MIRA
INFORM REPORT
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Report Date : |
28.08.2013 |
IDENTIFICATION DETAILS
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Name : |
ABF TWININGS
BEVERAGES (SHANGHAI) LTD. |
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Registered Office : |
T3-4 West, No.
121 Longgui Road, Jinqiao
Epz (South Area), No. 5001 Huadong
Road, Pudong New District, Shanghai 201318 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
28.01.2005 |
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Com. Reg. No.: |
310115400168306 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged in processing and selling tea. |
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No. of Employees : |
220 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
|
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 and address
ABF TWININGS
BEVERAGES (SHANGHAI) LTD.
T3-4 WEST, NO.
121 LONGGUI ROAD, JINQIAO EPZ (SOUTH AREA), NO. 5001 HUADONG ROAD, PUDONG NEW
DISTRICT, SHANGHAI 201318 PR CHINA
TEL: 86 (0)
21-58582266/58587378
FAX: 86 (0)
21-58582255
EXECUTIVE SUMMARY
Date of Registration : JANUARY 28, 2005
REGISTRATION NO. : 310115400168306
LEGAL FORM : wholly foreign-owned enterprise
CHIEF EXECUTIVE :
ROBERT
EDWARD TAVENER (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 162,000,000
staff :
220
BUSINESS CATEGORY : processing
Revenue :
CNY 354,693,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 264,811,000 (AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.12 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL
STATUS & HISTORY
SC was established as a wholly foreign-owned enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.:
310115400168306 on January 28, 2005.
SC’s Organization Code Certificate No.:
77021203-4
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SC’s registered capital: CNY 162,000,000
SC’s paid-in capital: CNY 162,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010 |
Registered Capital |
CNY 90,000,000 |
CNY 162,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
ABF Overseas Limited (U.K.) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Robert Edward Tavener |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
ABF Overseas Limited (U.K.) 100
MANAGEMENT
Robert Edward Tavener, Legal
Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------------
Gender: M
Age: 49
Nationality: UK
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Also working in Shanghai AB Food & Beverages Ltd. as legal
representative
BUSINESS
OPERATION
SC’s registered business scope includes research and development of
non-carbonated and alcoholic beverages; processing and packaging canned tea and
tea bags (not including China's traditional craft of green tea and special
tea); selling self-made products; the above related products and raw materials
import, export, wholesale, commission agency (excluding auction) and provide
related services.
SC is mainly engaged in processing and selling tea.
Brand: AB Extra Malt
SC’s products mainly include: black tea, green tea, fruit tea, herbal
tea, etc.
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%20LTD%20%20-%20233275%2028-Aug-2013_files/image006.jpg)
%20LTD%20%20-%20233275%2028-Aug-2013_files/image008.jpg)
%20LTD%20%20-%20233275%2028-Aug-2013_files/image010.jpg)
SC sources its materials 20% from domestic market, and 80% from overseas
market. SC sells 100% of its products 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 L/C and Credit of 30-60 days.
Staff &
Office:
--------------------------
SC is known to have approx. 220
staff at present.
SC rents an area as its operating office and factory, but the detailed
information is unknown.
RELATED
COMPANY
Shanghai AB Food & Beverages Ltd.
------------------------------------
Date of Registration: June 8, 1993
Registration No.: 310000400048856
Legal Form: Wholly Foreign-Owned
Enterprise
Chief Executive : Robert Edward Tavener (Legal Representative)
Registered Capital: USD 22,320,000
Address: No. 8 Lancun Road, Economic
Development Zone, Minhang, Shanghai
Tel: 86 (0) 21-64303038
Web: www.abf.cn
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
Industrial & Commercial Bank of China
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
48,351 |
|
|
Accounts receivable |
22,125 |
|
Advances to suppliers |
13,212 |
|
Other receivable |
756 |
|
Inventory |
38,264 |
|
Non-current assets within one year |
0 |
|
Other current assets |
3,607 |
|
|
------------------ |
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Current assets |
126,315 |
|
Fixed assets |
270,540 |
|
Construction in progress |
0 |
|
Intangible assets |
0 |
|
Other non-current assets |
0 |
|
|
------------------ |
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Total assets |
396,855 |
|
|
============= |
|
Short-term loans |
0 |
|
Accounts payable |
59,562 |
|
Wages payable |
2,841 |
|
Welfare payable |
173 |
|
Taxes payable |
562 |
|
Accrued expenses |
1,127 |
|
Other payable |
1,242 |
|
Other current liabilities |
2,709 |
|
|
------------------ |
|
Current liabilities |
68,216 |
|
Non-current liabilities |
63,828 |
|
|
------------------ |
|
Total liabilities |
132,044 |
|
Equities |
264,811 |
|
|
------------------ |
|
Total liabilities & equities |
396,855 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
354,693 |
|
Cost of sales |
289,115 |
|
Sales expense |
0 |
|
Management expense |
9,135 |
|
Finance expense |
4,387 |
|
Profit before tax |
50,479 |
|
Less: profit tax |
11,419 |
|
39,060 |
Important Ratios
=============
|
|
As of Dec. 31,
2012 |
|
*Current ratio |
1.85 |
|
*Quick ratio |
1.29 |
|
*Liabilities to assets |
0.33 |
|
*Net profit margin (%) |
11.01 |
|
*Return on total assets (%) |
9.84 |
|
*Inventory / Revenue ×365 |
40 days |
|
*Accounts receivable/ Revenue ×365 |
23 days |
|
* Revenue/Total assets |
0.89 |
|
* Cost of sales / Revenue |
0.82 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loans.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.66 |
|
|
1 |
Rs.102.19 |
|
Euro |
1 |
Rs.87.74 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
---- |
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.