MIRA
INFORM REPORT
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Report Date : |
12.06.2007 |
IDENTIFICATION DETAILS
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Name : |
zhejiang wanli
textile machinery Co., lTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
August 12, 1997 |
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Com. Reg. No.: |
3301812310109 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling textile machinery. |
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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Maximum Credit Limit : |
Up To usd 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
zhejiang wanli
textile machinery Co., lTD.
TEL :
86 (0) 571-82557888
FAX :
86 (0) 571-82519868
EXECUTIVE SUMMARY
INCORPORATION DATE : august 12, 1997
REGISTRATION NO. : 3301812310109
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
700
REGISTERED CAPITAL : CNY 35,180,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 104,800,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 54,480,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.65 = US$1 AS OF 2007-6-12
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on August 12, 1997.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. Shareholders bear limited liability to
the extent of shareholding, and the co. is liable for its debts only to
extent of its total assets. The characteristics of this form of co. are as
follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is listed as follows: -manufacturing co. :
CNY 500,000.00 -trading &wholesaling
co. : CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy & service
co. : CNY
100,000.00 Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all shareholders
must account for at least 50% of the registered capital while contribution
by intangible assets must not exceed 20% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered
business scope includes manufacturing textile machinery, mold, hardware machinery
parts, plastic products, exporting its products and technology; importing
materials, instrument, machinery and equipment, parts and technology needed for
its production(excluding the goods and technology forbidden or limited by the
government), processing with imported materials, processing with imported
samples, assembling with imported parts, and compensation trade in agreement.
SC is mainly
engaged in manufacturing and selling textile machinery.
Mr. Wan Zugan has
been chairman of SC since 1997.
SC owns about 700
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 Xiaoshan. Our checks
reveal that SC owns the total premise about 13,000 square meters.
http://www.zjwanli.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: wanli@texindex.com
SC has got the certificate of ISO9002.
Changes of its registered information are as follows:
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Date of change |
Item |
Before the
change |
After the change |
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2006 |
Registered capital |
CNY 15,180,000 |
CNY 35,180,000 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wan Zugan 63
Wan Suchun 37
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Chairman and
General Manager:
Mr. Wan Zugan, about 55 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working
in SC as chairman and general manager.
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Sales Manager:
Mr. Guo Shipeng
Tel: 86-0571-82519868
SC is mainly
engaged in manufacturing and selling textile machinery.
Brand: Wanli
SC’s products mainly
include: WL310G Two-for-one Twister, WL99-2 Covering Machine, WL818b Texturing
Machine, WL818C Texturing Machine, WL EXCELLENT Flexible Rapier Loom, WL2002
Two-for-one Twister for Short Fiber, WL2002 Double Winder, WL96 Air-jet Yarn
Covering Machine, DLG Winder, WL35 High-speed Rewinder, SGU001 Card Punching
Machine, WL93 Auto Knotting Machine, WL2001 Auto Knotting Machine, WL828
High-speeding jacquard, selvedge jacquard.
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, T/T and Credit of 30-90 days. The
payment terms of SC include T/T, L/C and Credit of 30-90 days.
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
AC#：330181255783457
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
27,540 |
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Inventory |
3,040 |
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Accounts
receivable |
34,440 |
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Other Accounts
receivable |
34,440 |
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To be
apportioned expense |
0 |
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Other current
assets |
35,840 |
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Current assets |
135,300 |
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Fixed assets net
value |
38,460 |
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Projects under
construction |
0 |
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Intangible
assets |
12,840 |
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Long term
investment |
0 |
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Other assets |
-350 |
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Total assets |
186,250 |
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Short loans |
74,600 |
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Accounts payable |
14,030 |
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Other Accounts
payable |
1,400 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
41,740 |
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Current
liabilities |
131,770 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
131,770 |
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Equities |
54,480 |
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Total
liabilities & equities |
186,250 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
104,800 |
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Cost of goods
sold |
92,690 |
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Sales expense |
1,850 |
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Management expense |
4,710 |
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Finance expense |
4,500 |
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Profit before
tax |
850 |
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Less: profit tax |
220 |
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Profits |
630 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.03
*Quick ratio 1.00
*Liabilities to
assets 0.71
*Net profit
margin (%) 0.60
*Return on total
assets (%) 0.34
*Inventory /Turnover
×365 11 days
*Accounts
receivable/Turnover ×365 120 days
*Turnover/Total
assets 0.56
* Cost of goods
sold/Turnover 0.88
PROFITABILITY:
FAIR
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The turnover of SC appears average in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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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 an average
level.
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The accounts receivable of SC appears fairly 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: 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: 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 conditions. A credit line up to USD 300,000
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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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%)