MIRA
INFORM REPORT
|
Report Date : |
18.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
WUHAN MEHECO INC |
|
|
|
|
Registered Office : |
24/F, Fuxing World Trade Centre, No.196 Xinhua Road, Wuhan,
Hubei 430015 |
|
|
|
|
Country : |
CHINA |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
12.02. 2004 |
|
|
|
|
Com. Reg. No.: |
420103000031148 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Trading of Textiles and Gauze |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 15,000 |
|
|
|
|
Status : |
Small Company |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
COMPANY NAME &
ADDRESS
WUHAN MEHECO INC.
24/F, Fuxing World Trade Centre, No.196 Xinhua Road, Wuhan, Hubei
PROVINCE, 430015 PR CHINA
TEL: 86 (0) 27-83627043
FAX: 86 (0) 27-85350251
EXECUTIVE SUMMARY
INCORPORATION DATE : February 12, 2004
REGISTRATION NO. : 420103000031148
REGISTERED LEGAL FORM : Limited
liabilities company
CHIEF EXECUTIVE :
MR. wang han (CHAIRMAN)
STAFF STRENGTH :
8
REGISTERED CAPITAL : CNY 1,060,000
BUSINESS LINE :
trading
TURNOVER :
CNY 14,860,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 1,090,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 15,000
MARKET CONDITION : average
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY6.82 = USD1
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 February 12, 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 wholesale and retail of
machinery equipment, mechanical and electrical equipment, chemical products,
garments, shoes and hats, office supplies, textiles, general merchandise, stationery,
hardware, household appliances, auto parts, building decoration materials,
importing and exporting various kinds of commodities and technology, excluding
the goods forbidden by the government.
SC is mainly engaged in international trade.
Mr. Wang Han has been chairman of SC since 2004.
SC is known to have approx. 8 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Wuhan. Our checks reveal
that SC rents the total premise about 100 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the local
Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Wang Han 97.17
Lu Chunqiao 2.83
Chairman and General Manager:
Mr. Wang Han , about 40 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working
in SC as chairman and general manager
SC is mainly engaged in international trade.
SC’s products mainly include: textiles, gauze.
SC sources its materials 100% from domestic market, mainly Hubei. SC
sells 40% of its products in domestic market, and 60% 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 T/T, L/C and Credit of 30-60 days.
*Major Customer:
==============
Wuhan Xishu Wearing Factory
*Major Supplier:
==============
Huanggang Vicom Medical Supplies 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.
China Minsheng Bank Wuhan Branch
AC#：05031417003230
Relationship: Normal.
Balance Sheet
|
Unit: CNY’000 |
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
|
Cash & bank |
1,002 |
139 |
|
Inventory |
529 |
925 |
|
Accounts receivable |
30 |
470 |
|
Other Accounts receivable |
0 |
0 |
|
To be apportioned expense |
0 |
0 |
|
Other current assets |
69 |
6 |
|
|
------------------ |
------------------ |
|
Current assets |
1,630 |
1,540 |
|
Fixed assets net value |
0 |
0 |
|
Projects under construction |
0 |
0 |
|
Long term investment |
0 |
0 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
1,630 |
1,540 |
|
|
============= |
============= |
|
Short loans |
0 |
0 |
|
Accounts payable |
528 |
390 |
|
Other Accounts payable |
0 |
0 |
|
Withdraw the expenses in advance |
0 |
0 |
|
Other current liabilities |
30 |
154 |
|
|
------------------ |
------------------ |
|
Current liabilities |
558 |
544 |
|
Long term liabilities |
0 |
0 |
|
Other liabilities |
2 |
-94 |
|
|
------------------ |
------------------ |
|
Total liabilities |
560 |
450 |
|
Equities |
1,070 |
1,090 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
1,630 |
1,540 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
|
Turnover |
16,540 |
14,860 |
|
Cost of goods sold |
15,810 |
14,350 |
|
Sales expense |
413 |
169 |
|
Management expense |
173 |
255 |
|
Finance expense |
56 |
46 |
|
Profit before tax |
42 |
32 |
|
Less: profit tax |
11 |
9 |
|
Profits |
31 |
23 |
Important Ratios
=============
|
|
As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
|
*Current ratio |
2.92 |
2.83 |
|
*Quick ratio |
1.97 |
1.13 |
|
*Liabilities to assets |
0.34 |
0.29 |
|
*Net profit margin (%) |
0.19 |
0.15 |
|
*Return on total assets (%) |
1.90 |
1.49 |
|
*Inventory /Turnover ×365 |
12 days |
23 days |
|
*Accounts receivable/Turnover ×365 |
1 day |
12 days |
|
*Turnover/Total assets |
10.15 |
9.65 |
|
* Cost of goods sold/Turnover |
0.96 |
0.97 |
PROFITABILITY: AVERAGE
The turnover of SC appears average.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: FAIRLY GOOD
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loan in both 2 years.
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is low.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Stable.
Over the past 4 years, SC has made a stable growth with stable financial
conditions. A credit line up to USD 15,000
would appear to be within SC’s capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.78 |
|
UK Pound |
1 |
Rs.85.51 |
|
Euro |
1 |
Rs.67.90 |
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)