MIRA INFORM REPORT
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Report Date : |
11.06.2014 |
IDENTIFICATION DETAILS
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Name : |
FOODCHEM INTERNATIONAL CORPORATION |
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Registered Office : |
1-2/F, No. 9, Foodchem Building, Lane 2277 Zuchongzhi Road, Zhangjiang Hi-Tech Park, Shanghai 201203 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
15.09.2006 |
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Com. Reg. No.: |
310104000355361 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in the selling chemical raw materials, arts and
crafts, packaging materials, general merchandise, hardware, electronic products,
communications equipment, auto parts, motorcycle accessories, computer and
accessories; importing and exporting goods and technology; enterprise
management consulting. |
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No. of Employees : |
40 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 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. Debt overhang from
its credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future.
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 and address
FOODCHEM INTERNATIONAL
CORPORATION
1-2/F, NO. 9, FOODCHEM BUILDING, LANE 2277 ZUCHONGZHI ROAD
ZHANGJIANG HI-TECH PARK, SHANGHAI 201203 PR CHINA
TEL: 86 (0) 21-31267000
FAX: 86 (0) 21-58768440
EXECUTIVE
SUMMARY
Date of Registration : september 15, 2006
REGISTRATION NO. : 310104000355361
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE :
chen youhua (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 1,000,000
staff :
40
BUSINESS CATEGORY : TRADING
Revenue :
CNY 77,200,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 3,380,000 (AS OF DEC. 31, 2013)
WEBSITE : www.foodchem.cn
E-MAIL :
sales@foodchem.cn
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.23 = 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
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.: 310104000355361 on September 15, 2006.
SC’s Organization Code Certificate No.:
79277781-0
SC’s Tax No.: 310115792777810
SC’s registered capital: CNY 1,000,000
SC’s paid-in capital: CNY 1,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Shareholder (s) |
Chen Youhua 45% Zhang Peng 55% |
Chen Youmei 45% Zhang Peng 55% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhang Peng |
55 |
|
Chen Youmei |
45 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Chen Youhua |
|
Supervisor |
Chen Youmei |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhang Peng 55
Chen Youmei 45
MANAGEMENT
Chen Youhua, Legal Representative, Chairman and General
Manager
------------------------------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
From 2006 to present, working in SC as legal representative, chairman
and general manager
Chen Youmei,
Supervisor
---------------------------------------------
Gender: F
BUSINESS OPERATION
SC’s registered business scope includes selling chemical
raw materials, arts and crafts, packaging materials, general merchandise,
hardware, electronic products, communications equipment, auto parts, motorcycle
accessories, computer and accessories; importing and exporting goods and
technology; enterprise management consulting.
SC is mainly engaged in selling chemical raw materials.
SC’s products mainly include:
Sodium Citrate
Citric Acid Anhydrous
Citric Acid Monohydrate
L-Malic Acid
DL-Malic Acid
Sorbic Acid
Sodium Erythorbate
Sodium Diacetate
Erythorbic Acid
Sodium Ascorbate
Sodium Carboxymethyl Cellulose (CMC)
Soy Protein Isolated
SC sources its products 100% from domestic market, mainly Shanghai. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly U.S.A., Europe, Mid East, Southeast Asia, etc.
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 Customers:
==============
Colony Processing Inc.
K.G. International Inc.
Factores & Mercadeo S.A.
Paniplus S.A. De C.V.
Staff &
Office:
--------------------------
SC is known to have approx. 40
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED COMPANY
SC is not known to have any subsidiary at present.
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 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.
BANKING
Basic Bank:
China Merchants Bank Shanghai Yuanshen Sub-branch
AC#: 121908331910102
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
3,360 |
5,030 |
|
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Notes receivable |
0 |
0 |
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Accounts receivable |
5,440 |
11,740 |
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Advances to suppliers |
1,880 |
4,000 |
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Other receivable |
3,200 |
4,350 |
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Inventory |
4,180 |
7,330 |
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Other current assets |
2,230 |
1,090 |
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------------------ |
------------------ |
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Current assets |
20,290 |
33,540 |
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Fixed assets |
180 |
430 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
20,470 |
33,970 |
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============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
6,060 |
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Accounts payable |
0 |
2,210 |
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Wages payable |
10 |
-50 |
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Advances from clients |
0 |
0 |
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Other payable |
17,580 |
22,370 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
17,590 |
30,590 |
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Non-current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
17,590 |
30,590 |
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Equities |
2,880 |
3,380 |
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------------------ |
------------------ |
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Total liabilities & equities |
20,470 |
33,970 |
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============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
77,770 |
77,200 |
|
Cost of sales |
67,510 |
68,330 |
|
Sales expense |
5,430 |
4,640 |
|
Management expense |
3,240 |
3,710 |
|
Finance expense |
460 |
260 |
|
Profit before tax |
1,160 |
680 |
|
Less: profit tax |
290 |
180 |
|
870 |
500 |
Important Ratios
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|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
*Current ratio |
1.15 |
1.10 |
|
*Quick ratio |
0.92 |
0.86 |
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*Liabilities to assets |
0.86 |
0.90 |
|
*Net profit margin (%) |
1.12 |
0.65 |
|
*Return on total assets (%) |
4.25 |
1.47 |
|
*Inventory / Revenue ×365 |
20 days |
35 days |
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*Accounts receivable/ Revenue ×365 |
26 days |
56 days |
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* Revenue/Total assets |
3.80 |
2.27 |
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* Cost of sales / Revenue |
0.87 |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
·
The revenue of SC appears average in its line.
·
SC’s net profit margin is average.
·
SC’s return on total assets is average.
·
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal
level.
·
SC’s quick ratio is maintained in a normal level.
·
The inventory of SC is maintained in an average
level.
·
The accounts receivable of SC is maintained in an
average level.
·
SC has no short-term loans.
·
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is fairly high.
·
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.26 |
|
|
1 |
Rs.99.63 |
|
Euro |
1 |
Rs.80.59 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
NNA |
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 |
|
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.