MIRA
INFORM REPORT
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Report Date : |
29th
December, 2006 |
IDENTIFICATION
DETAILS
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Name : |
wenzhou yongchang tools
co., ltd. |
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Registered Office : |
No. 107 Furong Street, Furong Town, Yueqing
City, Wenzhou, Zhejiang Province, 325612 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 : |
20.05.2000 |
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Com. Reg. No.: |
001014 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Engaged
in manufacturing and selling hardware tools. |
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 50,000 |
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Status : |
Fair |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name & Address
wenzhou yongchang
tools co., ltd.
no. 107 furong
street, furong town, yueqing city, wenzhou,
zhejiang province,
325612 PR CHINA
TEL : 86 (0) 577-62291351
FAX : 86 (0) 577-62291289
EXECUTIVE SUMMARY
INCORPORATION DATE :
may 20, 2000
REGISTRATION NO. :
001014
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH :
360
REGISTERED CAPITAL :
usd 1,250,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 43,100,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 4,910,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO usd 50,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY7.82 = US$1 AS OF 2006-12-28
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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 20, 2000.
Company Status: Chinese-foreign equity joint
venture enterprise This form of
business in PR China is defined as a legal person. It is a limited co.
jointly invested by one or more foreign companies and one or more PR China
controlled companies within the territories of PR China according to a
certain proportion of capital investment. The investing parties exercise
business management, share profits and bear all risks and liabilities of
the co. together. The equity joint venture law requires that foreign party
contribute not less than 25% of the registered capital, with no maximum.
The joint venture usually have a limited duration of 10 to 50 years.
Enterprise with large investment, long construction periods, low investment
returns, introducing of advanced technology & advanced technology
products which have good competition position in international market may
extend beyond the 50 years limit.
SC’s registered business scope includes
manufacturing and selling electric hammer drill, woodworker milling cutter,
hardware tools and fittings of electric tools.
SC is mainly engaged in
manufacturing and selling hardware tools.
Mr. Cai Changquan has been chairman of SC since 2000.
SC owns about 360 staff 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 Yueqing city. Our checks
reveal that SC rents the total premise about 5,280 square meters.
http://www.yc-tools.com The design is professional and
the content is well organized. At present the web site is only in English
version.
E-mail: routebit@mail.wzptt.zj.cn
SC’s former registered capital was USD 250,000, and
it was increased to USD 1,250,000 in October of 2006.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yueqing Hardware Tools 2nd
Factory 15
Cai Wei (Taiwan) 85
l
Chairman:
Mr. Cai
Changquan (蔡昌权), 42 years old with university education. He
is currently responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working
in SC as chairman.
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General Manager:
Ms. Cai
Xiaozhen (蔡晓珍), 34 years old with university education. She
is currently responsible for the daily management of SC.
Working Experience(s):
From 2000 to present
Working in SC as general
manager.
SC is mainly engaged in
manufacturing and selling hardware tools.
Brand: ZOBI
SC’s products mainly include:
Hammer Drills, Drill Sets, Diamond Blades, Chisels, Router Bits, Router Bit
Sets, Hole Saws, Screwdriver Bits, Cemented Carbide, T.C.T SAW BLADES, Hex Key
Wrench, Hss Twist Drills, Masonry Drills.
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 30% of its products in domestic market, and
70% to overseas market, mainly USA, India and Russia.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major
Customer:
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Shangdong
Huayue Hardware Tools Co., Ltd.
*Major
Supplier:
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Zhejiang
Tianshi Powder Metallurgy Co., Ltd.
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.
Agricultural
Bank of China Wenzhou Branch Yueqing Sub-Branch
AC#：272701040002218
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
1,950 |
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Inventory |
560 |
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Accounts receivable |
7,680 |
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Other Accounts receivable |
90 |
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To be apportioned expense |
290 |
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Other current assets |
730 |
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Current assets |
11,300 |
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Fixed assets |
2,560 |
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Fixed assets net value |
1,840 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
0 |
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Total assets |
13,140 |
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Short loans |
500 |
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Accounts payable |
2,340 |
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Other Accounts payable |
930 |
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Advances from customers |
2,190 |
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Withdraw the expenses in
advance |
20 |
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Other current liabilities |
2,250 |
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Current liabilities |
8,230 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
8,230 |
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Equities |
4,910 |
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Total liabilities &
equities |
13,140 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
43,100 |
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Cost of goods sold |
37,720 |
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Sales expense |
2,260 |
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Management expense |
1,220 |
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Finance expense |
60 |
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Profit before tax |
1,880 |
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Less: profit tax |
250 |
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Profits |
1,630 |
Important Ratios (as of Dec. 31, 2005)
*Current ratio 1.37
*Quick ratio 1.30
*Liabilities to
assets 0.63
*Net profit
margin (%) 3.78
*Return on total
assets (%) 12.40
*Inventory /Turnover
×365 5 days
*Accounts
receivable/Turnover ×365 65 days
*Turnover/Total
assets 3.28
*Cost of goods
sold/Turnover 0.88
PROFITABILITY: FAIRLY GOOD
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The
turnover of SC appears fairly good 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 fairly good.
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SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
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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 fairly good level.
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The
inventory of SC is maintained in an average level.
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The
accounts receivable of SC appears LARGE.
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SC’s
short-term loan is in an average level.
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SC’s
turnover is in a fairly good level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
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The
debt ratio of SC is average.
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The
risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Stable.
SC is
considered medium-sized in its line with stable financial conditions. A credit
line up to USD 50,000 would
appear to be within SC’s capacities.
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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