MIRA
INFORM REPORT
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Report Date : |
23.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
wenzhou foreign trade industrial product co., ltd. |
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Registered Office : |
13/f, International Trade Center, No. 8, Liming West
Road, Wenzhou Zhejiang Province 325000 Pr |
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Country : |
China |
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Financial as on : |
31.12.2007 |
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Date of Incorporation : |
22.02.1993 |
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Com. Reg. No.: |
330305000004524 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
International
Trader |
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 400,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
wenzhou foreign trade industrial product co., ltd.
13/f, international
trade center, no. 8, liming west road, wenzhou
zhejiang province
325000 PR CHINA
TEL: 86 (0)
577-88862791 FAX: 86 (0)
577-88862799
EXECUTIVE SUMMARY
INCORPORATION DATE : feb. 22, 1993
REGISTRATION NO. : 330305000004524
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
70
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 1,272,290,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 28,190,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 400,000
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.83 = 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
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 Feb. 22, 1993.
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 selling textiles, groceries, hardware, and chemical materials;
importing and exporting commodities & technology; and processing with
imported materials, processing with imported samples, assemblying with imported
parts, and compensation trade in agreement; counter trade & transit trade.
SC is mainly
engaged in international trade.
Mr. Zheng Jianwei
has been chairman of SC since 1993.
SC is known to
have approx. 70 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Wenzhou. Our checks reveal that SC
owns the total premise about 1,500 square meters.
http://www.77wz.com
The design is professional and the content is well organized. At present the
web is both in Chinese and English versions.
E-mail: webmaster@77wz.com
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
1998-6-29 |
Registered capital |
CNY 500,000 |
CNY 2,000,000 |
|
2001-12-5 |
Registered capital |
CNY 2,000,000 |
CNY 5,000,000 |
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Shareholders and shareholding |
Wenzhou No. 2 Truck Transportation Co.,
Ltd. 92.5% Wenzhou Foreign Investment Consulting
Service Center 7.5% |
Wenzhou No. 2 Truck Transportation Co.,
Ltd. 4% Labor Union of Wenzhou Foreign Trade &
Economic Cooperation Bureau 3% Zheng Jianwei郑坚伟73% Wang Zhe王哲 20% |
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|
2006-10-31 |
Shareholders and shareholding |
Wenzhou No. 2 Truck Transportation Co.,
Ltd. 4% Labor Union of Wenzhou Foreign Trade &
Economic Cooperation Bureau 3% Zheng Jianwei郑坚伟73% Wang Zhe王哲 20% |
Labor Union of Wenzhou Foreign Trade &
Economic Cooperation Bureau 3% Wenzhou No. 2 Truck Transportation Co.,
Ltd. 4% Zheng Jianwei郑坚伟73% Xia Liqi夏莉琪 20% |
|
2007-1-15 |
Shareholders and shareholding |
Labor Union of Wenzhou Foreign Trade &
Economic Cooperation Bureau 3% Wenzhou No. 2 Truck Transportation Co.,
Ltd. 4% Zheng Jianwei郑坚伟73% Xia Liqi夏莉琪 20% |
Wenzhou No. 2 Truck Transportation Co.,
Ltd. 4% Xia Liqi夏莉琪 20% Zheng Jianwei郑坚伟 76% |
|
2008 |
Registration number |
3303001000584 |
330305000004524 |
MAIN SHAREHOLDERS:
Name
% of Shareholding
Wenzhou 2nd Automobile
Transportation Corp. 4
Zheng Jianwei 76
Xia Liqi 20
l
Chairman and General Manager:
Mr. Zheng Jianwei, born in 1958, with junior college education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1993 to present Working
in SC as chairman and general manager;
At present Working in Wenzhou Foreign
Trade Industrial Product Co., Ltd. International
Trade
Branch as principal.
Sales Manager:
Wang Zhe (
At present Working
in SC as sales manager, and in Wenzhou Foreign Trade Industrial Product Co.,
Ltd. Branch as principal.
SC is mainly
engaged in international trade.
SC’s products
mainly include:
Ø
Shoes
Ø
Smoking
Ø
Toy
Ø
Hardware
Ø
Stationery
Ø
Chemical
Ø
Lamps and lanterns
Ø
Electric torch
Ø
Shaver
Etc.
SC sources its materials 90% from domestic
market, mainly Jiangsu and Zhejiang, and 10% from overseas market. SC sells 20%
of its products in domestic market, mainly Zhejiang and Shanghai, and 80% to
overseas market, mainly Southeast Asia, Europe and USA.
The buying terms of SC include Check, T/T, L/C, and Credit of 30-60
days. The payment terms of SC include Check, L/C, T/T and Credit of 30-60 days.
*Major Customers:
==============
Wenzhou Foreign Trade Industrial Product
Co., Ltd. Kewei Branch
Wenzhou Foreign Trade Industrial Product
Co., Ltd. Jinhe Branch
SC is known
to have the following subsidiaries at present:
Wenzhou Foreign Trade Industrial Product
Co., Ltd. Kewei Branch
Wenzhou Foreign Trade Industrial Product
Co., Ltd. Jinhe Branch
Wenzhou Foreign Trade Industrial Product
Co., Ltd. Daziran Branch
Wenzhou Foreign Trade Industrial Product
Co., Ltd. Branch
Wenzhou Foreign Trade Industrial Product
Co., Ltd. International Trade 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 Lucheng Sub-branch
AC#404810036
Relationship:
Normal.
Agriculture Bank
of China International Trade Center Office
AC#328081189801015887
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
|
Cash & bank |
64,910 |
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Inventory |
6,740 |
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Accounts
receivable |
6,250 |
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Other Accounts
receivable |
18,880 |
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Advances to
suppliers |
181,790 |
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To be
apportioned expense |
0 |
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Other current
assets |
620 |
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------------------ |
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Current assets |
279,190 |
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Fixed assets net
value |
10,660 |
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Projects under construction |
260 |
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Long term
investment |
0 |
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Other assets |
130 |
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------------------ |
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Total assets |
290,240 |
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============= |
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Short loans |
78,960 |
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Accounts payable |
0 |
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Advances from
clients |
135,900 |
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Other Accounts
payable |
6,350 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
40,840 |
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------------------ |
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Current
liabilities |
262,050 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
262,050 |
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Equities |
28,190 |
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------------------ |
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Total
liabilities & equities |
290,240 |
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============= |
Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
1,272,290 |
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Cost of goods
sold |
1,244,680 |
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Sales expense |
12,340 |
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Management expense |
11,890 |
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Finance expense |
2,840 |
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Profit before
tax |
5,140 |
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Less: profit tax |
2,330 |
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Profits |
2,810 |
Important Ratios (as of Dec. 31, 2007)
=============================
*Current ratio 1.07
*Quick ratio 1.04
*Liabilities to
assets 0.90
*Net profit
margin (%) 0.22
*Return on total
assets (%) 0.97
*Inventory
/Turnover ×365 2days
*Accounts
receivable/Turnover ×365 2days
*Turnover/Total
assets 4.38
* Cost of goods
sold/Turnover 0.98
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average level.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears LARGE.
l
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
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 loans could be a threat to SC’s financial
condition. A credit line up to USD 400,000 appears to be within SC’s
capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.41.96 |
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UK Pound |
1 |
Rs.83.78 |
|
Euro |
1 |
Rs.65.82 |
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%)