MIRA INFORM REPORT
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Report Date : |
02.07.2013 |
IDENTIFICATION DETAILS
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Name : |
Guangdong
food industry institute |
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Registered Office : |
No. 146, Xingang East Road, Haizhu District, Guangzhou,
Guangdong Province, 510308 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
07.07.1993 |
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Com. Reg. No.: |
440000000002052 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Subject mainly engaged in researching, manufacturing and selling food
additives |
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No. of Employees : |
230 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – 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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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 & ADDRESS
Guangdong
food industry institute
No. 146, xingang east road, haizhu
district,
guangzhou, GUANGDONG PROVINCE,
510308 PR CHINA
TEL: 86 (0) 20-84216865/84285159 FAX: 86 (0) 20-84215839
EXECUTIVE SUMMARY
INCORPORATION DATE : july 7, 1993
REGISTRATION NO. :
440000000002052
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
STAFF STRENGTH : 230
REGISTERED CAPITAL :
CNY 13,306,000
BUSINESS LINE :
researching, MANUFACTURING and trading
TURNOVER : CNY 43,180,000 (AS OF
DEC. 31, 2012)
EQUITIES : CNY 19,510,000 (AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY
6.13 = 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
SC was registered as a State-owned enterprise at Guangdong Provincial
Administration for industry & commerce (AIC - the official body of issuing
and renewing business license) on July 7, 1993.
Company Status: State-owned enterprise This form of business in PR China
is defined as a commodity production or operational units of a socialist
character which in accordance with the law, have autonomy in management,
take full responsibility for its profits and losses and practices
independent business accounting. It is a legal person established directly
by central / local government or enterprise owned by central or local
government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered
business scope includes import and export goods and technologies; food
production and technical services and technology consultation; manufacturing
and selling food additives; researching and developing food and food
additives.
SC is mainly
engaged in researching, manufacturing and selling food additives.
Mr. Wang Sanyong is legal representative and director of SC at present.
SC is known to have approx. 230 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 Guangzhou. The detailed information of the premise is unspecified.
http://www.gdfii.com/ The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
Email: mkt@gdfii.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
SC’s quality system meets the international standards of ISO 9001.
For the past two years there is no record of litigation.
Superior
Department
Guangdong Guangye Light & Chemical
Industry Group Co., Ltd.
Registered no.: 440000000039333
Legal representative: Pan Zhibiao
Registered capital: CNY 32,047,000
Web: http://www.gdqh.net/
Tel: 020-83335042
Fax: 020-83347498
l Legal
representative and director:
Mr. Wang Sanyong , born in 1967 with
postgraduate education, senior engineer. He is currently responsible for the
overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and
director
Also working in L&P Food Ingredients Co.,
Ltd. as legal representative
SC is mainly
engaged in researching, manufacturing and selling food additives.
SC’s products mainly
include: sucralose and TBHQ, etc.
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 70% of its
products in domestic market, and 30% 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 customer and supplier
details.
L&P Food Ingredients Co., Ltd.
Registered no.: 440000000026006
Legal representative: Wang Sanyong
Registered capital: CNY 39,236,200
Date of incorporation:
SC
is said to have subsidiaries, but the detail is unspecified.
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 Dec. 31, 2011 |
as
of Dec. 31, 2012 |
|
Cash & bank |
41,380 |
11,110 |
|
Inventory |
3,230 |
5,880 |
|
Accounts
receivable |
2,910 |
1,130 |
|
Advances to
suppliers |
2,710 |
1,370 |
|
Other
receivables |
36,510 |
29,420 |
|
Other current
assets |
0 |
590 |
|
|
------------------ |
------------------ |
|
Current assets |
86,740 |
49,500 |
|
Fixed assets net
value |
8,010 |
11,970 |
|
Projects under
construction |
0 |
0 |
|
Long term
investment |
11,940 |
47,940 |
|
Long-term
deferred expenses |
0 |
600 |
|
Other assets |
650 |
690 |
|
|
------------------ |
------------------ |
|
Total assets |
107,340 |
110,700 |
|
|
============= |
============= |
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Short loans |
23,500 |
0 |
|
Accounts payable |
750 |
2,470 |
|
Other payable |
17,840 |
34,600 |
|
Taxes payable |
-150 |
-80 |
|
Advances from
clients |
170 |
100 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
42,110 |
37,090 |
|
Long term
liabilities |
57,310 |
54,100 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
99,420 |
91,190 |
|
Equities |
7,920 |
19,510 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
107,340 |
110,700 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
|
Turnover |
43,180 |
|
Cost of goods
sold |
29,240 |
|
Taxes and additional
of main operation |
970 |
|
Sales expense |
2,380 |
|
Management expense |
9,030 |
|
Finance expense |
1,670 |
|
Non-operating
income |
2,010 |
|
Non-operating
expense |
30 |
|
Profit before
tax |
1,670 |
|
Less: profit tax |
190 |
|
Profits |
1,480 |
Important Ratios
=============
|
|
as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
|
*Current ratio |
2.06 |
1.33 |
|
*Quick ratio |
1.98 |
1.18 |
|
*Liabilities
to assets |
0.93 |
0.82 |
|
*Net profit
margin (%) |
/ |
3.43 |
|
*Return on total
assets (%) |
/ |
1.34 |
|
*Inventory
/Turnover ×365 |
/ |
50 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
10 days |
|
*Turnover/Total
assets |
/ |
0.39 |
|
* Cost of
goods sold/Turnover |
/ |
0.68 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
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 average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2012.
l
SC’s quick ratio is maintained in a normal level in
2012.
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 loan in
2012.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high in 2011, and fairly
high in 2012.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.59.14 |
|
UK Pound |
1 |
Rs.90.05 |
|
Euro |
1 |
Rs.77.06 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.