MIRA INFORM REPORT
|
Report Date : |
06.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
COFCO
TUNHE CO., LTD. |
|
|
|
|
Registered Office : |
Block H Of 18/F, 20/F, 21/F, China Merchants Bank Bldg. No. 2 Huanghe
Road, Urumqi, Xinjiang 830000 PR |
|
|
|
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Country : |
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|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
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Date of Incorporation : |
18.09.1993 |
|
|
|
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Com. Reg. No.: |
650000040000208 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and selling tomato products and agricultural
products. |
|
|
|
|
No. of Employees : |
6,411 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 and address
COFCO TUNHE CO., LTD.
BLOCK H
OF 18/F, 20/F, 21/F, CHINA MERCHANTS BANK BLDG.
NO. 2
HUANGHE ROAD, URUMQI, XINJIANG 830000 PR CHINA
TEL: 86
(0) 991-6173150/5571888
FAX: 86
(0) 991-5571800-8763
EXECUTIVE SUMMARY
Date of Registration : SEPtember 18, 1993
REGISTRATION NO. : 650000040000208
LEGAL FORM :
SHARES LIMITED COMPANY
REGISTERED CAPITAL :
CNY 2,051,876,155
staff : 6,411
BUSINESS CATEGORY :
manufacturing
REVENUE :
CNY 8,289,384,000 (CONSOLIDATED, JAN. 1 2013 TO SEP. 30, 2013)
EQUITIES :
CNY 5,771,126,000 (CONSOLIDATED, AS OF SEP. 30, 2013)
WEBSITE : www.cofcotunhe.com
E-MAIL : jiangxg@cofco.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE : CNY 6.10 = USD
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 shares limited company
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 650000040000208
on September 18, 1993.
SC’s Organization Code Certificate
No.: 29920116-4
SC’s Tax No.:
652301299201164
SC’s registered capital: CNY 2,051,876,155
SC’s paid-in capital: CNY 2,051,876,155
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2000-11 |
Company Name |
Xinjiang Tunhe Co., Ltd. |
Xinjiang Tunhe Investment Co.,
Ltd. |
|
2007-2 |
Company Name |
Xinjiang Tunhe Investment Co.,
Ltd. |
COFCO Xinjiang Tunhe Co., Ltd. |
|
2009-9 |
Company Name |
COFCO
Xinjiang Tunhe Co., Ltd. |
COFCO
Tunhe Co., Ltd. |
|
Registration No. |
6500001000812 |
650000040000208 |
|
|
2013 |
Registered Capital |
CNY
1,005,604,226 |
CNY
2,051,876,155 |
|
Legal Representative |
Zheng Hongbo |
Xia
Linghe |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (As of September 30, 2013) |
% of Shareholding |
|
COFCO Limited |
55 |
|
Minsheng Royal Fund Management
Company - Minsheng Xinniu placement on the 7th grade asset management plan |
9.8 |
|
Jiangxin Fund
Company-Minsheng-Minxing 1# Asset Management Plan |
9.75 |
|
Morgan Stanley Huaxin Funds-
Minsheng- Morgan |
2.83 |
|
Aerospace Science and
Technology Finance Co., Ltd. |
2.83 |
|
Bank of Communications-Boshi
Xinxing Growth Stock Securities Investment Fund |
0.43 |
|
ICBC- Fuguo CSI 300 Enhanced
Securities Investment Fund |
0.37 |
|
Jilin Baili Trade Co., Ltd. |
0.27 |
|
National Social Security Fund
412 Combination |
0.20 |
|
Taikang Life Insurance Co. -
Investment Plan |
0.19 |
|
Other shareholders |
18.33 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Xia Linghe |
|
General Manager |
Li Fengchun |
|
Deputy General Manager |
Yu Zuojiang |
|
Wu Zhen |
|
|
Yu Tianchi |
RECENT DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market
with the code of 600737
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As of September 30, 2013)
----------------------------------
COFCO Limited
55
Minsheng Royal Fund Management
Company - Minsheng Xinniu Placement on The 7th Grade Asset Management Plan
9.8
Jiangxin Fund
Company-Minsheng-Minxing 1# Asset Management Plan
9.75
Morgan Stanley Huaxin Funds-
Morgan Stanley Huaxin Fund
2.83
Aerospace Science and Technology
Finance Co., Ltd.
2.83
Bank of Communications-Boshi Xinxing
Growth Stock Securities Investment Fund
0.43
ICBC- Fuguo CSI 300 Enhanced
Securities Investment Fund
0.37
Jilin Baili Trade Co., Ltd.
0.27
National Social Security Fund
412 Combination
0.20
Taikang Life Insurance Co. - Investment
Plan
0.19
Other shareholders
18.33
COFCO
Limited
================
COFCO started from the grain,
oil trade and processing. And COFCO continued to extend the industrial chain to
the planting and breeding, storage and transport logistics, food processing of
raw materials, biomass energy, production and sales of branded food and real
estate hotel, financial services and other fields. It owns a Chinese food
(00506.HK), Agri (00606.HK), Mengniu Dairy (02319.HK), CPMC (00906.HK) four
listed companies in Hong Kong, and COFCO Tunhe (600737SH), COFCO Property
(000031.SZ) and COFCO biochemical (000930.SZ) three listed companies in the
Mainland.
Address: COFCO Fortune Plaza,
No. 8, South Chaoyangmen Street, Chaoyang District, Beijing
Tel: +86-10-85006688
Fax: +86-10-85612800
Web: www.cofco.com
E-mail: cofcoinfo@cofco.com
Aerospace
Science and Technology Finance Co., Ltd.
==========================================
Date of Registration: October 10, 2001
Registration No.: 110000006732536
Registered Capital: CNY 2,200,000,000
MANAGEMENT
Xia Linghe,
Legal Representative and Chairman
--------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 48
Ø Qualification:
University
Ø Working
experience (s):
Before, worked in COFCO
Biochemical Anhui Co., Ltd. as chairman and general manager
At present, working in SC as
legal representative and chairman
Li Fengchun, General
Manager
----------------------------------------------------
Ø
Gender: F
Ø
Age: 48
Ø Qualification:
University
Ø Working
experience (s):
Before, worked in Xinjiang
Tianshan Cement Co., Ltd. as deputy general manager
From May of 2013 to present,
working in SC as general manager
Yu
Zuojiang, Deputy General Manager
--------------------------------------------------------------
Ø
Gender: M
Ø
Age: 47
Ø Qualification:
University
Ø Working
experience (s):
From August of 2013 to present,
worked in SC as deputy general manager
Wu
Zhen, Deputy General Manager
--------------------------------------------------------
Ø
Gender: M
Ø
Age: 41
Ø Qualification:
University
Ø Working
experience (s):
From June of 2013 to present,
worked in SC as deputy general manager
Yu Tianchi, Deputy General Manager
-------------------------------------------------------------
Ø
Gender: M
Ø
Age: 46
Ø Qualification:
University
Ø Working
experience (s):
From June of 2013 to present,
worked in SC as deputy general manager
BUSINESS OPERATION
SC’s
registered business scope includes processing tomato, manufacturing and selling
tomato products, processing and selling other agricultural and sideline
products (excluding grain, cotton); producing and selling beverages; processing
and selling edible oil, fruits, vegetables; manufacturing and selling white
sugar, alcohol, pellet; producing and selling steam; selling molasses,
vegetables silk (limited in branch operation); selling pesticide (with permit);
trucking; importing and exporting cement and products, activity carboniferous,
enterprise products and general goods and technology; economic information
services; selling waste, waste materials; leasing housing, land, equipment;
retailing fertilizer, selling plastic
sheeting; R & D, planting and selling agricultural products; selling drums,
tons of boxes, trays, sterile bags, no longer packing package seed; services
and leasing agricultural machinery; selling mechanical equipment, spare parts,
steel, tin cans, tomato paste production equipment, production equipment of the
sugar alcohol production equipment, pellet production equipment, agricultural
machinery and environmental protection equipment.
SC is
mainly engaged in manufacturing and selling tomato products and agricultural
products.
Brand: TUNHE
SC’s
products mainly include: tomato products; sugar products and fruit products.
SC sources its materials 100%
from domestic market. SC sells 60% of its products in domestic market, and 40%
to overseas market, mainly USA, Europe and Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Customers:
=============
COFCO
Coca-Cola Supply Chain (Tianjin) Co., Ltd.
Rahal
Foods Inc.
*Major Suppliers:
=============
Xinjiang Bayi Iron & Steel Co., Ltd.
Xinjiang Tianshu Technology Co., Ltd. (In Chinese Pinyin)
Bazhou Jinyun Cotton Industry Co., Ltd. (In Chinese Pinyin)
Staff & Office:
--------------------------
SC is
known to have approx. 6,411 staff at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.
RELATED
COMPANY
SC is
known to have the following subsidiaries and branches:
n
COFCO Tunhe Zhangye Tomato Products Co., Ltd.
n
COFCO Tunhe Kuitun Tomato Products Co., Ltd.
n
Inner Mongolia Tunhe Hetao Tomato Products Co., Ltd.
n
Inner Mongolia Hetao Worldred Tomato Product Co., Ltd.
n
COFCO Tunhe Xinyuan Sugar Industry Co., Ltd
n
COFCO Tunhe Yili Sugar Industry Co., Ltd.
n
COFCO Tunhe Xinning Sugar Industry Co., Ltd.
n
COFCO Tunhe Hetian Fruit Industry Co., Ltd.
n
COFCO Tunhe Kashi Fruit Industry Co., Ltd.
n
COFCO Tunhe Akesu Fruit Industry Co., Ltd.
n
COFCO Tunhe Shawan Tomato Products Branch Company
n
COFCO Tunhe Wusu Tomato Products Branch Company
n
COFCO Tunhe Manas Tomato Products Branch Company
n
COFCO Tunhe Yanqi Tomato Products Branch Company
Overseas
Offices (According to SC’s website):
n
Euro-China Trading Corp. GmbH
n Top
Glory (London) Ltd.
n
Tunhe Kirghizia Jiangdesi Fruit & Vegetable CO., LTD.
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
Consolidated Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2012 |
As of Sep. 30, 2013 |
|
1,020,066 |
3,013,882 |
|
|
Accounts
receivable |
629,852 |
585,720 |
|
Notes
receivable |
62,678 |
193,661 |
|
Advances
to suppliers |
295,884 |
293,578 |
|
Interest
receivable |
1,250 |
3,415 |
|
Other
receivable |
754,987 |
247,434 |
|
Inventory |
3,160,715 |
2,041,492 |
|
Non-current
assets within one year |
0 |
0 |
|
Other
current assets |
271,070 |
538,242 |
|
|
------------------ |
------------------ |
|
Current
assets |
6,196,502 |
6,917,424 |
|
Long-term
investments |
744,106 |
789,041 |
|
Long-term
receivable |
0 |
0 |
|
Real
estate investment |
17,693 |
15,269 |
|
Fixed
assets |
4,471,782 |
4,143,537 |
|
Construction
in progress |
67,898 |
66,539 |
|
Intangible
assets |
308,815 |
348,523 |
|
Long-term
deferred expense |
69,082 |
56,586 |
|
Deferred
income tax assets |
0 |
0 |
|
Other
non-current assets |
65,009 |
60,897 |
|
|
------------------ |
------------------ |
|
Total
assets |
11,940,887 |
12,397,816 |
|
|
============= |
============= |
|
Short-term
loans |
4,433,533 |
4,556,584 |
|
Notes
payable |
28,228 |
30,213 |
|
Accounts
payable |
1,868,701 |
696,569 |
|
Payroll
payable |
142,046 |
85,828 |
|
Taxes
payable |
68,814 |
32,950 |
|
Interest
payable |
26,996 |
4,129 |
|
Dividends
payable |
807 |
807 |
|
Advances
from clients |
281,858 |
719,028 |
|
Other
payable |
419,668 |
328,804 |
|
Other
current liabilities |
1,018,701 |
17,335 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
8,289,352 |
6,472,247 |
|
Non-current
liabilities |
151,970 |
154,443 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
8,441,322 |
6,626,690 |
|
Equities |
3,499,565 |
5,771,126 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
11,940,887 |
12,397,816 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit:
CNY’000 |
Jan. 1 2013 to Sep. 30, 2013 |
|
Revenue |
8,289,384 |
|
Cost of sales |
7,532,551 |
|
Business Taxes and Surcharges |
26,455 |
|
Sales expense |
368,878 |
|
Management expense |
291,767 |
|
Finance expense |
119,017 |
|
Asset impairment loss |
-4,739 |
|
Investment
income |
59,448 |
|
Non-operating
income |
145,295 |
|
Non-operating expense |
4,340 |
|
Profit
before tax |
165,545 |
|
Less:
profit tax |
32,770 |
|
132,775 |
Important
Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Sep. 30, 2013 |
|
*Current
ratio |
0.75 |
1.07 |
|
*Quick
ratio |
0.37 |
0.75 |
|
*Liabilities
to assets |
0.71 |
0.53 |
|
*Net
profit margin (%) |
-- |
1.60 |
|
*Return
on total assets (%) |
-- |
1.07 |
|
*Inventory
/ Revenue ×270 |
-- |
67 days |
|
*Accounts
receivable / Revenue ×270 |
-- |
20 days |
|
*Revenue
/ Total assets |
-- |
0.67 |
|
*Cost
of sales / Revenue |
-- |
0.91 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The
revenue of SC appears fairly good 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 revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level.
l
SC’s quick ratio is maintained in a
fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears
average.
l
The short-term loans of SC appear
large.
l
SC’s revenue is in an average level,
comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall
financial condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered large-sized in its line with fairly stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.78 |
|
|
1 |
Rs.98.65 |
|
Euro |
1 |
Rs.83.41 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.