MIRA
INFORM REPORT
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Report Date : |
18.02.2013 |
IDENTIFICATION DETAILS
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Name : |
FUYANG BEST FLAVOUR PERFUMERY CO., LTD. |
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Registered Office : |
Yingzhou Industrial
Park, Fuyang, Anhui Province 236033 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
19.01.2007 |
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Com. Reg. No.: |
341200000025854 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling spices |
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No. of Employees : |
80 employees |
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 : |
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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 |
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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.
|
Source : CIA |
Company name & address
Fuyang Best Flavour
Perfumery Co., Ltd.
YINGZHOU INDUSTRIAL PARK, FUYANG, ANHUI PROVINCE 236033 PR CHINA
TEL: 86 (0) 558-2115088/2115188
FAX: 86 (0) 558-2115188/2115199
EXECUTIVE SUMMARY
Date of Registration : JANUARY 19, 2007
REGISTRATION NO. : 341200000025854
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
CNY 50,600,000
staff : 80
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 226,200,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 106,210,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND :
FAIRLY
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.33 = 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
LEGAL STATUS & HISTORY
SC was established
as a One-Person Limited Liability Company of PRC on January 19, 2007. However,
SC changed to present legal form, and was registered as Limited Liabilities
Company of PRC with State Administration of Industry & Commerce (SAIC)
under registration No.: 341200000025854 in January 2010.
SC’s Organization Code Certificate
No.: 79643506-8
SC’s registered capital: CNY 50,600,000
SC’s paid-in capital: CNY 50,600,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2010-1 |
Registered Capital |
CNY 2,000,000 |
CNY 26,900,000 |
|
Shareholder (s) (% of
Shareholding) |
Zhang Yong 100% |
Zhang
Yong 89.2%; Yang Lifang 10.8% |
|
|
Registered legal form |
One-person
limited liability company |
Limited
liability company |
|
|
-- |
Registered
Capital |
CNY 26,900,000 |
CNY 50,600,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhang Yong |
89.2 |
|
Yang Lifang |
10.8 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zhang Yong |
|
Supervisor |
Yang Lifang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhang Yong 89.2
Yang Lifang 10.8
MANAGEMENT
Zhang Yong, Legal Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 46
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Also
working in Shanghai Green Leaf Perfumery Co., Ltd. as legal representative
Yang Lifang, Supervisor
-------------------------------------------
Ø
Gender: F
Ø
Qualification:
University
Ø
Working
experience (s):
Also working in Shanghai Lingfeng International Trade Co., Ltd. as legal
representative
BUSINESS OPERATION
***Note: SC started
its normal operation in October of 2009.
SC’s registered business scope includes manufacturing and selling natural
spices and synthetic spices; purchasing and selling agricultural
products.
SC is
mainly engaged in manufacturing and selling spices.
SC’s
products mainly include:
Natural Menthol Crystal
Peppermint Oil
Mint Terpenes
Menthone
Other products
Synthetic Camphor
Powder
Eucalyptus Oil Ex.
Globulous
Methyl Salicylate
Lavender Oil
Borneol Flakes
Vanillin
Ethyl Vanillin
Sandalwood
Etc.
SC sources its
materials 10% from domestic market, and 90% from overseas market. SC sells 70%
of its products in domestic market, and 30% to the overseas markets.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
A To Z Nutrition International Inc.
Boody Menthol International Inc.
*Major Supplier:
============
Shanghai Lingfeng
International Trade Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 80 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
n
Shanghai Green Leaf Perfumery Co., Ltd.
---------------------------------------------------------
Date of Registration: March 24, 2004
Registration No.: 310105000252405
Legal Form: Limited Liabilities
Company
Registered Capital: CNY 1,000,000
n
Shanghai Lingfeng International Trade Co., Ltd.
-----------------------------------------------------------------
Date of Registration: November 30, 2005
Registration No.: 310115000926118
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 1,000,000
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’s suppliers
declined to make any comments.
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:
Bank of China
AC#:
54789828091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2008 |
As
of Dec. 31, 2009 |
|
30 |
1,160 |
|
|
Accounts
receivable |
0 |
3,210 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
0 |
80 |
|
Inventory |
0 |
6,150 |
|
Other current
assets |
10 |
20 |
|
|
------------------ |
------------------ |
|
Current assets |
40 |
10,620 |
|
Fixed assets |
30 |
22,620 |
|
Construction in
progress |
22,290 |
0 |
|
Long-term prepaid
expenses |
0 |
0 |
|
Deferred income
tax assets |
720 |
4,010 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
23,080 |
37,250 |
|
|
============= |
============= |
|
Short-term loans |
0 |
3,000 |
|
Accounts payable |
0 |
320 |
|
Wages payable |
0 |
10 |
|
Tax payable |
0 |
-700 |
|
Other payable |
21,080 |
27,070 |
|
Other current
liabilities |
0 |
640 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
21,080 |
30,340 |
|
Non-current liabilities |
0 |
5,000 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
21,080 |
35,340 |
|
Equities |
2,000 |
1,910 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
23,080 |
37,250 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
|
Revenue |
15,330 |
|
Cost of sales |
14,730 |
|
Sales expense |
180 |
|
Management expense |
320 |
|
Finance expense |
120 |
|
Other expense |
70 |
|
Profit before
tax |
-90 |
|
Less: profit tax |
0 |
|
-90 |
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
|
Long term investment |
0 |
|
Total assets |
80,239 |
|
|
------------- |
|
Long term liabilities |
5,000 |
|
Total liabilities |
33,537 |
|
Equities |
46,702 |
|
|
------------- |
|
Revenue |
54,381 |
|
Profit before
tax |
-4,026 |
|
Less: profit tax |
0 |
|
Profits |
-4,026 |
Note: The detailed financials for Y2010 are not filed in SAIC.
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
Cash |
4,260 |
|
Notes receivable |
0 |
|
Accounts
receivable |
22,310 |
|
Advances to
suppliers |
7,350 |
|
Other receivable |
5,170 |
|
Inventory |
19,340 |
|
Non-current
assets within one year |
0 |
|
Other current assets |
1,290 |
|
|
------------------ |
|
Current assets |
59,720 |
|
Fixed assets |
48,390 |
|
Construction in
progress |
24,950 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
16,720 |
|
|
------------------ |
|
Total assets |
149,780 |
|
|
============= |
|
Short-term loans |
0 |
|
Notes payable |
0 |
|
Accounts payable |
2,110 |
|
Advances from
clients |
5,130 |
|
Other payable |
34,160 |
|
Other current
liabilities |
2,170 |
|
|
------------------ |
|
Current
liabilities |
43,570 |
|
Non-current liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
43,570 |
|
Equities |
106,210 |
|
|
------------------ |
|
Total
liabilities & equities |
149,780 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
226,200 |
|
Cost of sales |
204,340 |
|
Sales expense |
3,580 |
|
Management expense |
2,990 |
|
Finance expense |
12,580 |
|
Profit before
tax |
12,690 |
|
Less: profit tax |
10 |
|
Profits |
12,680 |
Important Ratios
=============
|
|
2008 |
2009 |
2010 |
2011 |
|
*Current ratio |
0.01 |
0.35 |
-- |
1.37 |
|
*Quick ratio |
0.01 |
0.15 |
-- |
0.93 |
|
*Liabilities
to assets |
0.91 |
0.95 |
0.42 |
0.29 |
|
*Net profit
margin (%) |
-- |
-0.59 |
-7.40 |
5.61 |
|
*Return on
total assets (%) |
-- |
-0.24 |
-5.02 |
8.47 |
|
*Inventory /
Revenue ×365 |
-- |
147 days |
-- |
32 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
77 days |
-- |
36 days |
|
*
Revenue/Total assets |
-- |
0.41 |
0.68 |
1.51 |
|
* Cost of
sales / Revenue |
-- |
0.96 |
-- |
0.90 |
FINANCIAL COMMENTS
PROFITABILITY:
AVEARGE
l
The revenue of SC appears average in 2010, and it
was rising significantly in 2011.
l
SC’s net profit margin is fair in 2009 and 2010 and
fairly good in 2011.
l
SC’s return on total assets is fair in 2009 and
2010 and fairly good in 2011.
l
SC’s cost of goods sold is high, comparing with its revenue in 2011.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2011.
l
SC’s quick ratio is maintained in a normal level in
2011.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans in 2011.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is low in 2011.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered small-sized in its line with
stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.99 |
|
UK Pound |
1 |
Rs.83.72 |
|
Euro |
1 |
Rs.72.08 |
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.