3decades

MIRA INFORM REPORT

Report No. :	508490
Report Date :	11.05.2018

IDENTIFICATION DETAILS

Name :	SYMRISE SHANGHAI LTD.

Registered Office :	No. 30, Longqiao Road, Jinqiao Export Processing Zone, Pudong New Zone, Shanghai 201206 Pr

Country :	China

Financials (as on) :	31.12.2015

Date of Incorporation :	02.08.1982

Unified Social Credit Code :	91310115607202776D

Legal Form :	Wholly Foreign-Owned Enterprise

Line of Business :	Subject registered business scope includes manufacturing natural and synthetic perfume & spice, and food additives used for foodstuff and daily chemical products; selling its products; commission agency, wholesaling, importing & exporting business; and providing relevant services.

No. of Employees :	285

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating

Explanation

Rating Comments

A+

Low Risk

Business dealings permissible with low risk of default

Status :	Good

Payment Behaviour :	Regular

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

China

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.

After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early 2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.

The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.

The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.

Source : CIA

Company name & address

COMPANY NAME	SYMRISE SHANGHAI LTD.
CURRENT ADDRESS/ REGISTERED ADDRESS	NO. 30, LONGQIAO ROAD, JINQIAO EXPORT PROCESSING ZONE, PUDONG NEW ZONE, SHANGHAI 201206 PR CHINA
TEL. NO.	86 (0) 21-58996218
FAX NO.	86 (0) 21-58997578

EXECUTIVE SUMMARY

Date of Registration : AUGUST 2, 1982

UNIFIED SOCIAL CREDIT CODE : 91310115607202776D

LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE

CHIEF EXECUTIVE : MATTHEW WILLIAM ROUSE (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 145,970,584

staff : 285

BUSINESS CATEGORY : MANUFACTURING & TRADING

Revenue : CNY 921,221,000 (AS OF DEC. 31, 2015)

EQUITIES : CNY 678,423,000 (AS OF DEC. 31, 2015)

WEBSITE : www.symrise.com

E-MAIL : N/A

PAYMENT : Regular

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : fairly good

OPERATIONAL TREND : fairly STEADY

GENERAL REPUTATION : AVERAGE

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 wholly foreign-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under Unified Social Credit Code: 91310115607202776D.

SC’s Import and Export Enterprise Code: 3100607202776

SC’s registered capital: CNY 145,970,584

SC’s paid-in capital: CNY 145,970,584

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
2006-12-8	Legal Representative	Bernhard Heinrich Kirchhoff	Emiel J. L. Dons
2007-12-31	Legal Representative	Emiel J. L. Dons	Markus Sattler
2016-7-7	Legal Representative	Markus Sattler	Matthew William Rouse
2016-7-7	Registration No./ Unified Social Credit Code	310115400000020	91310115607202776D

Current Co search indicates SC’s shareholders & chief executives are as follows:-

Name of Shareholder (s)	% of Shareholding
Symrise AG (Germany)	20.91
Symrise Holding, Inc. (U.S.A.)	39.38
Symrise Holding Pte. Limited (Singapore)	39.71

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman and General Manager	Matthew William Rouse
Director	Dominador Jr.Limosnero Saplad
Director	Lionel Georges Flutto
Supervisor	Jan Manz
Supervisor	Reinhard Josef Boettcher

RECENT DEVELOPMENT

No recent development was found during our checks at present.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Symrise AG (Germany) 20.91

Symrise Holding, Inc. (U.S.A.) 39.38

Symrise Holding Pte. Limited (Singapore) 39.71

MANAGEMENT

Matthew William Rouse, Legal Representative, Chairman and General Manager

-------------------------------------------------------------------------------------------------------

Gender: M

Qualification: University

Working experience (s):

At present, working in SC as legal representative, chairman and general manager

Director

-----------

Dominador Jr.Limosnero Saplad

Lionel Georges Flutto

Supervisor

--------------

Jan Manz

Reinhard Josef Boettcher

BUSINESS OPERATION

SC’s registered business scope includes manufacturing natural and synthetic perfume & spice, and food additives used for foodstuff and daily chemical products; selling its products; commission agency, wholesaling, importing & exporting business; and providing relevant services.

SC is mainly engaged in manufacturing and selling natural and synthetic perfume & spice.

SC’s products mainly include: natural and synthetic perfume & spice.

SC sources its materials 30% from domestic market, and 70% from overseas market, mainly Southeast Asian countries and U.S.A. SC sells its products 10% to overseas market, mainly Southeast Asian countries and U.S.A., and 90% in domestic market, mainly Shanghai.

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 Customers:

==============

Atul Ltd.

Colgate Palmolive India Ltd.

Kalpsutra Chemicals Pvt. Ltd.

Plant Lipids Private Limited

Staff & Office:

--------------------------

SC is known to have approx. 285 staff at present.

SC owns an area as its operating office & factory of approx. 45,000 sq. meters at the heading address.

RELATED COMPANY

SC is known to have 3 branches at present,

Symrise Shanghai Ltd. Changning Branch

Symrise Shanghai Ltd. Beijing Branch

Symrise Shanghai Ltd. Guangzhou Branch

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 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.

BANKING

Basic Bank:

Deutsche Bank (China) Co., Ltd. Shanghai Branch

AC#: 3513199015

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2014	As of Dec. 31, 2015
Cash	179,946	302,082
Notes receivable	4,754	6,556
Accounts receivable	207,105	201,265
Advances to suppliers	212	98
Other receivable	5,374	3,969
Inventory	157,257	180,171
Non-current assets within one year	0	0
Other current assets	590	763
	------------------	------------------
Current assets	555,238	694,904
Fixed assets	108,899	119,642
Construction in progress	20,997	4,018
Intangible assets	28,306	25,606
Long-term prepaid expenses	80	62
Deferred income tax assets	7,962	8,488
Other non-current assets	0	0
	------------------	------------------
Total assets	721,482	852,720
	=============	=============
Short-term loans	0	0
Notes payable	0	0
Accounts payable	84,750	88,131
Wages payable	9,970	16,097
Taxes payable	41,048	35,485
Advances from clients	0	0
Other payable	32,891	32,837
Other current liabilities	0	174
	------------------	------------------
Current liabilities	168,659	172,724
Non-current liabilities	0	1,573
	------------------	------------------
Total liabilities	168,659	174,297
Equities	552,823	678,423
	------------------	------------------
Total liabilities & equities	721,482	852,720
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2014	As of Dec. 31, 2015
Revenue	873,401	921,221
Cost of sales	525,941	528,604
Sales expense	129,781	145,698
Management expense	57,006	64,932
Finance expense	-3,202	3,003
Profit before tax	159,149	168,048
Less: profit tax	40,847	42,448
Profits	118,302	125,600

Important Ratios

=============

	As of Dec. 31, 2014	As of Dec. 31, 2015
*Current ratio	3.29	4.02
*Quick ratio	2.36	2.98
*Liabilities to assets	0.23	0.20
*Net profit margin (%)	13.54	13.63
*Return on total assets (%)	16.40	14.73
*Inventory / Revenue ×365	66 days	72 days
*Accounts receivable/ Revenue ×365	87 days	80 days
*Revenue/Total assets	1.21	1.08
*Cost of sales / Revenue	0.60	0.57

FINANCIAL COMMENTS

PROFITABILITY: FAIRLY GOOD

The revenue of SC appears fairly good in its line.

SC’s net profit margin is fairly good.

SC’s return on total assets is fairly good.

SC’s cost of sales is average, comparing with its revenue.

LIQUIDITY: FAIRLY GOOD

The current ratio of SC is maintained in a fairly good level.

SC’s quick ratio is maintained in a fairly good level.

The inventory of SC is maintained in an average level.

The accounts receivable of SC is maintained in an average level.

SC has no short-term loans.

SC’s revenue is in an average level, comparing with the size of its total assets.

LEVERAGE: AVERAGE

The debt ratio of SC is low.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Stable.

CONCLUSIONS

SC is considered medium-sized in its line with stable financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.38
UK Pound	1	INR 91.39
Euro	1	INR 79.89
CNY	1	INR 10.62

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VIV

Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.