MIRA
INFORM REPORT
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Report Date : |
17.10.2012 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG GOLDEN EAGLE CO., LTD. |
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Registered Office : |
Xiaosha Town, Dinghai District, Zhoushan Zhejiang Province
316051 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
23.09.1994 |
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Com. Reg. No.: |
330000000002907 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling textile machinery, textile products and garments |
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No. of Employees : |
3,689 |
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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Status : |
Satisfactory |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
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 and address
ZHEJIANG GOLDEN EAGLE CO., LTD.
XIAOSHA TOWN, DINGHAI DISTRICT, ZHOUSHAN
ZHEJIANG PROVINCE 316051 PR CHINA
TEL: 86 (0) 580-8021271/8021228
FAX: 86 (0) 580-8021363/8020228
EXECUTIVE SUMMARY
Date of Registration : september 23, 1994
REGISTRATION NO. : 330000000002907
LEGAL FORM : Shares limited company
REGISTERED CAPITAL : CNY 364,718,540
staff :
3,689
BUSINESS CATEGORY : manufacturing AND
TRADING
Revenue :
CNY 457,927,000 (FROM JAN. 1, 2012
TO JUN. 30, 2012)
EQUITIES :
CNY 1,201,654,000 (AS OF JUN. 30, 2012)
WEBSITE : www.cn-goldeneagle.com
E-MAIL :
gecl@mail.zsptt.zj.cn
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
CNY 6.27 = USD 1
Adopted abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a shares limited company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 330000000002907 on
September 23, 1994.
SC’s Organization Code Certificate No.:
SC’s registered capital: CNY 364,718,540
SC’s paid-in capital: CNY 364,718,540
Registration Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
3300001001615 |
330000000002907 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of June 30, 2012) |
% of Shareholding |
|
Zhejiang Golden Eagle Group Co., Ltd. |
46.87 |
|
Xu Jinghai |
0.31 |
|
Zhong Shilin |
0.28 |
|
Li Zhen |
0.28 |
|
Guo Chuanfang |
0.25 |
|
Wu Keping |
0.22 |
|
Liu Sanchao |
0.19 |
|
Lu Jinjiang |
0.19 |
|
Zhang Hongcheng |
0.17 |
|
Li Teng |
0.17 |
|
Other Shareholders |
51.07 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Fu Guoding |
|
Vice Chairman |
Fu Pingao |
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Director |
Yang Donghui |
|
Xu Shengjun |
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|
Lai Shangyun |
RECENT DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market with stock code
600232.
SC’s products were awarded as Chinese Famous Brand Products.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
(As
of June 30, 2012)
---------------------------------
Zhejiang Golden Eagle Group Co., Ltd. 46.87
Xu Jinghai 0.31
Zhong Shilin 0.28
Li Zhen 0.28
Guo Chuanfang 0.25
Wu Keping 0.22
Liu Sanchao 0.19
Lu Jinjiang 0.19
Zhang Hongcheng 0.17
Li Teng 0.17
Other Shareholders 51.07
u Zhejiang Golden
Eagle Group Co., Ltd.
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Registration No.: 330900000007244
Legal Form: Limited Liabilities Company
Registered Capital: CNY 158,000,000
Legal Representative: Fu Heping
Zhejiang Golden Eagle Group Co., Ltd. is specialized
in Ramie, Wool Silk and Spun Silk Spinning series equipment. Golden Eagle has
been developing good and powerful machinery constantly to create new
outstanding achievement in the new fields while it cements its footing in its
main business such as textile, injection mould machinery and spinning
industries.
Tel: 86 (0) 580-8020333
Add: Xiaosha Town, Dinghai District,
Zhoushan, Zhejiang Province
MANAGEMENT
Fu Guoding , Legal
Representative and Chairman
---------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 67
Ø Qualification: Junior
College
Ø Working experience
(s):
From 1966 to 1994, worked in Dinghai
Textile Machinery Factory as general manager
From 1994 to present, working in SC as
legal representative and chairman
Also working in Zhejiang
Huaying Import and Export Co., Ltd., Zhoushan Dali Silk Garment Co., Ltd., and
Zhoushan Dali Knitting Co., Ltd. as legal representative
Fu
Pingao , Vice Chairman
----------------------------------------------
Ø Gender: M
Ø Age: 64
Ø Qualification: Junior
College
Ø Working experience
(s):
At present, working in SC as vice
chairman
*Officials:
========
Name Title
Yang Donghui Director
Xu Shengjun Director
Lai Shangyun Director
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing machinery; buying and selling textiles,
silk and garments, purchasing and selling ferrous metals, nonferrous metal,
mechanical and electrical equipment and parts, hardware and chemical products,
light textile and silkworm spinning raw materials, fuel, and timber; exporting
its self-made products and related technology; importing materials, instruments
and meters, machinery and equipment, parts and technology needed for its
self-production; processing with imported materials, processing with imported
samples, assembling with imported parts, and compensation trade in agreement;
manufacturing and selling silk, linen, wool textile machinery equipment;
manufacturing and selling textiles, such as spun silk, silk fabric, yarn fabric,
silk knitting and weaving garments.
SC is mainly
engaged in manufacturing and selling textile machinery, textile products and
garments.
Brand: Golden
Eagle
SC’s products
mainly include:
Textile machinery
Injection molding
machine
Flax roving frame
for line
Silk cashmere
Pure ramie fabric
Cast tow roving
frame
Garment
High-speed spun
silk (ramie) gill box
Comber
Spun silk yarn
blending facing material
SC sources its
materials 50% from domestic market, and 50% from overseas market, mainly
France. SC sells 60% of its products in domestic market, and 40% to overseas
market, mainly U.S.A., Europe and Southeast Asia.
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.
*Major Customers:
==============
Mast Industries Inc
Chiang Chin Chinen
Elit Makine San.Ve Tic .Koll
Carrenman (Shanghai) Co., Ltd.
*Major Suppliers:
==============
France TEX NORD Company
France VIVALIN Company
Taizhou Luqiao Zhongfang Machinery Factory
Staff & Office:
--------------------------
SC is known
to have approx. 3,689 staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have the
following subsidiaries:
Zhoushan
Dali Silk Garment Co., Ltd.
Zhoushan
Dali Knitting Co., Ltd.
Zhoushan
Golden Eagle Wanli Flax Spinning & Weaving Co., Ltd.
Zhejiang
Fangzheng Light Textile Machinery Detection Center Co., Ltd. (in Chinese
Pinyin)
Zhejiang
Golden Eagle Yili Linen Textile Co., Ltd.
Zhejiang
Golden Eagle Liuan Linen Textile Co., Ltd. (in Chinese Pinyin)
Zhejiang
Golden Eagle Special Spinning Co., Ltd.
Jiangsu
Golden Eagle Silk Flax Textiles Co., Ltd.
Shanghai
Xinying Garment Co., Ltd.
Zhejiang
Huaying Import and Export Co., Ltd.
Zhejiang
Golden Eagle Plastic Machinery Co., Ltd.
Zhejiang
Golden Eagle Spun Silk Co., Ltd.
Etc.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( )
Poor ( ) Not yet be 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’s suppliers
declined to make any comments.
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.
BANKING
Basic Bank:
China Construction Bank Zhejiang Branch
AC#: 330613500010026303582
FINANCIALS
Consolidated Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2001 |
As
of Jun. 30, 2012 |
|
469,062 |
476,449 |
|
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Held for trading financial assets |
0 |
0 |
|
Notes receivable |
35,527 |
27,372 |
|
Accounts
receivable |
183,207 |
178,973 |
|
Advances to
suppliers |
22,962 |
26,001 |
|
Dividend
receivable |
0 |
0 |
|
Other receivable |
8,624 |
9,370 |
|
Inventory |
672,240 |
730,696 |
|
Other current
assets |
14,373 |
7,712 |
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|
------------------ |
------------------ |
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Current assets |
1,405,995 |
1,456,573 |
|
Long term equity
investment |
0 |
0 |
|
Investment real
estate |
0 |
0 |
|
Fixed assets |
494,383 |
469,395 |
|
Construction in
progress |
6,453 |
9,513 |
|
Project
materials |
0 |
0 |
|
Intangible
assets |
72,622 |
71,819 |
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Long-term
deferred expenses |
4,131 |
3,954 |
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Deferred income
tax assets |
14,633 |
15,892 |
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Other
non-current assets |
220 |
220 |
|
|
------------------ |
------------------ |
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Total assets |
1,998,437 |
2,027,366 |
|
|
============= |
============= |
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Short-term loans |
455,509 |
511,800 |
|
Financial
liabilities for trading |
0 |
0 |
|
Notes payable |
4,300 |
9,250 |
|
Accounts payable |
201,326 |
206,427 |
|
Advances from
clients |
40,778 |
43,476 |
|
Payroll payable |
24,188 |
20,535 |
|
Taxes payable |
3,807 |
-12,810 |
|
Interest payable |
479 |
521 |
|
Dividends
payable |
0 |
36,472 |
|
Other payable |
13,874 |
5,124 |
|
Non-current liabilities
within one year |
0 |
0 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
744,261 |
820,795 |
|
Non-current
liabilities |
4,374 |
4,917 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
748,635 |
825,712 |
|
Equities |
1,249,802 |
1,201,654 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,998,437 |
2,027,366 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
From
Jan. 1, 2012 to Jun. 30, 2012 |
|
Revenue |
1,230,101 |
457,927 |
|
Cost of sales |
1,035,329 |
400,987 |
|
Business Taxes and Surcharges |
5,527 |
2,531 |
|
Sales expense |
37,386 |
14,713 |
|
Management expense |
54,304 |
28,230 |
|
Finance expense |
42,570 |
14,077 |
|
Assets Devaluation |
24,972 |
11,106 |
|
Investment
income |
530 |
0 |
|
Non-operating
income |
3,461 |
2,947 |
|
Non-operating expense |
2,417 |
1,115 |
|
Profit before tax |
31,588 |
-11,885 |
|
Less: profit tax |
3,611 |
-209 |
|
27,977 |
-11,676 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As of Jun. 30, 2012 |
|
*Current ratio |
1.89 |
1.77 |
|
*Quick ratio |
0.99 |
0.88 |
|
*Liabilities
to assets |
0.37 |
0.41 |
|
*Net profit
margin (%) |
2.27 |
-2.55 |
|
*Return on
total assets (%) |
1.40 |
-0.58 |
|
*Inventory /
Revenue ×365/180 |
200 days |
288 days |
|
*Accounts
receivable/ Revenue ×365/180 |
55 days |
71 days |
|
*
Revenue/Total assets |
0.62 |
0.23 |
|
* Cost of
sales / Revenue |
0.84 |
0.88 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC
appears fairly good.
l SC’s net profit
margin is average in 2011, but fair as of Jun. 30, 2012.
l SC’s return on
total assets is average in 2011, but fair as of Jun. 30, 2012.
l
SC’s cost of goods sold is average, comparing with
its revenue in both years.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear large.
l
SC’s revenue 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.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory and short-term loans may be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.82 |
|
|
1 |
Rs.84.96 |
|
Euro |
1 |
Rs.68.61 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.