MIRA
INFORM REPORT
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Report Date : |
23.10.2008 |
IDENTIFICATION DETAILS
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Name : |
anhui fengle perfume co., ltd. |
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Registered Office : |
No.4 Chuangye Road, Shushan Economic
Development Zone, Hefei,Anhui Province, 230031 Pr |
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Country : |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
05.12. 1997 |
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Com. Reg. No.: |
3401001006820 |
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Legal Form : |
Sole State-Owned |
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Line of Business : |
Manufacturing and Selling Essence and Perfume. |
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 : |
usd 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
anhui fengle perfume co., ltd.
no.4 chuangye road,
shushan economic development zone, hefei,
anhui PROVINCE,
230031 PR CHINA
TEL: 86 (0)
551-5320378 FAX: 86 (0)
551-5316868
EXECUTIVE SUMMARY
INCORPORATION DATE : december 5, 1997
REGISTRATION NO. : 3401001006820
REGISTERED LEGAL FORM : Sole state-owned
enterprise
STAFF STRENGTH :
120
REGISTERED CAPITAL : CNY 35,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 257,400,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 38,640,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 300,000
MARKET CONDITION : competitive
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY6.83= 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 Renminbi
SC was registered as a sole state-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on December 5, 1997.
Company Status: Sole state-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a socialist
character which in accordance with the law, has autonomy in management,
takes full responsibility for its profits and losses and practices
independent business accounting. It is a legal person established directly
by central / local government or enterprise owned by central or local
government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing. The shareholders of this form
of limited liabilities company are State-owned Assets Supervision and
Administration Commission authorized by the State Council or local
Municipal Government. The regulation is set up by State-owned
Assets Supervision and Administration Commission, or by the board of
directors after approval of State-owned Assets Supervision and
Administration Commission. Sole state-owned enterprise
does not set up board of shareholders, which is replaced by State-owned
Assets Supervision and Administration Commission. State-owned Assets Supervision
and Administration Commission assign the board of directors.
SC’s registered business
scope includes manufacturing and processing essence, perfume, selling self-made
products, international trade, selling agricultural and sideline products,
cereals, oils, and cotton.
SC is mainly
engaged in manufacturing and selling essence and perfume.
Ms. Chen Dongchen
has been chairman of SC since 1997.
SC is known to
have approx. 120 employees 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 Hefei. Our checks reveal
that SC rents the total premise about 3,500 square meters.
http://www.fengleperfume.com
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: business@fengleperfume.com
SC has got the certificate ISO9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hefei Fengle Seed Co., Ltd. 100
Hefei Fengle Seed Co., Ltd. is the first
listed (Shenzhen Stock Exchange) seed company in China, solely sponsored by Hefei
Seed Company. Registered capital is CNY 225 million and net assets approaches
CNY 400 million. As a leading seed company in China, it has expanded to be a
large trans-trade and trans-regional group enterprise combining research,
breed, marketing and trade.
l
Chairman and General Manager:
Ms. Chen Dongchen, 49 years old with university education. She is
currently responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in manufacturing and selling essence and perfume.
SC’s products
mainly include: essence, perfume, cereals and oils.
SC sources its materials 100% from domestic
market, mainly Anhui. SC sells 80% of its products in domestic market, and 20%
to overseas market, mainly Europe 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 T/T, L/C and Credit of 30-60 days.
*Major Customer:
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Fuerst Diy Lawson Ltd. (U.K.)
*Major Supplier:
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Anhui Taihe County Chengxin Perfume 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.
Huishang Bank Hefei Branch
AC#2081012080014911
Relationship:
Normal.
Balance Sheet
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Unit: CNY’000 |
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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Cash & bank |
10,830 |
9,960 |
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Inventory |
31,400 |
33,490 |
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Accounts
receivable |
16,830 |
17,880 |
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Other Accounts
receivable |
290 |
700 |
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To be
apportioned expense |
0 |
0 |
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Other current
assets |
2,790 |
8,600 |
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------------------ |
------------------ |
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Current assets |
62,140 |
70,630 |
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Fixed assets net
value |
11,930 |
13,840 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
40 |
0 |
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Other assets |
0 |
890 |
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Total assets |
74,110 |
85,360 |
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============= |
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Short loans |
25,800 |
29,200 |
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Accounts payable |
2,800 |
6,690 |
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Other Accounts
payable |
5,110 |
5,730 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current
liabilities |
6,340 |
5,100 |
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Current
liabilities |
40,050 |
46,720 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
40,050 |
46,720 |
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Equities |
34,060 |
38,640 |
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Total
liabilities & equities |
74,110 |
85,360 |
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Income Statement
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Unit: CNY’000 |
as of Dec. 31,
2006 |
as of Dec. 31,
2007 |
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Turnover |
207,410 |
257,400 |
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Cost of goods
sold |
188,880 |
241,780 |
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Sales expense |
3,760 |
3,780 |
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Management expense |
2,720 |
3,040 |
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Finance expense |
1,580 |
1,740 |
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Profit before
tax |
7,690 |
7,110 |
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Less: profit tax |
1,370 |
2,550 |
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Profits |
6,320 |
4,560 |
Important
Ratios
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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*Current ratio |
1.55 |
1.51 |
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*Quick ratio |
0.77 |
0.79 |
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*Liabilities
to assets |
0.54 |
0.55 |
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*Net profit
margin (%) |
3.05 |
1.77 |
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*Return on
total assets (%) |
8.53 |
5.34 |
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*Inventory
/Turnover ×365 |
55 days |
47 days |
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*Accounts
receivable/Turnover ×365 |
30 days |
25 days |
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*Turnover/Total
assets |
2.80 |
3.02 |
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* Cost of
goods sold/Turnover |
0.91 |
0.94 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good.
l
SC’s net profit margin is average in 2006 and 2007.
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SC’s return on total assets is average, and it was
declining in 2007.
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SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
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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The short-term loan of SC appears fairly large.
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SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
Over the past 11 years, SC has made a stable growth with stable
financial conditions. A credit line at the above amount appears to be beyond SC’s
capacities, while a credit line up to USD 300,000 is recommended.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.79 |
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UK Pound |
1 |
Rs.81.27 |
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Euro |
1 |
Rs.63.91 |
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%)