MIRA
INFORM REPORT
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Report Date : |
02.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
suixi pine forest
perfumer Ltd. |
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Registered Office : |
No. 6, Wencang
Road, Suicheng Town, Suixi County, Zhanjiang, Guangdong Province, 524300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
November 30, 1991 |
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Com. Reg. No.: |
001322 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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Line of Business : |
Engaged in
manufacturing and selling various kinds of perfumery oils. |
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 : |
Regular |
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Litigation : |
Clear |
name & address
suixi pine forest
perfumer Ltd.
NO. 6, WENCANG ROAD, SUICHENG TOWN, SUIXI
COUNTY, ZHANJIANG, GUANGDONG PROVINCE, 524300 PR CHINA.
TEL :
86 (0) 759-7712822
FAX :
86 (0) 759-7712280
EXECUTIVE SUMMARY
INCORPORATION DATE : NOVEMBER 30, 1991
REGISTRATION NO. : 001322
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 120
REGISTERED CAPITAL : CNY 5,500,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 98,430,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 11,960,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 100,000 (periodical REVIEW)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.46 = 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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on November 30, 1991.
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 manufacturing and selling perfumery oil, colophony,
Alpha Pinene, Beta Pinene, turpentine, pine oil, and refined chemicals (excluding
the hazardous chemicals).
SC is mainly
engaged in manufacturing and selling various kinds of perfumery oil.
Mr. Zhao Ziniu has been legal representative and chairman of SC since
1991.
SC is
known to have approx. 120 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 Suixi. Our checks reveal that SC owns the total premise about 20,000 square
meters.
http://www.pineforest.com.cn/ The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
Email: sales@pineforest.com.cn
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhao Ziniu 31.91
Zhao Fang 20.55
Zhao Li 17.54
Hong Kong Xingda Trading Co.,
Ltd. 30
l
Legal representative and chairman:
Mr. Zhao Ziniu, in his 50’s with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 1991 to present Working in SC as chairman and legal representative.
l
General manager:
Mr. Han Wen, in his 40’s with university education.
He is currently responsible for the daily
management of SC.
Working Experience(s):
From 2000 to present Working in SC as general manager.
SC is mainly engaged
in manufacturing and selling various kinds of perfumery oils.
SC’s products
mainly include: Gum Turpentine, Alpha Pinene, Beta Pinene, Myrcene, Pine Oil,
Terpineol, Dipentene and Gum Rosin, etc.
SC sources its materials 100%
from domestic market. SC sells 40% of its products in domestic market, and 60%
to overseas market, mainly USA, Japan and India.
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:
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Qinzhou Qinbei District Forest Chemicals Factory
*Major Customer:
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Guangdong
Forest Products Industrial Corporation.
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.
Industrial & Commercial Bank of China Suixi Sub-branch.
AC#：2015020909024100965
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
11,600 |
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Inventory |
27,410 |
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Accounts
receivable |
12,370 |
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Advances to
suppliers |
2,060 |
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Other
receivables |
4,230 |
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A receivable tax
rebate of export |
2,010 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
59,680 |
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Fixed assets |
30,890 |
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Fixed assets net
value |
20,600 |
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Projects under
construction |
2,090 |
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Long term
investment |
0 |
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Other assets |
2,020 |
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Total assets |
84,390 |
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Short loans |
22,160 |
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Accounts payable |
17,730 |
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Other payable |
800 |
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Notes payable |
23,000 |
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Other current
liabilities |
-210 |
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Current
liabilities |
63,480 |
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Long term
liabilities |
8,950 |
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Total
liabilities |
72,430 |
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Equities |
11,960 |
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Total
liabilities & equities |
84,390 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
98,430 |
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Cost of goods
sold |
88,240 |
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Sales expense |
5,410 |
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Management expense |
1,750 |
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Finance expense |
2,440 |
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Non-operating
income |
6,540 |
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Profit before
tax |
7,190 |
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Less: profit tax |
0 |
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Profits |
7,190 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.94 |
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*Quick ratio |
0.51 |
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*Liabilities
to assets |
0.86 |
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*Net profit
margin (%) |
7.30 |
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*Return on
total assets (%) |
8.52 |
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*Inventory
/Turnover ×365 |
102 days |
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*Accounts
receivable/Turnover ×365 |
46 days |
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*Turnover/Total
assets |
1.17 |
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* Cost of
goods sold/Turnover |
0.90 |
PROFITABILITY: FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC is maintained in an average level.
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SC’s short-term loan appears LARGE.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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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 favorable market
conditions. The large amount of short loans & inventory could be a threat
to SC’s financial condition. A credit line up to USD 100,000 would appear to be
within SC’s capacities upon a periodical review basis.
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%)