MIRA INFORM REPORT
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Report Date : |
05.04.2012 |
IDENTIFICATION DETAILS
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Name : |
HEBEI FOOD ADDITIVE CO., LTD. |
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Registered Office : |
No. 55, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
18.05.2000 |
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Com. Reg. No.: |
130100000001415 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
producing and selling natural pigment |
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No. of Employees
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40 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 10,000 |
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Status : |
Moderate |
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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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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China |
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 & address
HeBei Food Additive CO., LTD.
NO. 55, KUNLUN STREET, SHIJIAZHUANG, HEBEI
PROVINCE, 050035 PR CHINA
TEL: 86 (0)
311-85968962/85968013/85966963 FAX:
86 (0) 311-85964349
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 18, 2000
REGISTRATION NO. : 130100000001415
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
40
REGISTERED CAPITAL : CNY 3,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 7,940,000 (UNAUDITED, AS OF DEC. 31, 2011)
EQUITIES :
CNY 2,510,000 (UNAUDITED, AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 10,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.30 = 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 Limited Liabilities Company at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on May 18, 2000.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes producing and selling natural
pigment; wholesaling and retailing chemical raw materials, chemical reagents,
chemical products (the above three excluding hazardous chemicals), chemical
equipment and related information and advisory services; importing and
exporting commodities (excluding items prohibited by
legal, administrative rules and State Council, and operating the limited items
after obtaining the permits).
SC is mainly
engaged in producing and selling natural pigment.
Mr. Zhang Jingfeng
is legal representative, chairman and general manager at present.
SC is known
to have approx. 40 employees
at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in Shijiazhuang. Our checks reveal that SC rents
the total premise about 3,000 square meters.
Note: According to SC’s staff, SC will move to Xingtang Economic Development Zone, Shijiazhuang, Hebei Province in June of 2012.
http://www.chinazehua.com The
design is professional and the content is well organized. At present it is in
Chinese and English versions.
E-mail: sptjj@163.com
Changes
of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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Unknown |
Registered capital |
CNY 500,000 |
Present amount |
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Registration no. |
1300001001570 |
Present one |
SC has got the certificate of ISO 9001; ISO 14000.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yang Guiguo 55
Zhang Yankun 20
Wang Hui 15
Zhang Xuexia 10
l
Legal
Representative, Chairman and General Manager:
Mr. Zhang Jingfeng is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative, chairman and general manager.
SC is mainly
engaged in producing and selling natural pigment.
SC’s products mainly
include: curcumin, lutein, lycopene, turmeric powder, Kaoliang color,
chlorophyllin, etc.
Brand: Zehua
SC sources its
materials 10% from domestic market, and 90% form overseas market, mainly
Myanmar. SC sells 50% of its products in domestic market, and 50% to overseas
market, mainly America, Europe, and Southeast Asia.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note:
SC’s management declined to release its major suppliers and clients.
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 China Shijiazhuang Huanghe Avenue Sub-branch
AC#N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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Unaudited, as of Dec. 31, 2011 |
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Cash & bank |
530 |
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Notes receivable |
0 |
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Inventory |
2,530 |
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Accounts
receivable |
990 |
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Advances to
supplies |
2,680 |
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Prepaid expenses |
180 |
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Other
receivables |
0 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
6,910 |
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Long-term
investments |
0 |
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Fixed assets net
value |
1,550 |
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Projects under
construction |
340 |
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Intangible
assets |
0 |
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Other assets |
0 |
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Total assets |
8,800 |
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============= |
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Short loans |
0 |
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Notes payable |
0 |
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Accounts payable |
2,930 |
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Advances from
customers |
200 |
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Welfare
Payable |
60 |
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Taxes unpaid |
0 |
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Other accounts
payable |
3,100 |
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Other
current liabilities |
0 |
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Current
liabilities |
6,290 |
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Long term
liabilities |
0 |
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Total
liabilities |
6,290 |
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Shareholders
equities |
2,510 |
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Total
liabilities & equities |
8,800 |
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Income Statement
Unit: CNY’000
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Unaudited, as of Dec. 31, 2011 |
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Turnover |
7,940 |
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Cost of goods
sold |
7,060 |
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Taxes
and additional of main operation |
0 |
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Sales expense |
280 |
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Management expense |
1,020 |
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Finance expense |
0 |
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Subsidy income |
300 |
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Non-operating
income |
20 |
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Non-operating expense |
0 |
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Profit before
tax |
-100 |
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Less: profit tax |
0 |
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Net profit |
-100 |
Important Ratios
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as of Dec. 31, 2011 |
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*Current ratio |
1.10 |
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*Quick ratio |
0.70 |
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*Liabilities to assets |
0.71 |
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*Net profit margin (%) |
-1.26 |
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*Return on total assets (%) |
-1.14 |
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*Inventory /Turnover ×365 |
117 days |
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*Accounts receivable/Turnover ×365 |
46 days |
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*Turnover/Total assets |
0.90 |
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* Cost of goods sold/Turnover |
0.89 |
PROFITABILITY:
FAIR
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The turnover of SC appears average.
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SC’s net profit margin appears fair.
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SC’s return on total assets is fair.
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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 normal
level.
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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 appears average.
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SC has no short-term loan in 2011.
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SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
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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: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial condition.
The given credit amount would appear to be beyond SC’s capacities, while a
credit line up to USD 10,000 is recommended upon a periodical review basis.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.51.05 |
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UK Pound |
1 |
Rs.81.09 |
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Euro |
1 |
Rs.67.39 |
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 Business |
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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.