MIRA INFORM REPORT
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Report No. : |
334663 |
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Report Date : |
07.08.2015 |
IDENTIFICATION DETAILS
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Name : |
CHENGDU GUTE MACHINERY WORKS CO., LTD. |
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Registered Office : |
Industrial Development Zone, Pengzhou, Chengdu,
Sichuan Province, 611930 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
17.04.2002 |
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Com. Reg. No.: |
510182000048515 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is engaged in manufacturing and selling mechanical and
electrical products. |
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No. of Employee : |
190 |
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, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. In 2014 the People’s Bank
of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that
year... 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 2014 more than 274 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. In 2014 China agreed to begin
limiting carbon dioxide emissions by 2030. China implemented several economic
reforms in 2014, including passing legislation to allow local governments to
issue bonds, opening several state-owned enterprises to further private
investment, loosening the one-child policy, passing harsher pollution fines,
and cutting administrative red tape.
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Source
: CIA |
Company
name and address
CHENGDU GUTE MACHINERY WORKS CO., LTD.
INDUSTRIAL DEVELOPMENT ZONE, PENGZHOU,
CHENGDU, SICHUAN PROVINCE, 611930 PR CHINA
TEL: 86 (0) 28-66292767/13881768037 FAX: N/A
EXECUTIVE
SUMMARY
INCORPORATION DATE : APR. 17, 2000
REGISTRATION NO. : 510182000048515
REGISTERED LEGAL FORM : Limited
liabilities co.
CHIEF EXECUTIVE :
Mr. zhou zhengshu (chairman)
STAFF STRENGTH :
190
REGISTERED CAPITAL : cny
4,150,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 61,620,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 6,100,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
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 Limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Apr. 17, 2000.
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
mechanical and electrical products (excluding motor vehicles); exporting
mechanical and electrical products [excluding pre-licensing projects, rear
license projects with permit if needed].
SC is mainly engaged in manufacturing and selling mechanical and
electrical products.
Mr. Zhou Zhengshu is the legal
representative, chairman and general manager of SC at present.
SC is known to have approx. 190 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial development zone of
Pengzhou. Detailed information of the premise is unspecified.
http://www.cdgute.com/
The design is professional and the content is well organized. At present the
web site is in Chinese and English versions.
Email: 1472793198@qq.com
Changes
of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registered capital |
CNY 2,150,000 |
Present amount |
Tax registration no.: 510182720371782
Organization code: 720371782
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Chen Xingang 96.60
Li Jiafang 3.40
Legal
representative, Chairman and General Manager:
Mr. Zhou Zhengshu is currently responsible for the overall management of
SC.
Working
Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
Supervisor:
Li Jiafang
SC is mainly engaged in manufacturing and selling mechanical and
electrical products.
SC’s products mainly include: mechanical
and electrical products.
SC sources its materials 100% from domestic market. SC sells 10% of its products in domestic market, and 90% to overseas market.
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.
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TRADEMARKS & PATENTS |
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Registration No. |
3805256 |
6167991 |
6167995 |
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Registration Date |
Dec. 28, 2005 |
Mar. 21, 2010 |
Jan. 7, 2010 |
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Trademark Design |
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Note: SC declined
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 declined to release its bank information.
Balance
Sheet
Unit: CNY’000
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As of Dec. 31,
2014 |
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Cash & bank |
1,040 |
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Inventory |
10,330 |
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Accounts receivable |
3,660 |
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Advances to suppliers |
5,930 |
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Other receivables |
1,960 |
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Other current assets |
210 |
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------------------ |
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Current assets |
23,130 |
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Fixed assets net value |
9,790 |
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Long term investment |
0 |
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Projects under construction |
11,000 |
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Intangible and other assets |
3,090 |
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------------------ |
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Total assets |
47,010 |
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=========== |
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Short loan |
9,000 |
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Accounts payable |
7,290 |
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Advances from clients |
2,640 |
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Other Accounts payable |
21,450 |
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Other current liabilities |
530 |
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------------------ |
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Current liabilities |
40,910 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
40,910 |
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Equities |
6,100 |
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------------------ |
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Total liabilities & equities |
47,010 |
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=========== |
Income
Statement
Unit: CNY’000
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As
of Dec. 31, 2014 |
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Turnover |
61,620 |
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Cost of goods sold |
51,090 |
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Sales expense |
5,080 |
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Management expense |
5,020 |
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Finance expense |
630 |
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Profit before tax |
1,160 |
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Less: profit tax |
80 |
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Profits |
1,080 |
Important
Ratios
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As of Dec. 31,
2014 |
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*Current ratio |
0.57 |
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*Quick ratio |
0.31 |
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*Liabilities to assets |
0.87 |
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*Net profit margin (%) |
1.75 |
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*Return on total assets (%) |
2.30 |
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*Inventory /Turnover ×365 |
62 days |
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*Accounts receivable/Turnover ×365 |
22 days |
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*Turnover/Total assets |
1.31 |
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* Cost of goods sold/Turnover |
0.83 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears fairly large.
The accounts receivable of SC appears average.
The short-term loan of SC appears fairly 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.76 |
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|
1 |
Rs.99.60 |
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Euro |
1 |
Rs.69.71 |
INFORMATION DETAILS
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Analysis Done by
: |
TRI |
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Report Prepared
by : |
ANK |
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.