MIRA
INFORM REPORT
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Report Date : |
12.03.2011 |
IDENTIFICATION DETAILS
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Name : |
GOLDEN DRAGON PRECISE COPPER TUBE GROUP INC |
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Registered Office : |
No. 191, |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
24.07.2000 |
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Com. Reg. No.: |
410000100013025 |
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Legal Form : |
Shares Limited Co |
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Line of Business : |
Manufacturing and Selling Copper Tubes |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 5,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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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 – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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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 |
Company name and address
Golden Dragon Precise Copper Tube Group Inc.
No. 191, renmin west road,
TEL: 86 (0) 373-2682828
FAX: 86 (0) 373-2682689
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 24, 2000
REGISTRATION NO. : 410000100013025
REGISTERED LEGAL FORM : Shares limited co.
CHIEF EXECUTIVE :
MR. li changjie (CHAIRMAN)
STAFF STRENGTH :
2,200
REGISTERED CAPITAL : CNY 420,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER : CNY 6,670,983,000 (AS OF
DEC. 31, 2009)
EQUITIES : CNY 1,318,201,000 (AS
OF DEC. 31, 2009)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.59= USD 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Ren Min Bi Yuan
Note: The given contact details belong to SC’s Shanghai
office - address (
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 Jul. 24, 2000.
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 The minimum registered capital
of a co. is CNY 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 manufacturing copper and copper
alloy tube products such as air-conditioning & refrigeration tube, rifled
copper tube; manufacturing and selling aluminum tube; exporting self-made
mechanical and electrical products, complete equipments and related technology;
importing mechanical equipments, parts, and raw materials needed in manufacture and
research; processing with imported materials,
processing with imported samples, assembling with imported parts, and
compensation trade in agreement (with permit if needed).
SC is mainly engaged in manufacturing and selling copper tubes.
Mr. Li Changjie is legal representative and chairman of SC at present.
SC is known to have approx. 2,200 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 Xinxiang.
http://www.gdcopper.com The design is
professional and the content is well organized. At present it is in Chinese and
English versions.
SC passed ISO9000 certification of Chinese Quality Committee in
November, 1997 and ISO9000 (2000 version) and ISO14000 certification and JIS certification.
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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Registered capital |
CNY 60,000,000 |
CNY 180,000,000 |
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|
Registered capital |
CNY 180,000,000 |
CNY 210,000,000 |
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|
Registered capital |
CNY 210,000,000 |
CNY 280,000,000 |
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|
Registered capital |
CNY 280,000,000 |
CNY 420,000,000 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Standard Chartered Private Equity Limited 13.88
(U.S.A.) Lehman Brothers Commercial Corporation Asia Limited 5.56
GS Direct GD Limited 5.56
Li Changjie 30
Other 45 individuals 45
Legal representative and chairman:
Mr. Li Changjie, ID# 410703460728253, born in
1946, with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman.
SC is mainly engaged in manufacturing and selling copper tubes.
SC’s products mainly include: air-conditioning & refrigeration tube,
high-efficiency tube, water copper tube and all kinds of precise copper tube.
SC sources its materials 80% from domestic market, and 20% from overseas
market. SC sells 50% of its products in domestic market, and 50% to overseas
market.
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Subsidiaries: According to SC’s website
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Shanghai Longyang Precise Compound Copper Tube Co., Ltd
Jiangsu Canghuan Copper Products Co., Ltd
Wuxi Golden Dragon Kawamura Precise Tube 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 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 refused to release its bank
details.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2008 |
as
of Dec. 31, 2009 |
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Cash & bank |
578,310 |
953,489 |
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Held for trading financial assets |
0 |
0 |
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Bills receivable |
248,383 |
3,160 |
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Accounts receivable |
557,371 |
1,331,713 |
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Advances to suppliers |
0 |
898,164 |
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Dividend receivable |
25,667 |
0 |
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Other Accounts receivable |
144,998 |
100,248 |
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Inventory |
118,503 |
133,074 |
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Other current assets |
15,952 |
135,652 |
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------------------ |
------------------ |
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Current assets |
1,689,184 |
3,555,500 |
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Long-term investment |
1,087,605 |
1,424,379 |
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Fixed assets net value |
718,475 |
671,432 |
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Projects under construction |
45,373 |
44,980 |
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Project materials |
54 |
54 |
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Disposal of fixed assets |
17 |
0 |
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Intangible assets |
31,782 |
29,040 |
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Long-term deferred expenses |
108 |
37 |
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Deferred income tax assets |
2,531 |
7,941 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
3,575,129 |
5,733,363 |
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============= |
============= |
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Short loans |
942,877 |
1,715,054 |
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Bills payable |
765,730 |
1,563,681 |
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Accounts payable |
359,947 |
853,295 |
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Advances from clients |
0 |
33,541 |
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Payroll payable |
8,965 |
5,972 |
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Taxes payable |
-128,260 |
-115,286 |
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Interest payable |
12,245 |
2,536 |
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Other Accounts payable |
170,245 |
109,717 |
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Long term liabilities due within one year |
0 |
0 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
2,131,749 |
4,168,510 |
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Non-current liabilities |
288,962 |
246,652 |
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------------------ |
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Total liabilities |
2,420,711 |
4,415,162 |
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Equities |
1,154,418 |
1,318,201 |
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------------------ |
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Total liabilities & equities |
3,575,129 |
5,733,363 |
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Income Statement
Unit: CNY’000
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as
of Dec. 31, 2008 |
as
of Dec. 31, 2009 |
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Turnover |
5,451,103 |
6,670,983 |
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Cost of goods sold |
5,204,174 |
6,447,678 |
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Sales expense |
18,010 |
41,570 |
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Management expense |
80,565 |
82,377 |
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Finance expense |
120,707 |
90,167 |
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Investment profits |
/ |
14,874 |
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Profit before tax |
29,520 |
28,685 |
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Less: profit tax |
3,622 |
1,085 |
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Profits |
25,898 |
27,600 |
Important Ratios
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as
of Dec. 31, 2008 |
as
of Dec. 31, 2009 |
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*Current ratio |
0.79 |
0.85 |
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*Quick ratio |
0.74 |
0.82 |
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*Liabilities to assets |
0.68 |
0.77 |
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*Net profit margin (%) |
0.48 |
0.41 |
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*Return on total assets (%) |
0.72 |
0.48 |
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*Inventory /Turnover ×365 |
8 days |
7 days |
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*Accounts receivable/Turnover ×365 |
37 days |
73 days |
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*Turnover/Total assets |
1.52 |
1.16 |
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* Cost of goods sold/Turnover |
0.95 |
0.97 |
PROFITABILITY:
FAIR
The turnover of SC appears good in its line, and it increased in 2009.
SC’s net profit margin is fair in both years.
SC’s return on total assets is fair in both years.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level in both years.
SC’s quick ratio is maintained in a normal level in both years.
The inventory of SC appears average in both years.
The accounts receivable of SC appears average in 2008, but appears large
in 2009.
The short-term loan of SC appears large in both years.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of short-term loan and accounts receivable could
be a threat to SC’s financial condition. A credit line up to USD 5,000,000
would appear to be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.21 |
|
|
1 |
Rs.72.55 |
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Euro |
1 |
Rs.62.43 |
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.