MIRA
INFORM REPORT
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Report Date : |
27.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
GUANGZHOU AUTOMOBILE TRADING CO LTD |
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Registered Office : |
No. 196-198, Zhongshan 7 Road, Guangzhou, Guangdong Province, 510170
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
November 29, 1985 |
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Com. Reg. No.: |
4401011108506 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Import and
Export agency, old automobile exchange, automobile sales, metal sales, and
real estate leasing. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 500,000.00 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
GUANGZHOU AUTOMOBILE TRADING CO., LTD.
NO. 196-198, ZHONGSHAN 7 ROAD, GUANGZHOU,
GUANGDONG PROVINCE, 510170 PR CHINA.
196-198
TEL: 86 (0) 20-81908266
FAX: 86 (0) 20-81882615
EXECUTIVE SUMMARY
INCORPORATION DATE : NOVEMBER 29, 1985
REGISTRATION NO. : 4401011108506
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 50
REGISTERED CAPITAL : CNY 30,380,000
BUSINESS LINE : TRADING
TURNOVER : CNY 443,390,000 (AS OF DEC.
31, 2006)
EQUITIES : CNY 41,330,000 (AS OF
DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 500,000
(periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.0477 = US$ 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: The given address is the registered
address of SC, while it is operating in the heading address.
SC was registered as a limited liabilities
company at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on November 29, 1985.
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 wholesaling and retailing trade (excluding
the products privileged or prohibited); leasing owned property (limited to No.
1, Heliu Street, Nan’an Road; Shima Storehouse, Guanghua 8 Road; First Floor,
No. 43-51, Xiatangxin Village, Lujing West Road; No. 24 Guangwei Road;
No.196-198 Zhongshan 7 Road; No. 22-24 Tianshou Road); commercial information
consulting services; selling automobiles (including cars); importing and exporting commodities and
technologies, (not enclosing the importing and exporting commodity catalogue), excluding
the items prohibited by the state; processing with imported materials,
processing with imported samples, assemblying with imported parts, and
compensation trade in agreement; counter
trade & transit trade.
SC is mainly
engaged in acting as an agent of import and export, old automobile exchanges,
selling new automobile and metal, and leasing real estate.
Mr.
Xiao Tieqiang has been legal representative and chairman of SC since 2002.
SC is known to have approx. 50 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office and head office in the commercial zone of
Guangzhou. SC’s accountant refused to release detailed information of the
premise.
http://www.gzatco.com/ The design is professional
and the content is well organized. At present it is in both Chinese and English
versions.
SC's predecessor is Guangzhou Automobile Trade Corporation
MAIN SHAREHOLDERS:
Name %
of Shareholding
Guangzhou Department Store Group Co.,
Ltd. 24.62
Guangzhou Huachu Trade Co., Ltd
(in Chinese Pinyin) 32.25
Xiao Tieqiang 2.93
Dai Weicai 2.41
Deng Hongjun 2.01
Guan Zhiqiang 1.89
Other 40 individuals 33.89
40
*Guangzhou Department Store
Group Co., Ltd.
l
Legal representative and chairman:
Mr. Xiao Tieqiang, ID # 440106530807091. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working
in SC as chairman and legal representative.
SC is mainly engaged
in import and export agency, old automobile exchange, automobile sales, metal
sales, and real estate leasing.
Main Products: automobiles, metal materials, etc.
SC sources its materials 80%
from domestic market, and 20% from overseas market. SC sells 95% of its
products in domestic market, and 5% to overseas 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 branches and subsidiaries:
Guangzhou
Automobile Trading Co., Ltd. Automobile Sales Branch
Guangzhou
Automobile Trading Co., Ltd. Import & Export Branch
Guangzhou
Automobile Trading Co., Ltd. Metal Materials Branch
Guangzhou
Suiwu Real Estate Development Co., Ltd
Etc.
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 Guangzhou Zhujiang Sub-branch.
AC#N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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Cash & bank |
41,020 |
50,730 |
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Notes receivable |
0 |
9,780 |
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Inventory |
10,620 |
23,870 |
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Accounts
receivable |
11,610 |
7,400 |
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Advances to
supplies |
25,180 |
23,250 |
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Other
receivables |
35,080 |
33,560 |
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A receivable tax
rebate of export |
490 |
760 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
124,000 |
149,350 |
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Fixed assets |
30,410 |
30,490 |
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Fixed assets net
value |
19,810 |
19,010 |
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Projects under
construction |
0 |
0 |
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Long-term
investments |
41,950 |
47,190 |
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Intangible
assets |
1,440 |
860 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
187,200 |
216,410 |
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============= |
============= |
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Short loans |
14,010 |
6,290 |
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Notes payable |
36,570 |
74,400 |
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Accounts payable |
6,790 |
1,230 |
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Advances from
customers |
28,860 |
23,510 |
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Accrued payroll |
1,410 |
1,410 |
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Welfares payable |
1,350 |
1,160 |
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Taxes payable |
-120 |
-1,620 |
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Surcharge
payable |
100 |
110 |
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Other Accounts
payable |
60,100 |
68,590 |
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Other
current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
149,070 |
175,080 |
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Long term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
149,070 |
175,080 |
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Shareholders
equities |
38,130 |
41,330 |
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------------------ |
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Total
liabilities & equities |
187,200 |
216,410 |
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============= |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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Turnover |
486,860 |
443,390 |
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Cost of goods sold |
478,540 |
432,260 |
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Taxes and additional of main
operation |
30 |
90 |
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Income
from other operations |
4,870 |
2,700 |
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Operation expense |
4,700 |
0 |
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Management expense |
6,550 |
5,820 |
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Finance expense |
1,650 |
2,390 |
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Loss of inventory valuation |
-30 |
0 |
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Other |
0 |
4,960 |
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Investment
income |
3,950 |
5,320 |
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Subsidy income |
0 |
70 |
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Non-operating
income |
30 |
0 |
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Non-operating expense |
50 |
20 |
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Operation Profit |
4,220 |
5,940 |
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Less: profit tax |
190 |
310 |
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Net profit |
4,030 |
5,630 |
Important Ratios
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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*Current ratio |
0.83 |
0.85 |
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*Quick ratio |
0.76 |
0.72 |
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*Liabilities
to assets |
0.80 |
0.81 |
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*Net profit
margin (%) |
0.83 |
1.27 |
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*Return on
total assets (%) |
2.15 |
2.60 |
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*Inventory
/Turnover ×365 |
8 days |
20 days |
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*Accounts
receivable/Turnover ×365 |
9 days |
7 days |
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*Turnover/Total
assets |
2.60 |
2.05 |
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* Cost of
goods sold/Turnover |
0.98 |
0.97 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average, and it was rising in 2006.
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SC’s return on total assets is average, and it was rising in 2006.
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SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC is maintained in an average level.
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SC’s short-term loan is in an average level.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
Credit Opinion: USD 500,000.00
SC is considered an old-established business in medium size. The given
credit amount would appear to be within SC’s capacities upon a periodical
review basis.
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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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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%)