MIRA
INFORM REPORT
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Report Date : |
29.09.2012 |
IDENTIFICATION DETAILS
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Name : |
GUANGDONG DONGFANG IMPORT
& EXPORT CORP. |
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Registered Office : |
11/F, Yinsheng Mansion, No. 1001, Hongli Road, Futian District, Shenzhen, Guangdong Province 518028 Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
12.05.1982 |
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Com. Reg. No.: |
440301103263245 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Engaged in international trade mainly include Multi-media Projectors, Electronic products, furniture, Construction materials, aluminum composite panel, Power Inverter, Battery charger, Solar Energy Series, LED Light, Electronics Division website, etc. |
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No. of Employees : |
165 |
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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 : |
Slow but correct |
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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
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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
GUANGDONG
DONGFANG IMPORT & EXPORT CORP.
11/F, YINSHENG MANSION,
NO. 1001, HONGLI ROAD, FUTIAN DISTRICT, SHENZHEN, GUANGDONG PROVINCE 518028 PR
CHINA
TEL: 86 (0)
755-25950206/25950686 FAX: 86 (0)
755-25950220
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 12, 1982
REGISTRATION NO. : 440301103263245
REGISTERED LEGAL FORM : State-owned enterprise
STAFF STRENGTH :
165
REGISTERED CAPITAL : CNY 74,240,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 991,340,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 45,970,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2893= 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
Note: SC’s correct name should be the heading one.
SC was registered as a State-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on May 12, 1982.
Company Status: State-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered business scope includes importing and exporting commodities and technologies, excluding export commodities under state-unified operation and import commodities
operated by the state-designated companies; processing with
imported materials, processing with imported samples, assembling with imported
parts, and compensation trade in agreement; counter trade & transit trade (in accordance with [98] Document No.
400 approved by Foreign Trade and Economic Cooperation); selling import &
export commodities in domestic market.
SC is mainly
engaged in international trade.
Mr. Liang
Yuzhong has been legal representative
and general manager of SC since 2010.
SC is known to
have approx. 165 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Shenzhen. Our checks
reveal that SC owns the total premise about 2,000 square meters.
http://www.dfiec.com/
The design is professional and the content is well organized. At present the
web site is in Chinese and English versions.
E-mail: dongfang@gd-dongfang.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
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|
Legal representative |
Huang Yusheng |
Gao Zhan’ao |
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Legal representative |
Gao Zhanao |
Kong Lingzhuo |
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Registration no. |
4403011061737 |
Present one |
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Legal representative |
Kong Lingzhuo |
Present one |
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Registered capital |
CNY 30,240,000 |
Present amount |
According to SC’s website, SC's predecessor was Shenzhen Oriental
Trading Company.
SC has got ISO 9001:2008 System Certificate, Advanced Enterprises for
Year2007 &2008, Enterprise of Observing Contract and Valuing Credit, etc.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Guangdong Guangxin Holdings Group Ltd. 100
Guangdong Guangxin Holdings Group is the new
Canton in June 2000 by the Guangdong Provincial People’s Government authorizes
the operation of large state-owned enterprise groups.
(according to http://www.gdftc.com/)
Its former name was Guangdong Guangxin
Foreign Trade Group Co., Ltd. .
Registered no.: 440000000045367
Legal representative: Li Cheng
Registered capital: CNY 1,600,000,000
Add: No. 1000, Xin’gang East Road, Haizhu
District, Guangzhou
Tel: 86-20-89203226
Fax: 86-20-89203021
Email: zhb@gdftc.com
l
Legal Representative and General Manager:
Mr. Liang Yuzhong , with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2010 to present Working
in SC as legal representative and general manager.
SC is mainly
engaged in international trade.
SC’s products mainly include Multi-media Projectors, Electronic
products, furniture, Construction materials, aluminum composite panel, Power
Inverter, Battery charger, Solar Energy Series, LED Light, Electronics Division
website, etc.
SC’s business mainly include import and
export trade of mechanical and electrical products, daily necessities, such as
cotton-based products, products exported to the United States, Canada, the
European Union, South Africa, the Middle East, Japan, Southeast Asia and
countries such as Hong Kong and Macao. (According to SC’s website)
SC sources its
materials 97% from domestic market and 3% from overseas market. SC sells 20% of
its products in domestic market and 80% to overseas market.
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 declined to release its major suppliers and clients.
According to the website http://www.gdftc.com/
Guangdong
Machinery Imp. & Exp. Corp. (Group)
Guangdong
Foreign Trade Development Corp.
Guangdong
Foodstuffs Import & Export Group Corporation
Guangdong
Metals & Minerals Import & Export Group Corporation
Guangdong
Advertising Co., Ltd.
Guangdong
Native Produce Import & Export Corporation (group)
Guangdong
Guangxin Trade Development Co., Ltd.
Guangdong
Guangxin Investment Holdings Ltd.
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.
Bank of China
AC#:
810400017608091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2010 |
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Cash & bank |
/ |
58,520 |
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Inventory |
/ |
24,710 |
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Bills receivable |
/ |
0 |
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Accounts
receivable |
/ |
91,190 |
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Advances to
suppliers |
/ |
121,420 |
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Other
receivables |
/ |
95,880 |
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Other current
assets |
/ |
0 |
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------------------ |
------------------ |
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Current assets |
339,730 |
391,720 |
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Fixed assets net
value |
/ |
9,550 |
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Long term investment |
/ |
30,910 |
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Projects under
construction |
/ |
0 |
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Intangible and
other assets |
/ |
29,180 |
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Total assets |
404,950 |
461,360 |
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Short loan |
/ |
53,860 |
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Accounts payable |
/ |
108,030 |
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Bills payable |
/ |
35,560 |
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Advances from
clients |
/ |
87,830 |
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Taxes payable |
/ |
2,250 |
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Other Accounts
payable |
/ |
119,260 |
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Other current
liabilities |
/ |
11,380 |
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------------------ |
------------------ |
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Current
liabilities |
357,510 |
418,170 |
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Long term
liabilities |
1,470 |
1,890 |
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------------------ |
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Total
liabilities |
358,980 |
420,060 |
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Equities |
45,970 |
41,300 |
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Total
liabilities & equities |
404,950 |
461,360 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2010 |
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Turnover |
991,340 |
944,910 |
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Cost of goods sold |
928,170 |
896,470 |
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Sales expense |
/ |
21,120 |
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Management expense |
/ |
15,400 |
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Finance expense |
/ |
8,930 |
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Profit before tax |
10,730 |
-6,420 |
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Less: profit tax |
5,690 |
1,080 |
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Profits |
5,040 |
-7,500 |
Note:
we did not find SC’s detailed financial reports for Yr 2011.
Important
Ratios
=============
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2010 |
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*Current ratio |
0.95 |
0.94 |
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*Quick ratio |
/ |
0.88 |
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*Liabilities
to assets |
0.89 |
0.91 |
|
*Net profit
margin (%) |
0.51 |
-0.79 |
|
*Return on
total assets (%) |
1.24 |
-1.63 |
|
*Inventory
/Turnover ×365 |
/ |
10 days |
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*Accounts
receivable/Turnover ×365 |
/ |
35 days |
|
*Turnover/Total
assets |
2.45 |
2.05 |
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* Cost of goods
sold/Turnover |
0.94 |
0.95 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fair in 2010, and average
in 2011.
l
SC’s return on total assets is fair in 2010, and
average in 2011.
l
SC’s cost of goods sold is high, comparing with its
turnover in both years.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a normal level in
2010.
l
The inventory of SC appears average in 2010.
l
The accounts receivable of SC appears fairly large
in 2010.
l
The short-term loan of SC appears average in 2010.
l
SC’s turnover is in an average level, comparing
with the size of its total assets in both years.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
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.52.69 |
|
|
1 |
Rs.85.71 |
|
Euro |
1 |
Rs.68.15 |
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.