MIRA INFORM REPORT
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Report Date : |
18.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
WUHU RISHENG HEAVY MACHINE TOOL CO., LTD. |
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Registered Office : |
Dongsi Avenue, Jiujiang Economic Development Zone, Wuhu, Anhui
Province, 241000, PR |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
22.10.2003 |
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Com. Reg. No.: |
340200000025487 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Manufacturing
and Selling Different Sorts of Fine Machine Tools. |
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 : |
USD 70,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
WUHU RISHENG HEAVY MACHINE TOOL Co., Ltd.
dongsi avenue, jiujiang economic development
zone,
wuhu, anhui PROVINCE, 241000 PR CHINA.
TEL: 86 (0) 553-5716509 FAX: 86 (0) 553-5844878
EXECUTIVE SUMMARY
INCORPORATION DATE :
october 22, 2003
REGISTRATION NO. :
340200000025487
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH :
300
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 28,620,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 10,650,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 70,000 (periodical review)
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.87 = USD 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
Note: SC’s present name and address should be the heading one,
while the given details are SC’s former information.
SC was registered as a one-person Limited Liability Company
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Oct. 22, 2003.
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered
business scope includes manufacturing and selling digital laser equipment, common
digital control metal machine tools, special machine tools and machine tool
accessories; import and export of various goods and technologies, maintaining,
reforming and adjusting old machine tool equipment; processing machinery.
SC is mainly engaged
in manufacturing and selling different sorts of fine machine tools.
Mr. Cao Huaxing
has been legal representative and chairman of SC since 2003.
SC is known
to have approx. 300 employees 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 Shanghai. Our checks
reveal that SC owns the total premise about 28,000 square meters.
http://www.ahrisheng.com/
The design is professional and the content is well organized. At present it is
in Chinese version.
Email: web@ahrisheng.com
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2008-7 |
Company Name |
Wuhu Risheng Fine Machinery Equipment
Manufacture Co., Ltd. |
Wuhu Risheng Heavy Machine Tool Co., Ltd. |
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Unspecified |
License number |
3402072100894 |
340200000025487 |
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Address |
He’nan Industrial Park, Changjiang
Northern Road |
Dongsi Avenue, Jiujiang Economic
Development Zone, Wuhu |
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Cao Huaxing 100
l
Legal representative and chairman:
Mr. Cao Huaxing, in his 50’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 and legal representative.
l
Vice General manager:
Mr. Fan Zongbao, in his 40’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 vice general manager.
SC is mainly
engaged in manufacturing and selling different sorts of fine machine tools.
SC’s products
mainly include Numerical control single column vertical lathes, drill, double
column vertical lathes, vertical drill, and so on.
SC sources its materials 100% from domestic
market. SC sells 90% of its products in domestic market, and 10% to overseas
market, mainly Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Supplier:
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Shanghai Mingjie Machinery Co., Ltd.
*Major Customer:
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Changzhou Southern
Machine City 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.
China Construction Bank Wuhu Branch Jiuhuashan Road Sub-branch
AC# 34001675108053000013
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
1,280 |
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Inventory |
6,800 |
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Accounts
receivable |
3,230 |
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Advances to
suppliers |
7,510 |
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Notes receivable |
400 |
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Other
receivables |
150 |
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Other current
assets |
80 |
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------------------ |
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Current assets |
19,450 |
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Fixed assets net
value |
13,130 |
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Projects under
construction |
500 |
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Long term
investment |
0 |
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Other assets |
2,950 |
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Total assets |
36,030 |
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Short loans |
4,680 |
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Accounts payable |
14,420 |
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Other payable |
1,570 |
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Advances from
clients |
4,170 |
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Other current
liabilities |
540 |
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Current
liabilities |
25,380 |
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Long term
liabilities |
0 |
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Total
liabilities |
25,380 |
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Equities |
10,650 |
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------------------ |
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Total
liabilities & equities |
36,030 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
28,620 |
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Cost of goods
sold |
24,620 |
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Sales expense |
20 |
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Management expense |
2,090 |
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Finance expense |
700 |
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Profit before
tax |
1,040 |
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Less: profit tax |
380 |
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Profits |
660 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
0.77 |
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*Quick ratio |
0.50 |
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*Liabilities
to assets |
0.70 |
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*Net profit
margin (%) |
2.31 |
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*Return on
total assets (%) |
1.83 |
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*Inventory
/Turnover ×365 |
87 days |
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*Accounts
receivable/Turnover ×365 |
42 days |
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*Turnover/Total
assets |
0.79 |
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* Cost of
goods sold/Turnover |
0.86 |
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 fair level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC appears average, while account payable
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 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.
A credit line up to USD 70,000 appears to be within SC’s capacities upon a
periodical review basis.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.43.23 |
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UK Pound |
1 |
Rs.80.89 |
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Euro |
1 |
Rs.63.80 |
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. |
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%)