MIRA
INFORM REPORT
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Report Date : |
04.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
TIEN YUAN AROMATICS (KUNSHAN) CO., LTD |
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Registered Office : |
No. 1, Yingbin
Road, Luyang Development Zone, Zhoushi Town, Kunshan, Jiangsu Province, 215313
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
July 26, 1994 |
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Com. Reg. No.: |
005835 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in
manufacturing and selling natural aromatics, such as menthol crystals,
eudesmol, eugenol, etc. |
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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Maximum Credit Limit : |
Up To USD 400,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
TIEN YUAN AROMATICS (KUNSHAN) CO., LTD
NO. 1, YINgBIN ROAD, LUYANG development zone,
zhoushi TOWN,
KUNSHAN, JIANGSU PROVINCE, 215313
PR CHINA.
TEL :
86 (0) 512-57642536
FAX :
86 (0) 512-57642539
EXECUTIVE SUMMARY
INCORPORATION DATE : JULY 26, 1994
REGISTRATION NO. : 005835
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
enterprise
STAFF STRENGTH : 45
REGISTERED CAPITAL : UsD 3,100,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 73,860,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 31,230,000 (AS OF DEC. 31,
2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 400,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.4055 = US1$
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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on July 26, 1994.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered
business scope includes manufacturing menthol
crystals (menthol extract), eudesmol (folium eucalypti extract), eugenol (clove
extract); selling products produced by itself.
SC is mainly engaged
in manufacturing and selling natural aromatics, such as menthol crystals,
eudesmol, eugenol, etc.
Mr. Lin Zaijin has been legal representative and chairman of SC since July
1994.
SC is known to have approx. 45 staff members 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
Kunshan. Our checks reveal that SC owns the total premise about 3,500 square
meters.
http://www.tienyuan.com/ It is
the website of SC’s parent company. The design is professional and the content
is well organized. At present it is in English version.
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2001 |
Registered capital |
UsD 2,100,000 |
UsD 3,100,000 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Tien Yuan
Chemical (Singapore) Pte Ltd. 100
In February 11, 1972, Tien Yuan Chemical (Singapore) Pte Ltd. was founded by Mr. Lu
Shu Ken and a tem of technicians in Singapore. Today, the company has grown
into a leading manufacturer of menthol crystals and other essential oils.
Address: No. 18, Chin Bee Road, Singapore
Tel: (65) 6265-2518
Fax:(65) 6265-9662
l
Legal representative and chairman:
Mr. Lin Zaijin, in his 60’s with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 1994 to present Working in SC as chairman and legal representative.
l
General manager:
Mr. Shi Zhilong, 53 years old. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 1994 to present Working in SC as general manager.
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Vice general manager:
Mr. Lian Xi’an, 54 years old.
Working Experience(s):
From 1994 to present Working in SC as vice general manager.
SC is mainly
engaged in manufacturing and selling natural aromatics, such as
menthol crystals, eudesmol, eugenol, etc.
SC sources its materials 90% from
domestic market, and 10% from overseas market, mainly Singapore and India. SC
sells 50% of its products in domestic market, and 50% to overseas market,
mainly Singapore.
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 Customers:
==============
Tien Yuan Chemical (Pte) Ltd.
SC is
not known to have any subsidiary at present.
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.
Agriculture Bank of China Kunshan Development Zone
Sub-branch.
AC#：532501040000311
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
5,620 |
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Inventory |
7,110 |
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Accounts receivable |
11,120 |
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Advances to
suppliers |
2,000 |
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Other
receivables |
360 |
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Other current
assets |
10 |
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------------------ |
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Current assets |
26,220 |
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Fixed assets |
25,750 |
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Fixed assets net
value |
10,990 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Long-term
deferred expenses |
40 |
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Intangible
assets |
3,180 |
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Other assets |
0 |
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Total assets |
40,430 |
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Short loans |
6,000 |
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Accounts payable |
2,220 |
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Other payable |
620 |
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Accrued payroll |
80 |
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Welfare expenses
payable |
310 |
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Taxes payable |
-30 |
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Advances from
customers |
0 |
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Other current
liabilities |
0 |
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Current
liabilities |
9,200 |
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Long term
liabilities |
0 |
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Total
liabilities |
9,200 |
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Equities |
31,230 |
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Total
liabilities & equities |
40,430 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
73,860 |
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Cost of goods sold |
66,630 |
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Taxes and additional of main
operation |
20 |
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Sales expense |
1,260 |
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Management expense |
2,490 |
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Finance expense |
470 |
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Non-operating
income |
60 |
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Profit before
tax |
3,060 |
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Less: profit tax |
460 |
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Profits |
2,600 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
2.85 |
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*Quick ratio |
2.08 |
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*Liabilities
to assets |
0.23 |
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*Net profit
margin (%) |
3.52 |
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*Return on
total assets (%) |
6.43 |
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*Inventory /Turnover
×365 |
36 days |
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*Accounts
receivable/Turnover ×365 |
55 days |
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*Turnover/Total
assets |
1.83 |
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* Cost of
goods sold/Turnover |
0.90 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a fairly good level.
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SC’s quick ratio is maintained in a fairly good level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan is in an average level.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is low.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered small-sized in its line with stable financial
conditions. A credit line up to USD 400,000 would appear to be within SC’s
capacities.
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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)