MIRA INFORM REPORT
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Report Date : |
11.01.2013 |
IDENTIFICATION DETAILS
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Name : |
ANHUI FENGLE
AGROCHEMICAL CO., LTD. |
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Registered Office : |
Office 4, Chuangye Road, Shushan Ecnonomic Development Zone Hefei,
Anhui Province 230001 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
18.12.1998 |
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Com. Reg. No.: |
340123000000910 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in manufacturing and selling pesticide and fine
chemicals. |
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No. of Employees : |
798 |
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
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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 and address
ANHUI FENGLE
AGROCHEMICAL CO., LTD.
OFFICE 4,
CHUANGYE ROAD, SHUSHAN ECONOMIC DEVELOPMENT ZONE
HEFEI, ANHUI
PROVINCE 230001 PR CHINA
TEL: 86 (0)
551-65360941/65336974
FAX: 86 (0)
551-65360912
EXECUTIVE SUMMARY
Date of Registration : december 18, 1998
REGISTRATION NO. : 340123000000910
LEGAL FORM : One-person Limited Liability Company
CHIEF EXECUTIVE :
xu songlin (legal representative)
REGISTERED CAPITAL : CNY 255,000,000
staff :
798
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 272,006,000 (JAN. 1, 2012 TO JUN. 30, 2012)
EQUITIES :
CNY 337,144,000 (AS OF JUN. 30, 2012)
WEBSITE : www.fengle-agrochem.com
E-MAIL :
fengle@fengle-pesticide.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.23 = 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 limited liabilities company of PRC on December 18, 1998. However, SC changed to
present legal form, and was registered as one-person limited liability company
of PRC with State Administration for Industry & Commerce (SAIC) under
registration No.: 340123000000910 on June 22, 2006.
SC’s Organization Code Certificate No.:
70490788-2
SC’s registered capital: CNY 255,000,000
SC’s paid-in capital: CNY 255,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
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Legal Representative |
Wang Chunsheng |
Zhu Jiangning |
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Shareholder (s) (% of Shareholding) |
Hefei Seed Corporation 10% Anhui Fengle Seed Co., Ltd. 90% |
Hefei Fengle Seed Co., Ltd. 100% |
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Legal Form |
Limited Liabilities Company |
One-person Limited Liabilities Company |
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Registered Capital |
CNY 30,000,000 |
CNY 60,000,000 |
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Legal Representative |
Zhu Jiangning |
Xu Songlin |
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2010 |
Registered Capital |
CNY 60,000,000 |
CNY 255,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
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Name of Shareholder (s) |
% of Shareholding |
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Hefei Fengle Seed Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Xu Songlin |
RECENT
DEVELOPMENT
SC’s quality system meets the international standards of ISO 9001.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Hefei Fengle Seed Co., Ltd. 100
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Hefei Fengle Seed Co., Ltd. is the first listed (Shenzhen Stock
Exchange) seed company in China, solely sponsored by Hefei Seed Company.
“Fengle” is a famous brand in Anhui Province. The company was authorized to be
a new high-tech enterprise of Anhui Province, agri-industrialization leading
enterprise of China, and ISO9001 enterprise. The company mainly engages in
domestic and overseas trading of crop seeds, agricultural products, and
agrochemicals. 20,000 hectares production base provide more than ten species,
500 varieties high quality seeds of rice, corn, canola, wheat, cotton, sesame,
watermelon & melon, and vegetable, it also provide several hundred thousand
tons agri-products, and perfume raw material.
Registration No.: 340000000015283
Date of Registration: June 16, 1984
Legal Form: Shares limited co.
Registered Capital: CNY 298,876,000
Legal Representative: Chen Maoxin
MANAGEMENT
Xu Songlin, Legal
Representative, Chairman and General Manager
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Gender: M
Age: 51
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Also as director of Hefei Fengle Seed Co., Ltd.
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and selling
pesticide, fine chemicals, professional fertilizer and fertilizer additives,
plant growth regulator, seed coating agent, agriculture by-products and deep
processing products, packing materials; development and application of holographic
biotechnology and medical machinery; import and export of various goods and
technologies.
SC is mainly engaged in manufacturing and selling pesticide and fine
chemicals.
With the main objective of marketing and developing new herbicide in farming
industry, SC has risen to one of the top countrywide herbicide producers. SC’s
technical and formulations include herbicide, insecticide, fungicide, seed
coatings, etc.
SC sources its materials 80% from domestic market, and 20% from overseas
market, mainly U.S.A. and Europe. SC sells 40% of its products in domestic
market, and 60% to overseas market, mainly Southeast Asian 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.
*Major Supplier*
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Hefei Fengle Seed Co., Ltd.
*Major Client*
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Gowan Co.
E.I.Dupont De Nemours and Company.
Staff &
Office:
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SC is known to have approx. 798
staff at present.
SC owns an area as its operating office & factory of approx. 10,000
sq. meters at the heading address.
RELATED
COMPANY
Branches,
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Anhui Fengle Agrochemical Co., Ltd. Feidong Branch
Anhui Fengle Agrochemical Co., Ltd. Hefei Hecheng Branch Factory
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
The bank information of SC is not filed in SAIC.
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Jun. 30, 2012 |
|
Total assets |
308,133 |
625,221 |
497,757 |
542,249 |
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Total liabilities |
173,319 |
287,519 |
161,541 |
205,105 |
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Equities |
134,814 |
337,702 |
336,216 |
337,144 |
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
Jan.
1, 2012 to Jun. 30, 2012 |
|
Revenue |
296,044 |
376,987 |
530,339 |
272,006 |
|
Profits |
22,538 |
4,303 |
-3,986 |
114 |
Note: The detailed financials of SC are not available in SAIC.
Important Ratios
=============
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Jun. 30, 2012 |
|
*Liabilities to assets |
0.56 |
0.46 |
0.32 |
0.38 |
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*Net profit margin (%) |
7.61 |
1.14 |
-0.75 |
0.04 |
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*Return on total assets (%) |
7.31 |
0.69 |
-0.80 |
0.02 |
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* Revenue/Total assets |
0.96 |
0.60 |
1.07 |
0.50 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
LIQUIDITY: FAIR
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average in both years.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.63 |
|
UK Pound |
1 |
Rs.87.50 |
|
Euro |
1 |
Rs.71.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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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.