MIRA INFORM REPORT
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Report No. : |
348980 |
|
Report Date : |
09.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
CHINA GUANGFA BANK CO., LTD. |
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Formerly Known As : |
GUANGDONG DEVELOPMENT BANK |
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Registered Office : |
No. 713 Dongfeng East Road, Yuexiu District Guangzhou, Guangdong Province 510080 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
08.07.1988 |
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Com. Reg. No.: |
440000000046541 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is mainly engaged in saving,
credit, balance and discounting business for the CNY currency; exchange,
tourist check and credit card business; acting as an agency for the receive &
payment and wealth safekeeping business; economic guarantee and credit
witness business; economic consulting service; the business of saving,
remittance, loan and guarantee for the foreign exchange. |
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No. of Employees : |
23,451 (Including Sc’s
Subsidiaries and Branches) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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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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 |
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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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 also 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
CHINA GUANGFA BANK CO., LTD.
(FORMERLY KNOWN AS GUANGDONG
DEVELOPMENT BANK)
NO. 713 DONGFENG EAST ROAD,
YUEXIU DISTRICT
GUANGZHOU, GUANGDONG PROVINCE
510080 PR CHINA
TEL: 86 (0) 20-38322888
FAX: N/A
EXECUTIVE
SUMMARY
Date
of Registration : JULY 8, 1988
REGISTRATION
NO. :
440000000046541
LEGAL
FORM : SHARES LIMITED COMPANY
REGISTERED
CAPITAL : cny 15,402,397,264
staff :
23,451 (INCLUDING SC’S
SUBSIDIARIES AND BRANCHES)
BUSINESS
CATEGORY : FINANCIAL SERVICE
INTEREST INCOME : CNY
84,203,750,000 (AS OF DEC. 31, 2014)
OWNER’S EQUITY :
CNY 87,448,575,000 (AS OF DEC. 31, 2014)
WEBSITE : www.cgbchina.com.cn
E-MAIL :
N/A
PAYMENT
:
AVERAGE
MARKET
CONDITION :
COMPETITIVE
FINANCIAL
CONDITION : fairly
good
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : good
EXCHANGE
RATE : CNY
6.34 = 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.: 440000000046541.
SC’s Organization Code Certificate No.: 19033642-8
SC’s registered capital: CNY 15,402,397,264
SC’s paid-in capital: CNY 15,402,397,264
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 |
|
Citigroup Inc. |
15.55 |
|
China Life Insurance Company Ltd. |
15.55 |
|
State Grid Corporation of China (SGCC) |
15.55 |
|
CITIC Trust Co., Ltd. |
15.55 |
|
Heungkong Group Co., Ltd. |
9.13 |
|
IBM Credit LLC |
3.69 |
|
Guangdong Finance Trust Co.， Ltd |
1.59 |
|
Shanghai Shenhua Holdings Co., Ltd. |
1.13 |
|
Jiangsu Suzhou Steel Group Co., Ltd. |
1.05 |
|
New Industry Investment Co., Ltd. |
0.52 |
|
Other Shareholders |
20.69 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative |
Dong Jianyue |
|
President and Director |
Li Mingxian |
|
Vice President and Director |
Zong Lexin |
|
James Morrow |
|
|
Zheng Yong |
|
|
Independent Director |
Kang Phee Boon |
|
Chen Tailai |
|
|
Li Dianjun |
|
|
Director |
Wang
Fenghua |
|
Liu Jiade |
|
|
Gai
Yongguang |
|
|
Pu Jian |
|
|
Li Zimin |
|
|
Lin Jianjun
|
|
|
Anthonyp
Della Pietra Jr |
|
|
Zhang
Shengman |
|
|
Wan Feng |
|
|
Supervisor |
Wang Jianmin |
|
Deng Jianhua |
|
|
Zhai Meiqing |
|
|
Li Jinsheng |
|
|
Tan Jinsong |
|
|
Gu Xuejin |
|
|
Fan Junxiong |
|
|
Zhu Yingyu |
|
|
Zheng Lanping |
RECENT
DEVELOPMENT
No recent
development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Citigroup Inc. 15.55
China Life Insurance Company Ltd. 15.55
State Grid Corporation of China (SGCC) 15.55
CITIC Trust Co., Ltd. 15.55
Heungkong Group Co., Ltd. 9.13
IBM Credit LLC 3.69
Guangdong Finance Trust Co.， Ltd 1.59
Shanghai Shenhua Holdings Co., Ltd. 1.13
Jiangsu Suzhou Steel Group Co., Ltd. 1.05
New Industry Investment Co., Ltd. 0.52
Other Shareholders 20.69
MANAGEMENT
Dong Jianyue,
Legal Representative
----------------------------------------------------------
Ø Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative
Li Mingxian,
President and Director
----------------------------------------------------------
Ø Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as president and
director
Vice
President and Director
-----------------------------------
Zong Lexin
James Morrow
Zheng Yong
Independent
Director
---------------------------
Kang Phee Boon
Chen Tailai
Li Dianjun
Director
------------
Wang Fenghua
Liu Jiade
Gai Yongguang
Pu Jian
Li Zimin
Lin Jianjun
Anthonyp Della Pietra Jr
Zhang Shengman
Wan Feng
Supervisor
---------------
Wang Jianmin
Deng Jianhua
Zhai Meiqing
Li Jinsheng
Tan Jinsong
Gu Xuejin
Fan Junxiong
Zhu Yingyu
Zheng Lanping
BUSINESS
OPERATION
SC’s registered business scope includes
absorbing public deposits; issuing short-term, medium-term and long-term loans;
handling domestic and foreign settlement; handling bills acceptance and
discount; issuing financial bonds; agency issued, agency payment, underwriting
government bonds; the sale of government bonds, financial bonds and other
securities; engaged in the interbank lending, credit card service and
guarantee; engaged in bank card business; agency receipts and payments and
insurance agency business; providing safe deposit service, foreign currency
deposit, loan; foreign exchange remittance; foreign exchange; international
settlement; settlement and sale of foreign exchange; foreign exchange interbank
lending; foreign exchange instruments of acceptance and discount; foreign
currency securities; issuance and sale of securities; foreign currency
securities; self and foreign exchange trading; foreign credit card issuance and
payment services; offshore financial services; credit investigation,
consulting, witness business; other business approved by the China Banking
Regulatory Commission.
SC is mainly engaged in saving, credit,
balance and discounting business for the CNY currency; exchange, tourist check
and credit card business; acting as an agency for the receive & payment and
wealth safekeeping business; economic guarantee and credit witness business;
economic consulting service; the business of saving, remittance, loan and
guarantee for the foreign exchange, etc.
SC’s main business includes:
Consumer Banking
Corporate Banking
Credit Card
E-Banking
Etc.
Staff
& Office:
--------------------------
SC is known to have approx. 23,451 staff (including SC’s
subsidiaries and branches) at present.
SC owns an area as its operating office, but
the detailed information is unknown.
RELATED COMPANY
Subsidiaries,
---------------
Guangdong Guangfa International Finance Consulting
Co., Ltd.
Etc.
Branches,
------------
China Guangfa Bank Co., Ltd. Wenzhou Branch
China Guangfa Bank Co., Ltd. Qujing Branch
China Guangfa Bank Co., Ltd. Suzhou Branch
China Guangfa Bank Co., Ltd. Taizhou Branch
China Guangfa Bank Co., Ltd. Benxi Branch
China Guangfa Bank Co., Ltd. Guangzhou Branch
China Guangfa Bank Co., Ltd. Zhanjiang Branch
China Guangfa Bank Co., Ltd. Meizhou Branch
China Guangfa Bank Co., Ltd. Zhengzhou Branch
China Guangfa Bank Co., Ltd. Dongguan Branch
China Guangfa Bank Co., Ltd. Shantou Branch
China Guangfa Bank Co., Ltd. Dalian Branch
China Guangfa Bank Co., Ltd. Hangzhou Branch
China Guangfa Bank Co., Ltd. Shanghai Branch
China Guangfa Bank Co., Ltd. Nanjing Branch
China Guangfa Bank Co., Ltd. Shenyang Branch
China Guangfa Bank Co., Ltd. Changsha Branch
China Guangfa Bank Co., Ltd. Macau Branch
China Guangfa Bank Co., Ltd. Taishan Branch
China Guangfa Bank Co., Ltd. Yuxi Branch
China Guangfa Bank Co., Ltd. Ningbo Branch
China Guangfa Bank Co., Ltd. Xinxiang Branch
China Guangfa Bank Co., Ltd. Anyang Branch
China Guangfa Bank Co., Ltd. Tianjin Branch
China Guangfa Bank Co., Ltd. Pingdingshan Branch
China Guangfa Bank Co., Ltd. Maoming Branch
China Guangfa Bank Co., Ltd. Foshan Branch
China Guangfa Bank Co., Ltd. Kunming Branch
China Guangfa Bank Co., Ltd. Beijing Branch
China Guangfa Bank Co., Ltd. Wuhan Branch
China Guangfa Bank Co., Ltd. Chaozhou Branch
China Guangfa Bank Co., Ltd. Shunde Branch
China Guangfa Bank Co., Ltd. Huizhou Branch
China Guangfa Bank Co., Ltd. Zhuhai Branch
China Guangfa Bank Co., Ltd. Zhongshan Branch
China Guangfa Bank Co., Ltd. Jiangmen Branch
China Guangfa Bank Co., Ltd. Zhaoqing Branch
China Guangfa Bank Co., Ltd. Shaoguan Branch
China Guangfa Bank Co., Ltd. Qingyuan Branch
China Guangfa Bank Co., Ltd. Yangjiang Branch
China Guangfa Bank Co., Ltd. Heyuan Branch
China Guangfa Bank Co., Ltd. Shenzhen Branch
Etc.
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.
FINANCIALS
Consolidated
Balance Sheet
Unit: CNY Million
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Assets: |
|
|
|
Cash and
deposits with central banks |
196,972,297 |
255,860,496 |
|
Deposits
with banks and other financial institutions |
29,140,322 |
35,904,119 |
|
Precious
metals |
533 |
138,227 |
|
Placements
with banks and other financial institutions |
20,123,696 |
19,268,118 |
|
Financial
assets at fair value through profit or loss |
9,520,236 |
21,159,479 |
|
Derivative
financial assets |
4,135,945 |
7,177,975 |
|
Financial assets
held under resale agreements |
264,653,728 |
185,327,545 |
|
Interest
receivable |
5,606,527 |
6,746,583 |
|
Loans and
advances to customers |
703,539,395 |
776,952,220 |
|
Available-for-sale
financial assets |
69,670,891 |
79,816,586 |
|
Held-to-maturity
investments |
54,273,572 |
61,084,477 |
|
Financial
assets classified as receivables |
92,373,660 |
174,271,652 |
|
Long term
equity investments |
1,803 |
4,579 |
|
Fixed
assets |
7,864,670 |
9,353,295 |
|
Intangible
assets |
1,208,779 |
1,415,338 |
|
Deferred
tax assets |
4,400,872 |
4,032,862 |
|
Other
assets |
6,363,005 |
9,542,647 |
|
|
---------------- |
---------------- |
|
Total assets |
1,469,849,931 |
1,648,056,198 |
|
|
============= |
============= |
|
Liabilities |
|
|
|
Borrowings
from central bank |
0 |
10,000,000 |
|
Deposits
from banks and other financial institutions |
270,858,620 |
334,424,478 |
|
Placements
from banks and other financial institutions |
40,836,441 |
32,299,686 |
|
Financial liabilities
at fair value through profit or loss |
306,982 |
4,092,195 |
|
Derivative
financial liabilities |
5,014,128 |
5,710,758 |
|
Financial
assets sold under repurchase agreements |
51,445,496 |
30,013,762 |
|
Deposits
from customers |
994,926,969 |
1,090,321,432 |
|
Employee
benefits payable |
1,449,043 |
1,571,157 |
|
Taxes
payable |
2,875,260 |
3,387,513 |
|
Interest
payable |
14,829,357 |
17,158,354 |
|
Provisions |
20,652 |
9,472 |
|
Bonds
issued |
9,500,000 |
19,500,000 |
|
Other
liabilities |
4,495,509 |
12,118,816 |
|
|
---------------- |
---------------- |
|
Total liabilities |
1,396,558,457 |
1,560,607,623 |
|
Owner’s equity |
73,291,474 |
87,448,575 |
|
|
---------------- |
---------------- |
|
Total liabilities & equities |
1,469,849,931 |
1,648,056,198 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY Million
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Operating income |
|
|
|
Interest income |
65,742,343 |
84,203,750 |
|
Interest expense |
(39,739,809) |
(54,966,940) |
|
|
---------------- |
---------------- |
|
Net
interest income |
26,002,534 |
29,236,810 |
|
|
---------------- |
---------------- |
|
Fees and
commission income |
10,335,123 |
16,565,497 |
|
Fees and
commission expense |
(1,278,411) |
(1,926,345) |
|
|
---------------- |
---------------- |
|
Net fee and
commission income |
9,056,712 |
14,639,152 |
|
|
---------------- |
---------------- |
|
Investment
gains/(losses) |
(15,680) |
289,621 |
|
-Share of gains/(losses) of an associate |
(39) |
2,776 |
|
Gains/(Losses)
arising from changes in fair value |
(969,667) |
1,181,317 |
|
Foreign
exchange (losses)/gains |
326,781 |
(723,189) |
|
Other
operating income |
24,583 |
19,973 |
|
|
---------------- |
---------------- |
|
Operating income |
34,425,263 |
44,643,684 |
|
|
============= |
============= |
|
Operating expenses |
|
|
|
Business taxes and surcharges |
(3,166,899) |
(4,119,791) |
|
Operating and administrative expenses |
(14,429,926) |
(16,232,026) |
|
Impairment losses |
(2,424,805) |
(9,347,124) |
|
Other operating costs |
(532) |
(878) |
|
|
---------------- |
---------------- |
|
Operating expenses |
(20,022,162) |
(29,699,819) |
|
|
============= |
============= |
|
Operating profit |
14,403,101 |
14,943,865 |
|
Add:
Non-operating income |
133,869 |
107,013 |
|
Less:
Non-operating expense |
(81,916) |
(129,781) |
|
|
---------------- |
---------------- |
|
Profit before income tax |
14,455,054 |
14,921,097 |
|
Less:
income tax expense |
(2,871,573) |
(2,884,441) |
|
Net profit |
11,583,481 |
12,036,656 |
Important
Ratios
==============
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Liabilities to assets |
0.95 |
0.95 |
|
*Net profit margin (%) |
17.62 |
14.29 |
|
*Return on total assets (%) |
0.79 |
0.73 |
|
* Interest income / Total assets |
0.04 |
0.05 |
FINANCIAL
COMMENTS
PROFITABILITY: FAIRLY GOOD
l
The
revenue of SC appears good in its line.
l
SC’s
net profit margin is fairly good.
l
SC’s return
on total assets is average.
LIQUIDITY: AVERAGE
l SC’s revenue is in a fair level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY GOOD
l The debt ratio of SC is high.
l The risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Fairly Good.
CONCLUSIONS
SC is considered
large-sized in its line with fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.79 |
|
|
1 |
Rs.99.95 |
|
Euro |
1 |
Rs.71.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.