MIRA
INFORM REPORT
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Report Date : |
19.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
HANGZHOU VIWA CO LTD |
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Registered Office : |
Blk.D -17F, Lantian Business Centre, No.18 Moganshan Road, Hangzhou, Zhejiang Province, 310005
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
August 6, 2004 |
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Com. Reg. No.: |
330106000006037 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Trading Chemical
and Pharmaceutical Products. |
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. |
Small |
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Maximum Credit Limit : |
USD 50,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
HANGZHOU VIWA Co.,
Ltd.
BLK.D -17F, Lantian Business Centre, NO.18
Moganshan Road,
Hangzhou, ZHEJIANG PROVINCE, 310005 PR CHINA.
18 17 D
TEL: 86 (0) 571-87175183
FAX: 86 (0) 571-87175163
EXECUTIVE SUMMARY
INCORPORATION DATE : AUGUST 6, 2004
REGISTRATION NO. : 330106000006037
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 23
REGISTERED CAPITAL : CNY 4,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 43,690,000 (AS OF
DEC. 31, 2006)
EQUITIES : CNY 4,140,000 (AS OF
DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 50,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.2465 = US1$
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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on August 6, 2004.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. 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 CNY 30,000. 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 30% 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 services of biological products technology
research, technology services, technology consulting; wholesaling and retailing
chemical raw materials and products (excluding hazardous chemicals and Grade A poisonous chemicals), mechanical and
electrical equipment and parts (excluding specially controlled
products), instruments and meters, building materials, decorative materials, general merchandise, hardware, other
items needed no permit.
SC is mainly engaged
in trading chemical and pharmaceutical products.
Mr. Ye
Huahua has been legal representative and chairman of SC since August 2004.
SC is known to have approx. 23 staff members at
present.
SC is currently operating at the above stated address, and this
address houses its operating office and head office in the commercial zone of
Hangzhou. Our checks reveal that SC rents the total premise about 200 square
meters.
http://www.viwachina.com/ The
design is professional and the content is well organized. At present it is in
English version.
E-mail: sales@viwachina.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ye Huahua 90
Xu Liang 5
Ye Xinglu 4
Chen Yanchun 1
l
Legal representative, chairman and general
manager:
Mr. Ye Huahua, about 40 years old. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working
in SC as chairman, legal representative and general manager.
SC is mainly
engaged in trading chemical and pharmaceutical products.
SC sources its materials 99%
from domestic market, and 1% from overseas market. SC sells 5% of its products
in domestic market, and 95% to overseas market, mainly Indian and European
market.
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:
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Shenyang Hongfei Medical Chemical Plant
*Major Customers:
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Xinyi Yongcheng
Chemical Industrial 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’s suppliers declined to make any comments.
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.
Huaxia Bank of Hangzhou Branch Wulin Sub-branch.
AC#6438191131633
Relationship:
Normal.
Note: The given
bank account also belongs to SC.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
13,820 |
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Inventory |
2,390 |
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Accounts
receivable |
4,750 |
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Advances to
suppliers |
10 |
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Other
receivables |
590 |
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A receivable tax
rebate of export |
3,350 |
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Prepaid expenses |
100 |
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Other current
assets |
3,810 |
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------------------ |
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Current assets |
28,820 |
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Fixed assets |
500 |
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Fixed assets net
value |
290 |
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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 |
29,110 |
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Short loans |
3,730 |
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Notes payable |
13,640 |
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Accounts payable |
2,740 |
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Accrued payroll |
0 |
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Welfare expenses
payable |
30 |
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Taxes payable |
-300 |
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Surcharge
payable |
10 |
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Other payable |
4,820 |
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Accrued expenses |
300 |
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Other current
liabilities |
0 |
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Current
liabilities |
24,970 |
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Long term
liabilities |
0 |
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Total
liabilities |
24,970 |
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Equities |
4,140 |
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Total
liabilities & equities |
29,110 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
43,690 |
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Cost of goods
sold |
40,020 |
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Sales expense |
2,990 |
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Management expense |
520 |
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Finance expense |
10 |
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Profit before
tax |
150 |
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Less: profit tax |
50 |
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Profits |
100 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.15 |
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*Quick ratio |
1.06 |
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*Liabilities
to assets |
0.86 |
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*Net profit
margin (%) |
0.23 |
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*Return on
total assets (%) |
0.34 |
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*Inventory
/Turnover ×365 |
20 days |
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*Accounts receivable/Turnover
×365 |
40 days |
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*Turnover/Total
assets |
1.50 |
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* Cost of
goods sold/Turnover |
0.92 |
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 fairly high, 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 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 is maintained in an average level.
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SC’s short-term loan appears fairly 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 average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with a short history. 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. |
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%)