MIRA
INFORM REPORT
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Report Date : |
08.04.2014 |
IDENTIFICATION DETAILS
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Name : |
GUANGDONG FOREIGN TRADE IMP. & EXP. CORP. |
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Registered Office : |
15-18/f, Guangdong Foreign Economic & Trade Building, No. 351 Tianhe Road, Guangzhou, Guangdong Province, 510620 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
25.08.1984 |
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Com. Reg. No.: |
440000000081588 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Subject is engaged in trading of various kinds of products. products
mainly include: Furniture, Storage, Hanger, EVA & PU Products, Clothing,
Home Appliances, Lighting, Metal & Materials, Gift & Stationery, Tool
Kit, Baby Products and Sanitary |
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No. of Employees : |
300 |
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 – September 30, 2013
|
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.
|
Source
: CIA |
Company name and address
GUANGDONG FOREIGN TRADE IMP. & EXP. CORP.
15-18/f, Guangdong foreign Economic & trade building,
no. 351 tianhe road, guangzhou, GUANGDONG PROVINCE,
510620 PR CHINA
TEL: 86 (0) 20-38802002/38819011
FAX: 86 (0) 20-38802495
EXECUTIVE SUMMARY
INCORPORATION DATE : aug. 25, 1984
REGISTRATION NO. : 440000000081588
REGISTERED LEGAL FORM :
STATE-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. ZENG YU (GENERAL MANAGER)
STAFF STRENGTH :
300
REGISTERED CAPITAL : CNY 29,430,000
BUSINESS LINE :
TRADE
TURNOVER :
CNY 2,263,190,000 (UNAUDITED, AS OF
DEC. 31, 2013)
EQUITIES :
CNY 237,200,000 (UNAUDITED, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well known
EXCHANGE RATE :
CNY 6.21 = 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 state-owned enterprise at Guangdong Provincial
Administration for Industry & Commerce (AIC - The official body of issuing and
renewing business license) on Aug. 25, 1984.
Company Status: State-owned enterprise
This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, have autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered business scope includes wholesale hazardous chemicals
(no storage facilities); wholesale and retail: pre-packaged food (Main:
alcoholic beverages) (with permit if needed). Import and export of goods and
technology (excluding those legal, administrative regulations prohibited; with
permit if needed), its own office leasing, property management, real estate
agent (according to the branch office operations) wholesale, retail of exports
to domestic goods and sales of the Company's domestic imported goods (excluding
franchise, the control of goods), the sale of timber, computer hardware and
software and accessories, home appliances, communications equipment (excluding
satellite television ground receiving equipment), audio equipment, office
equipment, foreign trade and economic consulting.
SC is mainly engaged in trading of various kinds of products.
Mr. Zeng Yu has been the legal representative
and general manager of SC since Feb., 2014.
SC is known to have approx. 300 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Guangzhou. Our checks
reveal that SC owns the total premise about 7,000 square meters.
http://www.gftiec.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: ecbuy@gftiec.com
Changes
of SC’s registered information:
|
Date |
Item |
Before changed |
After changed |
|
Unknown |
Registered no. |
4400001003909 |
Present one |
|
2014-2 |
Legal Rep. |
Huang Tieming |
Present one |
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 190337009
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Guangdong Guangxin Holdings Group Ltd. 100
The former name of SC’s shareholder was Guangdong Foreign Trade Group
Co., Ltd.
Guangdong Guangxin Holdings Group Ltd. founded
in 2000, is a state-owned enterprise group, composing several major
province-owned exporting companies, with registered capital of 1.6 billion RMB
and the total number of employees close to 24 thousands during 2011. After
10-plus years` development, the Group was transformed into an internationally
competitive company with five pillar industries including colored construction
materials, mining, metallurgy and chemical engineering, mechanical and
electrical equipment, light industry and food, as well as modern logistics from
a traditional exporting company. The industry chain of the Group is combined
with technology, industry, trading and investment. The Group is now consisted
of 21 tier-one enterprises, with listed companies including Star Lake
Bioscience Co., Inc., FSPG Hi-Tech CO., Ltd., ShengYi
Technology Co., Ltd. and GDAD Co., Ltd. at home and 3 listed companies abroad.
In total, the Group has established 10 famous Chinese brands and trademarks, 30
Guangdong well-known exporting brands, 19 technology-based research centers,
162 technical patents and a number of the national or even global largest
production bases. The Group was listed 146 out of China`s
Fortune
Registered no.: 440000000045367
Registered capital: CNY 1,600,000,000
Legal rep.: Li Cheng
Tel: 86 020- 89203226
Fax: 86 020- 89203021
Website: http://www.gdftc.com
E-mail: zhb@gdfct.com
Add.: No. 1000, Xingang East Road, Haizhu District, Guangzhou, Guangdong Province
Legal
Representative and General Manager:
Mr. Zeng Yu, in his
Working
Experience(s):
From Feb., 2014 to present Working in SC as legal representative
general manager.
Also working in Guangdong Grand
Shine Construction Material Co., Ltd. as legal representative.
SC is mainly engaged in trading of various kinds of products.
SC’s products mainly include: Furniture, Storage, Hanger, EVA & PU Products,
Clothing, Home Appliances, Lighting, Metal & Materials, Gift &
Stationery, Tool Kit, Baby Products and Sanitary
SC sources its materials 70% from domestic market, and 30% from the
overseas market, mainly Southeast Asia and Europe. SC sells 30% of its products
in domestic market, and 70% to the overseas market, mainly Southeast Asia and
Europe.
The buying terms of SC include Check, T/T, L/C 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 known to invest in the following companies:
Shengyi Technology Co., Ltd.
=========================
The said company is a listed company in Shanghai Stock Exchange Market
with the code of 600183.
Incorporation date: June 27, 1985
Registered no.: 441900400120353
Registered capital: CNY 1,423,018,290
Legal rep.: Li Jin
Legal form: Shares limited co.
E-mail: tzzgx@syst.com.cn
Tel: 86 (0) 769-22271828
Fax: 86 (0) 769- 22174183
Guangdong Grand Shine Construction Material
Co., Ltd.
==========================================
Incorporation date: Aug. 26, 2005
Registered no.: 440000000015013
Registered capital: CNY 15,000,000
Legal rep.: Zeng Yu
Legal form: Limited liabilities co.
Web: http://www.aluman.cn
E-mail: aluman@aluman.cn
Tel: 86 (0) 20-38815312
Fax: 86 (0) 20-38869773
GD Land-sea International Transportation Ltd.
=========================
Registration No.: 440000000064632
Incorporation Date:
Chairman: Chi Junrong
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 Guangdong Branch
AC#: 648357735756
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Cash & bank |
74,770 |
161,390 |
|
Notes receivable |
3,190 |
2,240 |
|
Inventory |
135,070 |
81,670 |
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Accounts receivable |
71,560 |
83,070 |
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Advances to suppliers |
59,940 |
58,320 |
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Other receivables |
24,990 |
20,970 |
|
Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
369,520 |
407,660 |
|
Fixed assets net value |
21,500 |
19,730 |
|
Projects under construction |
1,380 |
1,810 |
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Investment property |
89,550 |
85,930 |
|
Long-term deferred expenses |
1,580 |
2,150 |
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Long term investment |
169,120 |
172,660 |
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Deferred income tax assets |
8,570 |
4,950 |
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Other assets |
0 |
0 |
|
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------------------ |
------------------ |
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Total assets |
661,220 |
694,890 |
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============= |
============= |
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Short loans |
11,110 |
42,350 |
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Accounts payable |
101,030 |
141,760 |
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Advances from clients |
169,570 |
162,580 |
|
Notes payable |
78,640 |
36,800 |
|
Taxes payable |
6,090 |
14,350 |
|
Employee pay payable |
55,590 |
41,950 |
|
Other payable |
32,150 |
17,850 |
|
Other current liabilities |
0 |
50 |
|
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------------------ |
------------------ |
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Current liabilities |
454,180 |
457,690 |
|
Long term liabilities |
0 |
0 |
|
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------------------ |
------------------ |
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Total liabilities |
454,180 |
457,690 |
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Equities |
207,040 |
237,200 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
661,220 |
694,890 |
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============= |
============= |
Income
Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Turnover |
2,595,750 |
2,263,190 |
|
Cost of goods sold |
2,442,930 |
2,107,720 |
|
Taxes and additional of main operations |
310 |
1,300 |
|
Sales expense |
116,860 |
80,330 |
|
Management expense |
24,960 |
29,550 |
|
Finance expense |
6,020 |
4,040 |
|
Changes in fair value |
0 |
-60 |
|
Investment income |
47,000 |
18,990 |
|
Asset impairment loss |
11,560 |
1,730 |
|
Non-operating income |
960 |
680 |
|
Non-operating expense |
410 |
660 |
|
Profit before tax |
40,660 |
57,470 |
|
Less: profit tax |
2,530 |
9,900 |
|
Profits |
38,130 |
47,570 |
Note: The financial reports for Yr2013 have not been audited.
Important
Ratios
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.81 |
0.89 |
|
*Quick ratio |
0.52 |
0.71 |
|
*Liabilities to assets |
0.69 |
0.66 |
|
*Net profit margin (%) |
1.47 |
2.10 |
|
*Return on total assets (%) |
5.77 |
6.85 |
|
*Inventory /Turnover ×365 |
19 days |
14 days |
|
*Accounts receivable/Turnover ×365 |
11 days |
14 days |
|
*Turnover/Total assets |
3.93 |
3.26 |
|
* Cost of goods sold/Turnover |
0.94 |
0.93 |
PROFITABILITY:
FAIRLY GOOD
·
The turnover of SC appears good in its line in both
years, but it declined in 2013.
·
SC’s net profit margin is average in both years.
·
SC’s return on total assets is fairly good in both
years.
·
SC’s cost of goods sold is fairly high in both
years, comparing with its turnover.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a fair
level in both years.
·
SC’s quick ratio is maintained in a fair level in
both years.
·
The accounts receivable of SC is average in both
years.
·
The inventory of SC is average in both years.
·
The short loans of SC are average in both years.
·
SC’s turnover is in a fairly good level in both
years, 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: Fairly stable.
SC is considered a medium-sized in its line with favorable background
and fairly stable financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.95 |
|
|
1 |
Rs.99.36 |
|
Euro |
1 |
Rs.82.15 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
NNA |
RATING EXPLANATIONS
|
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 |
|
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.