MIRA INFORM REPORT
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Report Date : |
19.10.2011 |
IDENTIFICATION DETAILS
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Name : |
GUANGZHOU GAINWAY CO., LTD. |
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Registered Office : |
17/F, Fuying International Building, No. 166-3 Changgang Middle Road,
Haizhu District, Guangzhou, Guangdong Province, 510620 Pr |
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Country : |
china |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
19.05.2003 |
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Com. Reg. No.: |
440103000035563 |
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Legal Form : |
Limited Liabilities Co.
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Line of Business : |
Selling
Vehicle
Tires and Accessories. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 20,000 |
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Status : |
Moderate |
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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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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China |
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 & address
GUANGZHOU GAINWAY CO., LTD.
17/F, FUYING INTERNATIONAL BUILDING, NO. 166-3 CHANGGANG MIDDLE ROAD, HAIZHU
DISTRICT, GUANGZHOU, GUANGDONG PROVINCE, 510620 PR CHINA
TEL: 86 (0) 20-84355536/84355288 FAX:
86 (0) 20-84356725
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 19, 2003
REGISTRATION NO. : 440103000035563
REGISTERED LEGAL FORM : limited
liabilities co.
STAFF STRENGTH :
166
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 165,370,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 5,010,000 (AS OF DEC. 31, 2010)
PAYMENT :
average
RECOMM. CREDIT RANGE : UP TO USD 20,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.38 =USD 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 19, 2003.
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 business;
import and export of goods and technology; merchandise information
consultation.
SC
is mainly engaged in selling vehicle tires and accessories.
Mr. Chen Zhigang
is the legal representative and chairman of SC at present.
SC is known
to have approx. 166 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Guangzhou. Our
checks reveal that SC rents the total premise, but SC’s employee refused to
release the gross area of the premise.
sc’s warehouse is located in Guangwei Building, He Xiangning
Industrial Zone, Zengnan Road, Fangcun, Liwan District, Guangzhou.
http://www.gainway2000.com/
The
design is professional and the content is well organized. At present it is in
Chinese and English versions.
E-mail: export@gainway2000.com
No significant events or changes were found during our checks with local
AIC.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Chen Zhigang
55
Tan Jialiang
45
l
Legal Representative and Chairman:
Mr. Chen Zhigang 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 selling vehicle tires and accessories.
SC’s products
mainly include: bicycle tire, bicycle accessories, motorcycle tire, motorcycle
accessories, automobile tires, etc.
SC sources its
materials 100% from domestic market.
SC sells 20% of its products to the overseas market, and 80% in domestic
market.
The buying terms of SC include Check, T/T, and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note:
SC’s management declined to release its major suppliers and clients.
According
to SC’s website:
Gainway
Union Limited (Hong Kong)
============================
CR No.:
1316018
Incorporation
date: Mar. 12, 2009
Legal form:
Private
Add:
Flat 07, 1/F, Block 33, Heng Fa Chuen, Chaiwan, Hong Kong
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.
Agricultural
Bank of China
AC#N/A
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
|
Cash & bank |
2,950 |
3,230 |
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Inventory |
37,630 |
47,350 |
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Accounts
receivable |
14,170 |
5,700 |
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Advances to
supplies |
1,860 |
100 |
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Other
receivables |
30 |
70 |
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Other current
assets |
4,590 |
5,510 |
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|
------------------ |
------------------ |
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Current assets |
61,230 |
61,960 |
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Fixed assets net
value |
800 |
720 |
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Projects under
construction |
0 |
0 |
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Long-term
investments |
0 |
0 |
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Intangible and
other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
62,030 |
62,680 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
48,170 |
48,390 |
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Other Accounts
payable |
7,310 |
9,010 |
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Advances from
clients |
1,810 |
-30 |
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Taxes payable |
190 |
160 |
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Salaries and welfare
payable |
390 |
130 |
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Other
current liabilities |
10 |
10 |
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----------------- |
----------------- |
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Current
liabilities |
57,880 |
57,670 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
57,880 |
57,670 |
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Shareholders
equities |
4,150 |
5,010 |
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------------------ |
------------------ |
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Total
liabilities & equities |
62,030 |
62,680 |
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============= |
============= |
Income Statement
Unit: CNY’000
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|
as of Dec. 31,
2010 |
|
Turnover |
165,370 |
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Cost of goods
sold |
152,120 |
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Taxes
and additional of main operation |
90 |
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Sales expense |
11,900 |
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Management expense |
470 |
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Finance expense |
20 |
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Non-operating
income |
20 |
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Non-operating expense |
390 |
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Profit before
tax |
360 |
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Less: profit tax |
230 |
|
Net profit |
130 |
Important Ratios
=============
|
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as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
|
*Current ratio |
1.06 |
1.07 |
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*Quick ratio |
0.41 |
0.25 |
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*Liabilities
to assets |
0.93 |
0.92 |
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*Net profit
margin (%) |
/ |
0.08 |
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*Return on
total assets (%) |
/ |
0.21 |
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*Inventory
/Turnover ×365 |
/ |
105 days |
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*Accounts
receivable/Turnover ×365 |
/ |
13 days |
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*Turnover/Total
assets |
/ |
2.64 |
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* Cost of
goods sold/Turnover |
/ |
0.92 |
PROFITABILITY: AVERAGE
·
The
turnover of SC appears fairly good in its line in 2010.
· SC’s net profit margin is average in 2010.
·
SC’s return
on total assets is average in 2010.
·
SC’s cost
of goods sold is fairly high in 2010, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in both 2 years.
l
SC’s quick ratio is maintained in a poor level in
both 2 years.
l
The inventory of SC appears
large in both 2 years.
l
The accounts receivable of SC appears
fairly large in 2009 and average in 20 10.
l
There is no short-term loan of SC in
both 2 years.
l
SC’s turnover is in an average level in 2010,
comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial condition. A
credit line up to USD 20,000
would appear to be within SC’s capacities upon a
periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.14 |
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UK Pound |
1 |
Rs.77.58 |
|
Euro |
1 |
Rs.67.58 |
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.