MIRA INFORM REPORT
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Report Date : |
01.11.2014 |
IDENTIFICATION DETAILS
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Name : |
FENCHEM BIOTEK LTD. |
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Registered Office : |
Room 2504 & 19/F, Fortune Building, No. 359, Hongwu Road, Nanjing,
Jiangsu Province, 210002 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
10.09.2007 |
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Com. Reg. No.: |
320100000126213 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
selling pre-packaged food; Technical advisory, research and
development of biochemical information; researching and developing biological
products; importing and exporting commodities and technologies |
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No of Employees : |
100 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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.
|
Source
: CIA |
Company Name & address
FENCHEM BIOTEK LTD.
room 2504 & 19/F, Fortune Building, NO. 359,
HONGWU ROAD, NANJING, JIANGSU PROVINCE, 210002 PR CHINA
2504
TEL: 86 (0) 25-84218888-887
FAX: 86 (0) 25-84574987
EXECUTIVE
SUMMARY
INCORPORATION DATE :
SEPTEMBER 10, 2007
REGISTRATION NO. :
320100000126213
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. FENG XIAOGANG (CHAIRMAN)
STAFF STRENGTH :
100
REGISTERED CAPITAL :
CNY 10,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 166,900,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 12,900,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1257 = 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 co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Sep. 10, 2007.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited liability
to the extent of shareholding, and the co. is liable for its debts only to
extent of its total assets. The characteristics of this form of co. are as
follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes selling pre-packaged food;
Technical advisory, research and development of biochemical information;
researching and developing biological products; importing and exporting
commodities and technologies (excluding commodities and technologies prohibited
by the state.)
SC is mainly engaged in selling chemical products.
Mr. Feng Xiaogang is legal representative, chairman and general manager
of SC at present.
SC is known to have approx. 100 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Nanjing. Our checks
reveal that SC rents the total premise, but the gross area of the premise is
unspecific.
http://www.fenchemcn.com/
The design is professional and the content is well organized. At present it is
in Chinese, English and other versions.
Email: sales@fenchem.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2012 |
Registered capital |
CNY 2,000,000 |
CNY 6,000,000 |
|
Shareholding |
Feng Xiaogang 60% Zhu Yanyan 40% |
Feng Xiaogang 20% Zhu Yanyan 80% |
|
|
2013 |
Registered capital |
CNY 6,000,000 |
Present amount |
|
Shareholding |
Feng Xiaogang 20% Zhu Yanyan 80% |
Present ones |
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 663788564
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Feng Xiaogang 52
Zhu Yanyan 48
Legal Representative, Chairman and General Manager:
Mr. Feng Xiaogang, born in 1979 with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as
chairman, legal representative and general manager.
Supervisor:
----------------------
Zhu Yanyan
SC is mainly engaged in selling chemical products.
SC’s products mainly include:
Nitrocellulose
Cellulose ethers
Hydrocarbon resin
Re-Dispersible Powder
Others
SC sources its materials 98% from domestic market and 2% from overseas
market. SC sells 10% of its products in domestic market and 90% to the overseas
market, mainly America and Europe.
The buying terms of SC include Check, T/T, L/C 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 declined to release its customers and suppliers
details.
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TRADEMARKS & PATENTS |
|
Registration No. |
7231699 |
7231698 |
7556703 |
|
Registration Date |
Sep. 28, 2010 |
Aug. 7, 2010 |
Feb. 21, 2011 |
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Trademark Design |
|
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According to SC’s website:
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
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.
China Merchants Bank Nanjing Branch Chengnan Sub-branch
AC#：07796125903719710903
Relationship: Normal.
Bank of Communications Nanjing Sanyuanxiang Sub-branch
AC#：N/A
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2013 |
as of Dec. 31,
2012 |
|
Cash & bank |
13,860 |
5,600 |
|
Inventory |
6,820 |
7,190 |
|
Accounts receivable |
18,070 |
3,420 |
|
Advances to supplies |
0 |
0 |
|
Other receivables |
300 |
800 |
|
Subsidy receivable |
7,390 |
3,420 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
46,440 |
20,430 |
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Fixed assets net value |
1,460 |
1,580 |
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Long term investment |
0 |
0 |
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Long-term deferred expenses |
40 |
70 |
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Intangible assets |
940 |
800 |
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Other assets |
20 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
48,900 |
22,880 |
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============= |
============= |
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Short loans |
19,830 |
13,100 |
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Accounts payable |
14,290 |
750 |
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Advances from clients |
0 |
0 |
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Other payable |
1,240 |
900 |
|
Taxes payable |
430 |
-330 |
|
Employee pay payable |
200 |
170 |
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Other current liabilities |
10 |
0 |
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------------------ |
------------------ |
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Current liabilities |
36,000 |
14,590 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
36,000 |
14,590 |
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Equities |
12,900 |
8,290 |
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------------------ |
------------------ |
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Total liabilities & equities |
48,900 |
22,880 |
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============= |
============= |
Income
Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2013 |
as
of Dec. 31, 2012 |
|
Turnover |
166,900 |
181,280 |
|
Cost of goods sold |
147,530 |
165,780 |
|
Taxes and additional of main operation |
20 |
30 |
|
Income from other operation |
350 |
1,160 |
|
Sales expense |
10,210 |
9,830 |
|
Management expense |
7,430 |
6,870 |
|
Finance expense |
2,240 |
230 |
|
Subsidy income |
740 |
870 |
|
Non-operating income |
110 |
320 |
|
Non-operating expense |
340 |
70 |
|
Profit before tax |
330 |
820 |
|
Less: profit tax |
90 |
200 |
|
Profits |
240 |
620 |
Important
Ratios
=============
|
|
as
of Dec. 31, 2013 |
as
of Dec. 31, 2012 |
|
*Current ratio |
1.29 |
1.40 |
|
*Quick ratio |
1.10 |
0.91 |
|
*Liabilities to assets |
0.74 |
0.64 |
|
*Net profit margin (%) |
0.14 |
0.34 |
|
*Return on total assets (%) |
0.49 |
2.71 |
|
*Inventory /Turnover ×365 |
15 days |
15 days |
|
*Accounts receivable/Turnover ×365 |
40 days |
7 days |
|
*Turnover/Total assets |
3.41 |
7.92 |
|
* Cost of goods sold/Turnover |
0.88 |
0.91 |
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 cost of goods sold is fairly high in 2012 and average in 2013,
comparing with its turnover.
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 appears average.
The accounts receivable of SC appears average in 2012 but fairly large
in 2013.
The short-term loan of SC appears large in both years.
SC’s turnover is in a good level in 2012 but fairly good in 2013,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
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 short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.41 |
|
|
1 |
Rs.98.06 |
|
Euro |
1 |
Rs.77.19 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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.