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MIRA
INFORM REPORT
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Report Date : |
25.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
INTERNATIONAL
FLAVORS AND FRAGRANCES (HANGZHOU) CO., LTD. |
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Registered Office : |
No. 88 Guoxiang Road, Jiande, Zhejiang Province, 311600 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
27.12.1993 |
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Com. Reg. No.: |
330100400014791 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Producing and Selling Flavors, Fragrances 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 : |
USD 2,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
INTERNATIONAL
FLAVORS AND FRAGRANCES (HANGZHOU) CO., LTD.
NO. 88 GUOXIANG ROAD, JIANDE, ZHEJIANG
PROVINCE, 311600 PR CHINA
TEL: 0086-571-64797375 FAX:
0086-571-64743092
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 27, 1993
REGISTRATION NO. :
330100400014791
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. JENNMING STEPHEN HUANG (CHAIRMAN)
STAFF STRENGTH :
170
REGISTERED CAPITAL : US$ 32,422,222
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 527,190,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 319,700,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 2,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.82500 = 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 Renminbi
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Note: Instead of the given address, SC is operating in the
heading address.
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 Dec. 27, 1993.
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 flavors,
fragrances and perfume (including Class
I poisonous chemicals, with permit for reference).
SC is mainly
engaged in producing and selling flavors, fragrances and perfume.
Mr.
JENNMING STEPHEN HUANG is legal representative and chairman of SC at
present.
SC is known to have approx. 170 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 Hangzhou. Our checks
reveal that SC owns the total premise about 12,470 square meters.
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SC is not known to host website of its own at present.
E-mail: jane.xu@iff.com
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No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
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MAIN SHAREHOLDERS:
Name %
of Shareholding
Flavors and Fragrances Asset Ltd. (Ireland) 90
Hangzhou Xinanjiang Flavors Plant 10
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l
Legal representative and chairman:
Mr. JENNMING STEPHEN HUANG (American), about 47 years old with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Wu Xianhong, about 43 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
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SC is mainly
engaged in producing and selling flavors, fragrances and perfume.
SC’s products mainly include: flavors, fragrances and perfume.
SC sources its materials 90% from domestic market and 10% from the
overseas market. SC sells 95% of its products to overseas market, mainly in America and Europe, and 5% in domestic market.
The buying terms of SC include Check, L/C, 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.
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International Flavors and Fragrances (China)
Co., Ltd.
Add: International Flavors and Fragrances Guangzhou Economic and Tech
Dev. District 9 Jinhua 2nd Street, Guangzhou
Tel: 020-82219838
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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.
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Industrial &
Commercial Bank of China Jiande Sub-branch
AC#1202028109016201174
Relationship:
Normal.
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Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2007 |
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Cash & bank |
64,290 |
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Bills receivable |
0 |
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Accounts
receivable |
76,080 |
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Other
receivables |
1,440 |
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Advances to
suppliers |
10,060 |
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Inventory |
152,650 |
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Prepaid expenses |
250 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
304,770 |
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Fixed assets |
118,800 |
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Fixed assets net
value |
118,610 |
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Projects under
construction |
190 |
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Long term
investment |
600 |
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Other assets |
15,580 |
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------------------ |
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Total assets |
439,750 |
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============= |
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Short loans |
60,000 |
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Bills payable |
0 |
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Accounts payable |
54,040 |
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Welfare payable |
330 |
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Advances from
clients |
0 |
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Accrued payroll |
600 |
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Tax payable |
-1,060 |
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Dividends
payable |
4,760 |
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Other payable |
920 |
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Accrued expenses |
460 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
120,050 |
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Long term
liabilities |
0 |
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------------------ |
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Total liabilities |
120,050 |
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Equities |
319,700 |
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------------------ |
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Total
liabilities & equities |
439,750 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2007 |
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Turnover |
527,190 |
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Cost of goods
sold |
419,840 |
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Sales expense |
1,190 |
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Management expense |
32,250 |
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Finance expense |
7,110 |
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Profit before
tax |
70,530 |
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Less: profit tax |
11,560 |
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Profits |
58,970 |
Important Ratios
=============
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as
of Dec. 31, 2007 |
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*Current ratio |
2.54 |
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*Quick ratio |
1.27 |
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*Liabilities
to assets |
0.27 |
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*Net profit
margin (%) |
11.19 |
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*Return on
total assets (%) |
13.41 |
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*Inventory
/Turnover ×365 |
106 days |
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*Accounts
receivable/Turnover ×365 |
53 days |
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*Turnover/Total
assets |
1.20 |
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* Cost of
goods sold/Turnover |
0.80 |
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PROFITABILITY:
FAIRLY GOOD
l
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: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
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The inventory conversion period of SC appears long.
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The accounts receivable of SC appears average.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly good.
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SC is considered medium-sized in its line with fairly good financial conditions.
The large amount of inventory could be a threat to SC’s financial condition. A
credit line up to USD 2,000,000 would appear to be within SC’s capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.46.25 |
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UK Pound |
1 |
Rs.85.92 |
|
Euro |
1 |
Rs.68.11 |
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%)