MIRA
INFORM REPORT
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Report Date : |
19.02.2013 |
IDENTIFICATION DETAILS
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Name : |
FENCHEM BIOTEK LTD. |
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Registered Office : |
19/F, Fortune Building, No. 359, Hongwu Road, Baixia District, Nanjing, Jiangsu Province, 210002 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
10.09.2007 |
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Com. Reg. No.: |
320100000126213 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Chemical Products |
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No. of Employees : |
85 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Status : |
Moderate |
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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 |
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 and address
FENCHEM
BIOTEK LTD.
19/F, Fortune
Building, NO. 359, HONGWU ROAD, BAIXIA DISTRICT, NANJING, JIANGSU PROVINCE,
210002 PR CHINA
TEL: 86 (0)
25-84218888
FAX: 86 (0)
25-84574987
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEPTEMBER. 10, 2007
REGISTRATION NO. :
320100000126213
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
85
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 183,710,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 3,650,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.22 = 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 “Room 2504, Fortune Building, No. 359, Hongwu
Road, Nanjing” was SC’s former one.
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 Sep. 10, 2007.
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 selling pre-packaged food; wholesaling chemical products
(in according to the permit); technical advisory, research and development of
biochemical information; researching, developing and selling biological
products; importing and exporting commodities and technologies (excluding
commodities and technologies prohibited by law.
SC is mainly
engaged in selling chemical products.
Mr. Feng
Xiaogang is legal representative,
chairman and general manager of SC at present.
SC is known
to have approx. 85 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Nanjing. Our checks reveal that SC
rents the total premise, but the gross area of the premise is unspecific.
http://www.fenchemcn.com/
The design is professional and the content is well organized. At present it is
in Chinese, English and Spanish versions.
Email: sales@fenchem.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Feng Xiaogang 60
Zhu Yanyan 40
l
Legal Representative, Chairman and General
Manager:
Mr. Feng Xiaogang , born in 1979 with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman, legal representative and general manager.
l
Supervisor:
----------------------
Zhu Yanyan
SC is mainly
engaged in selling chemical products.
SC’s products mainly include: nitrocellulose,
cellulose ethers, hydrocarbon resin, re-dispersible powder, etc.
SC sources its
materials 98% from domestic market and 2% from overseas market. SC sells 10% of
its products in domestic market and 90% to the overseas market, mainly America
and Europe.
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 Supplier:
============
Xinchang Siqiang Life Nutriment Co., Ltd.
Note:
SC declined to release its major clients.
According
to SC’s website:
Fenchem
USA
Address:
5595 Daniels, St., Unit F, Chino, CA, 91710, USA
Tel:
+1 909 627 5268
Fax:
+1 909 627 3619
Fenchem
Europe
Address:
Mírové Náměstí, 160/132, 703 00 Ostrava, Vitkovice, Czech Republic
Tel:
+420 597 609 100
Fax:
+420 597 609 102
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’s supplier
refused 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.
China Merchants
Bank Nanjing Branch Chengnan Sub-branch
AC#：07796125903719710903
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Cash & bank |
3,960 |
6,330 |
|
Inventory |
2,470 |
3,540 |
|
Bills receivable |
0 |
0 |
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Accounts
receivable |
21,730 |
35,950 |
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Other Accounts
receivable |
730 |
1,630 |
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Advances to
suppliers |
18,640 |
12,290 |
|
Subsidy
receivable |
7,390 |
9,090 |
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To be
apportioned expense |
10 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
54,930 |
68,830 |
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Fixed assets net
value |
1,270 |
1,250 |
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Long-term
investment |
0 |
0 |
|
Long-term
deferred expense |
140 |
0 |
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Intangible and
other assets |
650 |
890 |
|
|
------------------ |
------------------ |
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Total assets |
56,990 |
70,970 |
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|
============= |
============= |
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Short loans |
9,820 |
20,640 |
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Accounts payable |
23,130 |
18,630 |
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Advance from
customers |
17,580 |
28,930 |
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Other Accounts
payable |
3,250 |
-960 |
|
Notes payable |
0 |
0 |
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Taxes payable |
200 |
80 |
|
Withdraw the
expenses in advance |
0 |
0 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
53,980 |
67,320 |
|
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
53,980 |
67,320 |
|
Equities |
3,010 |
3,650 |
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|
------------------ |
------------------ |
|
56,990 |
70,970 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
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Turnover |
145,060 |
183,710 |
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Cost of goods sold |
131,030 |
164,720 |
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Sales expense |
7,650 |
11,510 |
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Management expense |
4,630 |
5,770 |
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Finance expense |
1,130 |
2,040 |
|
Profit before
tax |
970 |
1,000 |
|
Less: profit tax |
240 |
250 |
|
Profits |
730 |
750 |
Important Ratios
=============
|
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.02 |
1.02 |
|
*Quick ratio |
0.97 |
0.97 |
|
*Liabilities
to assets |
0.95 |
0.95 |
|
*Net profit
margin (%) |
0.50 |
0.41 |
|
*Return on
total assets (%) |
1.28 |
1.06 |
|
*Inventory
/Turnover ×365 |
7 days |
8 days |
|
*Accounts receivable/Turnover
×365 |
55 days |
72 days |
|
*Turnover/Total
assets |
2.55 |
2.59 |
|
* Cost of
goods sold/Turnover |
0.90 |
0.90 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line
and it increased in 2011.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears large.
l
The short-term loan of SC appears large.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
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 and short-term loan could be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
|
1 |
Rs.84.09 |
|
Euro |
1 |
Rs.72.44 |
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 |
|
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.