MIRA INFORM
REPORT
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Report Date : |
19.02.2011 |
IDENTIFICATION DETAILS
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Name : |
WEIFANG
ENSIGN INDUSTRY CO., LTD. |
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Registered Office : |
The West End Of Limin Road, Changle County, Weifang City, Shandong Province 262400 PR |
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Country : |
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Financials (as on) : |
31.12.2008 |
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Date of Incorporation : |
26.04.2001 |
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Com. Reg. No.: |
370700400010258 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Manufacturing of
Food Additives. |
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 1,000,000 |
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Status : |
Good |
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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
WEIFANG ENSIGN INDUSTRY CO., LTD.
the west end OF limin road,
TEL: 86 (0) 536-6298637/ 6239550
FAX: 86 (0) 536-6234587
EXECUTIVE SUMMARY
INCORPORATION DATE : apr. 26, 2001
REGISTRATION NO. :
370700400010258
REGISTERED LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE
STAFF STRENGTH :
1,000
REGISTERED CAPITAL : USD 17,410,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 2,028,570,000 (AS OF DEC. 31, 2008)
EQUITIES :
CNY 263,950,000 (AS OF DEC. 31, 2008)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly Stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.83 =US$ 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
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 Apr. 26, 2001.
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 ethanol, food additives-“citric acid, sodium citrate, and
potassium citrate”; selling its products; and international trade. (With license if
needed, Safety Production License is valid until May 22, 2011; Health Permits
(food additives) is valid until September 11, 2010; Health license (alcohol) is
valid until December 28, 2010.)
SC is mainly engaged in manufacturing food additives.
Mr. Li Shiyong has
been chairman of SC since 2001.
SC is known
to have approx. 1,000 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
http://www.ensignworld.com The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
E-mail: sales@ensignworld.com
SC (formerly named Weifang Huiyuan Industry Co., Ltd.) engages in
manufacturing Citric Acid and Edible Alcohol with materials from sweet
potatoes, tapioca and corn.
SC has been awarded "Top 100 Enterprise of Weifang",
"Advanced Private Enterprise", "Star-Level Private
Enterprise", "Star Enterprise", "Advanced Enterprise in
Business Management", etc. by Weifang Municipal People's Government,
"A-Level Creditable Unit in Paying Tax" by the taxation authority and
"AAA-Level Creditable Enterprise" by the financial system.
SC has been ISO9001, ISO14001, HACCP, GMP, OU kosher and HALAL
certified.
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
|
Registered Legal Form |
Limited Liabilities Company |
Chinese-foreign equity joint venture enterprise |
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Company Name |
Weifang Huiyuan Industry |
Weifang Ensign Industry |
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Registered capital |
USD 7,410,000 |
USD 17,410,000 |
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Shareholdings |
Hong Kong Koda ( 25.03% Li
Shiyong 67.48% Li
Menghong 7.49% |
Hong Kong Koda ( 68.09% Li Shiyong 28.72% Li Menghong 3.19% |
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|
N/A |
Registration No. |
003870 |
370700400010258 |
MAIN SHAREHOLDERS:
Name % of Shareholding
Hong Kong Koda (
Li Shiyong 28.72
ID# 370725660526001
Li Menghong
3.19
ID# 370725670809002
Hong Kong Koda (
=============================
Registration No.: 0961067
Incorporation Date: April 7, 2005
l
Chairman:
Mr. Li Shiyong, born in 1966 with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working in SC as chairman.
l
Vice-chairman:
Mr. Li Yanming (李彦明), born in 1981 with university education. He is currently responsible
for the daily management of SC.
Working Experience(s):
At present Working in SC as
vice-chairman.
SC is mainly
engaged in manufacturing food additives.
SC’s products mainly
include: feedstuff, citric acid, sodium
citrate, and potassium citrate, etc.
SC’s brand: “ENSIGN”
SC sources its materials 80%
from domestic market, 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 15-30 days.
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.
SC’s management
declined to release its bank information.
Financial
Information
Unit: CNY ’000
|
|
As
of Dec. 31, 2007 |
As
of Dec. 31, 2008 |
|
548,113 |
748,070 |
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Long-term
investment |
3,780 |
/ |
|
393,940 |
484,120 |
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Equities |
154,173 |
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============= |
============= |
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841,208 |
2,028,570 |
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Profit before
tax |
57,413 |
91,720 |
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Less: profit tax |
0 |
11,470 |
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57,413 |
80,250 |
Important
Ratios
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As
of Dec. 31, 2007 |
As
of Dec. 31, 2008 |
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*Liabilities
to assets |
0.72 |
0.65 |
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*Net profit margin
(%) |
6.83 |
3.96 |
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*Return on
total assets (%) |
10.47 |
10.73 |
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*Turnover/Total
assets |
1.53 |
2.71 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line,
and it was rising greatly in 2008.
l
SC’s net profit margin is fairly good in both 2
years.
l
SC’s return on total assets is fairly good in both 2 years.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered a large-sized company with a 9 years history. Taking
into consideration of SC’s general performance, reputation as well as market
conditions, a credit line up to USD 1,000,000 appears to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.45.18 |
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|
1 |
Rs.73.04 |
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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 |
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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 |
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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NB |
New Company |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.