MIRA
INFORM REPORT
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Report Date : |
03.04.2014 |
IDENTIFICATION DETAILS
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Name : |
TG QINGDAO GLASS CO., LTD. |
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Registered Office : |
Dayao, Hongshiya Neighborhood Offices Economic & Technological Development Zone Qingdao, Shandong Province 266532 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
16.10.1993 |
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Com. Reg. No.: |
370200400012396 |
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Legal Form : |
Wholly foreign-owned enterprise |
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Line of Business : |
Subject is engaged in manufacturing and selling float glass and
other glass products |
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No. of Employees : |
750 |
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 : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Debt overhang from its credit-fueled stimulus program in 2008-10, particularly among local governments, and soaring property prices challenge policy makers currently. Their efforts to cool a red-hot property market in 2011 appear to have curbed inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources
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Source
: CIA |
Company name and address
TG QINGDAO GLASS CO.,
LTD.
DAYAO, HONGSHIYA NEIGHBORHOOD OFFICES
ECONOMIC & TECHNOLOGICAL DEVELOPMENT ZONE
QINGDAO, SHANDONG PROVINCE 266532 PR CHINA
TEL: 86 (0) 532-83161177
FAX: 86 (0) 532-83161203
EXECUTIVE SUMMARY
DATE OF REGISTRATION : OCTOBER 16, 1993
REGISTRATION NO. : 370200400012396
LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE : LIN BOSHI (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 82,800,000
STAFF : 750
BUSINESS CATEGORY : MANUFACTURING & TRADING
REVENUE : CNY 436,590,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 499,530,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.21 = 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 wholly foreign-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 370200400012396 on October 16, 1993.
SC’s Organization Code Certificate No.: 71803932-6
SC’s registered capital: USD 82,800,000
SC’s paid-in capital: USD 82,800,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered Capital |
USD 40,000,000 |
USD 60,000,000 |
|
2010 |
Company Name |
Qingdao Float Glass Co., Ltd. |
TG Qingdao Glass Co., Ltd. |
|
2011 |
Registered Capital |
USD 60,000,000 |
USD 67,800,000 |
|
Registered Capital |
USD 67,800,000 |
USD 82,800,000 |
Current Co search indicates SC’s shareholders & chief executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Taiwan Glass China Holding Ltd. (Bermuda Islands) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Lin Boshi 林伯实 |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name % of Shareholding
Taiwan Glass China Holding Ltd. (Bermuda Islands) 100
MANAGEMENT
Lin Boshi , Legal Representative, Chairman and General Manager
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Gender: M
Nationality: Taiwan
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general manager
Also working in TG Zhangzhou Silica Sand Co., Ltd., TG Huanan Glass Co., Ltd., Qingdao Rolled Glass Co., Ltd., etc. as legal representative
BUSINESS OPERATION
SC’s registered business scope includes manufacturing float glass and deep processing products. (with permit if needed)
SC is mainly engaged in manufacturing and selling float glass and other glass products.
SC’s products mainly include: clear float glass, colored float glass, LVC reflective glass, coated glass, etc.
SC sources its materials 100% from domestic market. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly Southeast Asia and Middle East.
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.
*Major Customers:
==============
Vitrum Industries Ltd.
Dusco Doors Ltd.
Staff & Office:
--------------------------
SC is known to have approx. 750 staff at present.
SC owns an area as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
Qingdao Rolled Glass Co., Ltd.
------------------------------
Date of Registration: May 27, 1993
Registration No.: 370200400009420
Legal Form: Chinese-Foreign Equity Joint Venture Enterprise
Chief Executive: Lin Boshi
Registered Capital: USD 29,293,000
TG Kunshan Glass Co., Ltd.
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Date of Registration: January 26, 2005
Registration No.: 320583400033134
Legal Form: Wholly Foreign-Owned Enterprise
Chief Executive: Lin Bofeng
Registered Capital: USD 24,000,000
TG Huanan Glass Co., Ltd.
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Date of Registration: March 10, 2003
Registration No.: 441900400009303
Chief Executive: Lin Boshi
Registered Capital: USD 103,000,000
TG Tianjin Glass Co., Ltd.
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Date of Registration: August 12, 2004
Registration No.: 120000400005158
Chief Executive: Lin Bochun
Registered Capital: USD 65,000,000
TG Chengdu Glass Co., Ltd.
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Date of Registration: May 20, 2002
Registration No.: 510100400021495
Legal Form: Wholly Foreign-Owned Enterprise
Chief Executive: Lin Bofeng
Registered Capital: USD 70,000,000
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
The bank information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31, 2013 |
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Cash |
37,000 |
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Accounts receivable |
17,660 |
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Other receivable |
18,900 |
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Inventory |
158,140 |
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Non-current assets within one year |
0 |
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Other current assets |
11,920 |
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------------------ |
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Current assets |
243,620 |
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Long-term investment |
142,350 |
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Fixed assets |
335,920 |
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Construction in progress |
2,940 |
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Intangible assets |
10,630 |
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Long-term prepaid expenses |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
6,080 |
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------------------ |
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Total assets |
741,540 |
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============= |
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Short-term loans |
86,960 |
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Notes payable |
25,720 |
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Accounts payable |
73,630 |
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Advances from clients |
5,570 |
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Other payable |
17,250 |
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Other current liabilities |
2,390 |
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------------------ |
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Current liabilities |
211,520 |
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Non-current liabilities |
30,490 |
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------------------ |
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Total liabilities |
242,010 |
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Equities |
499,530 |
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------------------ |
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Total liabilities & equities |
741,540 |
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============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31, 2013 |
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Revenue |
436,590 |
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Cost of sales |
437,660 |
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Sales expense |
27,720 |
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Management expense |
12,570 |
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Finance expense |
5,470 |
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Profit before tax |
-53,810 |
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Less: profit tax |
0 |
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Profits |
-53,810 |
Important Ratios
=============
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As of Dec. 31, 2013 |
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*Current ratio |
1.15 |
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*Quick ratio |
0.40 |
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*Liabilities to assets |
0.33 |
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*Net profit margin (%) |
-12.33 |
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*Return on total assets (%) |
-7.26 |
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*Inventory / Revenue ×365 |
133 days |
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*Accounts receivable/ Revenue ×365 |
15 days |
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*Revenue/Total assets |
0.59 |
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*Cost of sales / Revenue |
1.00 |
FINANCIAL COMMENTS
PROFITABILITY: FAIR
The revenue of SC appears fairly good in its line.
SC’s net profit margin is poor.
SC’s return on total assets is fair.
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears large.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loans are in an average level.
SC’s revenue is in a fair 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 average.
Overall financial condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.65 |
|
|
1 |
Rs.99.21 |
|
Euro |
1 |
Rs.82.39 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.