager
-----------------------------------------
Ø Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general
manager
Director
------------
Egbert Anton Henstra
Paul Alan Radlinski
Supervisor
-------------
Sander Gerardus Marie Bovee
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing chelating agents,
cellulose ethers and their auxiliary products (excluding dangerous chemicals),
ammonium sulfate, 25% aqueous ammonia (by-product), industrial water, organic amine alkoxylate, alcohol alkoxylate,
grease alkoxy compounds and non-ionic surfactant; sales and after-sales service
of the above self-made products; research and development; commission agent
(except auction); dispensing; plant facilities rental; general cargo warehouse
leasing; wastewater pretreatment. Wholesale of Class 3 flammable liquids (low
flash point liquid, middle flash point liquids, high flash point liquids),
Class 5 oxidizers and organic peroxides (oxidants, organic peroxide), Class 8
corrosive substances (acidic corrosive substances alkaline corrosive
substances, other corrosive substances) (not including virulent, a kind of
precursor chemicals, refined oil); wholesale and after-sale service of thiokol;
import and export of various kinds of products and technology; security
management information consulting.
SC is mainly
engaged in manufacturing and selling chemical products.
SC’s products mainly include: chemicals, etc.
SC sources its materials 70% from domestic market, and 30% from the
overseas market. SC sells 60% of its products in domestic market, and 40% to overseas market.
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.
Staff & Office:
--------------------------
SC is known
to have approx. 225 staff at
present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
Akzo
Nobel Powder Coatings (Langfang) Co., Ltd.
Registration
No.: 131000400004517
Legal
Representative: Wang Yanbin
Date
of Registration:
Akzo
Nobel Powder Coatings (Suzhou) Co., Ltd.
Registration
No.: 320500400004719
Legal
Representative: Wang Yanbin
Date
of Registration:
Akzo
Nobel Chemicals (Boxing) Co., Ltd.
Registration
No.: 371600400000601
Legal
Representative: Jin Yonghuan
Date
of Registration: 1999-12-02
SC is known to
have a branch,
Akzo Nobel Chemicals (Ningbo) Co., Ltd. Shanghai Branch
Date of Registration: May 12, 2008
Registration No.: 310000500214279
Legal Form: Branch
Legal
Representative: Kwan Kee Ming
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
AC#:
N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
9,170 |
39,790 |
|
|
Notes receivable |
0 |
18,770 |
|
Accounts
receivable |
61,430 |
72,610 |
|
Advances to
suppliers |
10,450 |
11,140 |
|
Other receivable |
58,160 |
61,290 |
|
Inventory |
10,450 |
128,120 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current assets |
123,650 |
460 |
|
|
------------------ |
------------------ |
|
Current assets |
273,310 |
332,180 |
|
Fixed assets |
1,528,370 |
1,436,500 |
|
Construction in
progress |
19,780 |
23,400 |
|
Intangible
assets |
0 |
0 |
|
Long-term
investment |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
9,110 |
7,680 |
|
|
------------------ |
------------------ |
|
Total assets |
1,830,570 |
1,799,760 |
|
|
============= |
============= |
|
Short-term loans |
1,041,330 |
1,077,190 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
87,350 |
88,590 |
|
Payroll payable |
0 |
13,620 |
|
Taxes payable |
-25,500 |
-36,550 |
|
Advances from
clients |
0 |
490 |
|
Other payable |
97,420 |
125,300 |
|
Other current
liabilities |
0 |
9,010 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,200,600 |
1,277,650 |
|
Non-current
liabilities |
633,280 |
647,520 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,833,880 |
1,925,170 |
|
Equities |
-3,310 |
-125,410 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,830,570 |
1,799,760 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Revenue |
417,010 |
635,840 |
|
Cost of sales |
423,880 |
581,390 |
|
Sales expense |
38,450 |
40,220 |
|
Management expense |
49,040 |
66,420 |
|
Finance expense |
57,100 |
69,800 |
|
Profit before
tax |
-150,610 |
-122,100 |
|
Less: profit tax |
0 |
0 |
|
-150,610 |
-122,100 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current ratio |
0.23 |
0.26 |
|
*Quick ratio |
0.22 |
0.16 |
|
*Liabilities
to assets |
1.00 |
1.07 |
|
*Net profit
margin (%) |
-36.12 |
-19.20 |
|
*Return on
total assets (%) |
-8.23 |
-6.78 |
|
*Inventory /
Revenue ×365 |
10 days |
74 days |
|
*Accounts
receivable / Revenue ×365 |
54 days |
42 days |
|
*Revenue /
Total assets |
0.23 |
0.35 |
|
*Cost of sales
/ Revenue |
1.02 |
0.91 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC
appears average in its line, and it increased in 2014.
l SC’s net profit
margin is poor.
l SC’s return on
total assets is fair.
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
SC’s short-term loans appear too 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. Too large amount of short-term loans may be a threat to SC’s
financial condition. 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.63.40 |
|
|
1 |
Rs.98.94 |
|
Euro |
1 |
Rs.70.33 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
ASH |
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.