MIRA INFORM REPORT
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Report No. : |
346890 |
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Report Date : |
29.10.2015 |
IDENTIFICATION DETAILS
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Name : |
DEOSEN BIOCHEMICAL LIMITED |
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Registered Office : |
No. 89, Anping
Road, Linzi District, Zibo, Shandong Province, 255400 Pr |
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Country : |
China |
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Date of Incorporation : |
17.07.2005 |
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Com. Reg. No.: |
370300400001344 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject is
engaged in manufacturing and selling food additive xanthan gum. |
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No. of Employee : |
500 |
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 : |
Unknown |
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Litigation : |
Exist |
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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. 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 for the first time in
modern history. Still, China's per capita income is below the world average.
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
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 2014 more than 274 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 also implemented several economic
reforms in 2014, including passing legislation to allow local governments to
issue bonds, opening several state-owned enterprises to further private
investment, loosening the one-child policy, passing harsher pollution fines,
and cutting administrative red tape.
|
Source
: CIA |
company
name and address
DEOSEN BIOCHEMICAL LIMITED
NO. 89, ANPING
ROAD, LINZI DISTRICT, ZIBO,
SHANDONG PROVINCE,
255400 PR CHINA
TEL:
86 (0) 533-7220834/7211374 FAX:
86 (0) 533-7211374/7216024
EXECUTIVE
SUMMARY
INCORPORATION DATE : JULY 13, 2005
REGISTRATION NO. : 370300400001344
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 500
REGISTERED CAPITAL :
CNY 180,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER : N/A
EQUITIES :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION
: N/A
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.3541 =
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 Chinese-foreign equity joint venture
enterprise at local Administration for Industry & Commerce (AIC-The
official body of issuing and renewing business license) on July 13, 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 food additive xanthan gum, and selling self-made products, import
and export business (excluding distribution business).
SC is mainly engaged in manufacturing and
selling food additive xanthan gum.
Mr. Zhai Li is legal representative and
chairman of SC at present.
SC is known to have approx. 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 Zibo. Detailed premise information is not available at
present.
http://www.deosen.com The design is
professional and the content is well organized. At present it is both in
Chinese and English versions.
E-Mail: sales@deosen.com
The following were the former shareholders
of SC:
Name %
of Shareholding
Zibo Yuanhe Venture Capital Department (Limited Partnership) (in Chinese
pinyin) 4.50
Tonghua Holding Co., Ltd. (in Chinese pinyin) 1.04
Shanghai Jiuhan Investment Management Partnership Enterprise
(Limited Partnership) (in Chinese pinyin) 2.50
Shanghai Jinqiao Real Estate Development Co., Ltd. 2.50
Shanghai Dingyi Venture Capital Center (Limited Partnership) (in Chinese
pinyin) 2.78
Shanghai Diersen Venture Capital Center (Limited Partnership) (in
Chinese pinyin) 5.00
Shanghai Cuican Investment Center (Limited Partnership) (in Chinese
pinyin) 1.67
Shandong Deosen Biology Co., Ltd. (literal translation) 50.00
Shandong Heibao Group Co., Ltd. 5.02
SBI Zhaoxin Food Ltd. (Hong Kong) 1.00
JCD NAVI VC FUND I L.P. (Cayman Islands) 1.00
Gateway Food Technology Limited (Hong Kong) 1.66
China Bio Solutions Group Limited (Cayman Islands) 21.33
SC’s branded names
of Ziboxan”, “Zibozan” and “Deosen”have won several provincial and municipal
awards including the "Science and Technology Progress Award" and the
"China Food Additives and Ingredients Association Award." Deosen has achieved international accredited
quality standards, including ISO 9001, ISO 22000, ISO 14001, BRC, GMA- SAFE,
HACCP, Non-GMO, HALAL, Kosher and other international certifications. Both provincial and municipal authorities
have named Deosen as the following: Top
100 Enterprises in China’s Light Industry”, “Shandong High-tech Enterprise”,
“Shandong Engineering and Technological Research Center”, “Shandong A Class
Enterprise in Food Safety” and “International Famous Brands in Shandong
Province. As an industry leader, Deosen
Biochemical Ltd has participated in the initiation of, drafting and development
of GB 13886-2007, the national standard for xanthan gum.
Organization Code:
777409745
See below for SC as
executive party (defendant).
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Executed Party |
SC |
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Court |
Zibo Linzi District
People's Court |
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Date of Case |
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Case Number |
(2012) 00365 |
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Claim Amount |
RMB 12,276 |
Remark: Due to the lack of information, we are
unable to provide the cause of action, judgment or other information.
MAIN SHAREHOLDERS:
Name Amount
(CNY’0000) % of Shareholding
Shandong Deosen Biology Co., Ltd. (literal translation) 9,000 50
China Bio Solutions Group Limited (Cayman Islands) 3,634.4631 20.19
Shanghai Diersen Venture Capital Center
(Limited Partnership) (in Chinese pinyin) 900 5
Shanghai Dingliang Zeyu Investment Center
(Limited Partnership) (in Chinese pinyin) 1,840 10.22
Zibo Yuanhe Venture Capital Department
(Limited Partnership) (in Chinese pinyin) 810 4.50
Shanghai Dingyi Venture Capital Center
(Limited Partnership) (in Chinese pinyin) 500 2.78
Shanghai Jiuhan Investment Management Partnership
Enterprise (Limited Partnership)
(in Chinese pinyin) 450 2.50
Jcd Navi Vc Fund I.l.P (Cayman Islands) 179.8119 1.00
Jing Lin Sheng Lian Investment Co., Ltd.
(in Chinese pinyin) 685.725 3.81
Shandong Deosen Biology Co., Ltd. (literal translation)
------------------------------------------------------------------
Registration no.: 370300400001336
Legal representative: Zhai Li
Incorporation date:
Tel: 0533-7220834/7220837
l Legal representative and chairman:
Mr. Zhai Li is currently
responsible for the overall management of SC.
Working
Experience(s):
At present Working
in SC as legal representative and chairman.
Also working in Shandong Deosen Biology Co., Ltd. (literal translation) and
Tonghua Holding Co., Ltd. (in Chinese pinyin) as legal representative, and in
Ordos Deosen Biochemical Ltd. as director.
l Director and general manager:
Cui Guochen is
currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as director and general
manager.
Also working in Shandong Deosen Biology Co., Ltd. (literal translation)
as director.
l Directors:
Rong Liang
Shen Guoqiang
Yang Liying
l Supervisors:
Huang Zhijian
Sheng Lianghong
Lv Li
SC is mainly engaged in manufacturing and
selling food additive xanthan gum.
SC’s products mainly include: xanthan gum.
SC sources its materials 100% from domestic market. SC sells its
products 25% in domestic market, and 75% to overseas market.
The buying terms of
SC include Check, T/T 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 refused to release
its main clients and suppliers.
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TRADEMARKS
& PATENTS |
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Registration
No. |
4566395 |
5966707 |
5966710 |
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Registration
Date |
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Trademark
Design |
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SC is known
to invest in the following companies:
Ordos Deosen Biochemical Ltd.
================================
Registration no.: 152723000013813
Legal representative: Zhang Tao
Incorporation date:
Zibo Deosen Thermoelectricity Co., Ltd. (literal translation)
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Registration no.: 370300018512064
Legal representative: Yang Liying
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.
SC’s management declined
to release any financial information.
SC is considered
medium-sized in its line with 10 years operation history. Taking into
consideration of SC’s operation size and market conditions we would rate SC as
an average credit risk company. Credit up to moderate amount may be considered.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.65.04 |
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1 |
Rs.99.58 |
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Euro |
1 |
Rs.71.75 |
INFORMATION DETAILS
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Analysis Done by
: |
KIN |
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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.