MIRA INFORM REPORT
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Report Date : |
07.01.2013 |
IDENTIFICATION DETAILS
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Name : |
xiamen
xiangyu group corporation |
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Registered Office : |
2/F, Yinsheng Building, Xiangyu F.T.Z., Shugang Road, Xiamen, Fujian Province 361006 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
28.11.1995 |
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Com. Reg. No.: |
350299100000053 |
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Legal Form : |
Sole State-Owned Enterprise |
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Line of Business : |
Subject engaged in state-owned assets investment & management, and
international trade. |
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No. of Employees : |
3,000 Employees |
RATING & COMMENTS
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MIRA’s
Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 – June 30th,
2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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 & ADDRESS
xiamen
xiangyu group corporation
2/F, Yinsheng
Building, xiangyu f.t.z., shugang road
Xiamen,
fujian province 361006 PR CHINA
TEL: 86
(0) 592-5691246/6036369
FAX: 86
(0) 592-5603777/6036367
EXECUTIVE SUMMARY
Date of Registration : november 28, 1995
REGISTRATION NO. : 350299100000053
LEGAL FORM : Sole state-owned enterprise
REGISTERED CAPITAL : cny 1,081,690,000
staff : 3,000
BUSINESS CATEGORY :
investment & management & trade
Revenue :
CNY 35,974,543,000 (CONSOLIDATED,
AS OF
DEC. 31, 2011)
EQUITIES :
CNY 3,680,302,000 (CONSOLIDATED, AS OF DEC. 31, 2011)
WEBSITE : www.xiangyu-group.com
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE : CNY 6.23 = 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 sole state-owned enterprise of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 350299100000053.
SC’s Organization Code Certificate
No.: 71619500-X
SC’s registered capital: cny 1,081,690,000
SC’s paid-in capital: cny 1,081,690,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered Capital |
CNY 965,800,000 |
cny 1,081,690,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
State-owned Assets Supervision
and Administration Commission of Xiamen Government |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Wang Longchu |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
State-owned Assets Supervision and
Administration Commission of Xiamen Government
100
-----------------------------------------------------
Address: Caijing
Building, Hubin North Road, Xiamen,
Fujiang Province
Web: www.xmgzw.gov.cn
MANAGEMENT
Wang Longchu, Legal Representative and Chairman
-------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 52
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
BUSINESS OPERATION
SC’s registered business scope includes 1. state-owned
assets within the scope of management; 2. exercising contributive person’s rights for state-owned assets, and exercising
shareholder’s rights for its subsidiaries; 3. reorganization of assets, optimizing
the capital allocation, realizing state-owned asset value through mergers,
acquisitions, and purchase according to the industry development policy
stipulated by government, and engaged in property trading agency business; 4.
establishing financial company according to the regulations, and renting
companies; 5. industry investment; 6. real estate development & operation
& management, integrated land development and transfer of the right to use;
7. commercial trade information consulting services & exhibition &
conference & real estate renting service; 8. electronic commerce service,
and electronic commerce platform construction.
SC is mainly
engaged in state-owned assets investment & management, and international
trade.
SC sources its materials 70% from domestic market, mainly Fujian, and 30% from overseas market. SC sells 20% of its products in domestic market, and 80% to overseas market.
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. 3,000
staff at present.
SC owns an area as
its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is known to have 39
subsidiaries at present, and the following are the major ones.
n
Xiamen Xiangyu Co., Ltd.
n
Xiamen Xiangyu Construction
Group Co., Ltd.
n
Xiamen Xiangyu Guarantees Co.,
Ltd.
n
Xiamen Jinniu Industry
Investment & Management Co., Ltd.
n
Xiamen Xiangyu Asset Management
Co., Ltd.
n
Xiamen Xiangyu Luxing Asset Management Co., Ltd.
n
Xiamen Xiangrong Investment
Co., Ltd.
n
Xiamen Mintai Commercial &
Trade 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 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:
Industrial
Bank Co., Ltd.
AC#:
081010177599002348
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
2,088,042 |
2,132,990 |
|
|
Notes receivable |
48,827 |
400,832 |
|
Accounts
receivable |
323,831 |
377,280 |
|
Advances to
suppliers |
1,097,737 |
1,619,751 |
|
Other receivable |
1,295,069 |
1,038,546 |
|
Inventory |
3,848,411 |
8,266,191 |
|
Non-current
assets within one year |
17 |
25 |
|
Other current
assets |
20,010 |
11,872 |
|
|
------------------ |
------------------ |
|
Current assets |
8,721,944 |
13,847,487 |
|
Fixed assets |
357,255 |
341,757 |
|
Construction in
progress |
292,592 |
240,742 |
|
Intangible
assets |
610,823 |
946,562 |
|
Long-term
prepaid expenses |
14,751 |
32,427 |
|
Deferred income
tax assets |
26,995 |
37,344 |
|
Other
non-current assets |
3,621,073 |
3,828,752 |
|
|
------------------ |
------------------ |
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Total assets |
13,645,433 |
19,275,071 |
|
|
============= |
============= |
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Short-term loans |
1,628,613 |
3,148,342 |
|
Notes payable |
1,393,165 |
676,495 |
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Accounts payable |
659,298 |
1,142,748 |
|
Wages payable |
122,698 |
100,395 |
|
Taxes payable |
4,265 |
194,309 |
|
Advances from
clients |
1,576,424 |
1,658,807 |
|
Other payable |
576,244 |
508,180 |
|
Other current
liabilities |
165,897 |
1,523,785 |
|
|
------------------ |
------------------ |
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Current
liabilities |
6,126,604 |
8,953,061 |
|
Non-current
liabilities |
4,083,251 |
6,641,708 |
|
|
------------------ |
------------------ |
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Total
liabilities |
10,209,855 |
15,594,769 |
|
Equities |
3,435,578 |
3,680,302 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
13,645,433 |
19,275,071 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
25,768,164 |
35,974,543 |
|
Cost of sales |
24,448,981 |
33,872,507 |
|
Taxes and surcharges |
179,643 |
251,740 |
|
Sales expense |
473,409 |
539,114 |
|
Management expense |
162,722 |
230,822 |
|
Finance expense |
116,722 |
392,668 |
|
Asset impairment loss |
39,580 |
52,109 |
|
Investment
income |
168,782 |
258,416 |
|
Non-business
income |
18,477 |
41,022 |
|
Non-business expenditure |
8,455 |
15,838 |
|
Profit before
tax |
532,984 |
899,535 |
|
Less: profit tax |
124,429 |
282,268 |
|
408,555 |
617,267 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.42 |
1.55 |
|
*Quick ratio |
0.80 |
0.62 |
|
*Liabilities
to assets |
0.75 |
0.81 |
|
*Net profit
margin (%) |
1.59 |
1.72 |
|
*Return on
total assets (%) |
2.99 |
3.20 |
|
*Inventory /
Revenue ×365 |
55 days |
84 days |
|
*Accounts
receivable/ Revenue ×365 |
5 days |
4 days |
|
*
Revenue/Total assets |
1.89 |
1.87 |
|
* Cost of
sales / Revenue |
0.95 |
0.94 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears good, and it was rising
in 2011.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years
l
SC’s cost of sales is fairly high, comparing with
its revenue.
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 is maintained in an
average level.
l
SC’s short-term loans appear fairly large.
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. The large amount of inventory may be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.54.84 |
|
UK Pound |
1 |
Rs.88.16 |
|
Euro |
1 |
Rs.71.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.