MIRA
INFORM REPORT
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Report Date : |
20.06.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG GUXIANDAO INDUSTRIAL FIBER CO., LTD. |
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Registered Office : |
Yuedong Road, Paojiang Industrial Zone, Shaoxing City, Zhejiang Province, 312000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
04.06.2003 |
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Com. Reg. No.: |
330600400007230 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling industrial fiber |
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No. of Employees : |
720 |
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
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 and address
zhejiang guxiandao industrial fiber 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
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUNE 4, 2003
REGISTRATION NO. :
330600400007230
REGISTERED LEGAL FORM : SHARES LIMITED CO.
STAFF STRENGTH :
720
REGISTERED CAPITAL : CNY 450,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 4,804,040,000 (AS OF DEC.
31, 2012)
EQUITIES :
CNY 1,585,390,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1312 = 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
SC was registered as a Chinese-foreign equity joint venture enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on June 4, 2003 and has been under
present ownership since 2011.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be
domiciled in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within one year
of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
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.
Mr. Shi Jianqiang
has been legal representative and chairman of SC since 2003.
SC is known to have approx. 720 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Shaoxing. Our checks
reveal that SC owns the total premise about 60,000 square meters.
http://www.guxiandao.com
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: info@guxiandao.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2006-3-22 |
Registration no. |
002539 |
Present one |
|
2011 |
Chinese name |
浙江古纤道新材料有限公司 |
Present one |
|
Legal form |
Chinese-foreign equity joint venture
enterprise |
Present one |
|
|
Shareholdings |
Zhejiang Guxiandao Investment Co., Ltd. 58.35% World Forex
International Limited (Hong Kong) 41.65 41.65% |
Present ones |
Note:
SC changed its Chinese name in 2011, while its English name remains the same.
According to SC’s accountant Ms. Li, SC’s registered capital was
increased to the present amount in 2011.
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.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Guxiandao Investment Co., Ltd. 45.24
World Forex
International Limited (Hong Kong) 24.00
Xinhu Holding Co., Ltd. 10.67
ASD Group Co., Ltd. 2.22
Shaoxing County Hengli Dyeing Co., Ltd. 0.33
Sino Trendy Limited (Hong Kong) 1.56
Shaoxing County Yongtai Building Co., Ltd. 1.44
Shaoxing Chengfeng Investment Advisory Partnership (Limited Partnership) 3.82
Shaoxing Yuanda Stock Equity Investment
Partnership (Limited Partnership) 3.51
Shaoxing Yingsheng Stock Equity Investment
Partnership (Limited Partnership) 1.53
Shaoxing Chuangda Stock Equity Investment
Partnership (Limited Partnership) 2.67
Shanghai Lihong Investment Partnership
(Ordinary Partnership) 3.01
Zhejiang Guxiandao Investment Co., Ltd.
==============================
Registered no.: 330600000017948
Registered capital: CNY 100,000,000
Legal representative: Li Sufang
World Forex
International Limited (Hong Kong)
===================================
CR No. : 0837807
Registered Legal Form: Private
Active Status: Live
l
Legal representative and Chairman:
Mr. Shi Jianqiang , ID# 330621197412315352, born in 1974. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman and legal representative.
SC is mainly
engaged in manufacturing and selling industrial fiber.
SC’s products
mainly include: Industrial PFY, polyester chips, etc.
SC sources its materials 40% from domestic
market, and 60% from overseas market. SC sells 40% of its products in domestic
market, and 60% 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.
Note:
SC declined to release its major suppliers and clients.
Subsidiaries:
Zhejiang
Guxiandao Green Fiber Co., Ltd.
==================================
Registration
no.: 330600000081838
Registered
capital: CNY 700,000,000
Incorporation
date:
Shaoxing
Mingcheng Transportation Co., Ltd.
==================================
Registered
capital: CNY 300,000
Legal
representative: Yu Xinghai
Ningbo
Meishan Free Trade Port Yingtian Trade Co., Ltd.
==================================
Registration
no.: 330214000021403
Registered
capital: CNY 100,000
Legal
representative: Jin Ge
Incorporation
date:
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 Shaoxing Branch
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2012 |
|
Cash & bank |
155,610 |
|
Bills receivable |
36,780 |
|
Accounts
receivable |
197,430 |
|
Other
receivables |
9,170 |
|
Advances to suppliers |
44,960 |
|
Inventory |
936,520 |
|
Interest
receivable |
13,230 |
|
Trading
financial assets |
7,830 |
|
Other current
assets |
40 |
|
|
------------------ |
|
Current assets |
1,401,570 |
|
Fixed assets net
value |
984,330 |
|
Projects under
construction |
442,880 |
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Long term
investment |
700,100 |
|
Long-term
Accounts receivable |
266,000 |
|
Intangible
assets |
65,610 |
|
Development
expenditure |
37,920 |
|
Deferred tax
assets |
1,940 |
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Other assets |
550 |
|
|
------------------ |
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Total assets |
3,900,900 |
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|
============= |
|
Short loans |
1,263,200 |
|
Bills payable |
46,060 |
|
Accounts payable |
580,790 |
|
Accrued payroll |
3,230 |
|
Advances from
clients |
129,380 |
|
Interest payable |
17,360 |
|
Tax payable |
-164,540 |
|
Other payable |
73,330 |
|
Trading
financial liabilities |
2,400 |
|
Other current
liabilities |
30 |
|
|
------------------ |
|
Current
liabilities |
1,951,240 |
|
Long term
liabilities |
364,270 |
|
|
------------------ |
|
Total
liabilities |
2,315,510 |
|
Equities |
1,585,390 |
|
|
------------------ |
|
Total
liabilities & equities |
3,900,900 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
|
Turnover |
4,804,040 |
|
Cost of goods
sold |
4,537,020 |
|
Sales expense |
51,280 |
|
Management expense |
54,960 |
|
Finance expense |
111,320 |
|
Investment
income |
1,680 |
|
Non-operational
income |
17,600 |
|
Non-operational expense |
3,550 |
|
Profit before
tax |
64,970 |
|
Less: profit tax |
0 |
|
Profits |
64,970 |
Important Ratios
=============
|
|
as
of Dec. 31, 2012 |
|
*Current ratio |
0.72 |
|
*Quick ratio |
0.24 |
|
*Liabilities
to assets |
0.59 |
|
*Net profit
margin (%) |
1.35 |
|
*Return on
total assets (%) |
1.67 |
|
*Inventory
/Turnover ×365 |
71 days |
|
*Accounts
receivable/Turnover ×365 |
15 days |
|
*Turnover/Total
assets |
1.23 |
|
* Cost of
goods sold/Turnover |
0.94 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
SC’s short-term loan appears large in 2012.
l
SC’s turnover is in an average level, 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 short-term loan and inventory could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.74 |
|
|
1 |
Rs.91.99 |
|
Euro |
1 |
Rs.78.70 |
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.