MIRA
INFORM REPORT
|
Report Date : |
24.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
THOMSON GUANGDONG DISPLAY Co., Ltd. |
|
|
|
|
Registered Office : |
NO. 24, Jihua Sixth Road, Foshan, Guangdong
Province, 528000 |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
15.12.1995 |
|
|
|
|
Com. Reg. No.: |
440600400002659 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
|
|
|
|
Line of Business : |
Manufacturing and Selling Color Picture Tubes |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 3,000,000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name and address of the company
THOMSON GUANGDONG DISPLAY Co., Ltd.
NO. 24, jihua sixth
road, foshan, GUANGDONG PROVINCE, 528000 PR CHINA.
24
TEL: 86 (0)
757-83984341 FAX: 86 (0)
757-83984417
EXECUTIVE SUMMARY
INCORPORATION DATE : december 15, 1995
REGISTRATION NO. : 440600400002659
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 1,700
REGISTERED CAPITAL : usd 212,400,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 3,682,752,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 1,731,938,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 3,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY
7.23 = 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 complete name should
be the heading one, while the given name Tgdc Guangdong Display Co., Ltd.
is the abbreviated name. The given address – No. 56, Zhongyi Road, Foshan, Guangdong
is SC’s former address, while SC is operating in the heading address.
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
December 15, 1995.
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 and selling color picture tubes and
components of color picture tubes and display devices.
SC is mainly
engaged in manufacturing and selling color picture tubes.
Mr. NEERAJ KUMAR has been legal representative and chairman of SC since 2007.
SC is
known to have approx. 1,700 staff members 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 Foshan. Our checks reveal that SC owns the total premise about 50,000 square
meters.
SC is not known to host website of its own at present.
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2005-9-19 |
Registered capital |
USD 82,400,000 |
USD 212,400,000 |
|
Shareholders |
Thomson Tubes & Displays S.A. (France) 77.6%, Foshan Color Picture
Tube Company 22.40% |
Thomson Tubes & Displays S.A. (France) 91.31%, Foshan Color
Picture Tube Company 8.69% |
|
|
2006-8-14 |
Legal Representative |
DIDIER TRUTT |
KULDEEP DRABU |
|
2007-11-14 |
Chinese company name |
|
|
|
Legal Representative |
KULDEEP DRABU |
NEERAJ KUMAR |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Thomson Tubes & Displays S.A. (France) 91.31
Foshan Color Picture Tube Company
8.69
l
Legal representative and chairman:
Mr. NEERAJ KUMAR, Indian, born in 1964 with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2007 to present Working
in SC as chairman and legal representative.
SC is mainly engaged
in manufacturing and selling color picture tubes.
SC’s products mainly include color picture tubes, mainboard,
CRT monitor, and so on.
SC sources its materials 80%
from domestic market, and 20% from overseas market, mainly Europe. SC sells 70%
of its products in domestic market, and 30% to overseas market, mainly
Southeast Asian market.
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.
SC is known to have the following subsidiary:
Dongguan
Branch.
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.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
|
Cash & bank |
82,056 |
|
Inventory |
560,259 |
|
Accounts
receivable |
549,572 |
|
Advances to
suppliers |
18,236 |
|
Other
receivables |
360,528 |
|
Other current
assets |
6,099 |
|
|
------------------ |
|
Current assets |
1,576,750 |
|
Fixed assets net
value |
835,222 |
|
Long term
investment |
0 |
|
Other assets |
86,023 |
|
|
------------------ |
|
Total assets |
2,497,995 |
|
|
============= |
|
Short loans |
358,505 |
|
Accounts payable |
230,659 |
|
Other payable |
129,057 |
|
Advances from
clients |
6,255 |
|
Accrued expenses |
563 |
|
Other current
liabilities |
41,018 |
|
|
------------------ |
|
Current
liabilities |
766,057 |
|
Long term
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
766,057 |
|
Equities |
1,731,938 |
|
|
------------------ |
|
Total
liabilities & equities |
2,497,995 |
|
|
============= |
Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
|
Turnover |
3,682,752 |
|
Cost of goods
sold |
3,455,986 |
|
Sales expense |
180,522 |
|
Management expense |
88,721 |
|
Finance expense |
35,212 |
|
Profit before
tax |
-77,676 |
|
Less: profit tax |
0 |
|
Profits |
-77,676 |
Important Ratios
=============
|
|
as
of Dec. 31, 2006 |
|
*Current ratio |
2.06 |
|
*Quick ratio |
1.33 |
|
*Liabilities
to assets |
0.31 |
|
*Net profit
margin (%) |
-2.11 |
|
*Return on
total assets (%) |
-3.11 |
|
*Inventory
/Turnover ×365 |
56 days |
|
*Accounts
receivable/Turnover ×365 |
55 days |
|
*Turnover/Total
assets |
1.47 |
|
*Cost of goods
sold/Turnover |
0.94 |
PROFITABILITY:
FAIR
l
The turnover of SC appears good in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly good level.
l
SC’s quick ratio is maintained in a fairly good level.
l
The inventory of SC is maintained in an average level.
l
The accounts receivable of SC is maintained in an average level.
l
SC’s short-term loan appears average.
l
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly stable.
CREDIT OPINION: USD 500,000
SC is considered large-sized in its line with
fairly stable financial conditions. The above credit line appears to be within
SC’s capacities.
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 |
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 |
|
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%)