MIRA INFORM REPORT
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Report No. : |
325292 |
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Report Date : |
04.06.2015 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG JIACHENG CHEMICAL CO., LTD. |
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Registered Office : |
No. 1 Weiqi East Road, Hangzhou Gulf Fine Chemical Zone, Shangyu City,
Shaoxing, Zhejiang Province 312366 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
04.04.2003 |
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Com. Reg. No.: |
330600400012957 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing sulfuric acid, sodium hydrosulfite (sodium dithionite),
fuming sulfuric acid, sulfur dioxide, and dimethyl sulfate, lignin, a
dispersing agent, superplasticizer, N, N-diallyl -2 - methoxy-5 -
acetylaminoaniline, sodium sulfite, sodium metabisulfite; selling its owned
products. |
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No. of Employees : |
370 |
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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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. 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.
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Source
: CIA |
Company
Name & address
ZHEJIANG JIACHENG CHEMICAL CO.,
LTD.
NO. 1 WEIQI EAST ROAD, HANGZHOU GULF FINE CHEMICAL ZONE
SHANGYU CITY, SHAOXING, ZHEJIANG PROVINCE 312366 PR CHINA
TEL: 86 (0)
575-82518865/82739889/82739803
FAX: 86 (0) 575-82517600/82739118
EXECUTIVE
SUMMARY
Date of Registration : april 4, 2003
REGISTRATION NO. : 330600400012957
LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
ruan hualin (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD
59,000,000
staff :
370
BUSINESS CATEGORY :
manufacturing & TRADING
Revenue :
CNY 722,790,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 533,660,000 (AS OF DEC. 31, 2013)
WEBSITE : www.jacheng.com
E-MAIL :
zjjchg@sina.com
& ruansheng@gmail.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.20 = 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 Chinese-foreign equity
joint venture enterprise of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 330600400012957 on April 4, 2003.
SC’s Organization Code Certificate No.:
74772802-4
SC’s Tax No.: 330682747728024
SC’s Customs registration No.: 3306935579
SC’s registered capital: USD 59,000,000
SC’s paid-in capital: USD 59,000,000
Registration Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
|
2008-12-31 |
Registration No. |
002456 |
330600400012957 |
|
2013-6-19 |
Registered Capital |
usd 14,000,000 |
USD 59,000,000 |
|
Shareholder (s) |
Zhejiang Runtu Co., Ltd. 75% East Harbour Corporation Limited 25% |
Zhejiang Runtu Co., Ltd. 75% HongKong Wah Ming Industrial Limited 25% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
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Zhejiang Runtu Co., Ltd. |
75 |
|
HongKong Wah Ming Industrial Limited |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Ruan Hualin |
|
Vice Chairman |
Meng Huaming |
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Director |
Ruan Jiachun |
|
Supervisor |
Zhang Zhihong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhejiang Runtu Co., Ltd. 75
HongKong Wah Ming Industrial Limited 25
Zhejiang Runtu Co., Ltd.
------------------------------------
Registration No.: 330000000043601
Legal Form: Shares Limited
Company
Chief Executive: Ruan Jiagen
Web: www.runtuchem.com
Email: runtu@runtuchem.com
Tel: 86(0) 575-82519218
Fax: 86(0) 575-82519111
Add.: Runtu Building, Building 1, Fortune Plaza, No. 1009 Shimin Avenue,
Shangyu City, Zhejiang 312300 PR China
HongKong Wah Ming Industrial Limited
-------------------------------------------------------
Date of Registration: November 28, 2006
Registration No.: 1091010
Legal Form: Private
MANAGEMENT
Ruan Hualin, Legal Representative, Chairman and General
Manager
-----------------------------------------------------------------------------------------------------
Gender: M
Age: 50
ID# 330622650411481
Qualification: University
Working experience (s):
From 2003 to present, working in SC as legal representative and chairman
Meng Huaming, Vice Chairman
-----------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
Director
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Ruan Jiachun
Supervisor
-------------
Zhang Zhihong
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
sulfuric acid, sodium hydrosulfite (sodium dithionite), fuming sulfuric acid,
sulfur dioxide, and dimethyl sulfate, lignin, a dispersing agent,
superplasticizer, N, N-diallyl -2 - methoxy-5 - acetylaminoaniline, sodium
sulfite, sodium metabisulfite; selling its owned products.
SC is mainly engaged in manufacturing and selling chemical products.
SC’s products mainly include: sodium hydrosulfite, vitriol, sulfur dioxide,
sodium meta-bisulphite, sodium formate, fuming sulphuric acid, dimethyl
sulphate, xylogen, dispersing agent, water reducing admixture,.
SC sources its materials 95% from domestic market, and 5% from overseas market. SC sells 90% of its products in domestic market, and 10% 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. 370
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is not known to have any subsidiary at present.
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
The bank information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31,
2013 |
|
4780 |
|
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Notes receivable |
223,850 |
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Accounts receivable |
93,420 |
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Advances to suppliers |
11,240 |
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Other receivable |
60 |
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Inventory |
68,710 |
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Non-current assets within one year |
0 |
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Other current assets |
3,020 |
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|
------------------ |
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Current assets |
405,080 |
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Fixed assets |
182,470 |
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Construction in progress |
600 |
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Intangible assets |
19,910 |
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Long-term prepaid expenses |
0 |
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Deferred income tax assets |
900 |
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Other non-current assets |
920 |
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------------------ |
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Total assets |
609,880 |
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============= |
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Short-term loans |
0 |
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Notes payable |
0 |
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Accounts payable |
66,820 |
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Wages payable |
2,150 |
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Taxes payable |
1,380 |
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Advances from clients |
1,050 |
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Other payable |
4,000 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
75,400 |
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Non-current liabilities |
820 |
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------------------ |
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Total liabilities |
76,220 |
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Equities |
533,660 |
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------------------ |
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Total liabilities & equities |
609,880 |
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============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
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Revenue |
722,790 |
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Cost of sales |
508,800 |
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Taxes and surcharges |
3,180 |
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Sales expense |
24,300 |
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Management expense |
58,030 |
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Finance expense |
240 |
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Non-business income |
730 |
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Non-business expenditure |
1,920 |
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Profit before tax |
129,930 |
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Less: profit tax |
18,410 |
|
111,520 |
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
|
*Current ratio |
5.37 |
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*Quick ratio |
4.46 |
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*Liabilities to assets |
0.12 |
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*Net profit margin (%) |
15.43 |
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*Return on total assets (%) |
18.29 |
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*Inventory / Revenue ×365 |
35 days |
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*Accounts receivable/ Revenue ×365 |
47 days |
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* Revenue/Total assets |
1.19 |
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* Cost of sales / Revenue |
0.70 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: FAIRLY
GOOD
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loans.
SC’s revenue is in an average 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 average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.85 |
|
|
1 |
Rs.98.12 |
|
Euro |
1 |
Rs.71.28 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
|
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Report Prepared
by : |
TPT |
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 |
|
|
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 |
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|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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|
-- |
NB |
New Business |
-- |
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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.