MIRA INFORM REPORT
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Report Date : |
24.09.2013 |
IDENTIFICATION DETAILS
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Name : |
GUANGZHOU TRUSTY INTERNATIONAL CO., LTD. |
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Registered Office : |
Room 2022 Bank Of America Plaza, No. 555 Renmin Middle Road
Guangzhou, Guangdong Province 510145 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
25.07.2006 |
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Com. Reg. No.: |
440103000009482 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in international trade mainly include Compressor,
Freezer, Air conditioner, Small appliances, Washing machine, Refrigeration
parts, Medical refrigeration device, Importing commodities |
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No. of Employees : |
12 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaint’s |
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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) |
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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 and address
GUANGZHOU TRUSTY INTERNATIONAL CO., LTD.
ROOM 2022 BANK OF AMERICA PLAZA, NO. 555 RENMIN MIDDLE ROAD GUANGZHOU,
GUANGDONG PROVINCE 510145 PR CHINA
TEL: 86 (0) 20-81305986/81857586
FAX: 86 (0) 20-81305647/81874447
EXECUTIVE SUMMARY
Date of Registration : july 25, 2006
REGISTRATION NO. : 440103000009482
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
lu wenbo (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 3,000,000
staff :
12
BUSINESS CATEGORY : TRADING
Revenue :
CNY 233,220,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 33,040,000 (AS OF DEC. 31, 2012)
WEBSITE : www.wanbaoet.com.cn
E-MAIL :
info@wanbaoet.com.cn
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.12 = 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 limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 440103000009482 on July 25, 2006.
SC’s Organization Code Certificate No.:
79102462-2
SC’s registered capital: CNY 3,000,000
SC’s paid-in capital: CNY 3,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2007-6 |
Registered Capital |
CNY 1,000,000 |
CNY 3,000,000 |
|
2009 |
Registration No. |
4401032006691 |
440103000009482 |
|
-- |
Shareholder (s) (% of Shareholding) |
Lu Wenbo 50% Ma Ruquan 40% Lv Qiong 10% |
Lu Wenbo 70% Gao Qiuchan 20% Lv Qiong 10% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Lu Wenbo |
70 |
|
Gao Qiuchan |
20 |
|
Lv Qiong |
10 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Lu Wenbo |
|
Director/Supervisor |
Gao Qiuchan |
|
Lv Qiong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Lu Wenbo 70
Gao Qiuchan 20
Lv Qiong 10
MANAGEMENT
Lu Wenbo, Legal Representative, Chairman and General
Manager
--------------------------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Director/Supervisor
--------------------------
Gao Qiuchan
Lv Qiong
BUSINESS OPERATION
SC’s registered business scope includes importing and exporting
commodities and technology, wholesale and retail trade, goods information
consultation.
SC is mainly engaged in international trade.
SC’s products mainly include:
Compressor:
Refrigeration Compressor
Scroll Air Conditioner Compressor
Scroll Automobile Air Con Compressor
12v/24v Dc Compressor
Commercial Refrigeration Compressor
48V compressor for cellsite
Freezer:
Chest Freezer
Show Case
Air conditioner:
Hot Water Producing Home Air Conditioner
Hot Water Producing Water Chiller
Water Chiller
Water Cooling Heat Pump
Small appliances:
Rice Cooker
Electromagnetic Cooker
Equipment of Refrigerator Line
Washing machine:
Twin Tub Semi Automatic Washing Machine
Spin Drier
Automatic Washing Machine
Refrigeration
parts:
Evaporator and Condenser
Medical
refrigeration device:
Biochemical Incubator
Medicine Regular-Temperature Brand Refrigerator
Importing
commodities
SC sources its materials 80% from domestic market, mainly Guangdong, 20%
from overseas market. SC sells 40% of its products in domestic market, and 60%
to overseas market, mainly Southeast Asian market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-45 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-45 days.
Staff &
Office:
--------------------------
SC is known to have approx. 12
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED COMPANY
SC is not known to have the subsidiary at present.
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:
China Merchants Bank Guangzhou Branch
AC#: 200282259710001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
22,840 |
20,910 |
44,090 |
|
|
Notes receivable |
0 |
2,000 |
3,800 |
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Accounts receivable |
51,780 |
82,980 |
90,080 |
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Advances to suppliers |
0 |
850 |
2,250 |
|
Other receivable |
-220 |
4,980 |
890 |
|
Subsidy receivable |
0 |
6,900 |
6,230 |
|
Inventory |
7,880 |
5,330 |
9,410 |
|
Deferred expenses |
0 |
0 |
0 |
|
Other current assets |
6,410 |
30 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Current assets |
88,690 |
123,980 |
156,750 |
|
Fixed assets |
190 |
100 |
10 |
|
Construction in progress |
0 |
0 |
0 |
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Intangible assets |
0 |
0 |
0 |
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Long-term prepaid expenses |
0 |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
0 |
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Other non-current assets |
10 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Total assets |
88,890 |
124,080 |
156,760 |
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============= |
============= |
============= |
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Short-term loans |
0 |
23,710 |
4,460 |
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Notes payable |
0 |
0 |
0 |
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Accounts payable |
51,070 |
51,990 |
113,190 |
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Wages payable |
0 |
0 |
0 |
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Taxes payable |
0 |
680 |
-340 |
|
Surcharge payable |
0 |
60 |
40 |
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Advances from clients |
0 |
7,990 |
3,090 |
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Other payable |
7,170 |
6,630 |
3,280 |
|
Other current liabilities |
2,240 |
20 |
0 |
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------------------ |
------------------ |
------------------ |
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Current liabilities |
60,480 |
91,080 |
123,720 |
|
Non-current liabilities |
0 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Total liabilities |
60,480 |
91,080 |
123,720 |
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Equities |
28,410 |
33,000 |
33,040 |
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------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
88,890 |
124,080 |
156,760 |
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============= |
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Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
258,280 |
248,920 |
233,220 |
|
Cost of sales |
236,830 |
232,800 |
218,070 |
|
Taxes and surcharges |
0 |
140 |
20 |
|
Sales expense |
6,280 |
5,550 |
5,050 |
|
Management expense |
1,370 |
1,400 |
1,390 |
|
Finance expense |
1,970 |
100 |
-560 |
|
Profit before tax |
13,960 |
10,410 |
10,860 |
|
Less: profit tax |
3,240 |
2,540 |
2,710 |
|
10,720 |
7,870 |
8,150 |
Important Ratios
=============
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
1.47 |
1.36 |
1.27 |
|
*Quick ratio |
1.34 |
1.30 |
1.19 |
|
*Liabilities to assets |
0.68 |
0.73 |
0.79 |
|
*Net profit margin (%) |
4.15 |
3.16 |
3.49 |
|
*Return on total assets (%) |
12.06 |
6.34 |
5.20 |
|
*Inventory / Revenue ×365 |
12 days |
8 days |
15 days |
|
*Accounts receivable/ Revenue ×365 |
74 days |
122 days |
141 days |
|
* Revenue/Total assets |
2.91 |
2.01 |
1.49 |
|
* Cost of sales / Revenue |
0.92 |
0.94 |
0.94 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is fairly good.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in three years.
SC’s quick ratio is maintained in a normal level in three years.
The inventory of SC appears average.
The accounts receivable of SC appears large.
SC’s short-term loans appear average in 2012.
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 above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.52 |
|
|
1 |
Rs.100.26 |
|
Euro |
1 |
Rs.84.67 |
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 |
|
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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.