MIRA
INFORM REPORT
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Report Date : |
20.09.2014 |
IDENTIFICATION DETAILS
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Name : |
xiamen
shengfang bio tech Co., Ltd. |
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Registered Office : |
5/f, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
26.12.2002 |
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Com. Reg. No.: |
350203200047262 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in
selling plant fiber products and furniture include plant hard fiber mattress,
plant soft fiber mattress, plant fiber spring mattress, car cushion. |
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No. of Employees : |
35 |
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 : |
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 – June 1, 2014
|
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
|
Source
: CIA |
Company name and address
xiamen shengfang bio tech Co., Ltd.
5/f,
PRIMARY Administration Committee BUILDING, NO. 15 XIANGXING 1st ROAD,
XIANGYU FREE TRADE ZONE, Modern Logistic Park, XIAMEN,
FUJIAN
PROVINCE, 361006 PR CHINA
TEL: 86
(0) 592-5608381/5896133/5169280 FAX: 86
(0) 592-5861196
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 26, 2002
REGISTRATION NO. : 350203200047262
REGISTERED LEGAL FORM : Limited liabilities company
STAFF STRENGTH :
35
REGISTERED CAPITAL : CNY 35,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 98,060,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 52,180,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1385 = 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 one-person limited liability company at local Administration for industry & commerce (AIC -
the official body of issuing and renewing business license) on Dec. 26, 2002,
and has been under present legal form since 2014.
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 manufacturing and processing plant fiber materials;
manufacturing and selling furniture; research and development of ecological
management techniques, slope protection products, garden products, home
decorative products; import and export of various goods and technology,
excluding the goods and technology prohibited or limited by the country;
wholesaling pre-packaged food.
SC is mainly
engaged in selling plant fiber products and furniture.
Mr. Zhou Xudong is the legal representative, chairman and general manager
of SC at present.
SC is known
to have approx. 35 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Xiangyu Free Trade Zone of Xiamen. SC’s accountant declined
to release the detailed information of the premise.
The other address: Unit J, 4/F, Huayuan Mansion, No. 321, Torch Road,
Torch High-Tech Zone, Xiamen, Fujian Province
http://www.shengfangbio.com/
The
design is professional and the content is well organized. At present it is in
Chinese version.
Email: sales@shengfangbio.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2010 |
Registered
capital |
CNY 15,000,000 |
CNY 21,500,000 |
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2012-11 |
Registered
capital |
CNY 21,500,000 |
Present amount |
|
2014 |
Shareholders |
Xiamen Ceylon Trading Co., Ltd. 100% |
Present ones |
|
Legal form |
one-person limited liability company |
Present one |
SC has passed TS16949, ISO14001, GB18580,
etc.
Subject passed the annual inspection of 2012 with
Administration for Industry & Commerce.
Organization Code: 737875928
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name Amount
(CNY) % of
Shareholding
Xiamen Ceylon Trading Co., Ltd. 33,178,250 94.795
Xiamen Qinchun Investment
Management
Partnership (Limited
Partnership) (in Chinese pinyin)） 1,821,750 5.205
Xiamen Ceylon Trading Co., Ltd.
==============================
Legal representative: Ning Xiaohui
Registration No.: 350200200013985
Registered capital: CNY 5,000,000
l
Legal representative, Chairman and general manager:
Mr. Zhou Xudong in his
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
Also working in Xiamen
Shengxinyuan Agricultural Science and Technology Co., Ltd. (in Chinese pinyin)
as legal representative.
l
Supervisor:
Ning Xiaohui
Also working in
Xiamen Ceylon Trading Co., Ltd. as legal representative.
SC is mainly engaged
in selling plant fiber products and furniture.
SC’s products
mainly include plant hard fiber mattress, plant soft fiber
mattress, plant fiber spring mattress, car cushion.
SC sources its materials 50% from domestic
market and 50% from overseas market. SC sells 99% of its products in domestic
market, 1% to overseas 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, L/C and Credit of 30-60 days.
Note:
SC’s management declined to release its major clients and suppliers.
Note: The production business of SC is outsourced to other factories.
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TRADEMARKS & PATENTS |
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Registration No. |
9229173 |
6270173 |
8534565 |
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Registration Date |
March 28, 2012 |
July 28, 2010 |
Aug. 14, 2011 |
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Trademark Design |
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Subsidiary:
Xiamen
Shengxinyuan Agricultural Science and Technology Co., Ltd. (in Chinese pinyin)
==================================
Registration no.: 350299200011091
Legal representative: Zhou Xudong
Incorporation date:
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 management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
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As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Cash & bank |
2,930 |
7,210 |
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Inventory |
15,100 |
7,180 |
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Accounts
receivable |
9,500 |
9,340 |
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Advances to
suppliers |
22,250 |
8,090 |
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Other
receivables |
680 |
7,060 |
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Other current
assets |
190 |
10 |
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------------------ |
------------------ |
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Current assets |
50,650 |
38,890 |
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Fixed assets net
value |
610 |
940 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
25,600 |
51,890 |
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Long-term
deferred expenses |
40 |
0 |
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Intangible and
other assets |
0 |
50 |
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------------------ |
------------------ |
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Total assets |
76,900 |
91,770 |
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============= |
============= |
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Short loans |
9,230 |
22,580 |
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Accounts payable |
2,370 |
3,810 |
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Advances from
clients |
9,220 |
2,170 |
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Salaries and
welfare payable |
130 |
170 |
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Other payable |
6,240 |
140 |
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Taxes payable |
470 |
720 |
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Other current
liabilities |
20 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
27,680 |
29,590 |
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Long term
liabilities |
10,000 |
10,000 |
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------------------ |
------------------ |
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Total
liabilities |
37,680 |
39,590 |
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Equities |
39,220 |
52,180 |
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------------------ |
------------------ |
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Total
liabilities & equities |
76,900 |
91,770 |
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Income Statement
Unit: CNY’000
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|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
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Turnover |
124,770 |
98,060 |
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Cost of goods
sold |
120,370 |
87,830 |
|
Sales expense |
4 |
2,850 |
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Management expense |
3,230 |
3,150 |
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Finance expense |
1,000 |
2,270 |
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Investment
income |
3,760 |
10,990 |
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Profit before
tax |
3,750 |
13,040 |
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Less: profit tax |
240 |
20 |
|
Profits |
3,510 |
13,020 |
Important Ratios
=============
|
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as
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.83 |
1.31 |
|
*Quick ratio |
1.28 |
1.07 |
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*Liabilities
to assets |
0.49 |
0.43 |
|
*Net profit
margin (%) |
2.81 |
13.28 |
|
*Return on
total assets (%) |
4.56 |
14.19 |
|
*Inventory
/Turnover ×365 |
44 days |
27 days |
|
*Accounts
receivable/Turnover ×365 |
28 days |
35 days |
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*Turnover/Total
assets |
1.62 |
1.07 |
|
* Cost of goods
sold/Turnover |
0.96 |
0.90 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in 2012, but
it decreased in 2013.
l
SC’s net profit margin is average in
l
SC’s return on total assets is average in 2012 and
good in 2013.
l
SC’s cost of goods sold is fairly high in 2012 and
average in 2013, comparing with its turnover.
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 average.
l
SC’s short-term loan appears average in 2012 but
fairly large in 2013.
l
SC’s turnover is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
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 loans could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.80 |
|
|
1 |
Rs.100.06 |
|
Euro |
1 |
Rs.78.46 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
PDT |
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.