MIRA
INFORM REPORT
|
Report No. : |
335622 |
|
Report Date : |
08.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
JIANGSU YONGGANG GROUP CO., LTD. |
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Registered Office : |
Yonglian Industrial Park, Nanfeng Town, Zhangjiagang Jiangsu Province
215628 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
31.01.1994 |
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Com. Reg. No.: |
320582000000490 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in manufacturing and selling metal products. |
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No. of Employee : |
2,800 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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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
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
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.
|
Source
: CIA |
COMPANY NAME AND ADDRESS
JIANGSU YONGGANG
GROUP CO., LTD.
YONGLIAN INDUSTRIAL PARK, NANFENG TOWN, ZHANGJIAGANG
JIANGSU PROVINCE 215628 PR CHINA
TEL: 86 (0) 512-58612888/58619872/58619399
FAX: 86 (0) 512-58612528
EXECUTIVE SUMMARY
Date of Registration : janUARY 31, 1994
REGISTRATION NO. : 320582000000490
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL : CNY 1,200,000,000
staff : 2,800
BUSINESS CATEGORY : Manufacturing & trading
Revenue : CNY 23,080,829,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 1,995,364,000 (AS OF DEC. 31, 2014)
WEBSITE : www.yong-gang.com
E-MAIL : officer@yong-gang.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.21 = 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 limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 320582000000490
on January 31, 1994.
SC’s Organization Code Certificate No.:
14219448-8
SC’s Tax No.: 320582142194488
SC’s registered capital: CNY 1,200,000,000
SC’s paid-in capital: CNY 1,200,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Legal Representative |
Wu Dongcai |
Wu Yaofang |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Jiangsu Shagang Group Co., Ltd. |
25 |
|
Nanfeng Town Yonglian Village Committee |
24 |
|
Zhangjiagang Yonglian Investment
Development Co., Ltd. |
24 |
|
Zhangjiagang Yongnan Investment
Development Co., Ltd. |
18.2 |
|
Wu Dongcai |
3.96 |
|
Wu Yaofang |
2.20 |
|
Chen Huabin |
0.88 |
|
Huang Junshi |
0.88 |
|
Yang Yufei |
0.88 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General
Manager |
Wu Yaofang |
|
Vice Chairman |
Wu Huifang |
|
Director |
Chen Huabin |
|
Huang Junshi |
|
|
Zhang Liuyu |
|
|
Feng Jinming |
|
|
Wu Huiying |
|
|
He Chunsheng |
|
|
Supervisor |
Chen Fubin |
|
Ding Yongjun |
|
|
Qian Zheng |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Jiangsu Shagang Group Co., Ltd. 25
Nanfeng Town Yonglian Village Committee 24
Zhangjiagang Yonglian Investment Development
Co., Ltd. 24
Zhangjiagang Yongnan Investment Development
Co., Ltd. 18.2
Wu Dongcai 3.96
Wu Yaofang 2.20
Chen Huabin 0.88
Huang Junshi 0.88
Yang Yufei 0.88
Jiangsu Shagang
Group Co., Ltd.
---------------------------------------------
Registration No.: 320582000117266
Legal Form: Limited Liability
Company
Registered Capital: CNY 1,321,000,000
Address: Jinfeng Town, Zhangjiagang City,
Jiangsu Province
Tel.: 86 (0) 512-58568217
Fax: 86 (0) 512-58568821
Web: www.sha-steel.com
Email: lynd1003@126.com
Zhangjiagang
Yonglian Investment Development Co., Ltd.
-------------------------------------------
Registration No.: 320582000005453
Legal Form: One-person Limited
Liability Company
Registered Capital: CNY 50,000,000
Zhangjiagang
Yongnan Investment Development Co., Ltd.
--------------------------------------------
Registration No.: 320582000005445
Legal Form: One-person Limited
Liability Company
Chief Executive: Chen Huabin
Registered Capital: CNY 50,000,000
MANAGEMENT
Wu Yaofang, Legal Representative, Chairman and General
Manager
----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 56
Ø Qualification:
University
Ø Working experience
(s):
Before, worked in SC as general manager
At
present, working in SC as legal representative, chairman and general manager
Wu
Huifang, Vice Chairman
------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as vice chairman,
also working in Lianfeng Steel (Zhangjiagang) Co., Ltd., and Zhangjiagang Lianfeng Metals Products Co.,
Ltd. as legal representative
Director
----------
Chen Huabin
Huang Junshi
Zhang Liuyu
Feng Jinming
Wu Huiying
He Chunsheng
Supervisor
--------------
Chen Fubin
Ding Yongjun
Qian Zheng
BUSINESS OPERATION
SC’s registered business scope includes purchasing and selling of steel
rolling, color steel, refractory manufacturing, metal material, hardware, AC
power, decoration materials, furniture, textile needles, general merchandise;
the associated export business and the business operation of the enterprise
products and technology required for machinery and equipment, spare parts, raw
and auxiliary materials import business, but excluding of the state to limited
or prohibited; Setting of Lianfeng Hotel.
SC is mainly
engaged in manufacturing and selling metal products.
SC’s products
mainly include: materials for machining, materials for construction, steel
nails, products honors, and product application, etc.
SC sources its materials 100% from domestic market. SC sells 75% of its products in domestic market, and 25% to overseas market, mainly U.S.A., 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 Customer*
---------------------
Corus
International Trading Ltd.
Fabrica De
Alambres Y Clavos Myl S.A.C.
Ideal Alambrec
S.A.
Staff & Office:
--------------------------
SC is known
to have approx. 2,800 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have
following subsidiaries at present,
Jiangsu Lianfeng Industrial Co., Ltd.
Jiangsu
Lianfeng Energy Equipment Co., Ltd.
Jiangsu
Yonggang Group Materials Trade Co., Ltd.
Zhangjiagang
Lianfeng Refractory Material Co., Ltd.
Jiangsu Hongtai Logistics Co.,LTD.
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:
Agricultural
Bank of China Zhangjiagang Sub-branch
AC#:
526301040002112
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
647,200 |
766,970 |
489,490 |
|
|
Notes receivable |
66,020 |
601,890 |
465,650 |
|
Accounts
receivable |
997,750 |
2,022,490 |
1,616,180 |
|
Advances to
suppliers |
251,110 |
161,160 |
242,740 |
|
Other receivable |
3,659,290 |
4,231,560 |
5,513,610 |
|
Inventory |
778,630 |
746,390 |
899,030 |
|
Non-current
assets within one year |
0 |
0 |
0 |
|
Other current
assets |
229,060 |
191,020 |
177,460 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
6,629,060 |
8,721,480 |
9,404,160 |
|
Long term
investment |
1,070,060 |
1,438,320 |
1,521,320 |
|
Fixed assets |
1,113,160 |
1,241,660 |
1,780,970 |
|
Construction in
progress |
16,900 |
389,430 |
226,480 |
|
Intangible
assets |
0 |
0 |
0 |
|
Other
non-current assets |
100,700 |
115,940 |
116,300 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
8,929,880 |
11,906,830 |
13,049,230 |
|
|
============= |
============= |
============= |
|
Short-term loans |
796,170 |
610,580 |
1,018,450 |
|
Notes payable |
3,207,750 |
6,014,410 |
7,116,080 |
|
Accounts payable |
50,650 |
113,030 |
217,490 |
|
Wages payable |
49,100 |
40,650 |
52,650 |
|
Dividends
payable |
-12,720 |
5,750 |
4,890 |
|
Taxes payable |
-34,070 |
-10,140 |
-154,410 |
|
Advances from
clients |
2,778,550 |
2,776,180 |
2,311,400 |
|
Other payable |
402,080 |
718,260 |
848,280 |
|
Accrued expenses |
40,720 |
74,280 |
177,810 |
|
Other current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
7,278,230 |
10,343,000 |
11,592,640 |
|
Non-current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
7,278,230 |
10,343,000 |
11,592,640 |
|
Equities |
1,651,650 |
1,563,830 |
1,456,590 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
8,929,880 |
11,906,830 |
13,049,230 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
25,175,420 |
24,524,850 |
|
Cost of sales |
24,483,080 |
23,777,830 |
|
Taxes and surcharges |
15,280 |
16,350 |
|
Sales expense |
235,580 |
231,630 |
|
Management expense |
450,790 |
518,530 |
|
Finance expense |
176,730 |
19,340 |
|
Investment
income |
305,350 |
47,200 |
|
Non-operating
income |
120,080 |
51,970 |
|
Non-operating expense |
27,740 |
67,260 |
|
Profit before
tax |
245,850 |
9,620 |
|
Less: profit tax |
0 |
0 |
|
245,850 |
9,620 |
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2014 |
|
Total assets |
14,318,547 |
|
|
------------- |
|
Total
liabilities |
12,323,183 |
|
Equities |
1,995,364 |
|
|
------------- |
|
Revenue |
23,080,829 |
|
Profit before
tax |
675,610 |
|
Less: profit tax |
68,537 |
|
Profits |
607,073 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
0.84 |
0.81 |
-- |
|
*Quick ratio |
0.77 |
0.73 |
-- |
|
*Liabilities
to assets |
0.87 |
0.89 |
0.86 |
|
*Net profit
margin (%) |
0.98 |
0.04 |
2.63 |
|
*Return on
total assets (%) |
2.06 |
0.07 |
4.24 |
|
*Inventory /
Revenue ×365 |
11 days |
14 days |
-- |
|
*Accounts
receivable/ Revenue ×365 |
30 days |
25 days |
-- |
|
*Revenue/Total
assets |
2.11 |
1.88 |
1.61 |
|
*Cost of sales
/ Revenue |
0.97 |
0.97 |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high.
l
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.81 |
|
|
1 |
Rs.98.93 |
|
Euro |
1 |
Rs.69.66 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
ANK |
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.