MIRA
INFORM REPORT
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Report No. : |
322587 |
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Report Date : |
18.05.2015 |
IDENTIFICATION DETAILS
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Name : |
CHENGUANG BIOTECH GROUP CO., LTD. |
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Registered Office : |
No. 1 Chenguang Road, Quzhou County, Hebei Province 057250
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
12.04.2000 |
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Com. Reg. No.: |
130435000000577 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in manufacturing and selling food additives, "paprika oleoresin, red rice red,
beet red, curcumin, red yeast rice (powder), pepper oleoresin (capsicum
oleoresin), red beet, curcumin," condiment, agricultural products,
edible vegetable oil (semi-refined), single feed, coloring agent (1): chili
red, natural lutein (from marigold); purchasing coloring materials; importing
and exporting of goods and technology (excluding the items prohibited or
limited by the country); processing and selling cotton linter and cotton
shell. |
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No. of Employee : |
751 |
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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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. 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; (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.
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Source
: CIA |
Company name and address
CHENGUANG BIOTECH
GROUP CO., LTD.
NO. 1 CHENGUANG ROAD, QUZHOU COUNTY
HEBEI PROVINCE 057250 PR CHINA
TEL: 86 (0) 310-8851999/8851168
FAX: 86 (0) 310-8851339
EXECUTIVE SUMMARY
Date of Registration : APRIL 12, 2000
REGISTRATION NO. : 130435000000577
LEGAL FORM : SHARES LIMITED
COMPANY
REGISTERED CAPITAL : CNY 179,570,872
staff : 751
BUSINESS CATEGORY : manufacturing & TRADING
Revenue : CNY 1,207,180,000 (Consolidated, AS OF DEC. 31, 2014)
EQUITIES : CNY 1,008,522,000 (Consolidated, AS OF DEC. 31, 2014)
WEBSITE : www.cn-cg.com
E-MAIL :
sesu@hdchenguang.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
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 shares limited company
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 130435000000577.
SC’s Organization Code Certificate
No.: 10690089-1
SC’s registered capital: CNY 179,570,872
SC’s paid-in capital: CNY 179,570,872
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
1304352080088 |
130435000000577 |
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Registered Capital |
CNY 500,000 |
CNY 2,000,000 |
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Registered Capital |
CNY 2,000,000 |
CNY 8,000,000 |
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Company Name |
Hebei Quzhou Chenguang Natural Pigment Co., Ltd. |
Hebei Chenguang Natural Pigment Co., Ltd. |
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Registered Capital |
CNY 8,000,000 |
CNY 50,000,000 |
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Company Name |
Hebei Chenguang Natural Pigment Co., Ltd. |
Chenguang Natural Pigment Co., Ltd. |
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|
Company Name |
Chenguang Natural Pigment Co., Ltd. |
Chenguang Natural Pigment Group Co., Ltd. |
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|
Company Name |
Chenguang Natural Pigment Group Co., Ltd. |
Chenguang Biotech Group Co., Ltd. |
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Registered Capital |
CNY 50,000,000 |
CNY 56,785,436 |
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|
|
Registered Capital |
CNY 56,785,436 |
CNY 66,785,436 |
|
2010 |
Registered Capital |
CNY 66,785,436 |
CNY 89,785,436 |
|
2012 |
Registered Capital |
CNY 89,785,436 |
CNY 179,571,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (As of March 31, 2015) |
% of Shareholding |
|
Lu Qingguo |
9.98 |
|
Li Yuezhai |
5.07 |
|
Guan Qingbin |
4.63 |
|
Dong Xizhong |
4.44 |
|
Zhou Jing |
2.79 |
|
Orient Securities Co., Ltd. |
2.41 |
|
Yang Wenfang |
2.27 |
|
Shenzhen Capital Group Co., Ltd. |
1.98 |
|
Liu Yingshan |
1.83 |
|
Huaxia Growth Securities
Investment Fund |
1.38 |
|
Other Shareholders |
63.22 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, General Manager and Director |
Lu
Qingguo |
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Director |
Lu
Ping |
|
Wei
Xinjiang |
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|
Liu
Yingshan |
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Zhou
Jing |
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Li
Yuezhai |
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Yang
Qingying |
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Qi
Qingzhong |
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Guan
Qingbin |
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Supervisor |
Zhao
Tao |
|
Yang
Wenfang |
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|
Dong
Xizhong |
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|
Liu
Dongming |
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|
Liu
Xufeng |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 300138.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As of
March 31, 2015)
---------------------------------
Lu Qingguo 9.98
Li Yuezhai 5.07
Guan Qingbin 4.63
Dong Xizhong 4.44
Zhou Jing 2.79
Orient Securities Co., Ltd. 2.41
Yang Wenfang 2.27
Shenzhen Capital Group Co., Ltd. 1.98
Liu Yingshan 1.83
Huaxia Growth Securities Investment Fund 1.38
Other Shareholders 63.22
Orient Securities Co., Ltd.
--------------------------------
Registration No.: 310000000092649
Date of Registration: December 10, 1997
Legal Form: Shares Limited Company
Registered Capital: CNY 5,281,742,921
Legal Representative: Pan Xinjun
Web: www.dfzq.com.cn
Shenzhen Capital Group Co., Ltd.
-----------------------------------------
Date of Registration: August 25, 1999
Registration No.: 440301103269709
Legal Form: Limited Liabilities Company
Registered Capital: CNY 4,202,249,520
Web: www.szvc.com.cn
MANAGEMENT
Lu
Qingguo, Legal
Representative, Chairman, General Manager and Director
----------------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 56
Ø
ID# 132123590309001
Ø Qualification: University
Ø Working experience
(s):
From
2000 to present, working in SC as legal representative, chairman, general
manager and director
Also working in Handan City Chenguang Precious Oil Co., Ltd., Xinjiang
Chenguang Natural Pigment Co., Ltd., Xinjiang Chenxi Capsicum Industry Co.,
Ltd. (in Chinese Pinyin) as legal representative, etc
Director
------------
Lu Ping
Wei Xinjiang
Liu Yingshan
Zhou Jing
Li Yuezhai
Yang Qingying
Qi Qingzhong
Guan Qingbin
Supervisor
--------------
Zhao Tao
Yang Wenfang
Dong Xizhong
Liu Dongming
Liu Xufeng
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
and selling food additives, "paprika
oleoresin, red rice red, beet red, curcumin, red yeast rice (powder),
pepper oleoresin (capsicum oleoresin), red beet, curcumin," condiment,
agricultural products, edible vegetable oil (semi-refined), single feed,
coloring agent (1): chili red, natural lutein (from marigold); purchasing
coloring materials; importing and exporting of goods and technology (excluding
the items prohibited or limited by the country); processing and selling cotton
linter and cotton shell.
SC is mainly engaged in manufacturing and selling food additives.
SC’s
products mainly include: paprika oleoresin, red rice red,
capsicum oleoresin, red beet, and curcumin etc.
Brand:
Chenguang
SC sources its materials 80% from domestic
market and 20% from oversea market. SC sells 30% of its products in domestic market
and 70% to overseas market, mainly Europe, U.S.A., and Australia.
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.
Major
Clients*
-----------------
Carotenoid Technologies, S.A.
Synthite Industries Ltd. (India)
Pimursa, S. L. (Spain)
Staff & Office:
--------------------------
SC is
known to have approx. 751
staff at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.
RELATED COMPANY
SC is
known to have the following subsidiaries:
n
Handan City Chenguang Precious Oil Co., Ltd.
n
Hebei Kekou Food Co., Ltd.
n
Chenguang Biotech Group Tianjin Co., Ltd.
n
Xinjiang Chenguang Natural Pigment Co., Ltd.
n
Xinjiang Chenxi Capsicum Industry Co., Ltd. (in
Chinese Pinyin)
n
Hebei Ruide Natural Pigment Co., Ltd.
Etc.
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:
China
Construction Bank Shenzhen Branch
AC#:
44201501100056419635
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
83,041 |
134,497 |
|
|
Notes receivable |
40,663 |
5,348 |
|
Accounts
receivable |
76,831 |
81,143 |
|
Advances to
suppliers |
34,378 |
86,055 |
|
Interest
receivable |
0 |
0 |
|
Other receivable |
17,036 |
14,153 |
|
Inventory |
675,413 |
532,756 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
81,833 |
50,578 |
|
|
------------------ |
------------------ |
|
Current assets |
1,009,195 |
904,530 |
|
Long term equity
investment |
0 |
0 |
|
Investment real
estate |
6,916 |
6,956 |
|
Fixed assets |
450,938 |
463,722 |
|
Construction in
progress |
50,902 |
20,885 |
|
Project
materials |
0 |
0 |
|
Intangible
assets |
92,238 |
95,969 |
|
Goodwill |
594 |
594 |
|
Long-term
prepaid expenses |
0 |
2,200 |
|
Deferred income
tax assets |
8,404 |
7,134 |
|
Other
non-current assets |
12,464 |
6,222 |
|
|
------------------ |
------------------ |
|
Total assets |
1,631,651 |
1,508,212 |
|
|
============= |
============= |
|
Short-term loans |
480,000 |
328,334 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
44,873 |
54,888 |
|
Advances from
clients |
40,685 |
35,769 |
|
Payroll payable |
3,152 |
4,035 |
|
Taxes payable |
1,872 |
4,227 |
|
Interest payable |
545 |
448 |
|
Other payable |
12,208 |
11,450 |
|
Non-current
liabilities within one year |
6,178 |
5,835 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
589,513 |
444,986 |
|
Non-current
liabilities |
51,749 |
54,704 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
641,262 |
499,690 |
|
Equities |
990,389 |
1,008,522 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,631,651 |
1,508,212 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Revenue |
1,186,225 |
1,207,180 |
|
Cost of sales |
1,032,211 |
1,070,232 |
|
Business Taxes and Surcharges |
2,189 |
1,579 |
|
Sales expense |
34,290 |
36,619 |
|
Management expense |
71,295 |
59,111 |
|
Finance expense |
24,629 |
19,361 |
|
Assets Devaluation |
10,092 |
8,562 |
|
Investment
income |
0 |
0 |
|
Non-operating
income |
8,537 |
18,494 |
|
Non-operating expense |
2,584 |
1,033 |
|
Profit before
tax |
17,472 |
29,177 |
|
Less: profit tax |
6,807 |
8,505 |
|
10,665 |
20,672 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.71 |
2.03 |
|
*Quick ratio |
0.57 |
0.84 |
|
*Liabilities
to assets |
0.39 |
0.33 |
|
*Net profit
margin (%) |
0.90 |
1.71 |
|
*Return on
total assets (%) |
0.65 |
1.37 |
|
*Inventory /
Revenue ×365 |
208 days |
162 days |
|
*Accounts
receivable / Revenue ×365 |
24 days |
25 days |
|
*Revenue /
Total assets |
0.73 |
0.80 |
|
*Cost of sales
/ Revenue |
0.87 |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC appears
fairly good, and it was rising in 2014.
l SC’s net profit
margin is average in both years.
l SC’s return on
total assets is average in both years.
l
SC’s cost of sales is average, comparing with its revenue in both years.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fairly
good level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear large.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is low in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory and short-term loans may be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.58 |
|
|
1 |
Rs.100.30 |
|
Euro |
1 |
Rs.72.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ASH |
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.