MIRA INFORM REPORT
|
Report No. : |
317714 |
|
Report Date : |
20.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
FUYANG BEST FLAVOUR PERFUMERY CO., LTD. |
|
|
|
|
Registered Office : |
Yingzhou Industrial Park, Fuyang, Anhui Province 236033 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
19.01.2007 |
|
|
|
|
Com. Reg. No.: |
341200000025854 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Manufacturing and selling natural spices and synthetic spices;
purchasing and selling agricultural products. |
|
|
|
|
No. of Employees : |
120 |
|
|
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year. 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; 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
|
Source
: CIA |
Company
name & address
FUYANG BEST FLAVOUR PERFUMERY
CO., LTD.
YINGZHOU INDUSTRIAL PARK, FUYANG, ANHUI PROVINCE 236033 PR CHINA
TEL: 86 (0) 558-2115088/2115188
FAX: 86 (0) 558-2115188/2115199
EXECUTIVE
SUMMARY
Date of Registration : JANUARY 19, 2007
REGISTRATION NO. : 341200000025854
LEGAL FORM : LIMITED
LIABILITIES COMPANY
CHIEF EXECUTIVE :
ZHANG
YONG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY
180,600,000
staff :
120
BUSINESS CATEGORY :
manufacturing & trading
Revenue :
CNY 194,097,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 80,308,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.20 = 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 for Industry & Commerce (SAIC) under registration No.:
341200000025854.
SC’s Organization Code Certificate No.:
79643506-8
SC’s Tax No.: 341201796435068
SC’s registered capital: CNY 180,600,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2008-3-17 |
Company Name |
Best Flavour Perfumery (Fuyang) Co., Ltd. |
Fuyang Best Flavour Perfumery Co., Ltd. |
|
Registered Capital |
CNY 1,050,000 |
CNY 2,000,000 |
|
|
Shareholder (s) |
Fuyang Lvye Perfumery Co., Ltd. (Literal
Translation) (U.S.A.) 100% |
Zhang Yong 100% |
|
|
Registration No. |
000538 |
341200000025854 |
|
|
Legal Form |
Wholly foreign owned enterprise |
One-person limited liability company |
|
|
2010-1 |
Registered Capital |
CNY 2,000,000 |
CNY 26,900,000 |
|
Shareholder (s) (% of Shareholding) |
Zhang Yong 100% |
Zhang Yong 89.2% Yang Lifang 10.8% |
|
|
Registered legal form |
One-person limited liability company |
Limited liability company |
|
|
-- |
Registered Capital |
CNY 26,900,000 |
CNY 50,600,000 |
|
2012-12 |
Registered Capital |
CNY 50,600,000 |
CNY 80,600,000 |
|
2014-9-19 |
Registered Capital |
CNY 80,600,000 |
CNY 180,600,000 |
|
% of Shareholding |
Zhang Yong 89.2% Yang Lifang 10.8% |
Zhang Yong 55.37% Yang Lifang 44.63% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhang Yong |
55.37 |
|
Yang Lifang |
44.63 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Zhang Yong |
|
Supervisor |
Yang Lifang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhang Yong 55.37
Yang Lifang 44.63
MANAGEMENT
Zhang Yong, Legal
Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------
Gender: M
Age: 50
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Also working in Shanghai Green Leaf Perfumery Co., Ltd. as legal
representative
Yang Lifang,
Supervisor
-------------------------------------------
Gender: F
Qualification: University
Working experience (s):
Also working in Shanghai Lingfeng International Trade Co., Ltd. as legal
representative
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling
natural spices and synthetic spices; purchasing and selling agricultural
products.
SC is mainly engaged in manufacturing and selling spices.
SC’s products mainly include:
Natural Menthol Crystal
Peppermint Oil
Mint Terpenes
Menthone
Other products
Synthetic Camphor Powder
Eucalyptus Oil Ex. Globulous
Methyl Salicylate
Lavender Oil
Borneol Flakes
Vanillin
Ethyl Vanillin
Sandalwood
SC sources its materials 10% from domestic market, and 90% from overseas
market. SC sells 70% of its products in domestic market, and 30% to the overseas
markets.
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.
*Major Customers:
----------------------
A To Z Nutrition International Inc.
Boody Menthol International Inc.
*Major Supplier:
---------------------
Shanghai Lingfeng International Trade Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx.
120 staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
Shanghai Green Leaf Perfumery Co., Ltd.
---------------------------------------------------------
Date of Registration: March 24, 2004
Registration No.: 310105000252405
Legal Form: Limited Liabilities Company
Chief Executive: Zhang Yong
Registered Capital: CNY 1,000,000
Shanghai Lingfeng International Trade Co., Ltd.
-----------------------------------------------------------------
Date of Registration: November 30, 2005
Registration No.: 310115000926118
Legal Form: Limited Liabilities
Company
Chief Executive: Yang Lifang
Registered Capital: CNY 1,000,000
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 suppliers declined 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:
Bank of China Fuyang Sub-branch
AC#: 185700743096
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2008 |
As of Dec. 31,
2009 |
|
30 |
1,160 |
|
|
Accounts receivable |
0 |
3,210 |
|
Advances to suppliers |
0 |
0 |
|
Other receivable |
0 |
80 |
|
Inventory |
0 |
6,150 |
|
Other current assets |
10 |
20 |
|
|
------------------ |
------------------ |
|
Current assets |
40 |
10,620 |
|
Fixed assets |
30 |
22,620 |
|
Construction in progress |
22,290 |
0 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
720 |
4,010 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
23,080 |
37,250 |
|
|
============= |
============= |
|
Short-term loans |
0 |
3,000 |
|
Accounts payable |
0 |
320 |
|
Wages payable |
0 |
10 |
|
Tax payable |
0 |
-700 |
|
Other payable |
21,080 |
27,070 |
|
Other current liabilities |
0 |
640 |
|
|
------------------ |
------------------ |
|
Current liabilities |
21,080 |
30,340 |
|
Non-current liabilities |
0 |
5,000 |
|
|
------------------ |
------------------ |
|
Total liabilities |
21,080 |
35,340 |
|
Equities |
2,000 |
1,910 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
23,080 |
37,250 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
|
Revenue |
15,330 |
|
Cost of sales |
14,730 |
|
Sales expense |
180 |
|
Management expense |
320 |
|
Finance expense |
120 |
|
Other expense |
70 |
|
Profit before tax |
-90 |
|
Less: profit tax |
0 |
|
-90 |
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
|
Long term investment |
0 |
|
Total assets |
80,239 |
|
|
------------- |
|
Long term liabilities |
5,000 |
|
Total liabilities |
33,537 |
|
Equities |
46,702 |
|
|
------------- |
|
Revenue |
54,381 |
|
Profit before tax |
-4,026 |
|
Less: profit tax |
0 |
|
Profits |
-4,026 |
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Cash |
4,260 |
21,259 |
5,822 |
|
Notes receivable |
0 |
0 |
0 |
|
Accounts receivable |
22,310 |
32,139 |
0 |
|
Advances to suppliers |
7,350 |
19,365 |
12,829 |
|
Other receivable |
5,170 |
1,854 |
5,924 |
|
Inventory |
19,340 |
91,405 |
81,713 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
1,290 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
59,720 |
166,022 |
106,288 |
|
Fixed assets |
48,390 |
50,323 |
21,456 |
|
Construction in progress |
24,950 |
6,621 |
2,621 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
16,720 |
6,529 |
6,819 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
149,780 |
229,495 |
137,184 |
|
|
============= |
============= |
============= |
|
Short-term loans |
0 |
57,363 |
84,838 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
2,110 |
237 |
0 |
|
Advances from clients |
5,130 |
9,059 |
7,151 |
|
Other payable |
34,160 |
137 |
-35,109 |
|
Other current liabilities |
2,170 |
3,322 |
-4 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
43,570 |
70,118 |
56,876 |
|
Non-current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
43,570 |
70,118 |
56,876 |
|
Equities |
106,210 |
159,377 |
80,308 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
149,780 |
229,495 |
137,184 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
226,200 |
364,182 |
194,097 |
|
Cost of sales |
204,340 |
335,047 |
199,082 |
|
Sales expense |
3,580 |
4,320 |
-- |
|
Management expense |
2,990 |
3,121 |
-- |
|
Finance expense |
12,580 |
11,540 |
-- |
|
Profit before tax |
12,690 |
26,999 |
-4,985 |
|
Less: profit tax |
10 |
3,837 |
0 |
|
Profits |
12,680 |
23,162 |
-4,985 |
Important Ratios
=============
|
|
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
|
*Current ratio |
0.01 |
0.35 |
-- |
1.37 |
2.37 |
1.87 |
|
*Quick ratio |
0.01 |
0.15 |
-- |
0.93 |
1.06 |
0.43 |
|
*Liabilities to assets |
0.91 |
0.95 |
0.42 |
0.29 |
0.31 |
0.41 |
|
*Net profit margin (%) |
-- |
-0.59 |
-7.40 |
5.61 |
6.36 |
-2.57 |
|
*Return on total assets (%) |
-- |
-0.24 |
-5.02 |
8.47 |
10.09 |
-3.63 |
|
*Inventory / Revenue ×365 |
-- |
147 days |
-- |
32 days |
92 days |
154 days |
|
*Accounts receivable / Revenue ×365 |
-- |
77 days |
-- |
36 days |
33 days |
-- |
|
*Revenue / Total assets |
-- |
0.41 |
0.68 |
1.51 |
1.59 |
1.41 |
|
*Cost of sales / Revenue |
-- |
0.96 |
-- |
0.90 |
0.92 |
1.03 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
The revenue of SC appears average in its line.
SC’s net profit margin is fair in 2013.
SC’s return on total assets is fair in 2013.
SC’s cost of sales is high, 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 fair level.
The inventory of SC appears large in 2013.
SC has no accounts receivable in 2013.
The short-term loans of SC appear large in 2013.
SC’s revenue is in an average level, 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: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial
conditions. The large amount of inventory and short-term loans may be a threat
to SC’s financial condition. A credit line up to USD 200,000 would appear to be within SC’s capacities upon a
periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.35 |
|
|
1 |
Rs.93.10 |
|
Euro |
1 |
Rs.67.13 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.