MIRA INFORM REPORT
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Report No. : |
339386 |
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Report Date : |
08.09.2015 |
IDENTIFICATION DETAILS
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Name : |
Zhejiang
sega SCIENCE AND TECHNOLOGY Co., Ltd. |
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Registered Office : |
Industrial Park Zone, Xinshi Town, Deqing County, Huzhou City, Zhejiang Province, 313201 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
30.10.2003 |
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Com. Reg. No.: |
330500400008824 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject is mainly engaged in manufacturing, sales, research and
development of chemical products. |
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No. of Employees : |
100 |
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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 also 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.
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Source
: CIA |
Company
Name and address
Zhejiang sega SCIENCE AND TECHNOLOGY Co., Ltd.
Industrial park
zone, xinshi town, deqing county,
huzhou city,
zhejiang PROVINCE, 313201 PR CHINA
TEL: 86 (0)
572-8440001/(0) 571-87247126 FAX: 86
(0) 572-8085599
EXECUTIVE
SUMMARY
INCORPORATION DATE : oct. 30, 2003
REGISTRATION NO. : 330500400008824
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH : 100
REGISTERED CAPITAL : USD 1,000,000
BUSINESS LINE :
manufacturing, sales, research and development
TURNOVER : CNY 121,950,000 (AS OF DEC. 31,
2014)
EQUITIES : CNY 39,320,000 (AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.40 = 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 Oct.
30, 2003.
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 10% avermectin, chlorpyrifos (valid
until September 13, 2016), 10% difenoconazole water dispersible granule (valid
until March 28, 2015), processing of paraquat, glyphosate, avermectin,
chlorpyrifos (≥ 40%) (valid until November 1, 2015), processing of 0.57%
emamectin benzoate microemulsion (valid until August 7, 2014),
SC is mainly engaged in manufacturing, sales, research and development
of chemical products.
Mr. Hu Jingchu has
been legal representative and chairman of SC since 2012.
SC is known to
have approx. 100 employees 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 Deqing County. Our
checks reveal that SC owns the premise.
SC’s
international trade office is at Room 1311, Block B, Ruibo International
Building, No. 673 Gudun Road, Xihu District, Hangzhou City, Zhejiang Province.
http://www.segaagro.com/
The design is professional and the content is well organized. At present it is
in English and Chinese versions.
Email: sega@segaagro.com
For the past two years there is no record of litigation.
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2008-9-22 |
Registration no. |
001372 |
Present one |
|
2012-3-29 |
Legal representative |
Hu Juanhong |
Organization Code:
751908087
Honors
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Prosper Ocean Development Limited (Hong
Kong) 40
Deqing Shijia Hardware Firm (General
Partnership) (In Chinese Pinyin) 60
Prosper Ocean Development Limited (Hong Kong)
=====================================
Incorporation Date:
Registration No.: 0721358
Legal Form: Private company limited by
shares
Deqing Shijia Hardware Firm (General
Partnership) (In Chinese Pinyin)
=======================================
Incorporation Date:
Registration No.: 330521000068948
l Legal
Representative and Chairman:
Mr. Hu Jingchu (Hong Kong people) is
currently responsible for the overall management of SC.
Working Experience(s):
From 2012 to present Working in SC as
legal representative and chairman.
l General Manager
and Vice chairman:
Hu Jianfeng is currently responsible for the
daily management of SC.
Working Experience(s):
At present Working in SC as general
manager and vice chairman.
l Vice General
Manager and Director:
Xia Linxian
SC is mainly engaged in manufacturing, sales, research and development
of chemical products.
SC’s products mainly
include: fungicides, insecticides, herbicides, plant growth regulator and
surfactants, etc.
SC sources its materials 100% from domestic
market. SC sells 5% of its products in domestic market, and 95% 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 declined to release its major
suppliers and clients.
Trademark &
Patents
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Registration No. |
13405491 |
13405377 |
12518885 |
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Registration Date |
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Trademark Design |
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SC is known to invest in
the following companies:
Deqing
Sega Science And Technology Co., Ltd.
=====================
Incorporation
date:
Registration
no.: 330500400002153
Legal
representative: Hu Juanhong
Deqing
Business Guarantee Co., Ltd. (Literal translation)
=====================
Incorporation
date:
Registration
no.: 330521000004018
Legal
representative: Fu Haihong
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.
SC’s accountant
refused to release the bank details.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2014 |
As
of Dec. 31, 2013 |
|
Cash & bank |
11,150 |
11,950 |
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Inventory |
6,910 |
17,320 |
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Accounts
receivable |
5,590 |
3,070 |
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Advances to
suppliers |
25,840 |
15,750 |
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Other
receivables |
18,970 |
17,150 |
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------------------ |
------------------ |
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Current assets |
68,460 |
65,240 |
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Long term
prepaid expenses |
750 |
790 |
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Fixed assets net
value |
9,320 |
9,230 |
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Long term
investment |
12,700 |
10,050 |
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Projects under
construction |
310 |
260 |
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Intangible and
other assets |
1,570 |
1,600 |
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------------------ |
------------------ |
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Total assets |
93,110 |
87,170 |
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=========== |
=========== |
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Short loan |
10,100 |
12,900 |
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Accounts payable |
13,070 |
12,450 |
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Advances from
customers |
2,500 |
1,680 |
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Taxes payable |
100 |
-1,180 |
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Other accounts
payable |
20,450 |
19,920 |
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Profit payable |
0 |
2,220 |
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Note payable |
7,360 |
7,370 |
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------------------ |
------------------ |
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Current
liabilities |
53,580 |
55,360 |
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Long term
liabilities |
210 |
420 |
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------------------ |
------------------ |
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Total
liabilities |
53,790 |
55,780 |
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Equities |
39,320 |
31,390 |
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------------------ |
------------------ |
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Total
liabilities & equities |
93,110 |
87,170 |
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=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2014 |
As of Dec. 31,
2013 |
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Turnover |
121,950 |
108,320 |
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Cost of goods
sold |
101,100 |
89,730 |
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Taxes and additional of main operation |
480 |
450 |
|
Sales expense |
3,490 |
3,120 |
|
Management expense |
10,360 |
9,390 |
|
Finance expense |
10 |
300 |
|
Non-operating
income |
260 |
780 |
|
Non-operating expense |
20 |
90 |
|
Profit before
tax |
6,750 |
6,020 |
|
Less: profit tax |
1,100 |
900 |
|
Profits |
5,650 |
5,120 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2014 |
As
of Dec. 31, 2013 |
|
*Current ratio
|
1.28 |
1.18 |
|
*Quick ratio |
1.15 |
0.87 |
|
*Liabilities
to assets |
0.58 |
0.64 |
|
*Net profit
margin (%) |
4.63 |
4.73 |
|
*Return on
total assets (%) |
6.07 |
5.87 |
|
*Inventory
/Turnover ×365 |
21 days |
59 days |
|
*Accounts
receivable/Turnover ×365 |
17 days |
11 days |
|
*Turnover/Total
assets |
1.31 |
1.24 |
|
* Cost of
goods sold/Turnover |
0.83 |
0.83 |
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 fairly good.
l
SC’s cost of goods sold is average.
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 is maintained in an
average level.
l
SC’s short loans are average in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.74 |
|
|
1 |
Rs.101.36 |
|
Euro |
1 |
Rs.74.27 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
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 |
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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 |
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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.