MIRA
INFORM REPORT
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Report Date : |
22.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
ZHEJIANG WINSUN IMP& EXP CO., LTD |
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Registered Office : |
No.8, Youyi Road, jiaxing, Zhejiang province, 314001 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
10.06.2003 |
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Com. Reg. No.: |
3300001010556 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in international trade |
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 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
NAME & ADDRESS
ZHEJIANG WINSUN IMP& EXP CO., LTD.
No.8, Youyi Road, jiaxing,
Zhejiang province, 314001 PR CHINA
TEL: 86 (0) 573-2116970
FAX: 86 (0) 573-2115445
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUN. 10, 2003
REGISTRATION NO. :
3300001010556
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
MR. XU QINGQUAN (CHAIRMAN)
STAFF STRENGTH :
40
REGISTERED CAPITAL : CNY
32,880,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 1,223,810,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 41,500,000 (AS OF DEC. 31,
2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 200,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.73 =US1 AS OF 2007-3-22
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 shares limited company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jun. 10, 2003.
Company Status: Shares limited company 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
characteristics of the shares limited co. are as follows: The establishment of the co. requires at least five
promoters and at least three of them must be PR- China controlled legal
persons. Natural person can not be allowed to serve as promoters. The
minimum registered capital of a co. is CNY 10M. while that of the co. with
foreign investment is CNY 30M. The total capital of a co. which propose to
apply for publicly listed must not less than CNY 50M. The
board of directors must consist of an odd number 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 three years of the offer. Directors can not transfer the
shares they hold in the co. during their terms of office. 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 import and export business, storage services, economic information consulting services (excluding future and stock), development of computer software.
SC is mainly engaged in international trade.
Mr. Xu Qingquan has been chairman of SC since 2003.
SC owns approximately 40 staff at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Jiaxing. Our checks reveal that SC owns the total premise about 1,000 square meters.
http://www.chinaexportonline.com The design is professional and the content is well organized. At present it is in English version.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Xu Qingquan 11.2
Jiang Jiawei 10
Shen Zhenming 10
Zheng Jiming 6.48
Zhu Ruirong 4.5
Zhao Meihua 6.45
Lu Hui 4.73
Fan Liang 4.41
Tang Jianling 3.66
Gu Linfei 3.45
Yuan Feng 2.66
Xu Jianping 2.11
Liu Jing 4.34
Wu Liying 3.7
Tang Siqiang 3.41
Xi Qian 5.46
Zhang Yong 4.45
Li Jun 3.31
Zhu Lixing 3.02
Yang Hua 2.66
Chairman:
Mr. Xu Qingquan , in his 60’s with university education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working in SC as chairman.
General manager:
Mr. Zhu Ruirong, in his 50’s with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working in SC as general manager.
SC is mainly engaged in international trade.
SC’s products mainly include: garments, knitting goods, commodities, hardware, household appliances, machinery products, suitcases, chemically products and other goods.
SC sources its materials 80% from domestic market, and 20% from overseas market, SC sells 80% of its products in domestic market, and 20% to overseas market, mainly Asia and European.
The buying terms of SC include
Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC include
Check, T/T, L/C and Credit of 30-60 days.
Major Suppliers
Zhejiang Winsun Imp & Exp Co., Ltd. Minmetal Branch
Zhejiang Winsun Imp & Exp Co., Ltd. Machinery Branch
SC is known to have the following subsidiaries:
Jiaxing Winsun Investment Co., Ltd.
Shanghai Winsun Imp & Exp Co., Ltd.
Jiaxing Sunlong Industrial & Trade Co., Ltd.
Jiaxing Xinchuang Software Co., Ltd.
Zhejiang Winsun Imp & Exp Co., Ltd. Minmetal Branch
Zhejiang Winsun Imp & Exp Co., Ltd. Machinery Branch
Zhejiang Winsun Imp & Exp Co., Ltd. Chemical Branch
Zhejiang Winsun Imp & Exp Co., Ltd M&H Branch
Zhejiang Winsun Imp & Exp Co., Ltd Case & bags
Branch
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.
Bank of China Jiaxing Branch
AC#860015498808091001
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
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as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
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Cash & bank |
35,820 |
25,820 |
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Short-term investment |
500 |
500 |
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Accounts receivable |
140,280 |
103,480 |
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A receivable tax rebate of export |
20,740 |
9,560 |
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Other receivables |
21,610 |
19,410 |
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Accounts payable advance |
13,380 |
25,970 |
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Inventory |
9,940 |
16,100 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
242,270 |
200,840 |
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Fixed
assets |
18,870 |
21,040 |
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Fixed assets net value |
13,510 |
13,930 |
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Projects under construction |
0 |
0 |
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Long term investment |
16,330 |
34,330 |
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Other assets |
7,480 |
7,260 |
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Total assets |
279,590 |
256,360 |
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============= |
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Short loans |
60,000 |
39,140 |
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Bills payable |
14,940 |
26,920 |
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Accounts payable |
119,400 |
132,960 |
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Accounts receivable advance |
21,290 |
13,770 |
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Salaries payable |
1,110 |
1,110 |
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Welfare payable |
2,790 |
2,660 |
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Tax payable |
-580 |
-25,870 |
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Other payable |
16,630 |
23,480 |
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Accrued expenses |
60 |
40 |
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Other current liabilities |
1,060 |
40 |
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------------------ |
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Current liabilities |
236,700 |
214,250 |
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Long term liabilities |
610 |
610 |
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------------------ |
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Total liabilities |
237,310 |
214,860 |
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Equities |
42,280 |
41,500 |
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Total liabilities &
equities |
279,590 |
256,360 |
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Income Statement
Unit: CNY’000
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as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
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Turnover |
1,056,790 |
1,223,810 |
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Cost of goods sold |
1,009,810 |
1,179,200 |
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Sales expense |
30,640 |
28,760 |
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Management expense |
13,280 |
12,830 |
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Finance expense |
2,340 |
1,090 |
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Profit before tax |
8,190 |
5,860 |
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Less: profit tax |
0 |
0 |
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Profits |
8,190 |
5,860 |
Important Ratios
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as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
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*Current ratio |
1.02 |
0.94 |
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*Quick ratio |
0.98 |
0.86 |
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*Liabilities to assets |
0.85 |
0.84 |
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*Net profit margin (%) |
0.77 |
0.48 |
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*Return on total assets (%) |
2.93 |
2.29 |
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*Fixed assets/Total assets |
0.07 |
0.08 |
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*Inventory /Turnover ×365 |
3days |
5days |
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*Accounts receivable/Turnover ×365 |
48days |
31days |
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*Turnover/Total assets |
3.78 |
4.77 |
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* Cost of goods sold/Turnover |
0.96 |
0.96 |
PROFITABILITY: FAIRLY GOOD
v The turnover of SC appears good in its line, and there was an increase in 2005.
v SC’s net profit margin moved down in 2005, but it also remains average.
v SC’s return on total assets slightly decreased, and still remains at an average level.
v SC’s cost of goods sold appears fairly high, comparing with its turnover.
LIQUIDITY: FAIR
v The current ratio of SC is maintained in an acceptable level.
v SC’s quick ratio is maintained in a normal level.
v The inventory of SC appears acceptable.
v The accounts receivable of SC appears TOO LARGE.
v The accounts payable of SC appears TOO LARGE.
v SC’s short-term loan appears LAREGE.
v SC’s turnover is in a fairly good level, comparing with the size of its total assets.
LEVERAGE: FAIR
v The debt ratio of SC appears fairly high.
v The risk for SC to go bankrupt is low.
Overall financial condition of the SC: Fairly
stable.
Over the past 4
years, SC has made a stable growth with satisfactory profit. The large amount of
short-term loan could be a threat to SC’s financial condition. It is considered
a credit line up to USD 200,000 appears 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%)