MIRA
INFORM REPORT
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Report Date : |
04.09.2013 |
IDENTIFICATION DETAILS
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Name : |
COFCO FEED CO., LTD. |
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Formerly Known As : |
China Grains &
Oils Group Feed Co., Ltd. |
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Registered Office : |
5f-01, Cofco Fortune Plaza, No. 8 Chaoyangmen South
Street, Chaoyang District, Beijing, 100020 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
30.06.2003 |
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Com. Reg. No.: |
100000000037990 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is
engaged in processing, warehousing and selling feed, import and export
business of livestock, poultry and fish feed, imported fish meal, imported
lysine, methionine. |
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No. of Employees : |
102 (Beijing Head Office) |
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 |
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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 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
COFCO
FEED CO., LTD.
5F-01, COFCO FORTUNE PLAZA, NO. 8
CHAOYANGMEN SOUTH STREET, CHAOYANG DISTRICT, BEIJING, 100020 PR CHINA
TEL: 86 (0) 10-85019370/85019588
FAX: 86 (0) 10-85019578/85635826
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUNE 30, 2003
REGISTRATION NO. :
100000000037990
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE :
MR. XU FENG (LEGAL REPRESENTATIVE)
STAFF STRENGTH :
102 (BEIJING HEAD OFFICE)
REGISTERED CAPITAL : CNY 24,800,000
BUSINESS LINE :
PROCESSING, WAREHOUSING AND TRADING
TURNOVER :
CNY 2,175,940,000 (AS OF DEC.
31, 2012)
EQUITIES :
CNY 31,130,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.12 = 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 State
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on June 30, 2003 and has been under present
legal form since Jan. 7, 2011.
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital of
Single person LLC is CNY100,000. The shareholder’s capital contributes, as
set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes permit
business scope: purchasing grain, operating feed. General business scope:
buying and selling, warehousing feed raw and auxiliary materials; processing,
manufacturing and selling machinery equipments, packaging goods; warehousing
and selling feed additives, building materials, decorative materials, steel,
mechanical and electrical equipments, motor vehicles (excluding cars) and
parts, computer and office supplies, daily necessities, hardware, needles,
textiles, garments, shoes and hats, camera equipments, stationery, arts and
crafts, electronic products; warehousing grain and oils; selling grain and oil
storage and transportation equipments, inspection and analysis instruments;
import and export business (excluding the goods and technology prohibited or
limited by the country); consulting and information service related to the
above business; domestic exhibitions and shows; property management and house
for rent.
SC is mainly
engaged in processing, warehousing and selling feed, import and export business.
Mr. Xu Feng has
been legal representative and general manager of SC since May of 2013.
SC is known to have approx. 102 (Beijing Head Office) employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Beijing. SC’s management declined to release the detailed information of the premise.
SC is not known to host website of its own at present.
Changes of SC’s registered
information:
|
Date |
Item |
Before changed |
After changed |
|
2010 |
Company name |
China Grains & Oils Group Feed Co., Ltd. |
Present one |
|
2011-1-7 |
Legal form |
Limited liabilities company |
Present ownership |
|
Shareholders |
CGOG International Economic and Trading Co., Ltd. 10% China Grains & Oils Group Corp. 90% |
Present one |
|
|
Unknown |
Registered no. |
1000001003799 |
Present one |
|
2013-5-30 |
Legal Rep. |
Liu Xiaoyu |
Present one |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
China Grains & Oils Group Corp. 100
The major business of the Company is in grain and oil. Its business activities include domestic and foreign trade, grain and oil food and feedstuff processing, storage and transportation, equipment and engineering, and futures and capital market operations. CGOG undertakes also real estate business and other business as well.
Registration No.: 100000000016073
Incorporation Date: 1994-03-23
Chairman: Li Ming
Registered Capital: CNY 1,378,270,000
Website: http://www.cgog.com.cn/ (the website can
not be landed at present for technical reasons.)
E-mail: cgog@cgog.com
Legal
representative and general manager:
Mr. Xu Feng, born in 1968, he is currently responsible for the overall
management of SC.
Working
Experience(s):
From May of 2013 to present Working in SC as legal representative
and general manager.
SC is mainly
engaged in processing, warehousing and selling feed, import and export
business.
SC’s products
mainly include: livestock, poultry and fish feed, imported fish meal, imported
lysine, methionine.
SC sources its materials 70% from domestic
market, and 30% from overseas market. SC sells 100% of its products in domestic
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 and Credit of 30-60 days.
Note: SC refused to release its main customers and
suppliers.
SC is known to invest in the following companies:
Zhonghong Bioengineering Co., Ltd.
==========================
Registration No.: 110000410147068
Incorporation Date: 1998-04-06
Chairman: Zhou Wanglin
Registered Capital: CNY 2,000,000
Web: http://www.zhbt.com/
E-mail:
zhonghong@zhbt.com
Tel.: 010-85018276
Fax: 010-85018391
COFCO
Feed (Maoming) Co., Ltd.
=========================
Registration No.: 440902000008307
Incorporation Date: 2004-09-20
Chairman: Zhang Shuguang
Registered Capital: CNY 2,000,000
E-mail: mmcofco@163.com
Tel.: 0668-2730767/2917275
Fax: 0668-2917301
Its former name was “CGOG Maoming Feed Co., Ltd.
Quanzhou Daquan Lysine Co., Ltd
==========================
Registration No.: 350500400014979
Chairman: Huang Zhigang
Guangdong Nanhai Zhonghong Feed Factory
================================
Registration No.: 440682000128740
Incorporation Date: 1996-07-08
Chairman: Zhang Shuguang
Registered Capital: CNY 36,230,000
Etc.
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.
Bank of Beijing
AC#:
20109099142
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
|
Cash & bank |
42,490 |
115,350 |
|
Notes receivable |
8,000 |
0 |
|
Trading
financial assets |
32,610 |
0 |
|
Inventory |
449,890 |
312,000 |
|
Accounts
receivable |
137,000 |
90,520 |
|
Advances to
supplies |
74,970 |
95,080 |
|
Other
receivables |
176,200 |
209,440 |
|
Other current
assets |
0 |
0 |
|
Dividends
receivable |
65,060 |
75,530 |
|
|
------------------ |
------------------ |
|
Current assets |
986,220 |
897,920 |
|
Fixed assets net
value |
2,530 |
2,570 |
|
Long-term
investments |
26,490 |
56,630 |
|
Intangible
assets |
3,970 |
22,880 |
|
Long-term
deferred expense |
4,140 |
2,480 |
|
Deferred tax assets |
6,680 |
0 |
|
Other assets |
20 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
1,030,050 |
982,480 |
|
|
============= |
============= |
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Short loans |
460,600 |
107,950 |
|
Notes payable |
16,000 |
54,900 |
|
Accounts payable |
152,590 |
201,380 |
|
Other accounts
payable |
174,920 |
452,280 |
|
Advances from
clients |
147,120 |
144,330 |
|
Taxes payable |
3,390 |
-9,900 |
|
Payroll payable |
4,930 |
380 |
|
Interests
payable |
0 |
0 |
|
Other current liabilities |
30 |
30 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
959,580 |
951,350 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
959,580 |
951,350 |
|
Shareholders
equities |
70,470 |
31,130 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,030,050 |
982,480
|
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
|
Turnover |
1,961,730 |
2,175,940 |
|
Cost of goods sold |
1,879,610 |
2,139,410 |
|
Taxes and additional of main operation |
770 |
30 |
|
Sales expense |
63,460 |
42,740 |
|
Management expense |
45,190 |
46,800 |
|
Finance expense |
19,290 |
21,810 |
|
Asset impairment losses |
11,230 |
-4,300 |
|
Investment
income |
66,770 |
15,030 |
|
Changes in fair
value |
200 |
620 |
|
Non-operating
income |
440 |
3,360 |
|
Non-operating expense |
1,350 |
0 |
|
Total profits
before tax |
8,240 |
-51,540 |
|
Less: profit tax |
-1,500 |
-12,210 |
|
Net profit |
9,740 |
-39,330 |
Important Ratios
=============
|
|
as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
|
*Current ratio |
1.03 |
0.94 |
|
*Quick ratio |
0.56 |
0.62 |
|
*Liabilities
to assets |
0.93 |
0.97 |
|
*Net profit
margin (%) |
0.50 |
-1.81 |
|
*Return on
total assets (%) |
0.95 |
-4.00 |
|
*Inventory
/Turnover ×365 |
84 days |
53 days |
|
*Accounts
receivable/Turnover ×365 |
26 days |
16 days |
|
*Turnover/Total
assets |
1.90 |
2.21 |
|
* Cost of
goods sold/Turnover |
0.96 |
0.98 |
PROFITABILITY: AVERAGE
·
The turnover of SC appears good in its line in
both years, and appears a rising trend.
SC’s net profit margin is
average in 2011, but fair in 2012.
SC’s return on total
assets is average in 2011, but fair in 2012.
SC’s cost of goods sold
is high in both 2 years, comparing with its turnover.
LIQUIDITY: FAIR
· The current ratio of SC is maintained in a normal level in 2011, bur fair in 2012.
SC’s quick ratio is
maintained in a fair level in both 2 years.
The inventory of SC
appears fairly large in both 2 years.
The accounts receivable
of SC appears average in both 2 years.
The short-term loan of SC
appears large in both 2 years.
SC’s turnover is average
in both 2 years, comparing with the size of its total assets.
LEVERAGE: FAIR
· The debt ratio of SC is high in both 2 years.
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 inventory and short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.89 |
|
UK Pound |
1 |
Rs.103.95 |
|
Euro |
1 |
Rs.88.09 |
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.