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MIRA INFORM REPORT
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Report No. : |
502861 |
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Report Date : |
07.04.2018 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG CHEMICAL IMPORT AND EXPORT CORPORATION |
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Registered Office : |
No. 37 Qingchun Road, Hangzhou, Zhejiang
Province 310009 PR |
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Country : |
China |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
10.09.1982 |
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Unified
Social Credit Code : |
913300001429459077 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject registered business scopes include selling
chemical products; wholesale of pre-packaged foods; import and export
business; industrial investment; selling textile materials, general
merchandise, hardware, for electricity, industrial art products, other
chemical products, electric products,
agricultural and sideline products; information consultation service. |
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No. of Employees : |
162 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early 2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.
The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.
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Source
: CIA |
COMPANY
NAME and ADDRESS
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COMPANY NAME |
Zhejiang Chemical Import and Export Corporation |
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CURRENT ADDRESS/ REGISTERED ADDRESS |
No. 37 Qingchun Road, Hangzhou,
Zhejiang Province 310009 PR China |
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TEL. NO. |
86 (0)
571-87257631/87048515/28968570/87046080 |
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FAX NO. |
86 (0) 571-87046240/87046101 |
EXECUTIVE
SUMMARY
Date of Registration :
SepTEMBER 10, 1982
Unified social credit code : 913300001429459077
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
guo bin (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 72,500,000
staff :
162
BUSINESS CATEGORY :
TRADING
REVENUE :
CNY 578,000,000 (FROM JAN. 1, 2017 TO MAR. 31, 2017)
EQUITIES :
CNY 212,000,000 (AS OF MAR. 31, 2017)
WEBSITE : www.zhechem.com
E-MAIL :
info@zhechem.com
PAYMENT : REGULAR
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION :
fairly good
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 limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under unified social credit
code: 913300001429459077.
SC’s Import and Export Enterprise Code: 3300142945907
SC’s registered capital:
CNY 72,500,000
SC’s paid-in capital: CNY 72,500,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2003-10-31 |
Company Name |
Zhejiang Chemicals Import & Export Corporation |
Zhejiang Chemicals Import & Export Co., Ltd. |
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Registered Capital |
CNY 19,300,000 |
CNY 16,000,000 |
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Legal Form |
State-Owned Enterprise |
Limited Liabilities Company |
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2005-3-24 |
Registered Capital |
CNY 16,000,000 |
CNY 22,000,000 |
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2007-7-12 |
Registered Capital |
CNY 22,000,000 |
CNY 32,000,000 |
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2007-7-17 |
Registration No. |
3300001002428 |
330000000001627 |
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2008-7-8 |
Registered Capital |
CNY 32,000,000 |
CNY 38,500,000 |
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Shareholders (% of
Shareholding) |
Zhejiang Orient Holdings Group Ltd. 38% Employee Shareholders Association of Zhejiang Chemicals Import
& Export Co., Ltd. 62% |
Zhejiang International Business Group Co., Ltd. 38% Employee Shareholders Association of Zhejiang Chemicals
Import & Export Co., Ltd. 62% |
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2009-2-24 |
Legal Representative |
Jiang Limin |
Guo Bin |
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2009-8-6 |
Registered Capital |
CNY 38,500,000 |
CNY 45,000,000 |
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2010-7-20 |
Registered Capital |
CNY 45,000,000 |
CNY 50,000,000 |
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2011-9-19 |
Registered Capital |
CNY 50,000,000 |
cny 51,000,000 |
|
-- |
Registered Capital |
cny 51,000,000 |
cny 60,000,000 |
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2013 |
Registered Capital |
cny 60,000,000 |
CNY 72,500,000 |
|
2016-11-18 |
Registration No./ Unified Social Credit Code |
330000000001627 |
913300001429459077 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhejiang International Business Group Co., Ltd. |
38 |
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Employee Shareholders Association of Zhejiang Chemicals
Import & Export Co., Ltd. |
62 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Guo Bin |
|
Director |
Yan Leixiang |
|
Wang Fen |
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|
Ruan Yue |
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|
Fang Li |
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Supervisor |
Wang Peiqiang |
|
Wang Zheng |
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|
Zou Weiping |
RECENT
DEVELOPMENT
SC
has been awarded the certificate of ISO9001:2000 since July of 2006.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Zhejiang
International Business Group Co., Ltd. 38
Employee
Shareholders Association of Zhejiang Chemicals
Import
& Export Co., Ltd. 62
Zhejiang
International Business Group Co., Ltd.
----------------------------------------------------------------
Zhejiang
International Business Group Co., Ltd. was established in 2008. It is a sole state-owned enterprise that the
provincial government investment establishes.
The
registered capital of the group is CNY 980 million, which comes from the
capital of original Zhejiang Rongda Group Holding Co., Ltd., Zhejiang Zhongda
Group Holding Co., Ltd. and Zhejiang Dongfang Group Holding Co., Ltd.
Date
of Registration: February 14, 2008
Legal
Representative: Lou Jing
Unified
Social Credit Code: 91330000671637379A
Legal
Form: Sole State-Owned Enterprise
Registered
Capital: cny 980,000,000
Add:
International Trade Building, No. 199 Qingchun Road, Hangzhou, Zhejiang
Province
Tel:
86 0571-87385921
Fax:
86 0571-87385988
E-mail: info@zibchina.com
Web: www.zibchina.com
MANAGEMENT
Guo Bin, Legal
Representative and Chairman
-------------------------------------------------------------------
Gender:
M
Nationality:
China
Age:
59
ID#
330105195903011015
Qualification:
University
Working
experience (s):
At
present, working in SC as legal representative and chairman
Director
-----------
Yan
Leixiang
Wang
Fen ID# 33262719711003204X
Ruan
Yue ID# 330522197303077034
Fang
Li
Supervisor
--------------
Wang
Peiqiang
Wang
Zheng ID#
330105197507030010
Zou
Weiping ID# 330104196901041630
BUSINESS
OPERATION
SC’s
registered business scopes include selling chemical products; wholesale of
pre-packaged foods; import and export business; industrial investment; selling
textile materials, general merchandise, hardware, for electricity, industrial
art products, other chemical products, electric
products, agricultural and sideline products; information consultation
service.
SC
is mainly engaged international trade.
SC’s
products mainly include:
Pharmaceuticals
Agro-chemicals
Colorants
Dyestuff
Food
additives
Herbal
extracts
Intermediates
Veterinary
Inorganic
compound
SC
sources its products 80% from domestic market, and 20% from overseas market. SC
sells 40% of its products in domestic market, and 60% to overseas market,
mainly U.S.A., etc.
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.
*Major
Supplier*
============
Hangzhou
Xiaoshan Qianjin Chemical Co., Ltd.
*Major
Customers*
==============
Aakas
Health Care
Vitalchemie
Cia. Ltda.
Rainbow
Chemicals Co.
Amoli
Organics Pvt Ltd
C
J Shah And Co
Staff & Office:
--------------------------
SC is
known to have approx. 162
staff at present.
SC
owns an area as its operating office of approx. 2,816 sq. meters at the heading
address.
RELATED
COMPANY
SC
is known to have 3 subsidiaries at present.
Zhejiang
For Chem Enterprise Co., Ltd.
Zhejiang
Ueasy Business Service Co., Ltd.
Zhechem
Chemicals Company Limited
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’s suppliers declined to make any comments.
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:
Bank
of China Zhejiang Branch
AC#:
800100022708091001
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31, 2016 |
As of Mar. 31, 2017 |
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Total assets |
1,744,000 |
1,497,000 |
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|
------------- |
------------- |
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Total liabilities |
1,536,000 |
1,285,000 |
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Equities |
208,000 |
212,000 |
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|
------------- |
------------- |
|
Unit: CNY’000 |
As of Dec. 31, 2016 |
From Jan. 1, 2017 to Mar. 31, 2017 |
|
Revenue |
4,533,000 |
578,000 |
|
Profits |
32,000 |
4,000 |
Important Ratios
=============
|
|
As of Dec. 31, 2016 |
As of Mar. 31, 2017 |
|
*Liabilities to assets |
0.88 |
0.86 |
|
*Net profit margin (%) |
0.71 |
0.69 |
|
*Return on total assets (%) |
1.83 |
0.27 |
|
*Revenue/Total assets |
2.60 |
0.39 |
FINANCIAL
COMMENTS
PROFITABILITY: AVERAGE
The
revenue of SC appears fairly good in its line.
SC’s
net profit margin is average.
SC’s
return on total assets is average.
LIQUIDITY: AVERAGE
SC’s
revenue is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The
debt ratio of SC is average.
The
risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC
is considered medium-sized in its line with stable conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.99 |
|
|
1 |
INR 90.96 |
|
Euro |
1 |
INR 79.51 |
|
CNY |
1 |
INR 10.30 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.