MIRA INFORM REPORT
|
Report Date : |
03.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
FENCHEM BIOTEK LTD. |
|
|
|
|
Registered Office : |
Room 2504 Fortune
Building, No. 359 Hongwu Road Nanjing, Jiangsu Province 210002 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
10.09.2007 |
|
|
|
|
Com. Reg. No.: |
320100000126213 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
·
Engaged in selling pre-packaged food;
wholesaling chemical products (in according to the permit); technical
advisory, research and development of biochemical information; researching,
developing and selling biological products as well as importing and exporting
commodities and technologies (excluding commodities and technologies
prohibited by law.)、 · Subject product ranges includes Liveflax™- Flax lignan, HyaMax®- study supported Sodium Hyaluronate, In-fibre™ – Inulin, EssenRose™-Rosemary extract, TOCOVET® - Natural Vitamin E (IP Certified). |
|
|
|
|
No of Employees : |
100 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but Correct |
|
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
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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, 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.
|
Source : CIA |
Company
name & address
FENCHEM BIOTEK LTD.
ROOM 2504 FORTUNE BUILDING, NO.
359 HONGWU ROAD
NANJING, JIANGSU province 210002
PR CHINA
TEL: 86 (0) 25-84572922/84218888
FAX: 86 (0) 25-84502908/84574987
EXECUTIVE
SUMMARY
Date of Registration : SEPTEMBER 10, 2007
REGISTRATION NO. : 320100000126213
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
FENG XIAOGANG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 10,000,000
staff : 100
BUSINESS CATEGORY : trading
Revenue : CNY 166,903,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 13,005,000 (AS OF DEC. 31, 2013)
WEBSITE : www.fenchem.com
E-MAIL : sales@fenchem.com
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.14 = USD 1
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
LEGAL STATUS & HISTORY
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 320100000126213 on September 10, 2007.
SC’s Organization Code Certificate
No.: 66378856-4
SC’s registered capital: CNY 10,000,000
SC’s paid-in capital: CNY 10,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before the change |
After the change |
|
2012 |
Registered Capital |
CNY 2,000,000 |
CNY 6,000,000 |
|
% of Shareholding |
Feng Xiaogang 60% Zhu Yanyan 40% |
Feng Xiaogang 20% Zhu Yanyan 80% |
|
|
2013 |
Registered Capital |
CNY 6,000,000 |
CNY 10,000,000 |
|
% of Shareholding |
Feng Xiaogang 20% Zhu Yanyan 80% |
Feng Xiaogang 52% Zhu Yanyan 48% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Feng Xiaogang |
52 |
|
Zhu Yanyan |
48 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Feng Xiaogang |
|
Supervisor |
Zhu Yanyan |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Feng Xiaogang 60
Zhu Yanyan 40
MANAGEMENT
Feng Xiaogang, Legal Representative, Chairman, and General
Manager
--------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 320623197907193175
Ø
Age: 35
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman, and general manager
Zhu
Yanyan, Supervisor
-------------------------------------------
Ø
Gender: F
Ø
ID# 320106197801161649
Ø
Age: 36
BUSINESS OPERATION
SC’s registered
business scope includes selling pre-packaged food; wholesaling chemical
products (in according to the permit); technical advisory, research and
development of biochemical information; researching, developing and selling
biological products; importing and exporting commodities and technologies
(excluding commodities and technologies prohibited by law.)、
SC is mainly
engaged in selling biological products.
SC’s products
mainly include Liveflax™- Flax lignan, HyaMax®- study supported Sodium
Hyaluronate, In-fibre™ – Inulin, EssenRose™-Rosemary extract, TOCOVET® -
Natural Vitamin E (IP Certified).
SC sources its
products 100% from domestic market. SC sells 5% in domestic market and 95% to
the overseas market, mainly U.S.A. and Europe.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier*
-------------------
Xinchang Siqiang Life Nutriment Co., Ltd.
*Major
Clients*
---------------------
Parmy
Inc.
Np
Nutra
Staff & Office:
--------------------------
SC is
known to have approx. 100 staff
at present.
SC
rents an area as its operating office, but the detailed information is unknown.
RELATED COMPANY
Fenchem
USA
Address:
5595 Daniels, St., Unit F, Chino, CA, 91710, USA
Tel:
+1 909 627 5268
Fax:
+1 909 627 3619
Fenchem
Europe
Address:
Mírové Náměstí, 160/132, 703 00 Ostrava, Vitkovice, Czech Republic
Tel:
+420 597 609 100
Fax:
+420 597 609 102
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 supplier
refused 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
Basic Bank
China
Merchants Bank Chengnan Sub-branch
AC#: 07796125903719710903
Bank of
Communications Nanjing Sanyuanxiang Sub-branch
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
6,330 |
5,600 |
13,864 |
|
|
Notes receivable |
0 |
0 |
0 |
|
Accounts
receivable |
35,950 |
3,420 |
18,068 |
|
Advances to
suppliers |
12,290 |
0 |
0 |
|
Other receivable |
1,620 |
800 |
299 |
|
Inventory |
3,540 |
7,190 |
6,821 |
|
Subsidy
receivable |
9,100 |
3,420 |
7,389 |
|
Other current
assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
68,830 |
20,430 |
46,441 |
|
Fixed assets |
1,250 |
1,580 |
1,459 |
|
Construction in
progress |
0 |
0 |
0 |
|
Intangible
assets |
0 |
0 |
0 |
|
Long-term
investment |
0 |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
0 |
|
Other non-current
assets |
20,640 |
870 |
1,005 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
90,720 |
22,880 |
48,905 |
|
|
============= |
============= |
============= |
|
Short-term loans |
20,640 |
13,100 |
19,832 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
18,620 |
750 |
14,208 |
|
Payroll payable |
0 |
170 |
205 |
|
Taxes payable |
0 |
-330 |
417 |
|
Advances from
clients |
28,940 |
0 |
0 |
|
Other payable |
-960 |
900 |
1,238 |
|
Other current
liabilities |
70 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
67,310 |
14,590 |
35,900 |
|
Non-current
liabilities |
19,760 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
87,070 |
14,590 |
35,900 |
|
Equities |
3,650 |
8,290 |
13,005 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
90,720 |
22,880 |
48,905 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
183,710 |
181,280 |
166,903 |
|
Cost of sales |
164,710 |
165,780 |
147,527 |
|
Sales expense |
11,510 |
9,830 |
10,210 |
|
Management expense |
5,770 |
6,870 |
7,432 |
|
Finance expense |
2,040 |
230 |
2,243 |
|
Profit before
tax |
1,010 |
820 |
327 |
|
Less: profit tax |
260 |
200 |
82 |
|
750 |
620 |
245 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.02 |
1.40 |
1.29 |
|
*Quick ratio |
0.97 |
0.91 |
1.10 |
|
*Liabilities
to assets |
0.96 |
0.64 |
0.73 |
|
*Net profit
margin (%) |
0.41 |
0.34 |
0.15 |
|
*Return on
total assets (%) |
0.83 |
2.71 |
0.50 |
|
*Inventory /
Revenue ×365 |
8 days |
15 days |
15 days |
|
*Accounts
receivable / Revenue ×365 |
72 days |
7 days |
40 days |
|
*Revenue /
Total assets |
2.03 |
7.92 |
3.41 |
|
*Cost of sales
/ Revenue |
0.90 |
0.91 |
0.88 |
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 sales 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 normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears large.
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:
FAIR
l
The debt ratio of SC is average in 2012 and 2013.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable
financial conditions. The large amount of accounts receivable and short-term
loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.93 |
|
UK Pound |
1 |
Rs.97.39 |
|
Euro |
1 |
Rs.77.21 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.