MIRA
INFORM REPORT
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Report Date : |
22.09.2012 |
IDENTIFICATION DETAILS
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Name : |
GREAT WALL MOTOR CO., LTD. |
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Registered Office : |
No. 2266 Chaoyang Southern Avenue, |
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Country : |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
12.06.2001 |
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Com. Reg. No.: |
130000400000628 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling vehicles and related components. |
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No. of Employees : |
45,737 |
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RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 |
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
GREAT WALL MOTOR CO., LTD.
NO. 2266 CHAOYANG SOUTHERN AVENUE, BAODING
HEBEI PROVINCE 071000 PR CHINA
TEL: 86 (0) 312-2197688/2196669
FAX: 86 (0) 312-2197808
EXECUTIVE SUMMARY
Date of Registration : JUNE 12, 2001
REGISTRATION NO. : 130000400000628
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : CNY 3,042,423,000
staff : 45,737
BUSINESS CATEGORY : manufacturing
REVENUE :
CNY 18,287,571,000 (CONSOLIDATED,
JAN. 1 2012 TO JUN. 30, 2012)
EQUITIES :
CNY 18,298,111,000 (CONSOLIDATED,
AS OF JUN. 30, 2012)
WEBSITE : www.gwm.com.cn
E-MAIL :
zqb@gwm.com.cn
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : GOOD
EXCHANGE RATE :
CNY 6.32 = 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.: 130000400000628 on June
12, 2001.
SC’s Organization Code Certificate No.:
10594183-5
SC’s registered capital: CNY 3,042,423,000
SC’s paid-in capital: CNY 3,042,423,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2008-1 |
Registered Capital |
CNY 944,200,000 |
CNY 1,095,272,000 |
|
-- |
Registration No. |
130000100110 |
130000400000628 |
|
2011 |
Registered Capital |
CNY 1,095,272,000 |
CNY 3,042,423,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of June 30, 2012) |
% of Shareholding |
|
Baoding Innovation Great Wall Assets Management Co., Ltd. |
56.04 |
|
Hkscc Nominees Limited |
33.16 |
|
Founder Securities Co., Ltd. |
0.89 |
|
Wu Fee Philip |
0.58 |
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Shanghai Pudong Development Bank- Castrol
Quality Equity Open-End Securities Investment Funds |
0.50 |
|
Industrial and Commercial Bank of China-
CIFM Domestic Demand Dynamic Equity Securities Investment Fund |
0.36 |
|
Agricultural Bank of China- Invesco Great
Wall Domestic Demand Growth No. Securities Investment Fund |
0.32 |
|
China Construction Bank-Bosera theme
Sector Equity Securities Investment Fund |
0.29 |
|
China Construction Bank-ICBC Credit Suisse
steady growth of the Equity Securities Investment Fund |
0.27 |
|
Bank of China- Castrol Growth And Income
Securities Investment Fund |
0.27 |
|
Other Shareholders |
7.32 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Wei Jianjun |
|
General Manager |
Wang Fengying |
|
Deputy General Managers |
Hu Shujie |
|
Zhang Wenhui |
|
|
Hu Kegang |
RECENT DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market with the code
of 601633.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
(As of June 30, 2012)
---------------------------
Baoding Innovation Great Wall Assets
Management Co., Ltd. 56.04
Hkscc Nominees Limited 33.16
Founder Securities Co., Ltd. 0.89
Wu Fee Philip 0.58
Shanghai Pudong Development Bank- Castrol
Quality Equity Open-End Securities Investment Funds
0.50
Industrial and Commercial Bank of China-
CIFM Domestic Demand Dynamic Equity Securities Investment Fund
0.36
Agricultural Bank of China- Invesco Great
Wall Domestic Demand Growth No. Securities Investment Fund
0.32
China Construction Bank-Bosera theme Sector
Equity Securities Investment Fund
0.29
China Construction Bank-ICBC Credit Suisse
steady growth of the Equity Securities Investment Fund
0.27
Bank of China- Castrol Growth and Income
Securities Investment Fund 0.27
Other Shareholders 7.32
Baoding Innovation
Great Wall Assets Management Co., Ltd.
-------------------------------------------------------------------------------
Date of Registration: December 1, 2005
Registration No.: 130600000028242
MANAGEMENT
Wei Jianjun ,
Legal Representative and Chairman
----------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 48
Ø Qualification:
University
Ø Working experience
(s):
From 2001 to present, working in SC as legal
representative and chairman
Wang Fengying ,
General Manager
---------------------------------------------------------
Ø
Gender: F
Ø
Age: 42
Ø Qualification:
University
Ø Working experience
(s):
From 2001 to present, working in SC as
general manager
Hu Shujie , Deputy
General Manager
-------------------------------------------------------
Ø
Gender: M
Ø
Age: 47
Ø Qualification:
University
Ø Working experience
(s):
From 2007 to present, working in SC as deputy
general manager
Zhang Wenhui ,
Deputy General Manager
------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as deputy general
manager
Hu Kegang , Deputy
General Manager
-------------------------------------------------------------
Ø
Gender: M
Ø
Age: 67
Ø Qualification:
University
Ø Working experience
(s):
From 2007 present, working in SC as deputy
general manager
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing, developing, designing, processing and
selling vehicles, vehicle parts and components, providing related
after-sale and consultation services; manufacturing
electronic equipment and mechanical equipment; processing and manufacturing
moulds; vehicle repairing; common goods transportation and special
transportation; storage & logistics; exporting self-made products and
purchased vehicle parts and components; importing and exporting goods and
technologies.
SC is mainly
engaged in manufacturing and selling vehicles and related components.
SC’s products
mainly include: vehicles and components, the products cover Pickups series, SUV
series, CUV Series, motor-homes and special vehicles etc. Great Wall has the
capability of development and matching regarding core parts of vehicles, such
as engines, front and rear axles etc.
Brand: GREAT WALL
SC sources its materials 50% from domestic
market, and 50% from overseas market, mainly USA and Europe. SC sells 60% of
its products in domestic market, and 40% to overseas market, mainly Russia,
Iraq, Italy and South Africa.
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 Clients:
==========
Baoding Zhongxin
Combustion Motor Manufacturing Co., Ltd.
Tongliao Lifeng
Auto Sales Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 45,737 staff
at present.
SC owns an area as
its operating office & factory of approx. 2,000,000 sq. meters at the
heading address.
RELATED COMPANY
SC is known to have the
following subsidiaries and branches:
Baoding
Great Wall Northern Automotive Co., Ltd.
Baoding
Xincheng Auto Development Co., Ltd.
Baoding
Great Wall Internal Combustion Engine Manufacturing Co., Ltd.
Baoding
Great Wall Machinery Co., Ltd.
Baoding
Great Wall Automotive Axles Industries Co., Ltd.
Baoding
Nuobo Rubber Products Co., Ltd.
Beijing
Great Vehicle Parts Co., Ltd.
Baoding
Great Wall Vehicle After-sale Co., Ltd.
Great
Wall Motor Co., Ltd. Xushui Branch
Great
Wall Motor Co., Ltd. Shunping Branch
Great
Wall Motor Co., Ltd. Tianjin Branch
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 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.
BANKING
Basic Bank:
Bank of China Baoding Branch Yuhua Road Sub-branch
AC#:
37601537408091001
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Jun. 30, 2012 |
|
7,107,086 |
6,427 |
|
|
Notes receivable |
8,702,977 |
10,696,192 |
|
Accounts
receivable |
679,370 |
622,406 |
|
Advances to
suppliers |
360,600 |
366,294 |
|
Interest
receivable |
0 |
15,280 |
|
Other receivable |
650,401 |
405,304 |
|
Inventory |
2,776,681 |
3,392,923 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
97,077 |
6,571,914 |
|
|
------------------ |
------------------ |
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Current assets |
20,374,192 |
22,076,740 |
|
Long term equity
investment |
70,038 |
58,306 |
|
Investment real
estate |
6,413 |
6,332 |
|
Fixed assets |
7,392,381 |
7,600,804 |
|
Construction in
progress |
3,050,225 |
4,369,316 |
|
Project
materials |
0 |
0 |
|
Intangible
assets |
1,869,266 |
2,355,459 |
|
Long-term
prepaid expenses |
18,267 |
17,133 |
|
Deferred income
tax assets |
351,908 |
393,941 |
|
Other
non-current assets |
2,167 |
47,963 |
|
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------------------ |
------------------ |
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Total assets |
33,134,857 |
36,925,994 |
|
|
============= |
============= |
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Short-term loans |
0 |
282,043 |
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Notes payable |
3,977,526 |
4,713,678 |
|
Accounts payable |
6,033,540 |
7,155,847 |
|
Advances from
clients |
2,711,470 |
3,191,595 |
|
Payroll payable |
501,866 |
270,062 |
|
Taxes payable |
283,940 |
322,185 |
|
Other payable |
852,932 |
800,682 |
|
Other current
liabilities |
352,264 |
432,576 |
|
|
------------------ |
------------------ |
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Current
liabilities |
14,713,538 |
17,168,668 |
|
Non-current
liabilities |
1,399,816 |
1,459,215 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
16,113,354 |
18,627,883 |
|
Equities |
17,021,503 |
18,298,111 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
33,134,857 |
36,925,994 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
Jan.
1 2012 to Jun. 30, 2012 |
|
Revenue |
30,089,476 |
18,287,571 |
|
Cost of sales |
22,593,797 |
13,476,105 |
|
Business Taxes and Surcharges |
1,052,324 |
663,551 |
|
Sales expense |
1,192,712 |
633,718 |
|
Management expense |
1,283,873 |
687,249 |
|
Finance expense |
-22,934 |
-47,845 |
|
Assets Devaluation |
5,337 |
62,241 |
|
Investment
income |
24,357 |
6,932 |
|
Non-operating
income |
126,307 |
51,727 |
|
Non-operating expense |
7,509 |
7,433 |
|
Profit before
tax |
4,130,651 |
2,855,386 |
|
Less: profit tax |
619,999 |
478,585 |
|
3,510,652 |
2,376,801 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Jun. 30, 2012 |
|
*Current ratio |
1.38 |
1.29 |
|
*Quick ratio |
1.20 |
1.09 |
|
*Liabilities
to assets |
0.49 |
0.50 |
|
*Net profit
margin (%) |
11.67 |
13.00 |
|
*Return on
total assets (%) |
10.60 |
6.44 |
|
*Inventory /
Revenue ×365/180 |
34 days |
34 days |
|
*Accounts
receivable/ Revenue ×365/180 |
9 days |
7 days |
|
*
Revenue/Total assets |
0.91 |
0.50 |
|
* Cost of sales
/ Revenue |
0.75 |
0.74 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears good in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
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 fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loan of SC appears average.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.90 |
|
|
1 |
Rs.87.60 |
|
Euro |
1 |
Rs.70.01 |
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.