MIRA INFORM REPORT
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Report Date : |
21.02.2011 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG WENXIONG MACHINE VALVE CO.,LTD. |
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Registered Office : |
Yongqiang Hi-Tech Park, |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
05.09.1997 |
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Com. Reg. No.: |
330303000012965 |
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Legal Form : |
Limited
Liabilities Company |
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Line of Business : |
manufacturing and selling valves and machinery. |
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 100,000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
ZHEJIANG
WENXIONG MACHINE VALVE CO.,LTD.
YONGQIANG HI-TECH PARK,
TEL:
86 (0) 577-86922389/86922717 FAX:
86 (0) 577-86911588
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 5, 1997
REGISTRATION NO. :
330303000012965
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. JIANG RUIYU (CHAIRMAN)
STAFF
STRENGTH : 180
REGISTERED CAPITAL :
CNY 10,680,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 29,580,000 (AS OF DEC. 31, 2010)
EQUITIES : CNY
17,250,000 (AS OF DEC. 31, 2010)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
STABLE
OPERATIONAL
TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.59= USD 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
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 Sep. 5, 1997.
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 manufacturing, processing, and selling pharmaceutical machinery, food machinery, chemical machinery and equipment, mechanical parts, and low pressure valves; import and export of goods and technology (excluding the items prohibited or limited by the country and laws and regulations).
SC is
mainly engaged in manufacturing
and selling valves and machinery.
Mr. Jiang Ruiyu has
been legal representative, chairman and general manager of SC since 1997.
SC is known to have approx.
180 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 Wenzhou. Our checks reveal that SC owns the total premise about
15,000 square meters.
http://www.wenxiong.com The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
E-mail: sales@wenxiong.com
Honors (according
to SC’s website):
SC’s management
system has successfully passed ISO 9001: 2000 Certification.
SC has been appraised
as “model enterprise in national modern and scientific traditional Chinese
medicine industry (
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiang Ruiyu 38
Jiang Ruiyue 26
Jiang Ruisheng ID#: 330321760704301 18
Xiang Bingxuan ID#: 330321670407271 18
l
Legal representative, chairman and general manager:
Mr.
Working Experience(s):
From 1985 to
1987 Worked in Yongqiang
Valve Factory;
From 1987 to
1996 Engaged in trade
business;
From 1997 to
present Working in SC as legal
representative, chairman and general manager.
l
Supervisor:
Jiang Ruiyue
ID#: 330321731028301
SC is
mainly engaged in manufacturing
and selling valves and machinery.
SC’s
products mainly include: extracting
equipments, concentrating equipments, purifying and separating equipments,
reactor & vessels, sterilizing equipments, filtering equipments, pumps and
fluid pipes.
SC can provide
engineering design and equipment installation and commissioning services and
can also undertake the turn-key project.
SC sources its materials
95% from domestic market and 5% from the overseas market. SC sells 90% of its
products in domestic market and 10% to overseas market, mainly
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.
*Major Clients:
===========
Beijing Tongrentang
Medicines Co., Ltd.
Tianjin Chase Sun
Pharmaceutical Co., Ltd.
Note: SC’s
management declined to release its main suppliers.
SC has branches in
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.
Longwan South of
AC#: 1103021701201000074590
Relationship:
Balance Sheet
Unit: CNY’000
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as
of Oct. 31, 2009 |
as of Dec. 31, 2010 |
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Cash & bank |
1,850 |
2,880 |
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Inventory |
6,450 |
7,450 |
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Accounts receivable |
4,410 |
4,800 |
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Advances to suppliers |
150 |
510 |
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Other accounts receivable |
1,440 |
470 |
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Other current assets |
250 |
0 |
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------------------ |
------------------ |
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Current assets |
14,550 |
16,110 |
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Fixed assets net value |
13,310 |
14,130 |
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Projects under construction |
0 |
0 |
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Long term investment |
0 |
0 |
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Other assets |
980 |
300 |
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------------------ |
------------------ |
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Total assets |
28,840 |
30,540 |
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============= |
============= |
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Short loans |
5,500 |
4,800 |
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Accounts payable |
3,220 |
5,440 |
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Advances from clients |
1,180 |
1,960 |
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Tax payable |
210 |
140 |
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Salary payable |
0 |
260 |
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Other payable |
50 |
690 |
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Other current liabilities |
1,720 |
0 |
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Current liabilities |
11,880 |
13,290 |
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Other liabilities |
0 |
0 |
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Total liabilities |
11,880 |
13,290 |
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Equities |
16,960 |
17,250 |
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Total liabilities &
equities |
28,840 |
30,540 |
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============= |
============= |
Income Statement
Unit: CNY’000
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From Jan. to Oct. 2009 |
as of Dec. 31, 2010 |
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Turnover |
22,190 |
29,580 |
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Cost of goods sold |
18,570 |
25,020 |
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Sales expense |
530 |
740 |
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Management
expense |
3,110 |
3,550 |
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Finance expense |
410 |
280 |
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Profit before tax |
470 |
360 |
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Less: profit tax |
150 |
130 |
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Profits |
320 |
230 |
Important Ratios
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as of Oct. 31, 2009 |
as of Dec. 31, 2010 |
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*Current ratio |
1.22 |
1.21 |
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*Quick ratio |
0.68 |
0.65 |
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*Liabilities to assets |
0.41 |
0.44 |
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*Net profit margin (%) |
1.44 |
0.78 |
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*Return on total assets (%) |
1.11 |
0.75 |
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*Inventory /Turnover ×365 |
106 days |
92 days |
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*Accounts receivable/Turnover ×365 |
73 days |
59 days |
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*Turnover/Total assets |
0.77 |
0.97 |
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* Cost of goods sold/Turnover |
0.84 |
0.85 |
PROFITABILITY: AVERAGE
l
The turnover
of SC appears average 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 average, comparing with its turnover.
LIQUIDITY: FAIR
l
The
current ratio of SC is maintained in a normal level.
l
SC’s
quick ratio is maintained in a fair level.
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The
inventory of SC is fairly large.
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SC’s accounts receivable is average.
l
SC’s short loans are average.
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SC’s
turnover is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt
ratio of SC is average.
l
The risk
for SC to go bankrupt is average.
Overall financial condition of the SC:
Stable.
SC is
considered medium-sized in its line with stable financial conditions. A credit line up to USD 100,000 appears to be
within SC’s capacities.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.45.18 |
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|
1 |
Rs.73.04 |
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Euro |
1 |
Rs.61.43 |
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 |
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 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.