MIRA INFORM REPORT
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Report Date : |
30.08.2012 |
IDENTIFICATION DETAILS
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Name : |
GANZHOU GUANGJIAN FIBERGLASS CO., LTD. |
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Registered Office : |
Huangbu Industrial Park, Shangyou County, Ganzhou, Jiangxi Province, 341200 Pr |
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Country : |
China. |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
18.09.2009 |
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Com. Reg. No.: |
360724210002142 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling fiberglass products |
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No. of Employees : |
260 |
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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 and address
GANZHOU GUANGJIAN FIBERGLASS co., Ltd.
HUANGBU INDUSTRIAL
PARK, SHANGYOU COUNTY,
GANZHOU, JIANGXI
PROVINCE, 341200 PR CHINA.
TEL: 86 (0)
797-8577999/8577888/8526999 FAX:
86 (0) 797-8576919
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 18, 2009
REGISTRATION NO. : 360724210002142
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
260
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER :
CNY 13,340,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 9,630,000
(AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.3554 = 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 Renminbi
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 Sep. 18, 2009.
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 general business scope: manufacturing and selling all kinds
of e-glass fiber cloth yarn, glass fiber mat, glass fiber products and chemical
materials (excluding hazardous chemicals) (excluding the above-mentioned items
state has special provisions).
SC is mainly
engaged in manufacturing and selling fiberglass products.
Mr. Li Hua is legal representative and chairman of SC at
present.
SC is known
to have approx. 260 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial park of Ganzhou. Our checks
reveal that SC owns the total premise about 15,000 square meters.
http://www.gjgf.cn The design is professional and the content is
well organized. At present it is in Chinese and English versions.
Email: gzguangjian@126.com
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Li Hua 38
Zhang Quanlei 35
Zhang Quanwen 17
Yan Zhangshou 10
l
Legal Representative and Chairman:
Mr. Li Hua , with high school education. He is currently responsible for
the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and
chairman.
l General Manager:
Mr. Zhang Quanwen is currently responsible for the daily
management of SC.
Working Experience(s):
At present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling fiberglass products.
SC’s products mainly
include fiberglass strands, fiberglass yarn, fiberglass cloth and fiberglass
mat.
SC sources its materials 100% from domestic
market. SC sells 95% of its products in domestic market, and 5% to overseas
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 main clients and
suppliers.
SC is not known to have any subsidiary at present.
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 Ganzhou Shangyou Sub-branch
AC# 203701643980
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2010 |
as of Dec. 31, 2011 |
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Cash & bank |
550 |
260 |
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Notes receivable |
510 |
1,200 |
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Inventory |
270 |
4,090 |
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Accounts
receivable |
190 |
1,060 |
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Advances to
suppliers |
20 |
0 |
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Prepaid expenses |
0 |
20 |
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Other
receivables |
3,830 |
450 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
5,370 |
7,080 |
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Long-term investments |
0 |
0 |
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Fixed assets net
value |
16,340 |
17,520 |
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Projects under
construction |
1,910 |
5,220 |
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Long-term
deferred expenses |
350 |
370 |
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Intangible
assets |
1,070 |
1,070 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
25,040 |
31,260 |
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============= |
============= |
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Short loans |
0 |
9,500 |
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Accounts payable |
-270 |
2,320 |
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Advances from
customers |
0 |
0 |
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Accrued Payroll |
130 |
730 |
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Taxes payable |
0 |
130 |
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Accrued expenses |
100 |
1,910 |
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Other accounts
payable |
11,700 |
7,040 |
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Other current
liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
11,660 |
21,630 |
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Long term
liabilities |
3,500 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
15,160 |
21,630 |
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Shareholders
equities |
9,880 |
9,630 |
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------------------ |
------------------ |
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Total liabilities
& equities |
25,040 |
31,260 |
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============= |
============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2011 |
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Turnover |
13,340 |
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Cost of goods
sold |
11,120 |
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Taxes and
additional of main operation |
30 |
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Sales expense |
520 |
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Management expense |
1,130 |
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Finance expense |
720 |
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Non-operating
income |
0 |
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Non-operating expense |
60 |
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Profit before
tax |
-240 |
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Less: profit tax |
0 |
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Net profit |
-240 |
Important Ratios
=============
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as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
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*Current ratio |
0.46 |
0.33 |
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*Quick ratio |
0.44 |
0.14 |
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*Liabilities
to assets |
0.61 |
0.69 |
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*Net profit
margin (%) |
/ |
-1.80 |
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*Return on
total assets (%) |
/ |
-0.77 |
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*Inventory
/Turnover ×365 |
/ |
112 days |
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*Accounts
receivable/Turnover ×365 |
/ |
29 days |
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*Turnover/Total
assets |
/ |
0.43 |
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* Cost of
goods sold/Turnover |
/ |
0.83 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in 2011.
l
SC’s net profit margin is fair in 2011.
l
SC’s return on total assets is fair in 2011.
l
SC’s cost of goods sold is average in 2011,
comparing with its turnover.
LIQUIDITY: POOR
l
The current ratio of SC is maintained in a poor
level in both years.
l
SC’s quick ratio is maintained in a fair level in 2010
but poor in 2011.
l
The inventory of SC appears average in 2010 but
large in 2011.
l
The accounts receivable of SC is maintained in an
average level in both years.
l
The short-term loan of SC appears large in 2011.
l
SC’s turnover is in a fair level in 2011, 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 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 and short loans could be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.66 |
|
|
1 |
Rs.88.04 |
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Euro |
1 |
Rs.69.91 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.