MIRA
INFORM REPORT
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Report Date : |
05.06.2013 |
IDENTIFICATION DETAILS
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Name : |
GUANGDONG WIN-WIN CABLES CO., LTD. |
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Registered Office : |
No. 18, Renjie Road, Yanghe Town, Gaoming District, Foshan, Guangdong Province, 528513
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
30.07.2003 |
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Com. Reg. No.: |
440684000002324 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling high and low voltage
wire and cable, cable materials and electrical products. |
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No. of Employees : |
190 |
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 – March 31st 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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 & address
GUANGDONG
WIN-WIN CABLES CO., LTD.
No. 18, Renjie
ROAD, yanghe Town, Gaoming DISTRICT,
Foshan, Guangdong PROVINCE,
528513 PR CHINA
TEL: 86 (0)
757-88327168/88327199 FAX: 86 (0)
757-88327118
EXECUTIVE SUMMARY
INCORPORATION DATE : JULY 30, 2003
REGISTRATION NO. : 440684000002324
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : MR. HU DONGYUAN (CHAIRMAN)
STAFF STRENGTH :
190
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 429,330,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 64,540,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1363 = 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 is also known as Guangdong Shuangli Cable Co., Ltd.
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on July 30, 2003.
Company Status: Limited liabilities co. This form of business in PR China is defined as a legal
person. No more than fifty shareholders contribute its registered capital
jointly. Shareholders bear limited liability to the extent of shareholding,
and the co. is liable for its debts only to extent of its total assets. The
characteristics of this form of co. are as follows: Upon the establishment of the co., an investment
certificate is issued to the each of shareholders. The board of directors is comprised of three to thirteen
members. The minimum registered capital for a co. is CNY 30,000. Shareholders may take their capital contributions in
cash or by means of tangible assets or intangible assets such as industrial
property and non-patented technology. Cash contributed by all shareholders must account for at
least 30% of the registered capital. Existing shareholders have pre-exemption right to
purchase shares of the co. offered for sale by the other shareholders and
to subscribe for the newly increased registered capital of the co.
SC’s registered business scope includes manufacturing and selling high and low voltage wire and cable; cable materials, electrical products. Importing and exporting goods and technologies, agent import and export business (excluding products prohibited by legal, administrative rules and regulations, and operating the limited products with permit if needed).
SC is mainly engaged in manufacturing and selling high and low voltage wire and cable, cable materials and electrical products.
Mr. Hu Dongyuan is legal representative, chairman and general manager of SC at present.
SC is known to have approx. 190 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in Foshan. Our checks reveal that SC owns the total premise, but the gross area of the premise is unspecific.
http://www.gdcables.com The design is professional and the content is
well organized. At present it is in Chinese and English versions.
E-mail: xlsl2007@126.com
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
Certificates:
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Wuhan Shuangli Electric Wire and Cable Co.,
Ltd. 51.9
Guangxi Nanjiang Industrial Investment Group
Co., Ltd. (in Chinese Pinyin) 24.5
He Jianzhi 23.6
Wuhan Shuangli Electric Wire and Cable Co.,
Ltd.
====================================
Incorporation date: Mar. 14, 2000
Registered no.: 420102000084753
Legal representative: Hu Dongyuan
Registered capital: CNY 15,169,000
Legal form: Limited Liabilities Company
Guangxi Nanjiang Industrial Investment Group
Co., Ltd. (in Chinese Pinyin)
======================================================
Registered no.: 450200200029087
Legal representative: Ye Jianchun
Registered capital: CNY 50,000,000
Legal form: Limited Liabilities Company
Legal
representative, Chairman
and General manager:
Mr. Hu Dongyuan , ID# 420105195001120812, born in 1950. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as chairman, legal representative and general manager.
Also working in Wuhan Shuangli Electric Wire and Cable Co., Ltd. as legal representative.
SC is mainly
engaged in manufacturing and selling high and low voltage wire and cable, cable
materials and electrical products.
SC’s products
mainly include
⊙ Steel Stranded Wires
⊙ Center Enlarged Conductor
⊙ 60% heat resistant
⊙ Aluminum alloy twisted wire
⊙ Aluminum-lad-steel
⊙ (Rare) Stranded Conductor (AAC) & (Rare)
Stranded Conductor Steel Reinforced (ACSR)
⊙ Insulated Aerial Cable
⊙ Aerial Insulated Cables With Rated Voltage up to
10kV and 35kV
⊙ PVC Insulated Cables(wires)
⊙ PVC Insulated and Sheathed Control Cables
⊙ Fire-resistant Plastic Insulated Cables
⊙ 3.6～35kV XLPE
Insulated Power Cable
⊙ PVC Insulated & PVC Sheathed Power Cables
⊙ 0.6/1kV XLPE Insulated Power Cable
SC sources its materials 100% from domestic
market. SC sells 90% of its products in domestic market, and 10% to overseas
market.
The buying terms of SC include Check, T/T 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’s
management declined to release its main clients and suppliers.
SC is not known to have any subsidiary at present.
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.
Guangdong Gaoming Rural Commercial Bank Yanghe Sub-branch
AC#：80020000000415187
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Cash & bank |
19,400 |
36,940 |
|
Notes receivable |
0 |
3,000 |
|
Inventory |
11,970 |
8,670 |
|
Accounts
receivable |
106,650 |
89,130 |
|
Advances to
suppliers |
940 |
30,320 |
|
Prepaid expenses |
0 |
70 |
|
Other
receivables |
2,170 |
9,120 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
141,130 |
177,250 |
|
Long-term
investments |
0 |
0 |
|
Fixed assets net
value |
10,090 |
8,620 |
|
Projects under
construction |
5,490 |
5,490 |
|
Intangible
assets |
8,600 |
8,390 |
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Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
165,310 |
199,750 |
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============= |
============= |
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Short loans |
73,130 |
91,270 |
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Accounts payable |
19,280 |
26,050 |
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Advances from
customers |
0 |
0 |
|
Accrued payroll |
0 |
0 |
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Accrued expenses |
360 |
590 |
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Taxes payable |
170 |
450 |
|
Other payable |
10 |
20 |
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Other accounts
payable |
11,940 |
16,830 |
|
Other current
liabilities |
0 |
0 |
|
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----------------- |
----------------- |
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Current
liabilities |
104,890 |
135,210 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
104,890 |
135,210 |
|
Shareholders
equities |
60,420 |
64,540 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
165,310 |
199,750 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
|
Turnover |
429,330 |
|
Cost of goods
sold |
411,000 |
|
Taxes and additional
of main operation |
340 |
|
Income from
other operation |
500 |
|
Sales expense |
4,180 |
|
Management expense |
4,750 |
|
Finance expense |
8,010 |
|
Non-operating
income |
390 |
|
Non-operating expense |
0 |
|
Profit before
tax |
1,940 |
|
Less: profit tax |
440 |
|
Net profit |
1,500 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.35 |
1.31 |
|
*Quick ratio |
1.23 |
1.25 |
|
*Liabilities
to assets |
0.63 |
0.68 |
|
*Net profit
margin (%) |
/ |
0.35 |
|
*Return on
total assets (%) |
/ |
0.75 |
|
*Inventory
/Turnover ×365 |
/ |
8 days |
|
*Accounts receivable/Turnover
×365 |
/ |
76 days |
|
*Turnover/Total
assets |
/ |
2.15 |
|
* Cost of
goods sold/Turnover |
/ |
0.96 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line
in 2012.
l
SC’s net profit margin is average in 2012.
l
SC’s return on total assets is average in 2012.
l
SC’s cost of goods sold is high in 2012, comparing
with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC appears large in both
years.
l
The short-term loan of SC appears large in both
years.
l
SC’s turnover is in an average level in 2012,
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.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable and short loans could be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.64 |
|
UK Pound |
1 |
Rs.86.69 |
|
Euro |
1 |
Rs.73.97 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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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.