MIRA INFORM REPORT
|
Report Date : |
20.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
WEIFANG ENSIGN INDUSTRY CO., LTD. |
|
|
|
|
Formerly Known As : |
Weifang Huiyuan Industry Co., Ltd. |
|
|
|
|
Registered Office : |
No. 1567 Chang Sheng Street, Changle County, Weifang City, Shandong Province 262400 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
26.04.2001 |
|
|
|
|
Com. Reg. No.: |
370700400010258 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
|
|
|
|
Line of Business : |
manufacturer of Citric Acid and Edible Alcohol with
materials from sweet potatoes, tapioca and corn. |
|
|
|
|
No. of Employees : |
1500 |
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 : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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
WEIFANG ENSIGN INDUSTRY CO., LTD.
NO. 1567 CHANG SHENG
STREET, changle county, weifang city,
shandong province
262400 PR CHINA
TEL: 86 (0)
536-6273006/6298125 FAX: 86 (0)
536-6234587
EXECUTIVE SUMMARY
INCORPORATION DATE :
apr. 26, 2001
REGISTRATION NO. :
370700400010258
REGISTERED
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF
STRENGTH : 1,500
REGISTERED CAPITAL : USD 57,350,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 2,891,010,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 1,062,250,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION :
competitive
FINANCIAL CONDITION :
fairly good (AS OF DEC. 31, 2010)
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
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
Limited Liabilities Company at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on Apr. 26,
2001, and has been under present ownership since 2005 .
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR China
is defined as a legal person. It is a limited co. jointly invested by one
or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition position
in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes producing and selling food additives: citric acid (anhydrous
citric acid, Citric Acid Monohydrate); food additives: sodium citrate; food
additives: liquid carbon dioxide (Production License
is valid until February 7, 2015); ethanol and liquid carbon dioxide (Safety Production License is valid until May 22, 2014);
edible alcohol (Production License is valid until December 7, 2015); imports and
exports business (do not contain distribution business). The above scope
involving state special permission or qualification administration should be
produced and operated on the basis of licenses or quality certificates.
SC is mainly engaged in manufacturing food & feed
additives.
Mr. Li Shiyong has been chairman of SC since 2001.
SC is known to have approx. 1,500
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 Changle County. Our checks reveal that SC rents the total premise about 180,000 square meters.
http://www.ensignworld.com The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
E-mail: sales@ensignworld.com
SC has been
awarded "Top 100 Enterprise of Weifang", "Advanced Private
Enterprise", "Star-Level Private Enterprise", "Star
Enterprise", "Advanced Enterprise in Business Management", etc.
by Weifang Municipal People's Government, "A-Level Creditable Unit in
Paying Tax" by the taxation authority and "AAA-Level Creditable
Enterprise" by the financial system.
SC has been
ISO9001, ISO14001, HACCP, GMP, OU kosher and HALAL certified.
Changes
of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
2005-9-30 |
Registered
Legal Form |
Limited
Liabilities Company |
Chinese-foreign
equity joint venture enterprise |
|
2005-11-15 |
Company
Name |
Weifang
Huiyuan Industry Co., Ltd. |
Weifang Ensign
Industry Co., Ltd. |
|
2009-7-17 |
Registered
capital |
USD
7,410,000 |
USD 17,410,000 |
|
Shareholdings |
25.03% Li Shiyong 67.48% Li
Menghong 7.49% |
Hong Kong Koda (Asia)
Limited 68.09% Li
Shiyong 28.72% Li
Menghong 3.19% |
|
|
2010-5-7 |
Registered
capital |
USD 17,410,000 |
USD 33,850,000 |
|
2010-9-18 |
Registered
capital |
USD 33,850,000 |
USD 57,350,000 |
|
Registered
address |
The West End of Limin Road, Changle County,
Weifang City, Shandong |
No. 1567 Chang
Sheng Street, Changle County, Weifang City, Shandong |
|
|
N/A |
Registration No. |
003870 |
370700400010258 |
MAIN SHAREHOLDERS:
Name % of Shareholding
Hong Kong Koda (Asia) Limited 68.09
Li
Shiyong 28.72
Li
Menghong
3.19
Hong Kong Koda
(Asia) Limited
=============================
Registration
No.: 0961067
Incorporation
Date: April 7, 2005
Chairman:
Mr. Li Shiyong , ID# 370725660526001, born in 1966, with university education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present
Working in SC as chairman.
SC engages in
manufacturing Citric Acid and Edible Alcohol with materials from sweet
potatoes, tapioca and corn.
SC’s products mainly include: feedstuff, citric acid, sodium
citrate, and potassium citrate, etc.
SC’s brand: “ENSIGN”
(英轩牌).
SC sources its materials 80% from domestic market, mainly Shandong
province, and 20% from overseas market. SC sells 60% of its products in
domestic market, mainly Shandong province and Beijing, and 40% to overseas
market, mainly Pakistan.
The buying terms of SC include T/T, L/C and Credit
of 30-60 days. The payment terms of SC include T/T, L/C, and Credit of 15-30
days.
SC is not known to have any
subsidiary at present.
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
information.
Unit: CNY ’000
|
|
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
381,080 |
183,060 |
|
|
Equities |
417,600 |
1,062,250 |
|
|
-------------------- |
-------------------- |
|
Total liabilities & equities |
798,680 |
1,245,310 |
|
|
============= |
============= |
|
1,915,780 |
2,891,010 |
|
|
Profit before tax |
100,270 |
436,900 |
|
Less: profit tax |
12,530 |
54,610 |
|
87,740 |
382,290 |
Note: SC’s detailed financial reports for
Yr2009 & Yr2010 were not found during our checks with local AIC. SC’s
management declined to release the latest financial information.
Important Ratios
=============
|
|
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
*Liabilities to assets |
0.48 |
0.15 |
|
*Net profit margin (%) |
4.58 |
13.22 |
|
*Return on total assets (%) |
10.99 |
30.70 |
|
*Turnover/Total assets |
2.4 |
2.32 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC
appears good in its line, and it was rising greatly in 2010.
l SC’s net profit
margin appears average in 2009, and it appears good in 2010.
l SC’s return on
total assets is good in both 2 years.
l SC’s turnover is
in an average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l The debt ratio of
SC is low.
l The risk for SC to
go bankrupt is average.
Overall
financial condition of the SC: Fairly good.
SC is considered a
large-sized company in its line with fairly good financial conditions. Credit
dealings with SC in moderate amount appear acceptable.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.79 |
|
UK Pound |
1 |
Rs.91.03 |
|
Euro |
1 |
Rs.78.52 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.