MIRA
INFORM REPORT
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Report Date : |
17.04.2013 |
IDENTIFICATION DETAILS
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Name : |
SUNSON INDUSTRY GROUP CO., LTD. |
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Registered Office : |
No. 349 Changcheng Middle Road, Jinfeng District, Yinchuan
City, Ningxia Hui Autonomous Region, 750100 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
08.04.1996 |
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Com. Reg. No.: |
640000200007475 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling various enzymes |
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No. of Employees : |
110 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 |
china - 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.
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Source : CIA |
Company name & address
sunson industry group CO., LTD.
No. 349 Changcheng
Middle Road,
Jinfeng District,
Yinchuan City,
Ningxia Hui
autonomous region, 750100 PR CHINA
TEL: 86 (0) 951-5046001
FAX: 86 (0) 951-5046001
EXECUTIVE SUMMARY
INCORPORATION DATE : APRIL 8, 1996
REGISTRATION NO. : 640000200007475
REGISTERED LEGAL FORM : Limited liabilities
company
chief executive :
MR. DU ZHONGPING (CHAIRMAN)
STAFF STRENGTH :
110
REGISTERED CAPITAL : CNY 31,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 59,810,000 (UNAUDITED, AS OF DEC. 31, 2012)
EQUITIES :
CNY 88,000,000 (UNAUDITED, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.1875= 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
Note: the given phone and fax numbers (86 10 58603850 & 86 10 58603690) belong to SC’s Office in Beijing. And the (Suite 901, Xingchen Building, No. 158, Guangyuan Mid-road, 510405 Guangzhou, Guangdong China) belongs to SC’s related company Guangzhou Dydi Bio Products Co., Ltd.
SC was registered as a limited liabilities co. at Ningxia Hui Autonomous Region Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on April 8, 1996.
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 manufacturing & selling Plant fine extracted complex enzyme,
fruit & vegetable juices & wine complex enzyme, β-glucanase,
industrial protease, cellulase, beer complex enzyme, glucoamylase, phytase,
medium temperature α-amylase, thermostable α-amylase, pectinase,
feed-grade enzyme preparations, xylanase, fungal α-amylase, lipase,
glucose oxidase; sales and technology development of β-amylase; importing
auxiliary materials, machinery and equipment, spare parts and technology which
required in the production, excluding the items prohibited or limited by the
country.
SC is mainly engaged in manufacturing and selling various enzymes.
Mr. Du Zhongping
is legal representative and chairman of SC at present.
SC is known to
have approx. 110 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 Yinchuan. SC’s employee refused to release the detailed information of the premise.
Note: SC also has an office in Beijing: Suite 628, China Minmetals Building, Block 4, Anhuili, Chaoyang District, Beijing, 100101 PR China
Tel: 010-58603850
Fax: 010-58603690
http://www.sunsonenzymes.com
The design is professional and the content is well organized. At present it is
in Chinese version.
Email: office@sunsonenzymes.com
Qualifications:
ISO9001-2000 Quality Management System Certification
State-Level Torch Project of Cellulase Research
State Key Enterprise of China Enzymes Industry
Executive Director of China Fermentation Industry Association
Kosher Certificate
Halal Certificate
No significant changes were found during our checks with the local AIC.
See
below for SC as executive party (defendant).
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Executed
Party |
Sunson Industry Group Co., Ltd |
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Court |
Yinchuan Municipal People's Court |
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Date of Case |
2012-6-27 |
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Case
Number |
(2012) 00199 |
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Claim Amount |
RMB 13,388,656 |
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Case Status |
In process |
Remark: Due to the lack of information, we are
unable to provide the cause of action, judgment or other information.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Qian Ailing 2.58
Du Xiaoning 1.29
Du Zhongping 96.13
Legal representative
and chairman:
Mr. Du Zhongping is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman.
Also working in Cangzhou Shengyuan Biotechnology Co., Ltd. as legal representative
SC is mainly
engaged in manufacturing and selling various enzymes.
SC’s products mainly include: Plant fine extracted complex enzyme, fruit
& vegetable juices & wine complex enzyme, β-glucanase, industrial
protease, cellulase, beer complex enzyme, glucoamylase, phytase, medium
temperature α-amylase, thermostable α-amylase, pectinase, feed-grade
enzyme preparations, xylanase, fungal α-amylase, lipase, glucose oxidase.
SC sources its materials 95% from domestic
market, and 5% from overseas market. SC sells 70% of its products in domestic
market, and 30% to overseas market.
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 refused
to release its main clients and suppliers.
Cangzhou Shengyuan Biotechnology Co., Ltd.
=================================
Reg.
No.: 130901000000056
Legal
representative: Du Zhongping
Legal
representative: Limited Liabilities Company
Registered
capital: CNY 8,000,000
Incorporation
date: Sep. 25, 2002
Guangzhou Dydi Bio Products
Co., Ltd.
============================
Reg.
No.: 440111000134148
Legal
representative: Du Yunping
Legal
representative: Limited Liabilities Company
Registered
capital: CNY 1,000,000
Incorporation
date: April 6, 2001
Tel:
020-86586087
Add:
Suite 901, Xingchen Building, No. 158 Guangyuan Mid-Road, Baiyun District,
Guangzhou City
Shanghai
Xinxia Biotechnology Co., Ltd. (literal translation)
===================================
Reg.
No.: 310229001228986
Legal
representative: He Xiaoli
Legal
representative: Limited Liabilities Company
Registered
capital: CNY 1,000,000
Incorporation
date: Dec. 5, 2006
Shanghai
Dydi Industry Development Co., Ltd. (literal translation)
=========================================
Reg.
No.: 310229000978267
Legal
representative: Zhao Zhang
Legal
representative: Limited Liabilities Company
Registered
capital: CNY 1,000,000
Incorporation
date: Jan. 12, 2005
Xi’an
Sunson Economic and Trade Co., Ltd.
===================================
Reg.
No.: 610100100405181
Legal
representative: Yang Zhixiang
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 declined to
release its banking details.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 (Unaudited) |
|
Cash & bank |
1,130 |
6,800 |
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Inventory |
6,490 |
4,830 |
|
Bills receivable |
100 |
290 |
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Accounts
receivable |
39,850 |
38,990 |
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Other Accounts
receivable |
19,950 |
40,680 |
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Advances to
suppliers |
10,330 |
6,760 |
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To be
apportioned expense |
10 |
170 |
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Other current
assets |
10 |
0 |
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------------------ |
------------------ |
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Current assets |
77,870 |
98,520 |
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Fixed assets net
value |
2,840 |
3,610 |
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Long-term
investment |
2,720 |
10,020 |
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Intangible and
other assets |
630 |
580 |
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------------------ |
------------------ |
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Total assets |
84,060 |
112,730 |
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============= |
============= |
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Short loans |
5,560 |
0 |
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Accounts payable |
-12,340 |
4,360 |
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Advance from
customers |
0 |
0 |
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Welfare payable |
760 |
580 |
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Other Accounts
payable |
8,850 |
19,240 |
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Taxes payable |
880 |
530 |
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Surcharge
payable |
20 |
20 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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3,730 |
24,730 |
|
|
Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
3,730 |
24,730 |
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Equities |
80,330 |
88,000 |
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------------------ |
------------------ |
|
84,060 |
112,730 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 (Unaudited) |
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Turnover |
69,640 |
59,810 |
|
Cost of goods sold |
48,130 |
43,760 |
|
Taxes and additional of main
operation |
460 |
360 |
|
Sales expense |
6,110 |
5,480 |
|
Management expense |
5,320 |
5,540 |
|
Finance expense |
1,100 |
770 |
|
Subsidy income |
990 |
2,120 |
|
Non-operating
income |
0 |
2,000 |
|
Non-operating expense |
80 |
350 |
|
Profit before
tax |
9,440 |
7,670 |
|
Less: profit tax |
1,410 |
1,150 |
|
Profits |
8,030 |
6,520 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
20.88 |
3.98 |
|
*Quick ratio |
19.14 |
3.79 |
|
*Liabilities
to assets |
0.04 |
0.22 |
|
*Net profit
margin (%) |
11.53 |
10.90 |
|
*Return on
total assets (%) |
9.55 |
5.78 |
|
*Inventory
/Turnover ×365 |
34 days |
29 days |
|
*Accounts
receivable/Turnover ×365 |
209 days |
238 days |
|
*Turnover/Total
assets |
0.83 |
0.53 |
|
* Cost of goods
sold/Turnover |
0.69 |
0.73 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears average in its line in
both years.
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, comparing with
its turnover in both years.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level in both years.
l
SC’s quick ratio is maintained in a normal level in both years.
l
The inventory of SC is maintained in an average
level in both years.
l
The accounts receivable
of SC is fairly large in both years
l
SC has no short loan in 2012.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets in both years.
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 Stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable
could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.33 |
|
UK Pound |
1 |
Rs.83.17 |
|
Euro |
1 |
Rs.71.05 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
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 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.