MIRA INFORM REPORT
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Report Date : |
16.05.2014 |
IDENTIFICATION DETAILS
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Name : |
CANGZHOU FOUR STAR GLASS TUBE CO., LTD. |
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Registered Office : |
Zhifangtou Industrial Park, Cang County, Cangzhou City, Hebei Province, 061026 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
23.03.2006 |
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Com. Reg. No.: |
130921000001905 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling glass products. |
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No. of Employees : |
500 |
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 – March 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, 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.
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Source
: CIA |
Company
name and address
CANGZHOU FOUR STAR
GLASS TUBE CO., LTD.
ZHIFANGTOU INDUSTRIAL PARK, CANG COUNTY, CANGZHOU CITY,
HEBEI PROVINCE, 061026 PR CHINA
TEL: 86 (0) 13315783506
FAX: 86 (0) 317-4914188
EXECUTIVE
SUMMARY
INCORPORATION DATE :
MARCH 23, 2006
REGISTRATION NO. :
130921000001905
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. WANG HUANYI (CHAIRMAN)
STAFF STRENGTH :
500
REGISTERED CAPITAL : CNY 57,065,200
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 126,670,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 106,980,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2316= 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 Limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on March 23, 2006.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes manufacturing and selling
medical neutral boron-phosphorosilicate glass tube, soda lime
boron-phosphorosilicate glass oral liquid tube, neutral boron-phosphorosilicate
glass injection bottle, low boron-phosphorosilicate glass injection bottle and
neutral boron-phosphorosilicate glass ampoule; selling plastic injection parts,
bottle caps; manufacturing and selling glass tube and glass rod; importing and
exporting glass ware, goods and technologies.
SC is mainly engaged in manufacturing and selling
glass products.
Mr. Wang Huanyi is legal representative and chairman of SC at present.
SC is known to have approx. 500 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 Cang County.
Detailed premise information is unspecified.
www.czsx.com
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
Email: wanghy@czsx.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Organization code: 787004397
Subject passed the annual
inspection of 2012 with Administration for Industry & Commerce.
Honors
SC passed ISO 9001:2008.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name Amount
(CNY) % of
Shareholding
Wang Huanyi 24,000,000 42.06
SDIC High-Tech Investment Co., Ltd. 10,000,000 17.52
Chen Yimei 6,450,000 11.30
Hebei Rong Tou Venture Capital Co., Ltd.
(literal
translation) 4,565,200 8.00
Bi Ruzhen 4,000,000 7.01
Hebei Xinchan New Material Venture Capital Co.,
Ltd. 2,500,000 4.38
Other 6 individuals 5,550,000 9.73
SDIC High-Tech Investment Co., Ltd.
---------------------------------------------
Reg. No.: 100000000023843
Legal representative: Hao Jian
Incorporation date: Sep. 12, 1996
Hebei Rong Tou Venture Capital Co., Ltd. (literal translation)
---------------------------------------------
Reg. No.:
130000000025288
Legal
representative: Cheng Rong
Hebei Xinchan New Material Venture Capital Co., Ltd.
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Reg. No.: 130000000025841
Legal representative: Zhang Ruijie
Legal
representative and chairman:
Mr. Wang Huanyi is currently responsible for the overall management of
SC.
Working
Experience(s):
At present Working in SC as legal representative and
chairman
General
Manager and Director:
Ms. Bi Ruzhen is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager and
director
Directors:
Peng Liang
Chen Yimei
Luo Laiping
Wang Xiaoliang
Supervisors:
Liang Guangfa
Wang Miansong
Li Xiuhai
SC is mainly engaged in manufacturing and selling glass products.
SC’s products mainly include neutral borosilicate glass tube,
borosilicate glass ampoule with a neutral, injection with neutral borosilicate
glass tube, pharmaceutical bottles, tubular injection vials of neutral
borosilicate glass, tubular injection vials of low borosilicate glass, ampoules
of neutral borosilicate glass, screw tubular vials, etc.
SC sources its materials 100% from domestic market. SC sells 90% of its
products in domestic market and 10% to overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, Check, L/C and Credit of 30-60 days.
Note: SC’s
management refused to release its major suppliers and clients.
SC is not known to have any subsidiary at present.
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 banking information.
Balance
Sheet
Unit: CNY’000
Income
Statement
Unit: CNY’000
Important
Ratios
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As of Dec. 31,
2013 |
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*Current ratio |
1.04 |
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*Quick ratio |
0.74 |
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*Liabilities to assets |
0.63 |
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*Net profit margin (%) |
13.26 |
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*Return on total assets (%) |
5.85 |
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*Inventory /Turnover ×365 |
139 days |
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*Accounts receivable/Turnover ×365 |
113 days |
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*Turnover/Total assets |
0.44 |
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* Cost of goods sold/Turnover |
0.74 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is good.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a normal
level
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SC’s quick ratio is maintained in a fair level.
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SC’s inventory is fairly large in 2013.
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SC’s accounts receivable is average in 2013.
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SC’s short loan is large in 2013.
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SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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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 inventory and short loan would be the threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.47 |
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1 |
Rs.99.70 |
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Euro |
1 |
Rs.81.55 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
NNA |
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 |
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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.