MIRA
INFORM REPORT
|
Report Date : |
22.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
DONGGUAN CSG SOLAR GLASS CO., LTD. |
|
|
|
|
Registered Office : |
Csg Green Energy Industry Area, Machong Town, Dongguan, Guangdong Province, 523141 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
26.10.2005 |
|
|
|
|
Com. Reg. No.: |
441900400001629 |
|
|
|
|
Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
|
|
|
|
Line of Business : |
manufacturing and selling solar glass |
|
|
|
|
No. of Employees : |
950 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.
|
Source : CIA |
Company name & address
DONGGUAN CSG SOLAR
GLASS CO., LTD.
CSG GREEN ENERGY INDUSTRY AREA, MACHONG
TOWN, DONGGUAN, GUANGDONG PROVINCE, 523141 PR CHINA
TEL: 86 (0)
769-88288636 FAX: 86 (0)
769-88280962
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT. 26, 2005
REGISTRATION NO. : 441900400001629
REGISTERED LEGAL FORM
: CHINESE FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
950
REGISTERED CAPITAL : CNY 400,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 717,560,000 (AS OF DEC. 31,
2011)
EQUITIES :
cny 613,980,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.23= 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 Chinese foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Oct. 26, 2005.
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
inorganic nonmetallic materials and products and providing the engineering
technology, manufacturing technology and equipment technology consulting and
service about special glass and deep processing glass; manufacturing and
selling new energy resource power equipment and key equipment; establishing
R&D centers; researching and developing special glass and key equipment of
photovoltaic power generation.
SC is mainly
engaged in manufacturing and selling solar glass.
Mr. Zhang Fan is
legal representative and chairman of SC at present.
SC is known
to have approx. 950 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 Dongguan. Our checks
reveal that SC owns the total premise about 60,000 square meters.
http://www.csgglass.com The
design is professional and the content is well organized. At present it is in
Chinese and English versions.
Changes of its
registered information are as follows:
|
Date
of change |
Item |
Before the
change |
After the change |
|
2011 |
Registered capital |
CNY 200,000,000 |
Present amount |
|
Unknown |
Legal representative |
Li Weinan |
Present one |
SC has got ISO 9001:2000 Certification.
MAIN SHAREHOLDERS:
Name %
of Shareholding
CSG Holding Co., Ltd. 75
Kenda Enterprises Limited (Hong Kong) 25
CSG Holding Co., Ltd.
======================
Incorporation Date:
Registered no.: 440301501125544
Registered capital: CNY 2,076,140,000
Legal representative: Zeng Nan
The said company is listed in Shenzhen Stock Exchange with the code of
000012.
Tel: +86 (755) 26860666
Fax: +86 (755) 26692755
Web: http://www.csgholding.com/
Kenda Enterprises Limited (Hong Kong)
==============================
Registration No. : 0945800
Establishment Date:
Legal Form: Private
Legal
representative and Chairman:
Mr. Zhang Fan, senior engineer, born in 1965, with university education.
He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as chairman and legal representative.
Also working in CSG Holding Co., Ltd. as vice president; working in Shenzhen CSG Float Glass Co., Ltd. and Hebei CSG Glass Co., Ltd. as legal representative.
SC is mainly
engaged in manufacturing and selling solar glass.
SC’s products
mainly include: flat glass, engineering glass, fine glass, structure ceramic, silicon
materials and solar glass.
SC sources its
materials 100% from domestic market. SC sells 70% of its products in domestic
market, and 30% to the overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Note:
SC declined to release its major suppliers and clients.
Shenzhen CSG Float Glass Co., Ltd.
Registered
no.: 440301501127265
Legal
representative: Zhang Fan
Establishment
date:
Hebei
CSG Glass Co., Ltd.
Registered
no.: 130000400002687
Legal
representative: Zhang Fan
Establishment
date:
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.
China Construction Bank Machong Sub-branch
AC#：44001776908059333333
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
|
Cash & bank |
18,930 |
|
Inventory |
55,010 |
|
Accounts
receivable |
67,340 |
|
Advances to
suppliers |
17,040 |
|
Other
receivables |
14,740 |
|
Other current assets |
50,420 |
|
|
------------------ |
|
Current assets |
223,480 |
|
Fixed assets net
value |
582,340 |
|
Long term
investment |
0 |
|
Projects under
construction |
495,520 |
|
Intangible and
other assets |
39,200 |
|
|
------------------ |
|
Total assets |
1,340,540 |
|
|
=========== |
|
Short loan |
141,040 |
|
Accounts payable |
181,150 |
|
Advances from
clients |
1,330 |
|
Taxes payable |
1,700 |
|
Other Accounts
payable |
153,350 |
|
Other current
liabilities |
26,110 |
|
|
------------------ |
|
Current liabilities |
504,680 |
|
Long term
liabilities |
221,880 |
|
|
------------------ |
|
Total
liabilities |
726,560 |
|
Equities |
613,980 |
|
|
------------------ |
|
Total
liabilities & equities |
1,340,540 |
|
|
=========== |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2011 |
|
Turnover |
717,560 |
|
Cost of goods sold |
468,750 |
|
Sales expense |
35,440 |
|
Management expense |
27,670 |
|
Finance expense |
12,410 |
|
Profit before tax |
169,100 |
|
Less: profit tax |
20,890 |
|
Profits |
148,210 |
Important
Ratios
=============
|
|
As of Dec. 31, 2011 |
|
*Current ratio |
0.44 |
|
*Quick ratio |
0.33 |
|
*Liabilities
to assets |
0.54 |
|
*Net profit
margin (%) |
20.65 |
|
*Return on
total assets (%) |
11.06 |
|
*Inventory
/Turnover ×365 |
28 days |
|
*Accounts
receivable/Turnover ×365 |
35 days |
|
*Turnover/Total
assets |
0.54 |
|
* Cost of
goods sold/Turnover |
0.65 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC
appears fairly good.
l SC’s net profit
margin is good.
l SC’s return on
total assets is fairly good.
l
SC’s cost of goods sold is low, comparing with its
turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears average.
l
SC’s turnover is in a fair level, 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.07 |
|
UK Pound |
1 |
Rs.89.54 |
|
Euro |
1 |
Rs.72.77 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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 |
|
---- |
NB |
New Business |
---- |
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.