MIRA INFORM REPORT
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Report No. : |
337992 |
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Report Date : |
24.08.2015 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG GUXIANDAO INDUSTRIAL FIBRE CO., LTD.
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Registered Office : |
Yuedong Road, Paojiang Industrial Zone, Shaoxing City, Zhejiang Province, 312000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
04.06.2003 |
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Com. Reg. No.: |
330600400007230 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing modified polyester chips,
polyester industrial yarn, and other polyester products; selling self-made
commodities; selling polyester chip raw materials, chemical raw materials and
products (excluding hazardous chemicals); commission agent (excluding
auction) as well as import and export business. (excluding the
items limited by quota license) |
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No of Employees : |
800 (Approximately) |
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
|
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 & address
Zhejiang Guxiandao Industrial Fibre co., ltd.
yuedong road,
paojiang industrial ZONE, shaoxing city,
zhejiang PROVINCE, 312000
PR CHINA
TEL: 86 (0) 575-88138072/88138173 FAX: 86 (0) 575-88138071
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JUNE 4, 2003
REGISTRATION NO. :
330600400007230
REGISTERED LEGAL FORM : SHARES LIMITED CO.
CHIEF EXECUTIVE :
MR. SHI JIANQIANG (CHAIRMAN)
STAFF STRENGTH : 800 (Approximately)
REGISTERED CAPITAL :
CNY 634,500,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 4,121,362,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 1,627,016,000 (AS OF DEC. 31, 2013)
PAYMENT :
No Complaints
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2635= 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
Note: SC is also known as Zhejiang Guxiandao Industrial Fiber Co., Ltd.
SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on June 4, 2003 and has been under present ownership since 2010.
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
modified polyester chips, polyester industrial yarn, and other polyester
products; selling self-made commodities; selling polyester chip raw materials, chemical
raw materials and products (excluding hazardous chemicals); commission agent
(excluding auction); import and export business. (excluding the
items limited by quota license)
SC is
mainly engaged in manufacturing and selling industrial fiber.
Mr.
Shi Jianqiang is the legal representative, chairman and general manager of SC
at present.
SC is known to have approx. 800 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial zone of
Shaoxing. Our checks reveal that SC owns the total premise about 60,000 square
meters.
http://www.guxiandao.com The design
is professional and the content is well organized. At present the web site is
both in Chinese and English versions.
E-mail: info@guxiandao.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2006-3 |
Registration no. |
002539 |
Present one |
|
2010-12 |
Chinese name |
|
Present one |
|
Legal form |
Chinese-foreign equity joint venture
enterprise |
Present one |
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Registered
capital |
CNY 54,680,000 |
CNY 420,000,000 |
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|
2011-1 |
Registered
capital |
CNY 420,000,000 |
CNY 450,000,000 |
|
2011-11 |
Registered
capital |
CNY 450,000,000 |
CNY 480,000,000 |
|
2014-6 |
Registered
capital |
CNY 480,000,000 |
CNY 600,000,000 |
|
2014-12 |
Registered
capital |
CNY 600,000,000 |
Present amount |
Note: SC changed its
Chinese name in 2010, while its English name remains the same.
SC has been awarded such honors as Advanced Technological FIE,
National Key Hi-Tech Enterprise, Red List Enterprise by General Administration
of Customs, Zhejiang Import & Export Demonstrative Enterprise for Being
Lawful and Good Faith, and Backbone Industrial Enterprises of Zhejiang
Province; and the products are named as Zhejiang Famous Brands among Exports,
Zhejiang Famous Brand, Zhejiang Famous Trademark, and among others. Upholding
the “Advanced Technology & Talents First” management philosophy, the
company has passed the accreditation of ISO9001:2008 International Quality
Management System and ISO 14001:2004 International Environmental Management
System, and is implementing OHSAS18001 Occupational Health & Safety
Management System.
Organization code: 751158992
See below for SC
as executive party (defendant).
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Executed
Party |
Zhejiang Guxiandao Industrial Fibre Co., Ltd. |
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Court |
Yuecheng District, Shaoxing City People's Court |
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Date of Case |
2013-11-4 |
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Case
Number |
(2013) 03139 |
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Claim Amount |
RMB 16,984.51 |
Remark: Due to the lack of information, we are
unable to provide the cause of action, judgment or other information.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Zhejiang Guxiandao Investment
Co., Ltd. 44.14
Other shareholders 55.86
Zhejiang Guxiandao Investment
Co., Ltd.
==============================
Registered no.: 330600000017948
Registered capital: CNY
100,000,000
Legal representative: Li Sufang
Legal
representative, Chairman and General manager:
Mr. Shi Jianqiang, ID# 33062119741231****, born in 1974. He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as chairman, legal representative and general manager.
Directors:
Zhang Ziqin
Liu Xiong
Supervisors:
Wang Lizhen
Wei Jianping
SC is
mainly engaged in manufacturing and selling industrial fiber.
SC’s products
mainly include: Industrial PFY & Polyester Chips
SC sources its materials 40%
from domestic market, and 60% from overseas market. SC sells 40% of its
products in domestic market, and 60% to overseas market.
The buying terms of SC include T/T, L/C and Credit of 30-60
days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
Note:
SC declined to release its major suppliers and clients.
Trademark &
Patents
|
Registration No. |
3731283 |
3731284 |
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Registration Date |
2006-1-21 |
2006-1-21 |
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Trademark Design |
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Subsidiaries:
Zhejiang
Guxiandao Green Fiber Co., Ltd.
==============================
Registration
no.: 330600000081838
Registered
capital: CNY 700,000,000
Incorporation
date: 2009-11-12
Ningbo
Meishan Free Trade Port Yingtian Trade Co., Ltd.
==================================
Registration
no.: 330214000021403
Registered
capital: CNY 100,000
Legal
representative: Jin Ge
Incorporation
date: 2006-10-16
Overall payment appraisal :
( ) Excellent (
) Good (X) No Complaints ( )
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 accountant
refused to release the bank details.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2012 |
as
of Dec. 31, 2013 |
|
Cash
& bank |
155,610 |
1,012,287 |
|
Bills
receivable |
36,780 |
1,598 |
|
Accounts
receivable |
197,430 |
222,743 |
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Other
receivables |
9,170 |
995,175 |
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Advances to
suppliers |
44,960 |
78,544 |
|
Inventory |
936,520 |
642,596 |
|
Interest
receivable |
13,230 |
13,507 |
|
Trading
financial assets |
7,830 |
0 |
|
Other
current assets |
40 |
0 |
|
|
------------------ |
------------------ |
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Current
assets |
1,401,570 |
2,966,450 |
|
Fixed
assets net value |
984,330 |
976,812 |
|
Projects
under construction |
442,880 |
513,693 |
|
Long
term investment |
700,100 |
700,100 |
|
Long-term
Accounts receivable |
266,000 |
0 |
|
Intangible
assets |
65,610 |
70,930 |
|
Development
expenditure |
37,920 |
55,253 |
|
Deferred
tax assets |
1,940 |
1,995 |
|
Other
assets |
550 |
20,497 |
|
|
------------------ |
------------------ |
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Total
assets |
3,900,900 |
5,305,730 |
|
|
============= |
============= |
|
Short
loans |
1,263,200 |
2,260,177 |
|
Bills
payable |
46,060 |
84,000 |
|
Accounts
payable |
580,790 |
473,826 |
|
Accrued
payroll |
3,230 |
8,673 |
|
Advances from
clients |
129,380 |
69,166 |
|
Interest payable |
17,360 |
22,478 |
|
Tax
payable |
-164,540 |
-4,452 |
|
Other
payable |
73,330 |
24,788 |
|
Trading
financial liabilities |
2,400 |
495 |
|
Non-current
liabilities due within one year |
0 |
276,555 |
|
Other
current liabilities |
30 |
300,000 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,951,240 |
3,515,706 |
|
Long
term liabilities |
364,270 |
163,008 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
2,315,510 |
3,678,714 |
|
Equities |
1,585,390 |
1,627,016 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
3,900,900 |
5,305,730 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2013 |
|
Turnover |
4,804,040 |
4,121,362 |
|
Cost of goods
sold |
4,537,020 |
3,887,579 |
|
Sales expense |
51,280 |
64,846 |
|
Management expense |
54,960 |
64,340 |
|
Finance expense |
111,320 |
38,027 |
|
Investment
income |
1,680 |
3,228 |
|
Non-operational
income |
17,600 |
10,871 |
|
Non-operational expense |
3,550 |
4,313 |
|
Profit before
tax |
64,970 |
62,752 |
|
Less: profit tax |
0 |
-655 |
|
Profits |
64,970 |
63,407 |
Important Ratios
=============
|
|
as
of Dec. 31, 2012 |
as
of Dec. 31, 2013 |
|
*Current ratio |
0.72 |
0.84
|
|
*Quick ratio |
0.24 |
0.66
|
|
*Liabilities
to assets |
0.59 |
0.69
|
|
*Net profit
margin (%) |
1.35 |
1.54
|
|
*Return on
total assets (%) |
1.67 |
1.20
|
|
*Inventory
/Turnover ×365 |
71 days |
57 days |
|
*Accounts receivable/Turnover
×365 |
15 days |
20 days |
|
*Turnover/Total
assets |
1.23 |
0.78
|
|
* Cost of
goods sold/Turnover |
0.94 |
0.94
|
PROFITABILITY:
AVERAGE
l The turnover
of SC appears 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 goods sold is fairly high,
comparing with its turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained
in a fair level.
l
SC’s quick ratio is maintained in a
poor level in 2012 and in a fair level in 2013.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears
average.
l
SC’s short-term loan appears large.
l
SC’s turnover is in an average level in
2012 but in a fair level in 2013, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.83 |
|
|
1 |
Rs.103.39 |
|
Euro |
1 |
Rs.74.27 |
INFORMATION DETAILS
|
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.