MIRA
INFORM REPORT
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Report Date : |
03.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
firmenich
aromatics (china) co., ltd. |
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Registered Office : |
No. 3901, Jindu
Road, Xinzhuang Industrial Zone, Minhang District, Shanghai 201108 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Nov. 19, 2001 |
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Com. Reg. No.: |
029742 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in manufacturing and selling synthetic essence and perfume. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 500,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
firmenich aromatics
(china) co., ltd.
no. 3901, jindu road, xinzhuang industrial
zone,
minhang district, shanghai 201108 PR CHINA
TEL :
86 (0) 21-54428000
FAX :
86 (0) 21-54426900
EXECUTIVE SUMMARY
INCORPORATION DATE : nov. 19, 2001
REGISTRATION NO. : 029742
REGISTERED LEGAL FORM : wholly foreign-owned
enterprise
STAFF STRENGTH :
240
REGISTERED CAPITAL : USD 13,200,000
BUSINESS LINE :
MANUFACTURING
TURNOVER : CNY 484,630,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 137,660,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 500,000
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.27 = 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 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 Nov. 19, 2001.
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 developing, manufacturing, processing, and
selling synthetic essence, synthetic perfume and monomeric materials; selling
self-made product; and supplying after services and technical services.
SC is
mainly engaged in manufacturing and selling synthetic essence and perfume.
Mr. Patrick Firmenich has been chairman of SC since 2005.
SC is known to have approx. 240 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 Shanghai. Our
checks reveal that SC owns the total premise about 50,000 square meters.
SC is not known to host web site of its own at present.
Until December 31, 2006, SC’s paid-up capital was CNY 108,340,000.
MAIN SHAREHOLDERS:
Name % of Shareholding
Firmenich SA (Switzerland) 100
Website: http://www.firmenich.com
l
Chairman:
Mr. Patrick Firmenich, Swiss, in his 50’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working in SC as chairman.
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General Manager:
Mr. Zhang Dongfang, in
his 40’s with university education. He is currently responsible for the daily
management of SC.
Working Experience(s):
From 2003 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling synthetic
essence and perfume.
SC’s products mainly include: various synthetic essence and perfume.
SC sources its materials 40%
from domestic market, mainly Shanghai, and 60% from overseas market, mainly
Switzerland and America; SC sells its products 80% in domestic market, mainly
Shanghai and Guangdong, and 20% to overseas market, mainly European and American
countries.
The
buying terms of SC include T/T, L/C, check and Credit of 30-60 days. The
payment terms of SC include T/T, L/C, check and Credit of 30-60 days.
*Major Customer:
==============
Procter & Gamble (Guangzhou) 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.
Bank
of Shanghai
AC#：N/A
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
12,980 |
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Inventory |
106,390 |
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Accounts
receivable |
81,360 |
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Other Accounts
receivable |
16,030 |
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Advances to
suppliers |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
2,670 |
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------------------ |
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Current assets |
219,430 |
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Fixed assets |
236,270 |
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Fixed assets net
value |
222,140 |
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Projects under
construction |
14,130 |
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Long term
investment |
0 |
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Other assets |
21,660 |
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Total assets |
477,360 |
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Short loans |
131,930 |
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Accounts payable |
52,390 |
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Advance from
clients |
0 |
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Other Accounts
payable |
35,010 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
21,270 |
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Current
liabilities |
240,600 |
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Long term liabilities |
99,100 |
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Other
liabilities |
0 |
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Total
liabilities |
339,700 |
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Equities |
137,660 |
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Total
liabilities & equities |
477,360 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
484,630 |
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Cost of goods
sold |
351,010 |
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Sales expense |
94,860 |
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Management expense |
19,720 |
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Finance expense |
10,520 |
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Profit before
tax |
36,500 |
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Less: profit tax |
0 |
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Profits |
36,500 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.91
*Quick ratio 0.47
*Liabilities to
assets 0.71
*Net profit
margin (%) 7.53
*Return on total
assets (%) 7.65
*Inventory
/Turnover ×365 80days
*Accounts
receivable/Turnover ×365 61days
*Turnover/Total
assets 1.02
* Cost of goods
sold/Turnover 0.72
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 LARGE.
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The accounts receivable of SC is maintained in an average
level.
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The short-term loan of SC appears LARGE.
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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 fairly high.
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The risk for SC to go bankrupt is average.
Overall
financial condition of the SC: Fairly stable.
OPINION
AMOUNT: USD 500,000.00
SC is considered medium-sized in its line with fairly stable
financial conditions. The large amount of short loans & inventory could be a threat to
SC’s financial condition. The given credit line
appears to be within SC’s capacity.
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%)