MIRA INFORM REPORT
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Report Date : |
31.10.2014 |
IDENTIFICATION DETAILS
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Name : |
YANGTZE OPTICAL FIBER AND CABLE CO., LTD. |
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Registered Office : |
No. 9 Guanggu Avenue, Hongshan District, Wuhan Hubei Province 430073 PR |
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Country : |
China |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
31.05.1988 |
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Com. Reg. No.: |
420100400008486 |
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Legal Form : |
Shares limited Company |
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Line of Business : |
Subject includes researching, developing, manufacturing and
selling optical fiber perform, optical fiber, cable, communication cable, special
cable and parts, accessories, component and materials; manufacturing special
equipment and communication products; supplying engineering and technology
services for the above products (operating the limited items after obtaining
the permits) |
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No. of Employees : |
1,750 |
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 : |
Usually 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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 |
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, 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
YANGTZE OPTICAL FIBER
AND CABLE CO., LTD.
NO. 9 GUANGGU AVENUE, HONGSHAN DISTRICT, WUHAN
HUBEI PROVINCE 430073 PR CHINA
TEL: 86 (0) 27-87802541/67887279/67887636
FAX: 86 (0) 27-87428187/87802536/87780016
***Note: The (4
Guan Shan Fv Road Wuhan) was SC’s former one, while SC is operating in the
heading address.
EXECUTIVE SUMMARY
Date of Registration : MAY 31, 1988
REGISTRATION NO. : 420100400008486
LEGAL FORM : Shares limited Company
CHIEF EXECUTIVE : WEN HUIGUO (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 479,592,598
staff : 1,750
BUSINESS CATEGORY : MANUFACTURING & TRADING
REVENUE : CNY 2,638,440,000 (JAN. 1, 2014 TO JUN. 30, 2014)
EQUITIES : CNY 1,754,091,000 (AS OF JUN. 30, 2014)
WEBSITE : www.yofc.com
E-MAIL : tangchangwei@yofc.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.12 = 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 Chinese-foreign equity joint venture enterprise of PRC on May 31, 1988. However, SC changed to present legal form, and was registered as shares limited company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 420100400008486 in 2013.
SC’s Organization Code Certificate No.: 61640035-2
SC’s registered capital: CNY 479,592,598
SC’s paid-in capital: CNY 479,592,598
Registration Change Record:-
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Date |
Change of Contents |
Before the change |
After the change |
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Name Of Company |
Wuhan Yangtze Optical Fiber and Cable Co., Ltd. |
Yangtze Optical Fiber and Cable Co., Ltd. |
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Legal Representative |
Liang Jia |
Zhao Moli |
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Legal Representative |
Zhao Molin |
Zhou Changyong |
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Registered Capital |
EUR 53,660,000 |
EUR 89,660,000 |
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Legal Representative |
Zhou Changyon |
Han Songlin |
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Registered Capital |
EUR 89,660,000 |
EUR 63,328,220 |
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Legal Representative |
Han Songlin |
Zhu Gaoshan |
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-- |
Registration No. |
000034 |
42010040000848 |
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2009 |
Legal Representative |
Zhu Gaoshan |
Wen Huiguo |
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2013 |
Registered Capital |
EUR 63,328,220 |
CNY 479,592,598 |
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Legal Form |
Chinese-Foreign Equity Joint Venture Enterprise |
Shares Limited Company |
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Company Chinese Name |
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Current Co search indicates SC’s shareholders & chief executives are as follows:-
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Name of Shareholder (s) |
% of Shareholding |
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Draka Comteq B.V. (Netherlands) |
37.5 |
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China Huaxin Post and Telecommunication Economy Development Center |
37.5 |
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Wuhan Yangtze Communications Industry Group Co., Ltd. |
25 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative and Chairman |
Wen Huiguo |
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General Manager |
Zhuang Da |
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Vice Chairman |
Frank Dorjee |
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Director |
Sun Jiming |
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Ma Jie |
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Zheng Huili |
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Supervisor |
Yu Jiaxuan |
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Yao Jingming |
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|
Jiang Zhikang |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Draka Comteq B.V. (Netherlands) 37.5
China Huaxin Post and Telecommunication Economy Development Center 37.5
Wuhan Yangtze Communications Industry Group Co., Ltd. 25
China Huaxin Post and Telecommunication Economy Development Center
=========================================================
China Huaxin Post & Telecommunication Economy Development Center (“China Huaxin”) is an industrial investment company that seeks long-term commercial growth opportunities in the Information and Communications Technologies (ICT) sector. China Huaxin has extensive global operations and international investment experience. China Huaxin aspires to be a competitive global industry holding group that creates long-term value for its stakeholders and for society as a whole by nurturing and advancing technology innovation in the Information Industry.
Registration No.: 100000000012710
Chief Executive: Yuan Xin
Registered Capital: CNY 350,000,000
Tel.: 010-58528866
Fax: 010-58529293
Web: www.sinohx.com
E-mail: sinohx@sinohx.com
Wuhan Yangtze Communications Industry Group Co., Ltd.
==============================================
Wuhan Yangtze Communications Industry Group Co., Ltd. is a high-tech listed company (stock code: 600345) founded in 1996 and attested by State Ministry of Science and Technology and China Academy of Science. Yangtze Communications specializes in investment, research and development, manufacture and marketing of communications products. The products include optical transmission equipment, access network equipment, optical fiber, optical cable, wireless communications system and equipment, indoor comprehensive overcast system for public mobile communications, base station radio-frequency cable, digital video equipment, optical storage product and relevant software. It also offers technical services and integration of communications and information system.
Registration No.: 420000000044191
Chief Executive: Tong Guohua
Registered Capital: CNY 198,000,000
Tel: +86-027-67840308/67840265
Fax: +86-027-67840308/67840274
MANAGEMENT
Wen Huiguo Legal Representative and Chairman
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Gender: M
Age: 61
Qualification: University
Working experience (s):
From 2009 to present, working in SC as legal representative and chairman
Zhuang Dan , General Manager
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Gender: F
Qualification: University
Working experience (s):
At present, working in SC as general manager
Also working in as Yangtze Optical Fibre and Cable (Shanghai) Co., Ltd. legal representative
Frank Dorjee , Vice Chairman
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Gender: M
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
Director
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Sun Jiming
Ma Jie
Zheng Huili
Supervisor
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Yu Jiaxuan
Yao Jingming
Jiang Zhikang
BUSINESS
OPERATION
SC’s registered business scope includes researching, developing, manufacturing and selling optical fiber perform, optical fiber, cable, communication cable, special cable and parts, accessories, component and materials; manufacturing special equipment and communication products; supplying engineering and technology services for the above products (operating the limited items after obtaining the permits).
SC is mainly engaged in manufacturing and selling optical fiber and cable, optical fiber perform, communication cable, etc.
Brand: YOFC
SC’s products mainly include: communication fiber, communication cable and specialty fiber, etc.
SC sources its materials 75% from domestic market, and 25% from overseas market, mainly Germany. SC sells 80% of its products in domestic market, and 20% to overseas market, mainly Europe.
The buying terms of SC include Check, T/T, L/C and Credit of 15-30 days. The payment terms of SC include Check, T/T, L/C and Credit of 15-30 days.
*Major Customers*
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Arielle International Inc.
Sumitomo Electric Device
Staff & Office:
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SC is known to have approx. 1,750 staff at present.
SC owns an area as its operating office & factory of approx. 170,000 sq. meters at the heading address.
RELATED
COMPANY
SC is known to have the following subsidiaries:
Yangtze Optical Fibre and Cable (Shanghai) Co., Ltd.
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Date of Registration: October 30, 2002
Registration No.: 310000400320708
Chief Executive: Zhuang Dan
Registered Capital: USD 12,000,000
Jiangsu Yangtze Zhongli Optical Fibre and Cable Co., Ltd.
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Date of Registration: March 6, 2002
Registration No.: 320581000045389
Chief Executive: Wang Baixing
Shantou Hi-Tech Zone Aoxing Optical Communication Equipment Co., Ltd.
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Date of Registration: November 6, 1992
Registration No.: 440500400008718
Chief Executive: Gao Jingtao
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
Basic Bank:
Bank of Communications Hubei Branch
AC#: 421860158010123001301
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Jun. 30, 2014 |
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Total assets |
5,085,500 |
5,760,713 |
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------------- |
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Total liabilities |
3,575,840 |
4,006,622 |
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Equities |
1,509,660 |
1,754,091 |
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Unit: CNY’000 |
As of Dec. 31, 2013 |
Jan. 1, 2014 to Jun. 30, 2014 |
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Revenue |
4,884,960 |
2,638,440 |
|
Profits |
415,050 |
232,321 |
Important Ratios
=============
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|
As of Dec. 31, 2013 |
As of Jun. 30, 2014 |
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*Liabilities to assets |
0.70 |
0.70 |
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*Net profit margin (%) |
8.50 |
8.81 |
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*Return on total assets (%) |
8.16 |
4.03 |
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* Revenue/Total assets |
0.96 |
0.46 |
FINANCIAL
COMMENTS
PROFITABILITY: FAIRLY GOOD
The revenue of SC appears good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
LIQUIDITY: AVERAGE
SC’s revenue is in an average 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 low.
Overall financial condition of the SC: Stable.
CONCLUSIONS
SC is considered large-sized in its line with stable financial conditions. Taking into consideration of SC’s general performance, reputation as well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.46 |
|
|
1 |
Rs.98.21 |
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Euro |
1 |
Rs.77.45 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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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 |
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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.