MIRA
INFORM REPORT
|
Report Date : |
03.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG GUXIANDAO INDUSTRIAL FIBER CO., LTD. |
|
|
|
|
Registered Office : |
Yuedong Road, Paojiang Industrial Zone, Shaoxing City Zhejiang
Province 312000 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
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|
|
|
Date of Incorporation : |
04.06.2003 |
|
|
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Com. Reg. No.: |
330600400007230 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
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Line of Business : |
Subject is engaged in manufacturing and selling industrial fiber. |
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|
|
|
No. of Employees : |
743 |
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 : |
Good |
|
Payment Behaviour : |
Regular |
|
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to
China's, and is expected to further drag Chinese growth in 2013. 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 GUXIANDAO INDUSTRIAL
FIBER CO., LTD.
(TRADE NAME:- ZHEJIANG GUXIANDAO POLYESTER DOPE DYED YARN CO., LTD.)
YUEDONG ROAD, PAOJIANG INDUSTRIAL ZONE, SHAOXING CITY ZHEJIANG PROVINCE
312000 PR CHINA
TEL: 86 (0) 575-88138072/88138173
FAX: 86 (0) 575-88138071
Note: According to
the, we locate SC.
The given name
(Zhejiang Guxiandao Polyester Dope Dyed Yarn Co., Ltd.) is SC’s trade name.
EXECUTIVE SUMMARY
Date of Registration : JUNE 4, 2003
REGISTRATION NO. : 330600400007230
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
SHI
JIANQIANG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 480,000,000
staff :
743
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue :
CNY 4,804,049,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 1,585,381,000 (AS OF DEC. 31, 2012)
WEBSITE : www.guxiandao.com
E-MAIL : info@guxiandao.com
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRly steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.13 = 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 Chinese-foreign equity joint venture enterprise
of PRC on June 4, 2003. However, SC changed to present legal form, and was
registered as a shares limited company
of PRC with State Administration for Industry & Commerce (SAIC) under registration
No.: 330600400007230 in 2011.
SC’s Organization Code Certificate No.:
75115899-2
SC’s Tax No.: 330602751158992
SC’s registered capital: CNY 480,000,000
SC’s paid-in capital: CNY 480,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
|
Registration No. |
002539 |
330600400007230 |
|
|
2011 |
|
|||
|
Legal Form |
Chinese-Foreign Equity Joint Venture Enterprise |
Shares Limited Company |
||
|
-- |
Registered Capital |
CNY 450,000,000 |
CNY 480,000,000 |
|
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhejiang Guxiandao Investment Co., Ltd. |
42.41 |
|
World Forex International Limited (Hong Kong) |
22.51 |
|
Shaoxing Chengfeng Investment Consulting Partnership Enterprise
(Limited Partnership) |
3.58 |
|
Shanghai Lihong Investment Partnership Enterprise (General
Partnership) |
2.81 |
|
Xinhu Holding Co., Ltd. |
10.00 |
|
ASD Group Co., Ltd. |
2.08 |
|
Shaoxing Yongtai Mansion Co., Ltd. |
1.36 |
|
Shaoxing Hengli Printing & Dyeing Co., Ltd. |
0.31 |
|
Sino Trendy Limited (Hong Kong) |
1.46 |
|
Shaoxing Yuanda Equity Investment Partnership Enterprise (Limited
Partnership) |
3.29 |
|
Shaoxing Chuangda Equity Investment Partnership Enterprise (Limited
Partnership) |
2.50 |
|
Shaoxing Yingsheng Equity Investment Partnership Enterprise (Limited
Partnership) |
1.44 |
|
Xinhu Zhongbao Co., Ltd. |
6.25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Shi Jianqiang |
|
Vice Chairman |
Wang Jianhui |
|
Director |
Wu Xiaojun |
|
Jin Ge |
|
|
Zheng Zhiyi |
|
|
Zhang Lianqi |
|
|
Gao Jiaying |
|
|
Gao Jian |
|
|
Zhang Qunhua |
|
|
Supervisor |
Chen Lingqiao |
|
Zhang Ziqin |
|
|
Shen Yaxian |
|
|
Ren Baohua |
|
|
Chen Chuanwu |
RECENT DEVELOPMENT
SC has been awarded such honors as Advanced Technological FIE, National
Key Hi-Tech Enterprise, Red List Enterprise by General Administration of
Customs, Zhejiang Import & Export Demonstrative Enterprise for Being Lawful
and Good Faith, and Backbone Industrial Enterprises of Zhejiang Province; and
the products are named as Zhejiang Famous Brands among Exports, Zhejiang Famous
Brand, Zhejiang Famous Trademark, and among others. Upholding the “Advanced
Technology & Talents First” management philosophy, the company has passed
the accreditation of ISO9001:2008 International Quality Management System and
ISO 14001:2004 International Environmental Management System, and is
implementing OHSAS18001 Occupational Health & Safety Management System.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhejiang Guxiandao Investment Co., Ltd. 42.41
World Forex International Limited (Hong Kong) 22.51
Shaoxing Chengfeng Investment Consulting Partnership Enterprise (Limited
Partnership) 3.58
Shanghai Lihong Investment Partnership Enterprise (General Partnership) 2.81
Xinhu Holding Co., Ltd. 10.00
ASD Group Co., Ltd. 2.08
Shaoxing Yongtai Mansion Co., Ltd. 1.36
Shaoxing Hengli Printing & Dyeing Co., Ltd. 0.31
Sino Trendy Limited (Hong Kong) 1.46
Shaoxing Yuanda Equity Investment Partnership Enterprise (Limited
Partnership) 3.29
Shaoxing Chuangda Equity Investment Partnership Enterprise (Limited
Partnership) 2.50
Shaoxing Yingsheng Equity Investment Partnership Enterprise (Limited
Partnership) 1.44
Xinhu Zhongbao Co., Ltd. 6.25
MANAGEMENT
Shi Jianqiang, Legal Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Gender: M
ID# 330621197412315352
Age: 39
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Wang Jianhui, Vice Chairman
---------------------------------------------------
Gender: M
ID# 210203196605225277
Age: 47
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
Director
-----------
Wu Xiaojun ID# 330621197109134794
Jin Ge ID#
310105196805142434
Zheng Zhiyi ID# 370702460521181
Zhang Lianqi ID# 110101196311190513
Gao Jiaying ID# 330602681022104
Gao Jian ID# 510212620921031
Zhang Qunhua ID# 330411197212233412
Supervisor
--------------
Chen Lingqiao ID# 331081198302160029
Zhang Ziqin ID# 330621197702083801
Shen Yaxian ID# 330521198208194628
Ren Baohua ID# 340111198005253031
Chen Chuanwu ID# 330302196701145214
BUSINESS OPERATION
SC’s registered business scope includes manufacturing modified polyester
chips, polyester industrial yarn, and other polyester products; selling
self-made commodities; selling polyester chip raw materials, chemical raw
materials and products (excluding hazardous chemicals); commission agent
(excluding auction); import and export business. (excluding the items limited
by quota license)
SC is mainly engaged in manufacturing and selling industrial fiber.
SC’s products mainly include: Industrial PFY, polyester chips.
SC sources its materials 55% from domestic market, and 45% from overseas
market. SC sells 79% of its products in domestic market, and 21% to overseas
market.
The import &
export status of SC in 2012 is as follows,
|
Country |
Amount of Exports (USD) |
Amount of Imports (USD) |
|
U.S.A. |
23,204,160 |
16,546,229 |
|
Germany |
20,507,835 |
469,390 |
|
Korea |
18,459,788 |
100,507,589 |
|
Turkey |
11,937,698 |
0 |
|
Brazil |
11,153,765 |
0 |
|
India |
8,282,892 |
0 |
|
South Africa |
7,047,062 |
0 |
|
France |
5,157,005 |
0 |
|
Peru |
4,419,033 |
0 |
|
Columbia |
4,360,781 |
0 |
|
Other countries |
44,498,702 |
285,523,971 |
|
|
----------------- |
----------------- |
|
Total |
159,028,721 |
403,047,179 |
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Staff &
Office:
--------------------------
SC is known to have approx. 743
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,
Zhejiang Guxiandao Green Fiber Co., Ltd.
---------------------------------------
Registration No.: 330600000081838
Registered Capital: CNY 700,000,000
Date of Registration:
Ningbo Meishan Free Trade Port Yingtian Trade Co., Ltd.
-----------------------------------------------
Registration No.: 330214000021403
Registered Capital: CNY 100,000
Legal Representative: Jin Ge
Date of Registration:
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 Shaoxing Branch
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
893,814 |
155,618 |
|
|
Held for trading
financial assets |
2,008 |
7,832 |
|
Notes receivable |
211,438 |
36,784 |
|
Accounts receivable |
215,756 |
197,431 |
|
Advances to suppliers |
162,637 |
44,970 |
|
Interest receivable |
7,847 |
13,237 |
|
Other receivable |
435,676 |
9,180 |
|
Inventory |
944,523 |
936,521 |
|
Deferred expenses |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
2,873,699 |
1,401,573 |
|
Long-term accounts receivable |
0 |
266,000 |
|
Long-term equity investment |
500,400 |
700,100 |
|
Fixed assets |
1,200,916 |
984,333 |
|
Construction in progress |
208,502 |
442,881 |
|
Engineering materials |
107 |
534 |
|
Intangible assets |
68,347 |
65,618 |
|
Development expenditure |
0 |
37,922 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
1,940 |
1,940 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
4,853,911 |
3,900,901 |
|
|
============= |
============= |
|
Short-term loans |
1,773,176 |
1,263,202 |
|
Transaction financial liabilities |
2,406 |
2,406 |
|
Notes payable |
71,760 |
46,070 |
|
Accounts payable |
1,062,610 |
580,797 |
|
Wages payable |
3,795 |
3,237 |
|
Taxes payable |
-135,133 |
-164,548 |
|
Interest payable |
13,069 |
17,361 |
|
Advances from clients |
121,623 |
129,385 |
|
Other payable |
101,879 |
73,337 |
|
Other current liabilities |
70,000 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
3,085,185 |
1,951,247 |
|
Non-current liabilities |
248,320 |
364,273 |
|
|
------------------ |
------------------ |
|
Total liabilities |
3,333,505 |
2,315,520 |
|
Equities |
1,520,406 |
1,585,381 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
4,853,911 |
3,900,901 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
4,306,421 |
4,804,049 |
|
Cost of sales |
4,055,674 |
4,537,027 |
|
Taxes and surcharges |
1 |
1 |
|
Sales expense |
28,860 |
51,288 |
|
Management expense |
61,149 |
54,967 |
|
Finance expense |
-809 |
111,322 |
|
Investment income |
0 |
1,684 |
|
Non-operating income |
36,845 |
17,601 |
|
Non-operating expense |
4,307 |
3,552 |
|
Profit before tax |
182,393 |
64,975 |
|
Less: profit tax |
25,819 |
0 |
|
156,574 |
64,975 |
Important Ratios
=============
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
0.93 |
0.72 |
|
*Quick ratio |
0.63 |
0.24 |
|
*Liabilities to assets |
0.69 |
0.59 |
|
*Net profit margin (%) |
3.64 |
1.35 |
|
*Return on total assets (%) |
3.23 |
1.67 |
|
*Inventory / Revenue ×365 |
81 days |
72 days |
|
*Accounts receivable / Revenue ×365 |
19 days |
16 days |
|
*Revenue / Total assets |
0.89 |
1.23 |
|
*Cost of sales / Revenue |
0.94 |
0.94 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line, and it was rising in
2012.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears average.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loans appear large.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
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 short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.80 |
|
|
1 |
Rs.91.95 |
|
Euro |
1 |
Rs.80.36 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.