MIRA
INFORM REPORT
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Report Date : |
14th
November, 2006 |
IDENTIFICATION
DETAILS
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Name : |
WUXI
HUALIAN WELDING & CUTTING EQUIPMENT FACTORY |
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Registered Office : |
Hualian
Village, Xin’an Town, Wuxi City, Jiangsu Province 214135 Pr China |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
27.11.1986 |
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Com. Reg. No.: |
3202132000822 |
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Legal Form : |
Sole Investment Enterprise |
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Line of Business : |
Engaged
in manufacturing numerically controlled cutoff machine. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
USD 20,000 |
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Status : |
Moderate
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
Company name & address
WUXI HUALIAN WELDING & CUTTING EQUIPMENT factory
hualian village, xin’an town, wuxi city
jiangsu province 214135 PR CHINA
TEL : 86
(0) 510-85334577
FAX : 86
(0) 510-85384577
EXECUTIVE SUMMARY
INCORPORATION DATE :
nov. 27, 1986
REGISTRATION NO. :
3202132000822
REGISTERED LEGAL FORM : sole investment
enterprise
STAFF STRENGTH :
220
REGISTERED CAPITAL :
cny 10,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 30,460,000 (AS OF DEC. 31,
2005)
EQUITIES :
CNY 5,000,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 20,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
fairly stable
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY7.86 = US$1 AS OF 2006-11-13
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a Sole investment
enterprise at local Administration for Industry & Commerce (AIC-The
official body of issuing and renewing business license) on Nov. 27, 1986.
Company Status: Sole investment enterprise This form of business
in PR China is a private enterprise formed by an individual, which does not
have the legal person or limited liability status. The co. is solely
operated by the sole investor who is responsible for all risks &
liabilities of the co..
SC’s
registered business scope includes manufacturing and processing automatic
welding and cutting equipment, numerically controlled machine tool, and steel structure;
and importing and exporting electromechanical products.
SC is mainly engaged in
manufacturing numerically controlled cutoff machine.
Mr. Wu Zhongxian has been principal of SC since 1986.
SC owns about 220 staff at
present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the development zone of Wuxi. Our checks reveal
that SC owns the total premise about 8,000 square meters.
SC is
not known to host website of its own at present.
In 2006,
SC increased the registered capital from CNY 5,000,000 to the present.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Wu Zhongxian 100
l
Principal:
Mr. Wu
Zhongxian, in his 50’s with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 1986 to present Working in SC as principal;
At present Also working in
Wuxi Hualian Science & Technology Group
Co., Ltd. as chairman.
SC is mainly engaged in
manufacturing numerically controlled cutoff machine.
SC’s products mainly include: automatic welding and cutting equipment,
numerically controlled machine tool, etc.
SC sources its materials 95% from
domestic market, mainly Shanghai and 5% from overseas market; SC sells 90% of
its products in domestic market, mainly Jiangsu province, and 10% to overseas
market, mainly Vietnam.
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.
*Major
Supplier:
==============
Hypertherm (Shanghai) Trading
Co., Ltd.
*Major Customer:
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Jiangsu Jiangyin Binjiang Building &
Installing Corp.
Address: No. 118, Xiaoshan Road, Jiangyin
City
Tel: 0510-6400388
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.
Xin’an Credit
Cooperative
AC#：9706478611120190037968
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
9,320 |
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Inventory |
800 |
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Accounts receivable |
20,730 |
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Other Accounts receivable |
20,230 |
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Accounts payable in advance |
220 |
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To be apportioned expense |
0 |
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Other current assets |
2,590 |
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Current assets |
53,890 |
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Fixed assets |
3,200 |
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Long term investment |
0 |
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Other assets |
1,000 |
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Total assets |
58,090 |
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Short loans |
21,650 |
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Accounts payable |
990 |
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Salaries payable |
830 |
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Welfares payable |
630 |
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Taxes payable |
80 |
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Other Accounts payable |
9,160 |
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Withdraw the expenses in
advance |
0 |
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Other current liabilities |
19,750 |
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Current liabilities |
53,090 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
53,090 |
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Equities |
5,000 |
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Total liabilities &
equities |
58,090 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
30,460 |
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Cost of goods sold |
23,530 |
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Sales expense |
1,600 |
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Management expense |
2,310 |
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Finance expense |
120 |
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Non-operating expense |
220 |
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Profit before tax |
2,680 |
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Less: profit tax |
920 |
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Profits |
1,760 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 1.02
*Quick ratio 1.00
*Liabilities to
assets 0.91
*Net profit
margin (%) 5.78
*Return on total
assets (%) 3.03
*Inventory
/Turnover ×365 10 days
*Accounts receivable/Turnover
×365 248
days
*Turnover/Total
assets 0.52
* Cost of goods
sold/Turnover 0.77
PROFITABILITY: AVERAGE
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The
turnover of SC appears average in its line.
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SC’s
net profit margin is average.
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SC’s
return on total assets is average.
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SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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The
current ratio of SC is maintained in a normal level.
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SC’s
quick ratio is maintained in a normal level.
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The
inventory of SC is maintained in a normal level.
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The
accounts receivable of SC appears TOO LARGE.
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The
short-term loan of SC appears TOO LARGE.
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SC’s
turnover is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIR
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The
debt ratio of SC is high.
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The
risk for SC to go bankrupt is above average.
Overall financial condition of the SC: Fairly
stable.
SC is
considered small-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. A
credit line up to USD 20,000 would appear to be within SC’s capacities upon a
periodical review basis.
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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