MIRA INFORM REPORT
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Report Date : |
03.12.2012 |
IDENTIFICATION DETAILS
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Name : |
DALIAN
DONGLIN FOOD CO., LTD. |
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Registered Office : |
23-H/I, International Financial
Building, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
26.06.2003 |
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Com. Reg. No.: |
210200400016720 |
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Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject is Engaged in Processing and Selling Seafood |
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No. of Employees : |
650 |
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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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 30th,
2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
Since the late 1970s China has moved from a closed, centrally planned
system to a more market-oriented one that plays a major global role - in 2010 China
became the world's largest exporter. Reforms began with the phasing out of
collectivized agriculture, and expanded to include the gradual liberalization
of prices, fiscal decentralization, increased autonomy for state enterprises,
creation of a diversified banking system, development of stock markets, rapid
growth of the private sector, and opening to foreign trade and investment.
China has implemented reforms in a gradualist fashion. In recent years, China
has renewed its support for state-owned enterprises in sectors it considers
important to "economic security," explicitly looking to foster
globally competitive national champions. After keeping its currency tightly
linked to the US dollar for years, in July 2005 China revalued its currency by
2.1% against the US dollar and moved to an exchange rate system that references
a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of
the renminbi against the US dollar was more than 20%, but the exchange rate
remained virtually pegged to the dollar from the onset of the global financial
crisis until June 2010, when Beijing allowed resumption of a gradual
appreciation. The restructuring of the economy and resulting efficiency gains
have contributed to a more than tenfold increase in GDP since 1978. Measured on
a purchasing power parity (PPP) basis that adjusts for price differences, China
in 2010 stood as the second-largest economy in the world after the US, having
surpassed Japan in 2001. The dollar values of China's agricultural and industrial
output each exceed those of the US; China is second to the US in the value of
services it produces. Still, per capita income is below the world average. The
Chinese government faces numerous economic challenges, including: (a) reducing
its high domestic savings rate and correspondingly low domestic demand; (b)
sustaining adequate job growth for tens of millions of migrants and new
entrants to the work force; (c) reducing corruption and other economic crimes;
and (d) containing environmental damage and social strife related to the
economy's rapid transformation. Economic development has progressed further in
coastal provinces than in the interior, and by 2011 more than 250 million
migrant workers and their dependents had relocated to urban areas to find work.
One consequence of population control policy is that China is now one of the
most rapidly aging countries in the world. Deterioration in the environment -
notably air pollution, soil erosion, and the steady fall of the water table,
especially in the North - is another long-term problem. China continues to lose
arable land because of erosion and economic development. The Chinese government
is seeking to add energy production capacity from sources other than coal and
oil, focusing on nuclear and alternative energy development. In 2010-11, China
faced high inflation resulting largely from its credit-fueled stimulus program.
Some tightening measures appear to have controlled inflation, but GDP growth
consequently slowed to near 9% for 2011. An economic slowdown in Europe is
expected to further drag Chinese growth in 2012. Debt overhang from the
stimulus program, particularly among local governments, and a property price
bubble challenge policy makers currently. The government's 12th Five-Year Plan,
adopted in March 2011, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent on
exports in the future. However, China has made only marginal progress toward
these rebalancing goals.
|
Source
: CIA |
COMPANY NAME & ADDRESS
DALIAN
DONGLIN FOOD CO., LTD.
23-H/I, INTERNATIONAL FINANCIAL
BUILDING, NO. 15 RENMIN ROAD,
DALIAN, LIAONING PROVINCE,
116001 PR CHINA.
TEL: 86
(0) 411-82507569/39321929 FAX: 86 (0)
411-82507469/39321988
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 26, 2003
REGISTRATION NO. : 210200400016720
REGISTERED LEGAL FORM : CHINESE
FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
650
REGISTERED CAPITAL : USD 15,029,400
BUSINESS LINE :
PROCESSING and trading
TURNOVER :
cny 387,000,000 (AS OF DEC. 31, 2011)
EQUITIES :
cny 159,400,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.27= USD 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 Jun. 26, 2003.
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 purchasing farm & sideline products
and seafood for processing; processing biology chemical preparations.
SC is mainly
engaged in processing and selling seafood.
Ms. Shen Lin has
been the legal representative, chairman and general manager of SC since 2003.
SC is known
to have approx. 650 employees.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Dalian. Our checks reveal that SC
rents the total premise about 200 square meters.
SC’s
factory is located in Tangjia Village, Shihe Street, Puwan New District, Dalian
City.
http://www.donglin-seafoods.cn/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
E-mail: dl-export@donglinseafoods.cn
SC was formerly named Dalian Donglin Seafoods Co., Ltd.
Certificates:
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration No. |
010793 |
Present one |
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Registered capital |
USD 13,000,00 |
Present amount |
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Shareholders |
U.S.A. Safi Fishery Co., Ltd. 49.77%; Dalian Lanbao Marine Products Co.,
Ltd. 50.23% |
Present ones |
MAIN SHAREHOLDERS:
Name % of Shareholding
Shenzhen Huading Fengrui Equity Investment
Fund Partnership (Limited Partnership)
6.23
Dalian Zelong Technology Co., Ltd. (in
Chinese Pinyin) 4.24
Wushu Lucky (Hong Kong) Co., Ltd. (in
Chinese Pinyin) 7.92
Dalian Lanbao Investment Co., Ltd. (in
Chinese Pinyin) 48.01
Dalian Zhongren Investment Consulting
Partnership (Limited Partnership) 4.21
Canway (Far East) Limited (Hong Kong) 25.41
Dalian New-Chem Trading Co., Ltd. 3.98
Dalian Lanbao Investment Co., Ltd. (in
Chinese Pinyin)
========================================
Legal representative: Shen Lin
Add: Block H, No. 23 Renmin Road, Zhongshan
District, Dalian.
Tel: 86 411-82507233
Canway (Far East) Limited (Hong Kong)
…………………………………………
CR No.: 0719929
Incorporation date: June 12,
2000
Legal form: Private
Status: Live
l
Legal Representative, Chairman and General Manager:
Ms. Shen Lin is currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as legal representative, chairman and general manager;
Also working in Dalian Lanbao Investment
Co., Ltd. as legal representative
Directors:
………….
Song Qiang
Yuan Zhen
Yan Xiaoping
Supervisor:
…………..
Zhao Yingzhu
SC is mainly
engaged in processing and selling seafood.
SC’s products
mainly include: frozen squid, breaded squid, dried squid, salmon, pollock, red
snow crab, clam, seafood mix, yellow fin sole and red fish.
SC sources its
materials 20% from domestic market, and 80% from overseas market. SC sells 5%
of its products in domestic market and 95% to the overseas markets, mainly
Japan, Europe and American.
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 clients and suppliers.
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 refused to release any information of its
suppliers and the trade reference was not available.
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.
Agriculture Bank of China Dalian Shihe Sub-Branch
AC#：300401040004803
Relationship:
Normal.
Financial Summary
Unit: CNY’000
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as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
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Current assets |
172,480 |
256,730 |
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Current liabilities |
88,500 |
171,690 |
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Total Liabilities |
92,920 |
173,320 |
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Shareholders equities |
120,320 |
159,400 |
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Total Assets |
213,240 |
332,720 |
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Turnover |
278,300 |
387,000 |
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Cost of goods
sold |
245,580 |
326,890 |
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Profit before
tax |
17,950 |
33,830 |
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Less: profit tax |
600 |
1,920 |
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Net profit |
17,350 |
31,910 |
Note: we did not find SC’s detailed
financial reports for Yr2010 & 2011.
Important Ratios
=============
|
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as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
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*Current ratio |
1.95 |
1.50 |
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*Liabilities
to assets |
0.44 |
0.52 |
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*Net profit margin
(%) |
6.23 |
8.25 |
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*Return on
total assets (%) |
8.14 |
9.59 |
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*Turnover/Total
assets |
1.31 |
1.16 |
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* Cost of
goods sold/Turnover |
0.88 |
0.84 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line,
and it increased in 2011.
l
SC’s net profit margin is fairly good in both
years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s turnover is in an average level in both years,
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 medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.54.52 |
|
UK Pound |
1 |
Rs.87.48 |
|
Euro |
1 |
Rs.70.89 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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 |
|
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 |
-- |
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.