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Report No. : |
325640 |
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Report Date : |
04.06.2015 |
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) : |
31.12.2013 |
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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 Company |
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Line of Business : |
· Engaged in Wholesaling & Retailing of 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 as well as Importing & Exporting Goods (Technologies) (with permit if needed, excluding those prohibited by the law); other legal items without permission. · engaged in selling API Intermediates and Fine Chemical Products. |
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No of Employees : |
60 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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With Financials |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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. 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.
|
Source
: CIA |
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) 571-86772648/86609816 FAX: 86 (0) 571-86772650/86609803
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 237,120,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 6,030,000 (AS OF DEC. 31, 2013)
PAYMENT :
Slow but Correct
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.206= 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 Room 23-J, Zhejiang Material Industrial
Building, No. 445 Kaixuan Road, Hangzhou, Zhejiang Province
http://www.sinolite.net The design is
professional and the content is well organized. At present it is in Chinese 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 |
Subject
passed the annual inspection of 2012 with Administration for Industry &
Commerce.
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.
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
Overall payment appraisal:
( ) Excellent (
) Good (X) Slow but
Correct ( ) 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, 2013 |
As
of Dec. 31, 2012 |
|
21,720 |
||
|
Inventory |
10,260 |
4,230 |
|
Accounts receivable |
15,750 |
22,750 |
|
Bills receivable |
0 |
0 |
|
Other Accounts receivable |
3,500 |
960 |
|
Subsidy receivable |
3,060 |
4,780 |
|
Advances to suppliers |
4,700 |
0 |
|
Prepaid expenses |
0 |
620 |
|
|
------------------ |
------------------ |
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Current assets |
63,720 |
55,060 |
|
Fixed assets net
value |
4,520 |
4,430 |
|
Long term
prepaid expenses |
370 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
68,610 |
59,490 |
|
|
============= |
============= |
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Short loans |
0 |
0 |
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Bills payable |
39,680 |
34,000 |
|
Accounts payable |
19,660 |
19,220 |
|
Advances from clients |
0 |
0 |
|
Other accounts
payable |
4,530 |
770 |
|
Salary payable |
0 |
0 |
|
Tax payable |
-1,290 |
-470 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
62,580 |
53,520 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
62,580 |
53,520 |
|
Equities |
6,030 |
5,970 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
68,610 |
59,490 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
Turnover |
237,120 |
272,380 |
|
Cost of goods
sold |
227,460 |
264,720 |
|
Taxes and
additional of main operation |
90 |
50 |
|
Sales expense |
3,150 |
2,720 |
|
Management expense |
5,380 |
4,490 |
|
Finance expense |
-270 |
-390 |
|
Non-operating
income |
70 |
50 |
|
Non-operating expense |
500 |
0 |
|
Profit before
tax |
880 |
790 |
|
Less: profit tax |
300 |
200 |
|
Profits |
580 |
590 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.02 |
1.03 |
|
*Quick ratio |
0.85 |
0.95 |
|
*Liabilities
to assets |
0.91 |
0.90 |
|
*Net profit margin
(%) |
0.24 |
0.22 |
|
*Return on
total assets (%) |
0.85 |
0.99 |
|
*Inventory
/Turnover ×365 |
16 days |
6 days |
|
*Accounts
receivable/Turnover ×365 |
25 days |
30 days |
|
*Turnover/Total
assets |
3.46 |
4.58 |
|
* Cost of
goods sold/Turnover |
0.96 |
0.97 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of goods sold is high, comparing with its
turnover.
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 appears average.
l
The accounts receivable of SC appears average.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
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. Taking into consideration of SC’s operating size as well as market
conditions we would rate SC as an above average credit risk company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.85 |
|
UK Pound |
1 |
Rs.98.12 |
|
Euro |
1 |
Rs.71.28 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
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Report Prepared
by : |
ASH |
RATING EXPLANATIONS
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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.