MIRA
INFORM REPORT
|
Report Date : |
25.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
GOLDEN DRAGON PRECISE COPPER TUBE GROUP INC. |
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Registered Office : |
No. 191, renmin west road, xinxiang, henan province 453000 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
24.07.2000 |
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Com. Reg. No.: |
410000100013025 |
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
Manufacturing
and selling copper tubes. |
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No. of Employees : |
4,650 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
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 – 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 |
|
Insignificant |
A1 |
|
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
GOLDEN DRAGON PRECISE
COPPER TUBE GROUP INC.
NO. 191, RENMIN WEST
ROAD, XINXIANG,
HENAN PROVINCE 453000
PR CHINA
TEL: 86 (0)
373-2682828
FAX: 86 (0)
373-2682689
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 24, 2000
REGISTRATION NO. : 410000100013025
REGISTERED LEGAL FORM : Shares
limited co.
STAFF STRENGTH :
4,650
REGISTERED CAPITAL : CNY
420,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 31,816,530,000
(Consolidated, AS OF DEC. 31, 2012)
EQUITIES :
CNY 1,922,720,000 (Consolidated, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.14= USD 1
Adopted
abbreviations:
ANS - amount not
stated
NS - not stated
SC - subject company
(the company inquired by you)
NA - not available
CNY - China Ren Min Bi
Yuan
SC was registered as a shares limited co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jul. 24, 2000.
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 copper and copper alloy tube products
such as air-conditioning & refrigeration tube, rifled copper tube; manufacturing
and selling aluminum tube; exporting self-made mechanical and electrical
products, complete equipments and related technology; importing mechanical
equipments, parts, and raw materials needed in manufacture and research;
processing with imported materials, processing with imported samples,
assembling with imported parts, and compensation trade in agreement (with
permit if needed). SC is mainly engaged in manufacturing and selling copper
tubes.
Mr.
Li Changjie is legal representative and chairman of SC at present.
SC is known
to have approx. 4,650 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 Xinxiang. The detailed
information of the premise is unspecified.
http://www.gdcopper.com The design is professional and the content is
well organized. At present it is in Chinese and English versions.
SC passed ISO9000 certification of Chinese Quality Committee in
November, 1997 and ISO9000 (2000 version) and ISO14000 certification and JIS
certification.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
|
Registered capital |
CNY 60,000,000 |
CNY 180,000,000 |
|
|
Registered capital |
CNY 180,000,000 |
CNY 210,000,000 |
|
|
Registered capital |
CNY 210,000,000 |
CNY 280,000,000 |
|
|
Registered capital |
CNY 280,000,000 |
Present amount |
See below for SC as executive party (defendant).
|
Executed Party |
Golden Dragon Precise Copper Tube Group Inc. |
|
Court |
Weibin District, Xinxiang City People's Court |
|
Date
of Case |
|
|
Case Number |
(2009) 00101 |
|
Claim
Amount |
RMB 1,700,000 |
|
Case
Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Li Changjie 29.83
Standard Chartered Private Equity Limited 13.88
Zhou Yongl 5.69
Trade Dynasty Investments Limited (Hong Kong 5.56
GS Direct GD Limited (Mauritius) 5.56
Feng Fang 4.31
Ji Xuefeng 4.22
Zhang Yufen 1.95
Wang Shizhong 1.49
Ma Yuliang 1.48
Other individual 26.03
l Legal
representative and chairman:
Mr. Li Changjie,
senior engineer, born in 1946, with MBA Degree. He is currently responsible for
the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative and chairman;
Also
working in Shanghai Longyang Precise Compound Copper Tube Co., Ltd., Golden
Dragon International Trading Co., Ltd., Chongqing Longyu Precise Copper Tube
Co., Ltd. and etc. as legal representative.
l General manager:
Mr. Zhou Yongli, senior engineer, born in 1967, with MBA Degree. He is
currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager.
l
Directors:
Chen
Jian
Xu
Ming
Wang
Xu
l
Supervisors:
Hu
Xinsheng
Zhang
Haiying
Dong
Zhiqiang
SC is mainly
engaged in manufacturing and selling copper tubes.
SC’s products
mainly include: air-conditioning & refrigeration tube, high-efficiency
tube, water copper tube and all kinds of precise copper tube.
SC sources its
materials 80% from domestic market, and 20% from overseas market. SC sells 50%
of its products in domestic market, and 50% 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.
*Major Customers:
==============
Gree Electric Appliances, Inc. of Zhuhai
Guangdong Midea Electric Appliances Co.,
Ltd.
Shanghai Anlan Copper Co., Ltd.
Note: SC’s management declined to release
its supplier details.
SC is known to have the following subsidiaries:
Shanghai
Longyang Precise Compound Copper Tube Co., Ltd.
Registered
no.: 310115400076879
Legal
representative: Li Changjie
Establishment
date:
Shanghai
Longyang Copper Tube Sales Co., Ltd.
Registered
no.: 310115001820101
Legal
representative: Qu Shaojie
Establishment
date:
Golden
Dragon International Trading Co., Ltd.
Registered
no.: 310115000846966
Legal
representative: Li Changjie
Establishment
date:
Chongqing
Longyu Precise Copper Tube Co., Ltd.
Registered
no.: 500381000030878
Legal
representative: Li Changjie
Establishment
date:
Chongqing
Jinxiang Precise Tube Co., Ltd.
Registered
no.: 500105000040396
Legal
representative: Cao Xiangjie
Establishment
date: 2008-11-12
Etc.
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.
SC’s management refused to release its bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
|
Cash & bank |
4,209,748 |
2,980,670 |
|
Held for trading
financial assets |
835 |
0 |
|
Bills receivable |
1,530,084 |
1,290,380 |
|
Accounts
receivable |
1,994,059 |
2,900,440 |
|
Advances to
suppliers |
765,997 |
332,840 |
|
Other Accounts
receivable |
284,751 |
275,880 |
|
Inventory |
1,045,451 |
1,250,440 |
|
Other current
assets |
593,561 |
458,010 |
|
|
------------------ |
------------------ |
|
Current assets |
10,424,486 |
9,488,660 |
|
Long-term
investment |
69,891 |
61,140 |
|
Fixed assets net
value |
2,779,832 |
2,894,830 |
|
Projects under
construction |
582,153 |
601,090 |
|
Project materials |
3,117 |
0 |
|
Intangible
assets |
315,284 |
/ |
|
Long-term
deferred expenses |
6,915 |
/ |
|
Deferred income
tax assets |
8,958 |
/ |
|
Other assets |
0 |
420,330 |
|
|
------------------ |
------------------ |
|
Total assets |
14,190,636 |
13,466,050 |
|
|
============= |
============= |
|
Short loans |
8,496,172 |
8,989,190 |
|
Bills payable |
398,133 |
332,930 |
|
Accounts payable |
2,277,065 |
1,566,460 |
|
Advances from
clients |
359,114 |
247,700 |
|
Payroll payable |
36,276 |
/ |
|
Taxes payable |
-88,877 |
-91,510 |
|
Interest payable |
27,246 |
/ |
|
Dividends
payable |
0 |
/ |
|
Other Accounts
payable |
139,993 |
103,360 |
|
Long term
liabilities due within one year |
412,655 |
34,570 |
|
Other current
liabilities |
977 |
77,370 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
12,058,754 |
11,260,070 |
|
Non-current
liabilities |
312,388 |
283,260 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
12,371,142 |
11,543,330 |
|
Equities |
1,819,494 |
1,922,720 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
14,190,636 |
13,466,050 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
|
Turnover |
35,051,967 |
31,816,530 |
|
Cost of goods sold |
33,789,810 |
30,590,080 |
|
Sales expense |
165,697 |
168,680 |
|
Management expense |
327,233 |
326,340 |
|
Finance expense |
592,186 |
586,120 |
|
Asset impairment loss |
-5,882 |
/ |
|
Profits on the
changes in fair value |
-31,842 |
/ |
|
Investment
income |
32,794 |
-14,870 |
|
Other profits |
744 |
/ |
|
Profit before
tax |
184,619 |
131,290 |
|
Less: profit tax |
34,356 |
17,990 |
|
Profits |
150,263 |
113,300 |
Important Ratios
=============
|
|
as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
|
*Current ratio |
0.86 |
0.84 |
|
*Quick ratio |
0.78 |
0.73 |
|
*Liabilities
to assets |
0.87 |
0.86 |
|
*Net profit
margin (%) |
0.43 |
0.36 |
|
*Return on
total assets (%) |
1.06 |
0.84 |
|
*Inventory
/Turnover ×365 |
11 days |
15 days |
|
*Accounts
receivable/Turnover ×365 |
21 days |
34 days |
|
*Turnover/Total
assets |
2.47 |
2.36 |
|
* Cost of
goods sold/Turnover |
0.96 |
0.96 |
PROFITABILITY: FAIRLY
GOOD
l The turnover of SC
appears good in its line, but it decreased in 2012.
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 goods sold is high, comparing with its
turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC appears average in
both years.
l
The short-term loan of SC appears large.
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 high.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly stable.
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.66 |
|
|
1 |
Rs.100.46 |
|
Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.