MIRA
INFORM REPORT
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Report Date : |
29.09.2014 |
IDENTIFICATION DETAILS
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Name : |
WEIFANG ENSIGN
INDUSTRY CO., 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 : |
26.04.2001 |
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Com. Reg. No.: |
370700400010258 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing and selling food
additives: citric acid (anhydrous citric acid, Citric Acid Monohydrate); food
additives: sodium citrate, potassium citrate, calcium citrate; food
additives: liquid carbon dioxide, ethanol, liquid carbon dioxide, sulphuric
acid;
edible alcohol, single feed (corn dried whole alcohol, citric acid mycelium
dried); imports and exports business |
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No of Employees : |
1,500 |
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
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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.
|
Source
: CIA |
Company Name & address
WEIFANG ENSIGN INDUSTRY CO., LTD.
NO. 1567 CHANG SHENG STREET, changle county,
weifang city,
shandong province 262400 PR CHINA
TEL: 86 (0) 536-6273006/6298125
FAX: 86 (0) 536-6234587
EXECUTIVE SUMMARY
INCORPORATION DATE : apr. 26, 2001
REGISTRATION NO. : 370700400010258
REGISTERED LEGAL
FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE : MR. LI SHIYONG (CHAIRMAN)
STAFF STRENGTH : 1,500
REGISTERED CAPITAL :
USD 57,350,000
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER :
CNY 3,415,710,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 1,468,210,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
competitive
FINANCIAL CONDITION :
fairly good
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.127 = 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 Company at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on Apr. 26, 2001, and has been under present
ownership since 2005.
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 and selling food additives: citric acid
(anhydrous citric acid, Citric Acid Monohydrate); food additives: sodium
citrate, potassium citrate, calcium citrate; food additives: liquid carbon
dioxide, ethanol, liquid carbon dioxide, sulphuric acid; edible alcohol, single feed (corn dried whole
alcohol, citric acid mycelium dried); imports and exports business (do not contain distribution
business). (with permit if needed)
SC is mainly
engaged in manufacturing and selling food & feed additives.
Mr. Li Shiyong has
been legal representative and chairman of SC since 2001.
SC is known
to have approx. 1,500 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 Changle County. Our checks reveal
that SC rents the total premise about 180,000 square meters.
http://www.ensignworld.com The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
E-mail: sales@ensignworld.com
SC has been
awarded "Top 100 Enterprise of Weifang", "Advanced Private
Enterprise", "Star-Level Private Enterprise", "Star
Enterprise", "Advanced Enterprise in Business Management", etc.
by Weifang Municipal People's Government, "A-Level Creditable Unit in
Paying Tax" by the taxation authority and "AAA-Level Creditable
Enterprise" by the financial system.
SC has been
ISO9001, ISO14001, HACCP, GMP, OU kosher and HALAL certified.
Changes
of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
2005-9-30 |
Registered Legal
Form |
Limited
Liabilities Company |
Chinese-foreign equity
joint venture enterprise |
|
2005-11-15 |
Company Name |
Weifang Huiyuan
Industry Co., Ltd. |
Weifang Ensign
Industry Co., Ltd. |
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2009-7-17 |
Registered
capital |
USD 7,410,000 |
USD 17,410,000 |
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Shareholdings |
Koda (Asia) Limited
(Hong Kong) 25.03% Li Shiyong 67.48% Li Menghong
7.49% |
Koda (Asia)
Limited (Hong Kong) 68.09% Li Shiyong
28.72% Li Menghong
3.19% |
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|
2010-5-7 |
Registered
capital |
USD 17,410,000 |
USD 33,850,000 |
|
2010-9-18 |
Registered
capital |
USD 33,850,000 |
USD 57,350,000 |
|
N/A |
Registration No. |
003870 |
370700400010258 |
Tax registration
no.: 370725165769854
Organization code:
165769854
For the past two
years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name Investment amount % of Shareholding
Koda (Asia)
Limited (
Li Shiyong USD
16,471,836 28.72
Li Menghong USD
1,829,445 3.19
Koda (Asia)
Limited (
=========================
Registration No.:
0961067
Legal form:
Private company limited by shares
Status: Live
Legal Representative and Chairman:
Mr. Li Shiyong, born
in 1966, with university education. He is currently responsible for the overall
management of SC.
Working
Experience(s):
From 2001 to
present Working in SC as legal representative and chairman.
Also working in
Ensign Holding Group Co., Ltd., Ensign Heavy Industries Co., Ltd., etc. as
legal representative.
Vice Chairman:
Mr. Li Yanming,
ID# 37072319810619****, born in 1981. He is currently responsible for the daily
management of SC.
Working
Experience(s):
At present Working in SC as vice chairman.
SC is mainly
engaged in manufacturing and selling food & feed additives.
SC’s products
mainly include: Citric Acid Series, Alcohol Series and Others.
SC’s brand: “ENSIGN” (英轩牌).
SC sources its materials
90% from domestic market, mainly Shandong province, and 10% from overseas
market. SC sells 55% of its products in domestic market, and 45% to overseas
market.
The buying terms
of SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC
include T/T, L/C, and Credit of 15-30 days.
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TRADEMARKS
& PATENTS |
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Registration No. |
8207567 |
8207601 |
8210796 |
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Registration
Date |
Dec.
28, 2012 |
Apr.
21, 2011 |
Dec.
28, 2012 |
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Trademark Design |
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Note:
SC’s management refused to release its main clients and suppliers.
Ensign Holding
Group Co., Ltd.
=======================
Incorporation
date:
Registration no.:
370725200010427
Registered capital:
CNY 210,000,000
Legal rep.: Li
Shiyong
Legal form:
Limited liabilities co.
Web: http://www.ensign.cc
Ensign Heavy
Industries Co., Ltd.
==========================
Incorporation
date:
Registration no.:
370725200011286
Registered
capital: CNY 322,000,000
Legal rep.: Li
Shiyong
Legal form:
One-person Limited Liability Company
E-mail: office@ensignhi.com
Tel: 0536-6298678
Fax: 0536-6298886
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 information.
Financial summary
Unit: CNY’000
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As of Dec. 31,
2011 |
As of Dec. 31, 2012 |
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Total
liabilities |
629,640 |
537,430 |
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Equities |
1,348,690 |
1,468,210 |
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-------------------- |
-------------------- |
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Total
liabilities & equities |
1,978,330 |
2,005,640 |
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============= |
============= |
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3,861,090 |
3,415,710 |
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Profit before
tax |
344,240 |
129,110 |
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Less: profit tax |
51,630 |
20,360 |
|
292,610 |
108,750 |
Note: SC’s accountant refused to release the
detailed financial reports for Yr2011 and Yr2012 and its latest reports.
Important Ratios
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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*Liabilities to
assets |
0.32 |
0.27 |
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*Net profit
margin (%) |
7.58 |
3.18 |
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*Return on total
assets (%) |
14.79 |
5.42 |
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*Turnover/Total
assets |
1.95 |
1.70 |
PROFITABILITY:
FAIRLY GOOD
The turnover of SC
appears good in its line in both years, but it declined in 2012.
SC’s net profit
margin appears fairly good in 2011, but average in 2012.
SC’s return on
total assets is good in 2011 but fairly good in 2012.
SC’s turnover is
in an average level in both years, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
The debt ratio of
SC is low.
The risk for SC to
go bankrupt is average.
Overall
financial condition of the SC: Fairly good.
SC is considered a
large-sized company in its line with fairly good financial conditions.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.57 |
|
|
1 |
Rs.100.42 |
|
Euro |
1 |
Rs.78.45 |
INFORMATION
DETAILS
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Analysis
Done by : |
KAR |
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Report
Prepared by : |
TPT |
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 |
|
<10 |
C |
Absolute credit
risk exists. Caution needed to be exercised |
Credit not recommended |
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-- |
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.