MIRA
INFORM REPORT
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Report Date : |
19.08.2014 |
IDENTIFICATION DETAILS
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Name : |
GUANGDONG PINE FOREST PERFUME LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
30.11.1991 |
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Com. Reg. No.: |
440800400002199 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and selling gum turpentine and its
products mainly include: Gum Turpentine, Alpha Pinene, Beta Pinene, Myrcene Pine Oil, Terpineol, Dipentene, Gum Rosin, Ink Solvent |
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No. of Employees |
120 |
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 : |
Slow but Correct |
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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 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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, growth of the private sector, development of stock
markets and a modern banking system, 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
considered important to "economic security," explicitly looking to foster
globally competitive industries. After keeping its currency tightly linked to
the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB
is permitted to fluctuate. 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 2013 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
consumption; (b) facilitating higher-wage job opportunities for the aspiring
middle class, including rural migrants and increasing numbers of college
graduates; (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. Several factors
are converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and
reiterated at the Communist Party's "Third Plenum" meeting in
November 2013, emphasizes continued economic reforms and the need to increase
domestic consumption in order to make the economy less dependent in the future
on fixed investments, exports, and heavy industry. However, China has made only
marginal progress toward these rebalancing goals. The new government of
President XI Jinping has signaled a greater willingness to undertake reforms
that focus on China's long-term economic health, including giving the market a
more decisive role in allocating resources.
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Source
: CIA |
Company name and address
GUANGDONG PINE FOREST PERFUME LTD.
NO. 6 WENCANG ROAD, SUICHENG TOWN, SUIXI COUNTY, ZHANJIANG CITY,
GUANGDONG PROVINCE 524300 PR CHINA
TEL: 86 (0) 759-7712799/7712820 FAX: 86 (0) 759-7712280
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 30, 1991
REGISTRATION NO. : 440800400002199
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
CHIEF EXECUTIVE :
MR. ZHAO ZINIU (CHAIRMAN)
STAFF STRENGTH :
120
REGISTERED CAPITAL : CNY 11,500,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 179,409,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 28,448,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.153 = 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 Ren Min Bi
SC was registered as a Chinese-foreign equity joint venture enterprise at
local Administration for Industry & Commerce (AIC-The official body of
issuing and renewing business license).
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 manufacturing α-pinene
(33642), β-pinene (33642), and terpineol (33638); manufacturing and
selling essential oils and fine chemical products (except hazardous chemicals).
SC is mainly engaged in manufacturing and selling gum turpentine and its
products.
Mr. Zhao Ziniu has been legal representative and chairman of SC since
1991.
SC is known to have approx. 120 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 Zhanjiang.
The detailed information of the area is unspecified.
http://www.pineforest.com.cn
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
E-mail: sales@pineforest.com.cn
SC’s quality management system has acquired ISO9001 certification.
Changes of its
registered information:
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Date of change |
Item |
Before the change |
After the change |
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2003-9-30 |
Legal form |
Limited liabilities company |
Present one |
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2008-1-14 |
Registered capital |
CNY 5,500,000 |
Present amount |
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Registration No. |
001322 |
Present one |
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2008-3-11 |
Company name |
Suixi Pine Forest Perfume Ltd. |
Present one |
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2008-12-22 |
Shareholding |
Zhao Ziniu 31.91% Zenta International Trading Limited ( Zhao Fan 20.55% Zhao Li 17.54% |
Zhao Ziniu 70% Zenta International Trading Limited (Hong Kong) ) 30% |
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2011-11-18 |
Shareholding |
Zhao Ziniu 70% Zenta International Trading Limited (Hong Kong) 30% |
Present ones |
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 194775276
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name
Amount
(CNY)
% of Shareholding
Suixi Xinli Trade Co., Ltd. (in Chinese pinyin) 4,443,600 38.64
Guangzhou Weixin Chemical Co., Ltd. (in Chinese pinyin ) 3,606,400
31.36
Zenta International Trading Limited (
Suixi Xinli Trade Co., Ltd. (in Chinese pinyin)
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Registration no.: 440823000006491
Registered capital: CNY 500,000
Legal representative: Quan Zhaoan
Guangzhou Weixin Chemical Co., Ltd. (in Chinese pinyin)
=========================
Registration no.: 440104000180125
Registered capital: CNY 1,400,000
Legal representative: Lan Zongyong
Zenta International Trading Limited (Hong Kong)
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Registration number: 0845854
Registered legal form: Private Company limited by shares
Legal representative and chairman:
Mr. Zhao Ziniu, born in 1962. He is currently responsible for the
overall management of SC.
Working
Experience(s):
From 1991 to present Working in
SC as legal representative and chairman.
Directors:
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Han Wen ID# 44010619660711XXXX
Lan Zongyong ID# 44052119721230XXXX
Supervisors:
=========
Xie Wei ID#
44010619730921XXXX
Quan Zhaoan ID#
44082319640709XXXX
Su Wei, ID#
44010619590929XXXX
SC is mainly engaged in manufacturing and selling gum turpentine and its
products.
SC’s products mainly include:
Gum Turpentine
Alpha Pinene
Beta Pinene
Myrcene
Pine Oil
Terpineol
Dipentene
Gum Rosin
Ink Solvent
(According to SC’s website) SC
can produce 8,000mt of alpha pinene, 4,000mt of beta pinene, 4,500mt of pine oil/3,000mt
of terpineol and 2,000mt of aroma chemicals per annum. These products are
widely used in the industries of flavors & fragrances, pharmaceuticals,
cleaning products and so on.
SC sources its materials 100% from domestic market. SC sells 35% of its
products in domestic market, and 65% to the overseas markets, mainly India,
Hong Kong, America, and Japan.
The buying terms of SC include T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
Note: SC’s management refused to release its main suppliers and clients.
TRADEMARKS & PATENTS
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Registration No. |
3887446 |
3887447 |
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Registration Date |
June 14, 2006 |
Aug. 28, 2006 |
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Trademark Design |
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According to SC’s website:
Sales Office
Room 701, Guangdong Holding Tower, 555 Dong
Feng East Road, Guangzhou, P. R. China
Tel: +86-20-8388 0266
Fax: +86-20-8738 2343
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 accountant refused to release its bank information
Financial Summary
===============
Unit: CNY’000
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As of Dec. 31,
2012 |
As of Dec. 31,
2011 |
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Total assets |
103,477 |
140,853 |
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Long term investment |
0 |
0 |
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Total liabilities |
75,029 |
117,421 |
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Equities |
28,448 |
23,432 |
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Total liabilities & equities |
103,477 |
140,853 |
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Turnover |
179,409 |
220,812 |
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Profit before tax |
5,735 |
6,723 |
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Less: profit tax |
833 |
1,009 |
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Profits |
4,902 |
5,714 |
Note: we did not find
SC’s latest and
detailed financial information.
Important Ratios
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As of Dec. 31,
2012 |
As of Dec. 31,
2011 |
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*Liabilities to assets |
0.73 |
0.83 |
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*Net profit margin (%) |
2.73 |
2.59 |
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*Return on total assets (%) |
4.74 |
4.06 |
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*Turnover/Total assets |
1.73 |
1.57 |
PROFITABILITY: AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is fairly high in 2011 and average in 2012.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered an old-established business in medium size with fairly
stable financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.06 |
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UK Pound |
1 |
Rs.101.84 |
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Euro |
1 |
Rs.81.56 |
INFORMATION DETAILS
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Analysis Done by
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KAR |
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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.