MIRA INFORM
REPORT
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Report Date : |
17.02.2011 |
IDENTIFICATION DETAILS
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Name : |
GUANGDONG PINE FOREST PERFUME LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
30.11.1991 |
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Com. Reg. No.: |
440800400002199 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Manufacturing
and Selling Gum Turpentine and its Products. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 120,000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
No complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name and address
GUANGDONG PINE FOREST PERFUME LTD.
NO.
TEL: 86 (0)
759-7712820
FAX: 86 (0)
759-7712280
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV.
30, 1991
REGISTRATION NO. : 440800400002199
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
CHIEF EXECUTIVE :
MR. ZHAO ZINIU (CHAIRMAN)
STAFF STRENGTH :
100
REGISTERED CAPITAL : CNY 11,500,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 126,382,000 (AS OF DEC. 31, 2009)
EQUITIES :
CNY 17,049,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.59 = 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 Chinese-foreign equity joint
venture enterprise at local Administration for Industry & Commerce (AIC-The
official body of issuing and renewing business license) on Nov. 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 (validity period as
of Oct. 13, 2012) α-pinene (33642), β-pinene (33642), and terpineol
(33638); manufacturing and selling essential oils and fine chemical products
(except hazardous chemicals).
SC is mainly
engaged in manufacturing and selling gum turpentine and its products.
Mr. Zhao
Ziniu has been legal representative and
chairman of SC since 1991.
SC is known to have approx. 100 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 Zhanjiang. The detailed
information of the area is unspecified.
http://www.pineforest.com.cn
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
E-mail: sales@pineforest.com.cn
SC’s quality management system has acquired ISO9001-2000 certification.
Changes
of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
2008-1-14 |
Registered capital |
CNY 5,500,000 |
Present amount |
|
Registration No. |
001322 |
Present one |
|
|
2008-3-11 |
Company name |
Suixi Pine Forest Perfume Ltd. |
Present one |
|
2008-12-22 |
Shareholding |
Zhao Ziniu 91% Zenta International Trading Limited ( 30% Zhao Fan 20.55% Zhao Li 17.54% |
Present ones |
MAIN SHAREHOLDERS:
Name
% of Shareholding
Zhao Ziniu 70
Zenta International Trading Limited (
Zenta International Trading
Limited (
===================================
Registration
number: 0845854
Registered
legal form: Private
l
Legal representative, chairman and
general manager:
Mr. Zhao Ziniu (赵子牛), ID#: 440921621020001, born in 1962. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 1991 to present Working
in SC as legal representative, chairman and general manager.
Directors:
=======
Mr. Han Wen , ID# 440106196607111835
Mr. Lan Zongyong , ID# 440521197212303111
Supervisors:
=========
Mr.
Mr.
Mr. Su Wei (苏伟), ID# 440106195909294011
SC is mainly engaged
in manufacturing and selling gum turpentine and its products.
SC’s products
mainly include: Gum Turpentine, Alpha Pinene, Beta Pinene, Myrcene, Dipentene,
Gum Rosin, Ink Solvent, etc.
(According to SC’s website) SC can produce
8,000mt of alpha pinene, 4,000mt of beta pinene, 4,500mt of pine oil/3,000mt of
terpineol and 2,000mt of aroma chemicals per annum. These products are widely
used in the industries of flavors & fragrances, pharmaceuticals, cleaning
products and so on.
SC sources its materials
90% from domestic market, and 10% from the overseas markets. SC sells 20% of
its products in domestic market, and 80% to the overseas markets, mainly
The buying terms
of SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
*Major Suppliers
============
Guangdong Forest Products Industrial Corp.
*Major Clients
==========
Sinochem Guangdong Import & Export Corp.
Reckitt Benckiser (
Reckitt Benckiser (
According
to SC’s website:
Sales Office
Add.: Room 1107,
Tel：+86-20-83880266
Fax：+86-20-87382343
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.
SC’s
accountant refused to release its bank information
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2008 |
As of Dec. 31,
2009 |
|
Cash & bank |
3,919 |
13,169 |
|
Short term
investments |
600 |
0 |
|
Advances to
suppliers |
2,560 |
1,821 |
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Accounts
receivable |
4,803 |
2,640 |
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Other
receivables |
1,722 |
2,042 |
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Inventory |
39,592 |
63,649 |
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Other current
assets |
0 |
584 |
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------------------ |
------------------ |
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Current assets |
53,196 |
83,905 |
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Fixed assets net
value |
21,920 |
22,094 |
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Projects under
construction |
1,149 |
180 |
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Long term
investment |
0 |
0 |
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Other assets |
3,985 |
3,862 |
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------------------ |
------------------ |
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Total assets |
80,250 |
110,041 |
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============= |
============= |
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Short loans |
39,470 |
34,170 |
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Bills payable |
0 |
30,111 |
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Accounts payable |
5,702 |
5,946 |
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Other payables |
1,055 |
1,380 |
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Advances from
clients |
5,507 |
9,562 |
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Taxes payable |
142 |
-672 |
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Salaries payable |
0 |
0 |
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Welfare payable |
0 |
0 |
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Profits payable |
0 |
0 |
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Other current
liabilities |
399 |
2 |
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------------------ |
------------------ |
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Current
liabilities |
52,275 |
80,499 |
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Long term
liabilities |
12,969 |
12,493 |
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------------------ |
------------------ |
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Total
liabilities |
65,244 |
92,992 |
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Equities |
15,006 |
17,049 |
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------------------ |
------------------ |
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Total
liabilities & equities |
80,250 |
110,041 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2008 |
As of Dec. 31, 2009 |
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Turnover |
115,844 |
126,382 |
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Cost of goods sold |
99,584 |
112,558 |
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Sales expense |
7,879 |
5,293 |
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Management expense |
2,684 |
2,947 |
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Finance expense |
4,639 |
3,654 |
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Investment
Income |
0 |
7 |
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Non-operating
income |
35 |
63 |
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Non-operating expenses |
43 |
90 |
|
Profit before
tax |
1,050 |
1,910 |
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Less: profit tax |
131 |
239 |
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Profits |
919 |
1,671 |
Important Ratios
=============
|
|
As
of Dec. 31, 2008 |
As
of Dec. 31, 2009 |
|
*Current ratio |
1.02 |
1.04 |
|
*Quick ratio |
0.26 |
0.25 |
|
*Liabilities
to assets |
0.81 |
0.85 |
|
*Net profit
margin (%) |
0.79 |
1.32 |
|
*Return on
total assets (%) |
1.15 |
1.52 |
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*Inventory
/Turnover ×365 |
125 days |
184 days |
|
*Accounts
receivable/Turnover ×365 |
15 days |
8 days |
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*Turnover/Total
assets |
1.44 |
1.15 |
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* Cost of
goods sold/Turnover |
0.86 |
0.89 |
PROFITABILITY: AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal level in both 2
years.
l
SC’s quick ratio is maintained in a
poor level in both 2 years.
l
The inventory of SC appears large in
both 2 years.
l
The accounts receivable of SC appears average in
both 2 years.
l
SC’s short loans appear large in both 2
years.
l
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 high.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered an old-established business in medium size with fairly stable financial conditions. The large amount
of inventory and short loans could be a threat to SC’s financial condition. A
credit line up to USD 120,000 would appear to
be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.45 |
|
|
1 |
Rs.72.90 |
|
Euro |
1 |
Rs.61.43 |
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Company |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.