MIRA INFORM REPORT
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Report Date : |
18.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
HONGFANG FLAVOR (KUNSHAN) CO., LTD. |
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Registered Office : |
No. 267 Xinpu Road, Zhoushi Town, Kunshan, Jiangsu Province,
215337 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jun. 8, 1998 |
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Com. Reg. No.: |
007945 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in manufacturing and selling additives and flavor. |
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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
HONGFANG FLAVOR (KUNSHAN) CO., LTD.
NO. 267 XINPU ROAD, ZHOUSHI TOWN, KUNSHAN,
JIANGSU PROVINCE, 215337 PR CHINA
TEL : 86 (0) 512-57663426
FAX : 86 (0)
512-57663418
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 8, 1998
REGISTRATION NO. : 007945
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
ENTERPRISE
STAFF STRENGTH :
100
REGISTERED CAPITAL : USD 990,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 55,350,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 8,990,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 100,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.39= US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
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 Jun. 8, 1998.
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 additives, flavor, seasoning,
and selling its products.
SC is
mainly engaged in manufacturing and selling additives and flavor.
Mr. Liao Yingchong
has been chairman of SC since 1998.
SC is known
to have approx. 100 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 5,000 square meters.
http://www.jofont.cn . The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
E-mail: hongfang@jofont.cn
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Liao Yingchong (Taiwanese) 100
l
Chairman:
Mr. Liao Yingchong in his 50’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working in SC as chairman.
l
General Manager:
Mr. Huang Chongping, in his 40’s with
university education. He is currently responsible for the daily management of
SC.
Working Experience(s):
From 1998 to present Working in SC as general manager.
SC is
mainly engaged in manufacturing and selling additives and flavor.
SC’s products
mainly include: food additives and flavor.
SC sources
its materials 90% from domestic market, and 10% from Taiwan and Europe. SC
sells 70% of its products in domestic market, and 30% to Taiwan and Southeast
Asian 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.
*Major supplier:
============
Shanghai Aipu Flavor Co., Ltd.
*Major Client:
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Kunshan President Enterprise Food Co., 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’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.
Pudong Development Bank Kunshan Sub-branch
AC#：37331441350008751
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
2,470 |
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Inventory |
3,900 |
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Accounts
receivable |
12,730 |
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Advances to
suppliers |
1,070 |
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Other
receivables |
1,260 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
21,430 |
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Fixed assets net
value |
7,450 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
1,030 |
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Total assets |
29,910 |
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============= |
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Short loans |
1,000 |
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Accounts payable |
3,970 |
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Advances from
clients |
0 |
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Taxes payable |
310 |
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Salaries payable |
380 |
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Other payable |
15,230 |
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Other current
liabilities |
30 |
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Current
liabilities |
20,920 |
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Long term
liabilities |
0 |
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Total
liabilities |
20,920 |
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Equities |
8,990 |
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Total
liabilities & equities |
29,910 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
55,350 |
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Cost of goods
sold |
46,380 |
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Sales expense |
3,740 |
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Management expense |
3,730 |
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Finance expense |
140 |
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Profit before
tax |
1,380 |
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Less: profit tax |
80 |
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Profits |
1,300 |
Important Ratios
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2006 |
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*Current ratio |
1.02 |
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*Quick ratio |
0.84 |
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*Liabilities
to assets |
0.70 |
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*Net profit
margin (%) |
2.35 |
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*Return on
total assets (%) |
4.35 |
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*Inventory
/Turnover ×365 |
26days |
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*Accounts
receivable/Turnover ×365 |
84days |
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*Turnover/Total
assets |
1.85 |
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* Cost of
goods sold/Turnover |
0.84 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in 2006.
l
SC’s net profit margin is average in 2006.
l
SC’s return on total assets is average in 2006.
l
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 normal level in 2006.
l
SC’s quick ratio is maintained in a normal level in 2006.
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The accounts receivable of SC is fairly large.
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The inventory of SC is average.
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The short loans of SC are average.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. A credit limit of USD 100,000 appears 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%)