MIRA
INFORM REPORT
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Report Date : |
20.04.2013 |
IDENTIFICATION DETAILS
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Name : |
HEBEI DONGZHIXING BIOTECH CO., LTD. |
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Registered Office : |
No. 2 Juhou Avenue, Industrial Zone, Cheng’an County, Handan
City, Hebei Province, 056007 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
07.07.2005 |
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Com. Reg. No.: |
130424000000462 |
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Legal Form : |
Shares Limited
Company |
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Line of Business : |
manufacturing and selling food additives and feed additives |
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No. of Employees : |
200 |
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 |
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 2012 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 under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
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
Hebei Dongzhixing Biotech Co., Ltd.
NO. 2 JUHOU AVENUE,
Industrial Zone, ChEng’an County,
Handan City, Hebei
PROVINCE, 056007 PR CHINA
TEL: 86 (0)
310-7233989/7233077
FAX: 86 (0)
310-5231969
EXECUTIVE SUMMARY
INCORPORATION DATE : JUl. 7, 2005
REGISTRATION NO. : 130424000000462
REGISTERED LEGAL
FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 200
REGISTERED CAPITAL : CNY 11,800,000
BUSINESS LINE :
MANUFACTURING & SELLING
TURNOVER :
CNY 53,225,000 (JAN. 1 TO JUN.
30, 2012)
EQUITIES :
CNY 31,014,000 (AS OF JUN. 30, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.17 = 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: SC’s present address “No. 2 Juhou Avenue” was formerly named as “No. 2 Handa Road.”
SC was registered as a Limited liabilities co. at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Jul. 7, 2005 and has been under present legal form since Jun. of 2011.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co. raises capital by public offer,
the promoters must not subscribe less than 35% of the total shares. the
promoters’ shares are restricted to transfer- within one year of the offer.
A
state-owned enterprise that is restructured into a shares limited co. must comply
with the conditions & requirements specified under the law &
administrative rule.
SC’s registered
business scope includes manufacturing and selling of food additives (license is
valid as of October 16, 2013,), feed additives (license is valid as of October
19, 2015,); planting, the acquisition of the plant pigment materials (pepper,
marigold); import & export of and self-agent all kinds of goods and
technology (excluding those limited or prohibited by the State).
SC is mainly
engaged in manufacturing and selling food additives and feed additives.
Mr. Chen Junqi has been the legal
representative and chairman of SC since Mar. of 2013.
SC is
known to have approx. 200 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 Handan. Detailed information of the premise
is unspecified.
http://www.chinadzx.com.cn/
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
Email: dongzhixing2006@163.com
; dzxdong@163.com
SC is a listed company in Tianjin Equity Exchange with the code of
813008.
Changes of its
registered information are as follows:
|
Date
of change |
Item |
Before
the change |
After
the change |
|
2006-3 |
Registered capital |
CNY 1,000,000 |
CNY 10,000,000 |
|
2007-10 |
Shareholders |
Chen
Xuefeng 50% Zhang Zhizhong
50% |
Chen Xuefeng 50% Sun Jinxiang 50% |
|
2011-6 |
Company Name |
Handan
Dongzhixing Bio- technical Co., Ltd. |
Present one |
|
Legal Form |
Limited
liabilities co. |
Present one |
|
|
2011-7 |
Registered
capital |
CNY 10,000,000 |
Present amount |
|
Shareholders
& shareholdings |
Chen Xuefeng 50% Sun Jinxiang 50% |
Present ones |
|
|
2013-3 |
Legal Rep. |
Sun Jinxiang |
Present one |
Honors
======
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
(as of June 30, 2012)
Name %
of Shareholding
Sun Jinxiang
42.37
Chen Xuefeng 42.37
Zhu Xianfeng 1.53
Shandong Kailai Investment Co., Ltd. 1.53
Wei Haisheng
1.02
Qiu Lianbiao
1.02
Li Zhengxi
1.02
Cangzhou Yanzhao Equity Investment Fund
Center (literal translation) 1.02
Xu Yumei 0.51
Song Meilan 0.51
Other shareholders 7.1
Legal Representative
and Chairman:
Mr. Chen Junqi, born in 1967, He is currently responsible for the overall management of SC.
Working
Experience(s):
From Jun. of 2011 to Mar. of 2013 Worked in SC as director.
From Mar. of 2013 to present Working in SC as legal representative and chairman.
Also working in Hebei Space Food Co., Ltd. (literal translation) as legal representative.
General Manager:
Ms. Sun Jinxiang, born in 1964, with bachelor’s degree, she is currently responsible for the daily management of SC.
Working
Experience(s):
From 2007 to Mar. of 2013
Worked in SC as legal representative, chairman and general manager.
From Mar. of 2013 to present Working in SC as general manager.
*Officials:
=======
Name Title
Yu Yanping Director
Gao Lijie Supervisor
SC is mainly
engaged in manufacturing and selling food additives and feed additives.
SC’s products
mainly include paprika oleoresin, paprika oleoresin powder, Capsicum oleoresin,
marigold oleoresin, and marigold oleoresin powder, etc.
SC sources its materials 95%
from domestic market, and 5% from overseas market. SC sells 30% of its products
in domestic market, and 70% 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’s management declined to release its major clients and suppliers.
Hebei
Xingtai Feed Co., Ltd. (literal translation)
======================
Registration No.: 130435000001035
Incorporation Date:
Chairman: Chen Xuefeng
Registered Capital: CNY 5,000,000
Hebei Space Food Co., Ltd. (literal translation)
======================
Registration No.: 130435000000690
Incorporation Date:
Chairman: Chen Junqi
Registered Capital: CNY 5,000,000
Subsidiaries:
Xinjiang Dongzhixing Natural
Pigment Co., Ltd. (literal translation)
======================
Registration No.: 652900050007454
Yili
Dongzhihua Biotech Co., Ltd. (literal translation)
======================
Registration No.: 654122030000912
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 details.
Balance Sheet
Unit: CNY’000
|
|
as
of June 30, 2012 |
as of Dec. 31,
2011 |
|
Cash & bank |
11,931 |
22,165 |
|
Inventory |
46,898 |
88,616 |
|
Accounts
receivable |
11,831 |
8,481 |
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Notes receivable |
0 |
0 |
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Advances to
supplies |
19,345 |
40,963 |
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Other
receivables |
18,379 |
15,264 |
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Other current
assets |
3,142 |
1,774 |
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------------------ |
------------------ |
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Current assets |
111,526 |
177,263 |
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Fixed assets net
value |
15,189 |
17,841 |
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Projects under
construction |
176 |
2,537 |
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Long-term investments |
9,150 |
80 |
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Intangible
assets |
6,999 |
7,082 |
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Deferred tax
assets |
429 |
454 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
143,469 |
205,257 |
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============= |
============= |
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Short loans |
50,880 |
64,900 |
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Accounts payable |
22,449 |
53,033 |
|
Bills payable |
0 |
0 |
|
Other Accounts
payable |
32,366 |
33,072 |
|
Advances from
clients |
3,613 |
29,399 |
|
Taxes payable |
31 |
-4,177 |
|
Accrued payroll |
139 |
240 |
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Other
current liabilities |
1,182 |
0 |
|
|
----------------- |
----------------- |
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Current
liabilities |
110,660 |
176,467 |
|
Long term loans |
0 |
0 |
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Other
liabilities |
1,795 |
1,795 |
|
|
------------------ |
------------------ |
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Total
liabilities |
112,455 |
178,262 |
|
Shareholders
equities |
31,014 |
26,995 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
143,469 |
205,257 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
Jan.
1 to Jun. 30, 2012 |
as of Dec. 31,
2011 |
|
Turnover |
53,225 |
135,072 |
|
Cost of goods sold |
42,319 |
118,018 |
|
Taxes and additional of main
operation |
11 |
2 |
|
Sales expense |
809 |
1,747 |
|
Management expense |
2,146 |
5,934 |
|
Finance expense |
2,406 |
8,238 |
|
Assets impairment loss |
0 |
2,042 |
|
Investment
income |
1 |
0 |
|
Non-operating income |
1 |
6,741 |
|
Non-operating expense |
5 |
705 |
|
Other income |
176 |
0 |
|
Profit before
tax |
5,707 |
5,127 |
|
Less: profit tax |
1,427 |
1,590 |
|
Net profit |
4,280 |
3,537 |
Important Ratios
=============
|
|
as
of June 30, 2012 |
as of Dec. 31,
2011 |
|
*Current ratio |
1.01 |
1.00 |
|
*Quick ratio |
0.58 |
0.50 |
|
*Liabilities
to assets |
0.78 |
0.87 |
|
*Net profit
margin (%) |
8.04 |
2.62 |
|
*Return on
total assets (%) |
2.98 |
1.72 |
|
*Inventory
/Turnover ×365 |
/ |
240 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
23 days |
|
*Turnover/Total
assets |
0.37 |
0.66 |
|
* Cost of
goods sold/Turnover |
0.80 |
0.87 |
PROFITABILITY: AVERAGE
· The turnover of SC appears fairly good in its line.
SC’s
net profit margin is average in 2011, and fairly good in the 1st
half of 2012.
SC’s
return on total assets is average.
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
· The current ratio of SC is maintained in a normal level.
SC’s
quick ratio is maintained in a fair level.
The inventory of SC
appears large.
The accounts
receivable of SC appears average.
The short-term loan of
SC appears large.
SC’s
turnover is in a fair level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
· The debt ratio of SC is fairly high.
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 inventory and short-term loan could be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
UK Pound |
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
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 |
|
---- |
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.