MIRA
INFORM REPORT
|
Report Date : |
30.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
JIANGSU GUOTAI INTERNATIONAL GROUP GUOMAO CO., LTD. |
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Registered Office : |
11-24/F, A Mansion, Guotai Times Plaza, No.65 Renmin Middle
Road, Zhangjiagang, Jiangsu Province, Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
May 7, 1998 |
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Com. Reg. No.: |
3200001103995 |
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
Engaged
in importing and exporting textiles, garments, electromechanical equipment,
light industry and chemical products; dispatching labor abroad. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 3,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
JIANGSU GUOTAI INTERNATIONAL GROUP GUOMAO CO., LTD.
11-24/F, A MANSION, GUOTAI TIMES PLAZA, NO.65 RENMIN MIDDLE ROAD,
ZHANGJIAGANG, JIANGSU PROVINCE, PR CHINA
TEL : 0086-512-58696853
FAX :
0086-512-58673937
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAY 7, 1998
REGISTRATION NO. :
3200001103995
REGISTERED LEGAL FORM :
SHARES LIMITED CO.
CHIEF EXECUTIVE :
MR. WANG YONGCHENG (CHAIRMAN)
STAFF STRENGTH :
289
REGISTERED CAPITAL :
CNY 160,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 3,004,949,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 520,498,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 3,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.38900=US1$
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’s registered address is 14-17/F, No.43 Rinmin Middle Road, Zhangjiagang, Jiangsu Province.
SC was registered as a shares limited co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 7, 1998.
Company
Status: Shares limited co. This form of business in PR China is defined as a legal
person. Its registered capital is divided into shares of equal par value
and the co. raises capital by issuing share certificates by promotion or by
public offer. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to the extent of its
total assets. The co has independent property of legal person and enjoys
property rights of legal person. The characteristics of the shares limited
co. are as follows: The establishment of the co. requires at least two
promoters and no more than 200, half of whom shall be domiciled in China..
Natural person are allowed to serve as promoters. The minimum registered capital of a co. is CNY 5M. while
that of the co. with foreign investment is CNY 5M. The total capital of a
co. which propose to apply for publicly listed must be no less than CNY
30M. The board of directors must consist of five to nineteen
directors. If the co. raises
capital by public offer, the promoters must not subscribe less than 35% of
the total shares. the promoters’ shares are restricted to transfer- within
one year of the offer. A state-owned enterprise that is restructured into a
shares limited co. must comply with the conditions & requirements
specified under the law & administrative rule.
SC’s registered business scope includes domestic trade (able
to engage in items that need permit according to the laws and administrative
regulations, after obtaining the permit from relative authorities); importing and exporting commodities and
technologies, excluding export commodities under state-unified operation and import
commodities operated by the state-designated companies, processing
with imported materials, processing with imported samples, assembling with
imported parts, and compensation trade in agreement; counter trade & transit trade; dispatching
labor abroad in the fields of engineering, manufacture and service (excluding
sailors).
SC is
mainly engaged in importing and exporting textiles, garments, electromechanical
equipment, light industry and chemical products; dispatching labor abroad.
Mr.
Wang Yongcheng has been legal representative and chairman of SC since 2004.
SC is known to have approx. 289 staff members at
present.
SC is currently operating at the above stated address, and
this address houses its operating office in the commercial zone of
Zhangjiagang. Our checks reveal that SC owns the total premise, but SC’s
accountant refused to release the gross area of the premise.
http://www.gtiggm.com The design is professional and the content is
well organized. At present it is both in Chinese and English versions.
E-Mail: Info@gtiggm.com
SC is a listed company in Shenzhen Stock
Exchange Market with the code of 002091.
|
Date of change |
Item |
Before the change |
After the change |
|
2000-02 |
Registered capital |
CNY 25,000,000 |
CNY 30,000,000 |
|
2002-06 |
Registered capital |
CNY 30,000,000 |
CNY 60,000,000 |
|
2004-05 |
Registered capital |
CNY 60,000,000 |
CNY 96,000,000 |
|
2006-11 |
Registered capital |
CNY 96,000,000 |
CNY 160,000,000 |
MAIN SHAREHOLDERS: (As of
2007-06-30)
Name %
of Shareholding
Jiangsu Guotai International
Group Co., Ltd. 33.75
Zhangjiagang Yongxin Consulting Service Co., Ltd. 7.51
Zhangjiagang Rentong Information
Service Co., Ltd. 6.71
Zhangjiagang Free Trade Zone
Heli Economic Technical Service Co., Ltd. 6.41
Wang Yongcheng 0.85
Ma Xiaotian 0.8
Tan Qiubin 0.8
Wang Wei 0.7
China Construction Bank- small
and medium company
transaction open index fund 0.64
Zhao Ming 0.6
Other Shareholders 41.23
l
Legal representative and chairman:
Mr. Wang Yongcheng, 57 years old with university education. He
is currently responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working in SC as chairman and legal representative.
l
General manager:
Ms.Tan Qiubin, 45 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to present Working in SC as general manager.
SC is mainly
engaged in importing and exporting textiles, garments, electromechanical
equipment, light industry and chemical products; dispatching labor abroad.
SC’s products mainly include: Trimethyl Orthobutyrate, 3-Mercaptopropyltrimethoxysilane,
Yarn, Sweater, Sports Sock and Meta Nitrobenzoic Acid.
SC sources its merchandises 30% from the overseas market and
70% from domestic market. SC sells 40% of its merchandises in domestic market,
and 60% to overseas market, mainly in America, Bengal and Japan.
The buying terms of SC include Check, L/C, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, and Credit of 30-60
days.
*Major Supplier*
=============
Zhangjiagang Guomao Garment Co., Ltd.
*Major Customer*
==============
Zhangjiagang Guotai Toy Designing Centre Co., Ltd.
*Subsidiaries*
===========
Zhangjiagang Guomao Garment Co., Ltd.
Zhangjiagang Guomao Textile Garment Co., Ltd.
Zhangjiagang Guotai Huarong New Chemical Materials Co., Ltd.
Zhangjiagang Guotai Toy Designing Centre Co., Ltd.
Zhangjiagang Guotai Wool Spinning Co.,Ltd.
Jiangsu Guotai (Group) Rugao Garment Co., Ltd.
Zhangjiagang Sishi Garment Designing Centre Co., Ltd.
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’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.
SC’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
|
Cash
& bank |
122,740 |
346,473 |
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Short-term
investments |
562 |
743 |
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Bills
receivable |
85 |
1,039 |
|
Accounts
receivable |
173,984 |
204,243 |
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Other
receivables |
24,830 |
12,608 |
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Advances
to suppliers |
111,821 |
127,580 |
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Subsidies
receivable |
33,099 |
60,713 |
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Inventory |
64,841 |
60,389 |
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Prepaid
expenses |
306 |
122 |
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Other
current assets |
0 |
0 |
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|
------------------ |
------------------ |
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Current
assets |
532,268 |
813,910 |
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Fixed assets |
142,690 |
168,965 |
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Fixed
assets net value |
67,525 |
66,856 |
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Projects
under construction |
75,137 |
102,004 |
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Project
materials |
28 |
105 |
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Long
term investment |
52,171 |
65,694 |
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Other
assets |
4,021 |
3,703 |
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------------------ |
------------------ |
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Total
assets |
731,150 |
1,052,272 |
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============= |
============= |
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Short
loans |
30,288 |
4,000 |
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Bills
payable |
132,325 |
157,849 |
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Accounts
payable |
180,655 |
196,786 |
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Welfare
payable |
1,524 |
3,690 |
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Advances
from clients |
71,963 |
105,929 |
|
Accrued
payroll |
1,128 |
9,744 |
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Tax
payable |
10,066 |
8,787 |
|
Other
payable |
9,185 |
9,373 |
|
Surcharge
payable |
4,394 |
120 |
|
Accrued
expenses |
0 |
2,007 |
|
Long-term
liabilities due with in one year |
4,000 |
0 |
|
Other
current liabilities |
0 |
0 |
|
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------------------ |
------------------ |
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Current
liabilities |
445,528 |
498,285 |
|
Long
term liabilities |
0 |
4,000 |
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------------------ |
------------------ |
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Total
liabilities |
445,528 |
502,285 |
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Minority
Shareholders’ equity |
21,597 |
29,489 |
|
Equities |
264,025 |
520,498 |
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------------------ |
------------------ |
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Total
liabilities & equities |
731,150 |
1,052,272 |
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============= |
============= |
Income
Statement
Unit:
CNY’000
|
|
as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
|
Turnover |
2,747,527 |
3,004,949 |
|
Cost
of goods sold |
2,548,383 |
2,731,298 |
|
Sales expense |
75,321 |
98,046 |
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Management expense |
28,413 |
49,718 |
|
Finance expense |
3,614 |
9,929 |
|
Subsidy
income |
0 |
1,118 |
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Non-operating
income |
228 |
1,337 |
|
Non-operating
expense |
1,455 |
566 |
|
Profit
before tax |
93,334 |
124,526 |
|
Less:
profit tax |
32,830 |
41,631 |
|
Minority
interest income |
2,476 |
9,692 |
|
Profits |
58,028 |
73,203 |
Important
Ratios
=============
|
|
as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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*Current
ratio |
1.19 |
1.63 |
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*Quick
ratio |
1.05 |
1.51 |
|
*Liabilities
to assets |
0.61 |
0.48 |
|
*Net
profit margin (%) |
2.11 |
2.44 |
|
*Return
on total assets (%) |
7.94 |
6.96 |
|
*Fixed
assets/Total assets |
0.20 |
0.16 |
|
*Inventory
/Turnover ×365 |
9 days |
8 days |
|
*Accounts
receivable/Turnover ×365 |
24 days |
25 days |
|
*Turnover/Total
assets |
3.76 |
2.86 |
|
*
Cost of goods sold/Turnover |
0.93 |
0.91 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line, and it
increased in 2006.
l
SC’s net profit margin is average, and in increased in 2006.
l
SC’s return on total assets is fairly good, but it decreased
in 2006.
l
SC’s cost of goods sold is average, comparing with its
turnover.
LIQUIDITY:
FAIRLY GOOD
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a fairly good level.
l
The inventory of SC and inventory conversion period appear
average.
l
The accounts receivable of SC appears average.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in an average level, comparing with the
size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is a average.
Overall
financial condition of the SC: Fairly good.
SC is considered medium-sized in its line with fairly good
financial conditions. Taking into consideration of SC’s general performance, reputation as
well as market conditions we would rate SC as a low credit risk company.
RATING
EXPLANATIONS
|
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 |
|
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)