MIRA
INFORM REPORT
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Report No. : |
337013 |
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Report Date : |
20.08.2015 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
No. 66 Keyuan Avenue,
Xixiangtang District, Nanning City,
Guangxi Zhuang Autonomous Region, 530007 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
31.05.2001 |
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Com. Reg. No.: |
450000000001930 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is mainly engaged in Manufacturing, Processing and Selling of
Dairy Products. |
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No. of Employees : |
1,368 |
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 : |
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) |
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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.
|
Source
: CIA |
Company Name and address
Royal Group Co., Ltd.
No. 66 Keyuan
Avenue, XIXIANGTANG DISTRICT, Nanning CITY,
Guangxi Zhuang Autonomous
Region, 530007 PR CHINA
TEL: 86 (0)
771-3211086 FAX: 86 (0) 771-3221828
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 31, 2001
REGISTRATION NO. : 450000000001930
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 1,368
REGISTERED CAPITAL : CNY
291,375,000
BUSINESS LINE :
MANUFACTURING, PROCESSING & TRADING
TURNOVER : CNY 1,130,304,000 (Consolidated, As of Dec. 31, 2014)
EQUITIES : CNY 1,683,680,000
(Consolidated, As of Dec. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY 6.40 = 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 May 31, 2001 and has been under present legal form since
2006.
Company Status: Shares limited co. This form of
business in PR China is defined as a legal person. Its registered capital
is divided into shares of equal par value and the co. raises capital by
issuing share certificates by promotion or by public offer. Shareholders
bear limited liability to the extent of shareholding, and the co. is liable
for its debts only to the extent of its total assets. The co has
independent property of legal person and enjoys property rights of legal
person. The characteristics of the shares limited co. are as follows: The
establishment of the co. requires at least two promoters and no more than
200, half of whom shall be domiciled in China.. Natural person are allowed to serve as
promoters. The minimum
registered capital of a co. is CNY 5M. while that of the co. with foreign
investment is CNY 5M. The total capital of a co. which propose to apply for
publicly listed must be no less than CNY 30M. The board of
directors must consist of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within one year
of the offer. A state-owned enterprise that is restructured into a shares limited
co. must comply with the conditions & requirements specified under the
law & administrative rule.
SC’s registered business scope includes manufacturing, processing and
selling stereo type packaging milk and dairy products (with stainless steel
barrel, 30 kg/barrel), livestock breeding, processing and sales; protein
beverage production, processing and sales (within the period of validity on the
license) general cargo transport; pre-packaged food, bulk food wholesale and
retail; domestic commercial trade (except those under special provisions);
self-management and agent all kinds of goods and technology import and export,
not including those restricted and prohibited by the state; asset investment
management, corporate planning, advisory services; sales of hardware and
electrical equipment, minerals, non-ferrous metals(operate with site for
business operation, except those under special provisions)
SC is mainly engaged in manufacturing, processing and selling dairy
products.
Mr. Huang Jiadi is legal representative, chairman and general
manager of SC at present.
SC is known to have approx. 1,368 employees at present,
including 66 administrative staff, 66 financial staff, 223 technicians, 591
production staff and 422 sales staff.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in Nanning. Detailed premise information is not
available at present.
http://www.gxhsry.com The design is professional and the content
is well organized. At present it is in Chinese version.
Email: hsryhhy@126.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2006 |
Company Name |
Guangxi Royal Bioengineering Dairy
Industry Co., Ltd. (literal translation) |
Guangxi Royal Dairy Co., Ltd. |
|
Legal form |
Limited liabilities co. |
Present one |
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|
2014-12-5 |
Company Name |
Present one |
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|
Registered Capital |
CNY 214,000,000 |
CNY 266,433,085 |
|
|
2015 |
Registered Capital |
CNY 266,433,085 |
Present amount |
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002329.
Tax Registration Certificate No.: 450100727678680
Organization Code: 727678680
MAIN
SHAREHOLDERS: (as of Mar. 31, 2015)
Name %
of Shareholding
Huang Jiadi 40.49
Li Jianguo 13.33
Ren Dongmei 5.89
China Construction Bank- ICBC Credit Suisse
Stable Growth
Stock Securities
Investment Fund 4.98
Agricultural Bank of China Limited- ICBC
Credit Suisse Information Industry
Stock Securities Investment Fund (literal
translation) 2.3
415 combination of the National Social
Security Fund 1.86
China Construction Bank Corporation-
Aegon-Industrial Social Responsibility
Equity Securities Investment Fund (literal
translation) 1.86
Agricultural Bank of China Limited- ICBC
Credit Suisse Innovative Impetus
Stock Securities Investment Fund (literal
translation) 1.56
Zhang Muzhong 0.85
Bank of China- ICBC Credit Suisse Core Value
Equity Securities Investment
Fund 0.76
Other shareholders 26.12
l Legal representative,
Chairman and General Manager:
Mr. Huang Jiadi, born in 1962, with bachelor’s degree, engineer, he is currently
responsible for the overall and daily management of SC.
Working Experience(s):
At present Working in SC as legal
representative, chairman and general manager.
Also working in Guangxi Royal Foods Co.,
Ltd. (literal translation) as legal representative.
l Vice Chairman and
Vice General Manager:
Mr. He Haiyan, born in 1956, with junior college education, economist, he is
currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as vice
chairman and vice general manager.
Also working in Guangxi Xinhuang Media
Co., Ltd. (literal translation) as legal representative and working in Royal Group
Co., Ltd. Guilin Branch as principal.
l Vice General
Managers:
Mr. Xie Bingqiang, born in 1962, with bachelor’s degree, senior
engineer;
Ms. Wu Yun, born in 1963,
with Master’s degree, engineer, senior registered food engineering consultant;
Mr. Li Rongjiu, born in 1973, with junior college education;
Etc.
They are currently responsible for the daily
management of SC.
Working Experience(s):
At present Working in SC as vice
general managers.
l
Directors:
Chen Liang
Xu Chunming
Chen Yongli
Etc.
l
Supervisors:
Shi Aiping
Wang Xiuying
Huang Shengqun
Etc.
SC is mainly
engaged in manufacturing, processing and selling dairy products.
SC’s products
mainly include: various kinds of dairy products, etc.
SC sources its
materials 100% from domestic market. SC sells 100% of its products in domestic
market, mainly southwestern part of China.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T and Credit of 30-60 days.
Note: SC’s management declined to release
its major clients.
Trademark & Patents
|
Registration No. |
10791565 |
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Registration Date |
Nov. 21, 2013 |
|
Trademark Design |
|
Subsidiaries:
Guangxi Royal Foods Co., Ltd. (literal translation)
===============================
Registered no.: 450112000001256
Legal representative: Huang Jiadi
Incorporation Date: 2003-5-28
Guangxi Xinhuang Media Co., Ltd. (literal translation)
===============================
Registered no.: 450112200021660
Legal representative: He Haiyan
Incorporation Date: 2012-5-24
Guangxi Haibo Taxi Co., Ltd. (literal translation)
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Registered no.: 450000000002713
Legal representative: Liu Zhiwei
Incorporation Date: 2004-6-2
Beijing Sunshine Culture and Communication Co., Ltd.
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Registered no.: 110101012134883
Legal representative: Xu Leilei
Incorporation Date: 2009-7-31
Website: http://www.sun-tv.com.cn/
Tel: 010-57930066
Fax: 010-57951733
Etc.
Branches:
Royal Group Co., Ltd. Guilin Branch
===============================
Registered no.: 450300000003044
Principal: He Haiyan
Incorporation Date: 2006-9-25
Royal Group Co., Ltd. Laibin Branch
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Registered no.: 451300000001060
Principal: Guan Wenchao
Incorporation Date: 2003-1-15
Royal Group Co., Ltd. Laibin Dairy Products Branch
===============================
Registered no.: 451300000006871
Principal: Guan Wenchao
Incorporation
Date: 2009-3-11
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 bank details are not available at present.
Consolidated
Balance Sheet
|
Unit: CNY’000 |
as of Dec. 31,
2014 |
as of Dec. 31, 2013 |
|
Cash & bank |
237,835 |
169,873 |
|
Accounts receivable |
278,694 |
110,796 |
|
Advances to suppliers |
91,918 |
91,696 |
|
Other receivables |
70,936 |
36,393 |
|
Inventory |
163,908 |
115,286 |
|
Other current assets |
4,532 |
4,643 |
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|
------------------ |
------------------ |
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Current assets |
847,823 |
528,687 |
|
Financial assets available for sale |
52,762 |
12,851 |
|
Fixed assets |
500,168 |
445,038 |
|
Projects under construction |
86,822 |
101,905 |
|
Project materials |
1,789 |
1,789 |
|
Productive biological asset |
70,022 |
66,604 |
|
Intangible assets |
90,659 |
92,463 |
|
Goodwill |
566,223 |
3,104 |
|
Long-term deferred expenses |
7,022 |
8,683 |
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Deferred tax asset |
5,093 |
4,789 |
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Other assets |
50,000 |
0 |
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------------------ |
------------------ |
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Total assets |
2,278,383 |
1,265,913 |
|
|
============= |
============= |
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Short loans |
300,000 |
187,000 |
|
Transaction financial liabilities |
0 |
0 |
|
Notes payable |
10,080 |
0 |
|
Accounts payable |
95,820 |
75,561 |
|
Advances from clients |
32,712 |
19,374 |
|
Payroll payable |
9,262 |
8,182 |
|
Taxes payable |
40,002 |
3,063 |
|
Interest payable |
2,166 |
1,531 |
|
Dividends payable |
0 |
0 |
|
Other payable |
71,391 |
38,112 |
|
Long-term liabilities due within one year |
5,750 |
5,750 |
|
Other current liabilities |
6,195 |
6,411 |
|
|
------------------ |
------------------ |
|
Current liabilities |
573,378 |
344,984 |
|
Non-current liabilities |
21,325 |
14,097 |
|
|
------------------ |
------------------ |
|
Total liabilities |
594,703 |
359,081 |
|
Equities |
1,683,680 |
906,832 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
2,278,383 |
1,265,913 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
As of Dec. 31, 2013 |
|
Turnover |
1,130,304 |
990,721 |
|
Cost of goods sold |
781,960 |
698,698 |
|
Taxes and additional of main operation |
5,673 |
5,084 |
|
Sales expense |
152,049 |
176,377 |
|
Management expense |
72,982 |
63,672 |
|
Finance expense |
16,892 |
11,579 |
|
Asset
impairment loss |
8,676 |
1,488 |
|
The profit arising from fair value changes |
0 |
0 |
|
Investment income |
1,652 |
794 |
|
Non-operating income |
19,193 |
18,032 |
|
Non-operating
expense |
4,121 |
5,966 |
|
Profit before tax |
108,796 |
46,683 |
|
Less: profit tax |
18,924 |
7,181 |
|
Profits |
89,872 |
39,502 |
Important Ratios
=============
|
|
as of Dec. 31, 2014 |
as of Dec. 31, 2013 |
|
*Current ratio |
1.48 |
1.53 |
|
*Quick ratio |
1.19 |
1.20 |
|
*Liabilities to assets |
0.26 |
0.28 |
|
*Net profit margin (%) |
7.95 |
3.99 |
|
*Return on total assets (%) |
3.94 |
3.12 |
|
*Inventory /Turnover ×365 |
53 days |
42 days |
|
*Accounts receivable/Turnover ×365 |
90 days |
41 days |
|
*Turnover/Total assets |
0.50 |
0.78 |
|
* Cost of goods sold/Turnover |
0.69 |
0.71 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC appears fairly good in 2013 and good in 2014.
l SC’s net profit
margin is average in 2013, and fairly
good in 2014.
l SC’s return on
total assets is average in both years.
l
SC’s cost of goods sold is average.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short loans are average.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is considered large-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.25 |
|
|
1 |
Rs.102.25 |
|
Euro |
1 |
Rs.72.20 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
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Report Prepared
by : |
NIT |
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.