MIRA
INFORM REPORT
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Report Date : |
12.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
WENZHOU
CHENGUANG IMP. & EXP. CO., LTD. |
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Registered Office : |
Room 907 Caifu Mansion, Chezhan Ave, Wenzhou, Zhejiang Province, 325000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
18.05.2007 |
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Com. Reg. No.: |
3303261006876 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and Exporting of Plastic Material and Package 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 30,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
WENZHOU CHENGUANG
IMP. & EXP. CO., LTD.
ROOM 907 CAIFU MANSION, CHEZHAN AVE,
WENZHOU,
ZHEJIANG PROVINCE, 325000 PR CHINA
TEL: 0086-577-88828088 FAX:
0086-577-63569966
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 18, 2007
REGISTRATION NO. :
3303261006876
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. SUN QILI (CHAIRMAN)
STAFF STRENGTH :
12
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 5,263,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 4,782,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 30,000 (PERIODICAL REVIEW)
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.84460 = 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 is operating in the heading address, while the
given one (Room 2006, No. 8 Liming West Road, Wenzhou, Zhejiang Province) SC’s
former address.
SC was registered as a limited liabilities co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on May 18, 2007.
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 importing and
exporting commodities and technologies, excluding export commodities limited or prohibited by the state.
SC is mainly
engaged in importing and exporting of plastic material and package products.
Mr. Sun Qili has
been legal representative and chairman of SC since 2007.
SC is known to have approx. 12 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 rents the premise, but SC’s accountant refused to release the
gross area of the premise.
http://www.wzchenguang.com/index.asp
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
E-Mail: wzjerry@gmail.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wenzhou Chenguang Group Co., Ltd. 41
Dong Qiongsi ID#330302198712022489 20
Sun Qili ID#330106196809020119 39
Wenzhou Chenguang Group Co., Ltd. has 35
advanced automatic plastic weaving production lines which create productive
capacity of 500 million pieces plastic bags in various kinds and more than 50
million Dollars production value annually. It has 16 branch factories to
produce all kinds of plastic package products, including PP woven bag, BOPP
color printed bags, cement bag, PP leno mesh bag, tubular mesh bag, PE raschel
bag, container bag and PE Tarpaulin and other soft packing comprehensive bags,
etc. They are widely used in sorts of fields, such as fertilizer, grain and
vegetable. Under the principle of “management is the root, clients are the
highest", the company has been certificated by ISO9002 Qualities system in
2000 and by ISO14001 environment system in 2003. (http://www.wzchenguang.com/eng/
)
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Legal representative and chairman:
Mr. Sun Qili, about 40 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2007 to present Working
in SC as chairman and legal representative.
SC is mainly
engaged in importing and exporting of plastic material and package products.
SC’s products mainly include: PP Woven Bag, Gravure Printing Bag, PP Mesh
Bag, PE Raschel Bag, Yarn produces series, Container Bag and Vacuum Bag.
SC sources its merchandises 10% from the overseas market and 90% from
domestic market. SC sells 100% of its merchandises to overseas market, mainly in Spain.
The buying terms of SC include Check, L/C, 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.
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.
Agriculture Bank
of China Wenzhou Xiaojiang Sub-branch
AC#19250701040026668
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2007 |
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Cash & bank |
632 |
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Bills receivable |
0 |
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Accounts
receivable |
284 |
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Other
receivables |
381 |
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Advances to
suppliers |
3,780 |
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Inventory |
0 |
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Prepaid expenses |
20 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
5,097 |
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Fixed assets |
261 |
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Fixed assets net
value |
261 |
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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 |
5,358 |
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============= |
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Short loans |
0 |
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Bills payable |
0 |
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Accounts payable |
576 |
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Welfare payable |
0 |
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Advances from
clients |
0 |
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Accrued payroll |
0 |
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Tax payable |
0 |
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Other payable |
0 |
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Surcharge
payable |
0 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
576 |
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Long term
liabilities |
0 |
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Total
liabilities |
576 |
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Equities |
4,782 |
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Total
liabilities & equities |
5,358 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2007 |
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Turnover |
5,263 |
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Cost of goods
sold |
5,061 |
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Sales expense |
273 |
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Management expense |
143 |
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Finance expense |
4 |
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Profit before
tax |
-218 |
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Less: profit tax |
0 |
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Profits |
-218 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
8.85 |
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*Quick ratio |
8.85 |
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*Liabilities
to assets |
0.11 |
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*Net profit
margin (%) |
-4.14 |
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*Return on
total assets (%) |
-4.07 |
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*Inventory
/Turnover ×365 |
0 |
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*Accounts
receivable/Turnover ×365 |
20 days |
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*Turnover/Total
assets |
0.98 |
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* Cost of
goods sold/Turnover |
0.96 |
PROFITABILITY:
FAIR
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The turnover of SC appears average in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is 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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There’s no inventory of SC in 2007.
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The accounts receivable of SC appears average.
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There’s no short-term loan of SC in 2007.
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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 low.
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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 fairly stable financial conditions.
A credit line up to USD 30,000 would appear 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.45.77 |
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UK Pound |
1 |
Rs.80.67 |
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Euro |
1 |
Rs.64.20 |
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%)