MIRA
INFORM REPORT
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Report Date : |
02.09.2014 |
IDENTIFICATION DETAILS
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Name : |
GSP AUTOMOTIVE
GROUP WENZHOU CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
13.04.1999 |
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Com. Reg. No.: |
330300400001366 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling auto parts, petrochemical equipment fittings,
and motorcycle spare parts. |
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No. of Employees |
800 |
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 – June 1, 2014
|
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.
|
Source
: CIA |
Company name and address
GSP AUTOMOTIVE GROUP WENZHOU CO., LTD.
NO. 1 GAOXIANG ROAD,
HIGH-TECH INDUSTRIAL ZONE, OUHAI WENZHOU, ZHEJIANG PROVINCE 325006 PR CHINA
TEL: 86 (0)
577-86293269/86291825/86291791
FAX: 86 (0)
577-86291308
EXECUTIVE SUMMARY
Date of Registration : april 13, 1999
REGISTRATION NO. : 330300400001366
LEGAL FORM : shares limited company
CHIEF EXECUTIVE :
zhou jiaru (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 120,000,000
staff :
800
BUSINESS CATEGORY : manufacturing
& trading
Revenue :
CNY 687,101,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 311,352,000 (AS OF DEC. 31, 2013)
WEBSITE : www.gsp.cn
E-MAIL :
cxh@gsp.cn
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.15 = 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 shares limited company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
330300400001366 on April 13, 1999.
SC’s Organization Code Certificate No.:
70434595-5
SC’s Tax No.: 330304704345955
SC’s registered capital: cny 120,000,000
SC’s paid-in capital: cny 120,000,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhou Jiaru |
50.1 |
|
Alpha Holding Ventures Limited |
16 |
|
Shanghai Ruishi Investment Co., Ltd. |
15.82 |
|
New Fortune International Group Ltd. |
10.15 |
|
Dongmin |
7.85 |
|
Wenzhou Dachengbang Enterprise Management & Consultation Co., Ltd. |
0.08 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Zhou Jiaru |
|
Director |
Liang Xinpeng |
|
Liu Haiqiang |
|
|
Pan Jianzhong |
|
|
Li Fang |
|
|
Hu Xiong |
|
|
Zou Xiande |
|
|
Xiang Youheng |
|
|
Pan Zhanxing |
|
|
Supervisor |
Zhao Suhong |
|
Zhu Guodong |
|
|
Liu Yuanjun |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Zhou Jiaru 50.1
Alpha Holding Ventures Limited 16
Shanghai Ruishi Investment Co., Ltd. 15.82
New Fortune International Group Ltd. 10.15
Dongmin 7.85
Wenzhou Dachengbang Enterprise Management & Consultation Co., Ltd. 0.08
Shanghai Ruishi Investment Co., Ltd.
---------------------------------------------
Registration No.: 310115001030666
Legal Form: Limited Liabilities Company
Registered Capital: CNY 8,000,000
Legal Representative: Pan Zhanxing
Wenzhou Dachengbang Enterprise Management & Consultation Co., Ltd.
--------------------------------------------
Registration No.: 330304000009739
Legal Form: Limited Liabilities Company
Registered Capital: CNY 50,000
Legal Representative: Zhou Jiaru
MANAGEMENT
Zhou Jiaru, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------
Gender: M
Working experience
(s):
At present, working in SC as legal representative, chairman and general
manager
Also working in Wenzhou Dacheng Enterprise Management & Consultation
Co., Ltd. as legal representative
Director
----------
Liang Xinpeng
Liu Haiqiang
Pan Jianzhong
Li Fang
Hu Xiong
Zou Xiande
Xiang Youheng
Pan Zhanxing
Supervisor
-------------
Zhao Suhong
Zhu Guodong
Liu Yuanjun
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling auto parts, petrochemical equipment fittings, and motorcycle spare
parts.
SC is mainly engaged in manufacturing and selling auto parts,
petrochemical equipment fittings, and motorcycle spare parts.
SC’s products mainly include: auto parts.
Trademark: GS•P.
SC sources its materials 100% from domestic market. SC sells 30% of its products
in domestic market, and 70% to overseas market, mainly U.S.A., Southeast Asia,
etc.
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 Clients*
------------------
Gsp West Llc
Parkdick Enterprises Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 800
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
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 local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Cash |
109,515 |
99,071 |
|
Notes receivable |
0 |
815 |
|
Accounts receivable |
114,024 |
139,829 |
|
Advances to suppliers |
5,891 |
16,955 |
|
Other receivable |
435 |
13,049 |
|
Inventory |
36,456 |
76,525 |
|
Prepaid expenses |
0 |
0 |
|
Other current assets |
0 |
10,062 |
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|
------------------ |
------------------ |
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Current assets |
266,321 |
356,306 |
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Long-term investment |
168,409 |
222,387 |
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Fixed assets |
94,278 |
91,903 |
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Construction in progress |
1,705 |
96 |
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Intangible assets |
15,842 |
15,220 |
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Long-term prepaid expenses |
0 |
85 |
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Deferred income tax assets |
441 |
599 |
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Other non-current assets |
4,106 |
5,210 |
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------------------ |
------------------ |
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Total assets |
551,102 |
691,806 |
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============= |
============= |
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Short-term loans |
58,694 |
85,680 |
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Notes payable |
61,421 |
70,723 |
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Accounts payable |
114,217 |
154,433 |
|
Wages payable |
15,762 |
24,777 |
|
Taxes payable |
-1,638 |
4,672 |
|
Interest payable |
250 |
623 |
|
Advances from clients |
6,625 |
33,226 |
|
Other payable |
16,292 |
6,320 |
|
Accrued expenses |
0 |
0 |
|
Other current liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Current liabilities |
271,623 |
380,454 |
|
Non-current liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total liabilities |
271,623 |
380,454 |
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Equities |
279,479 |
311,352 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
551,102 |
691,806 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
576,110 |
687,101 |
|
Cost of sales |
458,324 |
544,253 |
|
Taxes and surcharges |
3,937 |
4,081 |
|
Sales expense |
31,625 |
35,471 |
|
Management expense |
37,932 |
47,493 |
|
Finance expense |
1,997 |
8,152 |
|
Investment income |
492 |
44 |
|
Non-operating income |
1,612 |
3,749 |
|
Non-operating expense |
1,638 |
1,225 |
|
Profit before tax |
42,278 |
44,581 |
|
Less: profit tax |
4,572 |
4,907 |
|
Profits |
37,706 |
39,674 |
Important Ratios
=============
|
|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
*Current ratio |
0.98 |
0.94 |
|
*Quick ratio |
0.85 |
0.74 |
|
*Liabilities to assets |
0.49 |
0.55 |
|
*Net profit margin (%) |
6.54 |
5.77 |
|
*Return on total assets (%) |
6.84 |
5.73 |
|
*Inventory / Revenue ×365 |
24 days |
41 days |
|
*Accounts receivable / Revenue ×365 |
73 days |
75 days |
|
*Revenue / Total assets |
1.05 |
0.99 |
|
*Cost of sales / Revenue |
0.80 |
0.79 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line, and it increased in
2013.
SC’s net profit margin is fairly good in both years.
SC’s return on total assets is fairly good in both years.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: FAIR
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 loans of SC appear average.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAEG
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.47 |
|
UK Pound |
1 |
Rs.100.43 |
|
Euro |
1 |
Rs.79.40 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
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|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>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.