MIRA INFORM REPORT
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Report Date : |
10.12.2014 |
IDENTIFICATION DETAILS
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Name : |
GUANGDONG DONGFANG IMPORT
& EXPORT CORP. |
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Registered Office : |
6/F & 11/F, Yinsheng Mansion, No. 1001, Hongli Road, Futian District,
Shenzhen, Guangdong Province 518028 Pr |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
12.05.1982 |
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Com. Reg. No.: |
440301103263245 |
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Legal Form : |
State-Owned |
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Line of Business : |
Subject is engaged in international trade products mainly include
Multi-media Projectors, Electronic products, furniture, Construction
materials, aluminum composite panel, Power Inverter, Battery charger, Solar Energy
Series, LED Light, Electronics Division website. |
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No. of Employees : |
140 |
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 : |
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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 |
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, growth of the private sector, development of stock
markets and a modern banking system, 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 considered
important to "economic security," explicitly looking to foster
globally competitive industries. After keeping its currency tightly linked to
the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB
is permitted to fluctuate. 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. Several factors are converging to slow China's growth, including
debt overhang from its credit-fueled stimulus program, industrial overcapacity,
inefficient allocation of capital by state-owned banks, and the slow recovery
of China's trading partners. The government's 12th Five-Year Plan, adopted in
March 2011 and reiterated at the Communist Party's "Third Plenum"
meeting in November 2013, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent in
the future on fixed investments, exports, and heavy industry. 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 DONGFANG IMPORT & EXPORT CORP.
6/F & 11/F, YINSHENG MANSION, NO. 1001, HONGLI
ROAD, FUTIAN DISTRICT, SHENZHEN, GUANGDONG PROVINCE 518028 PR CHINA
TEL: 86 (0) 755-25950206/25950686 FAX: 86 (0) 755-25950220
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 12, 1982
REGISTRATION NO. : 440301103263245
REGISTERED LEGAL FORM : State-owned enterprise
CHIEF EXECUTIVE :
MR. LI XIANGMING (general manager)
STAFF STRENGTH :
140
REGISTERED CAPITAL : CNY 74,240,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 791,510,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 21,650,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.17= 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 local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on May 12, 1982.
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, has 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 importing and exporting commodities and technologies, excluding export commodities under state-unified operation and import commodities
operated by the state-designated companies; processing with imported materials,
processing with imported samples, assembling with imported parts, and
compensation trade in agreement; counter trade &
transit trade (in accordance with [98] Document No. 400 approved by Foreign
Trade and Economic Cooperation); selling import & export commodities in
domestic market.
SC is mainly engaged in international trade.
Mr. Li Xiangming has been legal representative and general manager of SC
since 2013.
SC is known to have approx. 140 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Shenzhen. Our checks
reveal that SC owns the total premise about 2,000 square meters.
http://www.dfiec.com/
The design is professional and the content is well organized. At present the
web site is in Chinese and English versions.
E-mail: dongfang@gd-dongfang.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2002-11-15 |
Legal representative |
Huang Yusheng 黄雨生 |
Gao Zhan’ao 高占鳌 |
|
2008-4-1 |
Legal representative |
Gao Zhan’ao 高占鳌 |
Kong Lingzhuo孔令灼 |
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Registration no. |
4403011061737 |
Present one |
|
|
2010-1-20 |
Legal representative |
Kong Lingzhuo孔令灼 |
Liang Yuzhong (梁玉忠) |
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2011-1-7 |
Registered capital |
CNY 30,240,000 |
Present amount |
|
2013-8 |
Legal representative |
Liang Yuzhong (梁玉忠) |
Present one |
According to SC’s website, SC's predecessor was Shenzhen Oriental
Trading Company.
SC has got ISO 9001:2008 System Certificate, Advanced Enterprises for
Year2007 &2008, Enterprise of Observing Contract and Valuing Credit, etc.
Organization code: 190338554
See below for SC as executive party (defendant).
|
Executed Party |
Guangdong Dongfang Import
& Export Corp. |
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Court |
Futian District, Shenzhen City People's Court |
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Date of Case |
|
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Case Number |
(2008) 05547 |
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Claim Amount |
RMB 389,853 |
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
Guangdong Guangxin Holdings Group Ltd. 100
Its former name was Guangdong Guangxin Foreign Trade Group Co., Ltd.
Registered no.: 440000000045367
Legal representative: Li Cheng
Registered capital: CNY 1,600,000,000
Add: No. 1000, Xin’gang East Road, Haizhu District, Guangzhou
Tel: 86-20-89203226
Fax: 86-20-89203021
Email: zhb@gdftc.com
Legal Representative
and General Manager:
Mr. Li Xiangming is currently
responsible for the overall management of SC.
Working
Experience(s):
From 2013 to present Working
in SC as legal representative and general manager.
SC is mainly engaged in international trade.
SC’s products mainly include Multi-media Projectors, Electronic
products, furniture, Construction materials, aluminum composite panel, Power
Inverter, Battery charger, Solar Energy Series, LED Light, Electronics Division
website.
SC’s business mainly include import and export trade of mechanical and
electrical products, daily necessities, such as cotton-based products, products
exported to the United States, Canada, the European Union, South Africa, the Middle
East, Japan, Southeast Asia and countries such as Hong Kong and Macao.
(According to SC’s website)
SC sources its materials 97% from domestic market and 3% from overseas
market. SC sells 20% of its products in domestic market and 80% to overseas
market.
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 declined
to release its major suppliers and clients.
Trademark & Patents
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Registration No. |
5659873 |
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Registration Date |
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Trademark Design |
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Registered no.: 440000000002794
Legal representative: Wang Wei
Registered no.: 440000000081588
Legal representative: Zeng Yu
Guangdong Guangxin Investment Holdings Ltd.
Registered no.: 440000000032137
Legal representative: Liu Ning
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.
Bank of
AC#: 810400017608091001
Relationship:
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2013 |
|
Cash & bank |
18,810 |
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Inventory |
4,970 |
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Bills receivable |
0 |
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Accounts receivable |
1,380 |
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Advances to suppliers |
103,230 |
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Other receivables |
101,200 |
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Other current assets |
30 |
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------------------ |
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Current assets |
229,620 |
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Fixed assets net value |
5,190 |
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Long term investment |
10,080 |
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Projects under construction |
0 |
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Intangible and other assets |
36,000 |
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------------------ |
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Total assets |
280,890 |
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=========== |
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Short loan |
48,690 |
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Accounts payable |
5,830 |
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Bills payable |
6,000 |
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Advances from clients |
107,590 |
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Salaries payable |
10,370 |
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Taxes payable |
5,480 |
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Other Accounts payable |
74,360 |
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Other current liabilities |
30 |
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Current liabilities |
258,350 |
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Long term liabilities |
890 |
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------------------ |
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Total liabilities |
259,240 |
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Equities |
21,650 |
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------------------ |
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Total liabilities & equities |
280,890 |
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=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
|
Turnover |
791,510 |
|
Cost of goods sold |
750,070 |
|
Sales expense |
15,400 |
|
Management expense |
12,190 |
|
Finance expense |
7,510 |
|
Profit before tax |
-13,270 |
|
Less: profit tax |
-4,010 |
|
Profits |
-9,260 |
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
|
*Current ratio |
0.89 |
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*Quick ratio |
0.87 |
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*Liabilities to assets |
0.92 |
|
*Net profit margin (%) |
-1.17 |
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*Return on total assets (%) |
-3.30 |
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*Inventory /Turnover ×365 |
3 days |
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*Accounts receivable/Turnover ×365 |
1 day |
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*Turnover/Total assets |
2.82 |
|
* Cost of goods sold/Turnover |
0.95 |
PROFITABILITY: FAIR
The turnover of SC appears fairly good.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
The short-term loan of SC appears large.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
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 could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.88 |
|
|
1 |
Rs.96.90 |
|
Euro |
1 |
Rs.76.29 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
SDA |
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 |
-- |
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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.