MIRA INFORM REPORT
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Report Date : |
02.10.2012 |
IDENTIFICATION DETAILS
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Name : |
WEIFANG ENSIGN INDUSTRY CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2010 |
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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 Enterprise |
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Line of Business : |
Manufacturing food & feed additives |
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No. of Employees : |
1,500 |
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
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Country Name |
Previous Rating (31.03.2011) |
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 |
CHIAN - ECONOMIC OVERVIEW
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 and address
WEIFANG ENSIGN INDUSTRY CO., LTD.
NO. 1567 CHANG
SHENG STREET, changle county, weifang city,
shandong province
262400 PR CHINA
TEL: 86 (0)
536-6273006/6298637 FAX: 86 (0)
536-6234587
EXECUTIVE SUMMARY
INCORPORATION DATE : apr. 26, 2001
REGISTRATION NO. :
370700400010258
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF STRENGTH :
1,500
REGISTERED CAPITAL : USD 57,350,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 2,891,010,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 1,062,250,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : 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 Renminbi
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 Apr. 26,
2001, and has been under present ownership since 2005 .
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 producing and selling food additives: citric acid (anhydrous citric acid,
Citric Acid Monohydrate); food additives: sodium citrate; food additives:
liquid carbon dioxide (Production License is valid until February 7,
2015); ethanol and liquid carbon dioxide (Safety Production
License is valid until May 22, 2014); edible alcohol (Production License is
valid until December 7, 2015); imports and
exports business (do not contain distribution business). The above scope
involving state special permission or qualification administration should be
produced and operated on the basis of licenses or quality certificates.
SC is mainly
engaged in manufacturing food & feed
additives.
Mr. Li
Shiyong has been chairman of SC since
2001.
SC is known
to have approx. 1,500 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 Changle County. Our
checks reveal that SC rents the total premise about 180,000 square meters.
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 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:
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Date of change |
Item |
Before the change |
After the change |
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Registered Legal Form |
Limited Liabilities Company |
Chinese-foreign equity joint venture enterprise |
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Company Name |
Weifang Huiyuan Industry Co., Ltd. |
Weifang Ensign Industry Co., Ltd. |
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Registered capital |
USD 7,410,000 |
USD 17,410,000 |
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Shareholdings |
Hong Kong Koda
(Asia) Limited 25.03% Li Shiyong
67.48% Li
Menghong 7.49% |
Hong Kong Koda (Asia) Limited 68.09% Li Shiyong 28.72% Li Menghong 3.19% |
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Registered capital |
USD 17,410,000 |
USD 33,850,000 |
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Registered capital |
USD 33,850,000 |
USD 57,350,000 |
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Registered address |
The West End of Limin Road, Changle
County, Weifang City, Shandong |
No. 1567 Chang Sheng Street, Changle County, Weifang City, Shandong |
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N/A |
Registration No. |
003870 |
370700400010258 |
MAIN SHAREHOLDERS:
Name % of Shareholding
Hong Kong Koda
(Asia) Limited 68.09
Li Shiyong 28.72
ID#
370725660526001
Li Menghong
3.19
ID#
370725670809002
Hong Kong Koda (Asia) Limited
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Registration No.: 0961067
Incorporation Date: April 7, 2005
l
Chairman:
Mr. Li Shiyong, ID# 370725660526001, 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.
SC engages in manufacturing Citric Acid and Edible Alcohol with
materials from sweet potatoes, tapioca and corn.
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 Shandong province, and 20% from overseas market. SC sells 60% of
its products in domestic market, mainly Shandong province and Beijing, and 40%
to overseas market, mainly Pakistan.
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.
Unit: CNY ’000
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
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381,080 |
183,060 |
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Equities |
417,600 |
1,062,250 |
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-------------------- |
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Total
liabilities & equities |
798,680 |
1,245,310 |
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1,915,780 |
2,891,010 |
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Profit before
tax |
100,270 |
436,900 |
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Less: profit tax |
12,530 |
54,610 |
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87,740 |
382,290 |
Note:
SC’s detailed financial reports for Yr2009 & Yr2010 were not found during
our checks with local AIC.
Important
Ratios
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As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
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*Liabilities
to assets |
0.48 |
0.15 |
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*Net profit
margin (%) |
4.58 |
13.22 |
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*Return on
total assets (%) |
10.99 |
30.70 |
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*Turnover/Total
assets |
2.4 |
2.32 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC
appears good in its line, and it was rising greatly in 2010.
l SC’s net profit
margin appears average in 2009, and it appears good in 2010.
l SC’s return on
total assets is good in both 2 years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
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.
SC is considered a large-sized company in its line with fairly good
financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.52.78 |
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1 |
Rs.85.16 |
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Euro |
1 |
Rs.67.78 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.