MIRA INFORM REPORT
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Report Date : |
21.02.2012 |
IDENTIFICATION DETAILS
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Name : |
GUANGZHOU PEARL RIVER RUBBER TYRE LTD. |
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Registered Office : |
Tanbu Town, Huadu District, Guangzhou, Guangdong Province, 510828 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
11.12.1993 |
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Com. Reg. No.: |
440101400063639 |
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Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
manufacturing and selling
tire |
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No. of Employees
: |
1400 |
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 2,000,000 |
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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 – 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 PEARL
RIVER RUBBER TYRE LTD.
TANBU TOWN, HUADU DISTRICT, GUANGZHOU,
GUANGDONG PROVINCE, 510828 PR CHINA
TEL: 86 (0)
20-86748043/86748000/86748011/86748080
FAX: 86 (0) 20-86748333
EXECUTIVE SUMMARY
INCORPORATION DATE :
DEC. 11, 1993
REGISTRATION NO. :
440101400063639
REGISTERED LEGAL FORM : CHINESE FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 1,400
REGISTERED CAPITAL : USD 43,202,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 688,490,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 343,160,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 2,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE : CNY 6.29 =USD 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY- Yuan China 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 Dec. 11, 1993.
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 joint venture
usually have 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 which have good
competition position in international market may extend beyond the 50 years
limit.
SC’s registered business scope includes
manufacturing and processing tire; selling self-made products; Acquisitions of
domestic non-quota license management, non-franchised merchandise exports.
SC is
mainly engaged in manufacturing and selling tire.
Mr. Wu
Nanyang has been the legal representative and chairman of SC since 2000.
SC is
known to have approx. 1,400
employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industry zone of Guangzhou. Our checks
reveal that SC owns the total premise about 270,000 square meters.
www.pearlrivertyres.com It
can’t be landed for technical reasons.
E-mail: sales@pearlrivertyres.com
In 2002, SC obtained the “CCC” certification and in the same year,
according to the ISO9001:2000, SC has built up a new quality assurance system,
and received the ISO9001 certification from DNV Certification B.V. Netherlands.
Changes of its
registered information are as follows:
|
Date
of change |
Item |
Before the
change |
After the change |
|
2010 |
Registration
No. |
001710 |
440101400063639 |
|
Unknown |
Name
of Shareholder |
Guangzhou
GuangXiang Enterprise Group |
Guangzhou
Guangxiang Enterprises Group Co., Ltd. |
MAIN SHAREHOLDERS:
Name
% of shareholding
Guangzhou Guangxiang Enterprises Group Co.,
Ltd. 30
Carham Assets Limited 70
Guangzhou Guangxiang Enterprises Group Co.,
Ltd.
======================================
Legal representative: Cheng Hongjin
Registered capital: CNY 395,110,000
Registration No.: 440101000104087
Add: No. 9 Jinsha Road, Industrial Street,
Guangzhou
Tel: (020) 84348008/84346438
Fax: (020) 84364642
E-Mail: rubberco@public.guangzhou.gd.com
l
Legal representative and chairman:
Mr. Wu Nanyang , about 49 years old with
university education, he is currently responsible for the overall management of
SC.
Working Experience(s):
From 2000 to present Working in SC as legal representative and chairman;
Also working in Pearl River Tyre (Holdings) Limited as director and CEO
SC is
mainly engaged in manufacturing and selling tire.
SC’s brands mainly
include: “Pearl River”, “SUNSTONE”“REGAL”“RANGER”“EVERSTONE” and “FALCON”, etc.
SC’s products
mainly include: tires.
SC
sources its materials 70% from domestic market, and 30% from Southeast Asia and
Europe. SC sells 45% of its products in domestic market, and 55% to Southeast
Asia, Europe and America.
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.
Note:
SC’s management declined to release its major suppliers and clients.
Pearl River Tyre (Holdings) Limited (Bermuda)
Website: http://www.pearlrivertyres1187.com/
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 records and our debt collection record concerning SC.
Trade payment experience: SC refused to release
any information of its suppliers and the trade reference was not available.
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.
Agriculture Bank of China Huadu Sub-branch
AC#
206801040002140
Industrial and
Commercial Bank of China Guangzhou Branch Huadu Sub-branch
AC#：3602012009044281438
Relationship:
Normal.
Balance Sheet
|
Unit: CNY’000 |
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
Cash & bank |
187,760 |
79,080 |
|
Inventory |
139,430 |
111,240 |
|
Accounts
receivable |
69,080 |
61,440 |
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Other Accounts
receivable |
5,630 |
7,560 |
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To be
apportioned expense |
0 |
0 |
|
Other current
assets |
14,420 |
48,820 |
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|
------------------ |
------------------ |
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Current assets |
416,320 |
308,140 |
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Fixed assets net
value |
209,740 |
189,530 |
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Projects under
construction |
0 |
11,480 |
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Long term
investment |
0 |
0 |
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Other assets |
25,450 |
23,370 |
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------------------ |
------------------ |
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Total assets |
651,510 |
532,520 |
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============= |
============= |
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Short loans |
175,470 |
116,580 |
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Accounts payable |
66,320 |
63,070 |
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Other Accounts payable |
20,920 |
8,800 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current
liabilities |
25,370 |
910 |
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------------------ |
------------------ |
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Current
liabilities |
288,080 |
189,360 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
10 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
288,090 |
189,360 |
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Equities |
363,420 |
343,160 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
651,510 |
532,520 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
|
Turnover |
687,460 |
688,490 |
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Cost of goods
sold |
571,570 |
630,030 |
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Sales expense |
16,670 |
19,640 |
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Management expense |
63,140 |
43,090 |
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Finance expense |
4,340 |
6,930 |
|
Profit before
tax |
21,860 |
-15,190 |
|
Less: profit tax |
0 |
0 |
|
Profits |
21,860 |
-15,190 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
1.45 |
1.63 |
|
*Quick ratio |
0.96 |
1.04 |
|
*Liabilities
to assets |
0.44 |
0.36 |
|
*Net profit
margin (%) |
3.18 |
-2.21 |
|
*Return on
total assets (%) |
3.36 |
-2.85 |
|
*Inventory
/Turnover ×365 |
75 days |
59 days |
|
*Accounts
receivable/Turnover ×365 |
37 days |
33 days |
|
*Turnover/Total
assets |
1.06 |
1.29 |
|
* Cost of
goods sold/Turnover |
0.83 |
0.92 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in its line
in both years.
l
SC’s net profit margin is average in 2009 but fair
in 2010.
l
SC’s return on total assets is average in 2009 but
fair in 2010.
l
SC’s cost of goods sold is average in 2009 but
fairly high in 2010, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC of SC appears fairly large in
both years.
l
The accounts receivable of SC is maintained in an
average level in both years.
l
The short-term loan of SC appears fairly large in
both years.
l
SC’s turnover is in an average level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
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 given credit amount would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.21 |
|
UK Pound |
1 |
Rs.77.75 |
|
Euro |
1 |
Rs.64.58 |
RATING EXPLANATIONS
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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 |
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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.