MIRA INFORM REPORT
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Report No. : |
324135 |
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Report Date : |
28.05.2015 |
IDENTIFICATION DETAILS
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Name : |
WUXI ADVANCED BIOCHEMISTRY CO., LTD. |
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Registered Office : |
Luoshe Town, Huishan District, Wuxi, Jiangsu Province, 214187
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
07.12.2000 |
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Com. Reg. No.: |
320206000066820 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is engaged in manufacturing, processing and selling cocoa
products. |
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No. of Employee : |
35 |
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 – 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
WUXI ADVANCED BIOCHEMISTRY CO., LTD.
LUOSHE TOWN, HUISHAN DISTRICT, Wuxi, jiangsu
PROVINCE, 214187 PR CHINA
TEL: 86 (0) 510-83310190/83309793
FAX: 86 (0) 510-83311220
EXECUTIVE
SUMMARY
INCORPORATION DATE : DEC. 7, 2000
REGISTRATION NO. : 320206000066820
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE : mS. JIANG LINJUAN
(CHAIRMAN)
STAFF STRENGTH : 35
REGISTERED CAPITAL : cny 3,000,000
BUSINESS LINE :
Manufacturing, PROCESSING & TRADING
TURNOVER : CNY 17,460,000
(AS OF S)
EQUITIES : CNY 4,710,000 (AS
OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : FAIRly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.2044= 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
Note: SC is also known as Wuxi Xiande Biochemistry Co., Ltd.
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 Dec. 7, 2000.
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
cocoa products (limit cocoa powder); manufacturing and processing PE plastic bags,
leather cosolvent, cosolvent building materials, printing and dyeing cosolvent;
importing and exporting goods and technologies (excluding the items limited or
prohibited by the state) ( with permit if needed).
SC is mainly engaged in manufacturing, processing and selling cocoa
products.
Ms. Jiang Linjuan is legal representative, executive director 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 and factory in Wuxi. Our checks reveal that SC owns
the total premise about 7,247 square meters.
http://www.aipuer.com/z1.html The design is professional and the content
is well organized. At present it is in Chinese and English versions.
E-mail: wx_xiande@163.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Certificates:
Organization Code: 72442938x
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name Amount (CNY) % of
Shareholding
Han Zhong
ID#32022219681129xxxx 110,000 3.66
Ji Chenggang 380,000 12.67
Jiang Linjuan
ID#32022219630925xxxx 510,000 17
Huang Guofang
ID#32022219600712xxxx 2,000,000 66.67
Legal Representative, Executive Director and General Manager:
Ms. Jiang Linjuan, ID#32022219630925xxxx, born in 1963. She is currently
responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as
legal representative, executive director and general manager.
Supervisors:
Han Zhong
ID#32022219681129xxxx
Ji Chenggang
SC is mainly engaged in manufacturing, processing and selling cocoa
products.
SC’s products mainly include: cocoa powder, dark cocoa powder, cocoa
butter, cocoa liquor and sodium citrate.
SC sources its materials 30% from domestic market, and 70% from overseas
market, mainly Malaysia. SC sells 30% of its products in domestic market, and
70% to overseas market, mainly to Brazil, Greece, etc.
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.
Trademark &
Patents
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Registration No. |
6134082 |
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Registration Date |
2010-2-21 |
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Trademark Design |
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SC is not known to have any subsidiary at present.
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.
Bank of China Wuxi Luoshe Sub-branch
AC#：498858200443
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
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as of Dec. 31, 2013 |
as of Dec. 31, 2012 |
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Cash & bank |
/ |
430 |
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Inventory |
/ |
1,960 |
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Accounts receivable |
/ |
5,120 |
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Other receivables |
/ |
70 |
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------------------ |
------------------ |
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Current assets |
/ |
7,580 |
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Fixed assets net value |
/ |
7,130 |
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Intangible assets |
/ |
10 |
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------------------ |
------------------ |
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Total assets |
11,070 |
14,720 |
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============= |
============= |
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Short loans |
/ |
0 |
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Accounts payable |
/ |
9,020 |
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Taxes payable |
/ |
50 |
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Other payable |
/ |
180 |
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Other accounts payable |
/ |
850 |
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----------------- |
----------------- |
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Current liabilities |
/ |
10,100 |
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Long term liabilities |
/ |
0 |
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------------------ |
------------------ |
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Total liabilities |
6,360 |
10,100 |
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Shareholders equities |
4,710 |
4,620 |
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------------------ |
------------------ |
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Total liabilities & equities |
11,070 |
14,720 |
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Income
Statement
Unit: CNY’000
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|
as of Dec. 31, 2013 |
as of Dec. 31, 2012 |
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Turnover |
17,460 |
46,070 |
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Cost of goods sold |
/ |
41,110 |
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Taxes and additional of main operation |
/ |
140 |
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Sales expense |
/ |
910 |
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Management expense |
/ |
2,190 |
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Non-operating expense |
/ |
50 |
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Profit before tax |
/ |
1,670 |
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Less: profit tax |
/ |
420 |
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Net profit |
/ |
1,250 |
Note: We did not find SC’s latest financial reports.
Important
Ratios
=============
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as of Dec. 31,
2013 |
as of Dec. 31,
2012 |
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*Current ratio |
/ |
0.75 |
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*Quick ratio |
/ |
0.56 |
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*Liabilities to assets |
0.57 |
0.69 |
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*Net profit margin (%) |
/ |
2.71 |
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*Return on total assets (%) |
/ |
8.49 |
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*Inventory /Turnover ×365 |
/ |
16 days |
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*Accounts receivable/Turnover ×365 |
/ |
41 days |
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*Turnover/Total assets |
1.58 |
3.13 |
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* Cost of goods sold/Turnover |
/ |
0.89 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line, but it decreased in
2013.
SC’s net profit margin is average in 2012.
SC’s return on total assets is fairly good in 2012.
SC’s cost of goods sold is average in 2012, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is in a fair level in 2012.
SC’s quick ratio is maintained in a fair level in 2012.
The inventory of SC appears average in 2012.
The accounts receivable of SC appears average in 2012.
SC has no short-term loan in 2012.
SC’s turnover is fairly good in 2012, but average 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 small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.95 |
|
|
1 |
Rs.98.64 |
|
Euro |
1 |
Rs.69.86 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
ANK |
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.