MIRA
INFORM REPORT
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Report Date : |
12.05.2011 |
IDENTIFICATION DETAILS
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Name : |
WISE WELDING
TECHNOLOGY & ENGINEERING CO., LTD. |
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Registered Office : |
Welding Industrial Zone, No. 6, |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
09.11.2000 |
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Com. Reg. No.: |
110108001752139 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling welding equipments |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
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 500,000 |
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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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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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 |
Name and address
WISE WELDING
TECHNOLOGY & ENGINEERING CO., LTD.
WELDING INDUSTRIAL ZONE, NO. 6,
DAXING DISTRICT,
TEL: 86 (0) 10-60262115 FAX: 86 (0) 10-60262002
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOV. 9, 2000
REGISTRATION NO. :
110108001752139
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
200
REGISTERED CAPITAL : CNY 32,142,260
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 170,160,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 66,700,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.50=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 Nov. 9, 2000.
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 General cargo transport; processing mechanical
parts and accessories, assembling welding equipment (only for branch
operating); developing, transferring, consulting, servicing on welding
technology; selling self-developed products and Machinery electrical equipment;
importing commodities and technologies.
SC is mainly
engaged in manufacturing and selling welding equipments.
Mr. Tang Wei is legal representative and general manager
of SC at present.
SC is known to
have approx. 200 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 Beijing. Our checks
reveal that SC rents the total premise about 28,000 square meters.
http://www.wtec.com.cn
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: wtec@wetc.com.cn
SC has got the certification of ISO9001:2008 and ISO 14001:2004.
MAIN SHAREHOLDERS:
Name %
of Shareholding
China National Electric Engineering Co.,
Ltd. 40.00
China Gaoxin Investment Group Corp. 30.00
Zhang Rentang 0.97
Cheng Feng 1.35
Gao Yanqing 1.44
Tang Wei 13.11
Wang Xintao 2.23
Lu Biao 5.00
Other 23 individuals 5.90
China National Electric Engineering Co.,
Ltd.
=================================
Add:
Tel: 86(0)10-68798899
Fax: 86(0)10-68798000
Website: http://www.cneec.com.cn
China Gaoxin Investment Group Corp.
===========================
Add.:
Tel: 86(0)10- 63288613
Fax: 86(0)10- 63288606
Website: http://www.gaoxin-china.com.cn
\
l
Legal Representative and General Manager:
Mr. Tang Wei , ID# 230102700418041, born in 1970 with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as legal representative and general manager.
l
Chairman:
Mr.
Working Experience(s):
At present Working
in SC as chairman.
SC is mainly
engaged in manufacturing and selling welding equipments.
SC’s products
mainly include: pipe-end groove plastic machine, CNC pipe beveler, H fins pipe
welder, piping all position of automatic welding equipment, saddle submerged
arc automatic welding machine, Membrane type wall gas shielded welding torch,
etc.
SC sources its
products 100% from domestic market. SC sells 90% of its products in domestic
market, and 10% to the overseas market.
The buying terms of SC include Check, 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.
Note:
SC’s management declined to release its major clients and suppliers.
According to the website http://www.cneec.com.cn:
China National Electric Equipment Corporation Technology Co., Ltd.
Beijing
Xingqiao International Engineering Technology Co., Ltd.
Beijing
Scientech International Project Management Co., Ltd.
Etc.
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 refused to
release any information of its suppliers.
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.
SC’s accountant refused to release
the detailed information of the banking.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Cash & bank |
13,830 |
17,420 |
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Inventory |
69,070 |
58,770 |
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Accounts
receivable |
48,120 |
59,050 |
|
Advances to
suppliers |
12,300 |
32,360 |
|
Notes receivable |
1,730 |
1,440 |
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Other
receivables |
730 |
1,040 |
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Other current
assets |
0 |
10 |
|
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------------------ |
------------------ |
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Current assets |
145,780 |
170,090 |
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Fixed assets net
value |
5,670 |
5,250 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Intangible
assets |
120 |
420 |
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Deferred tax
assets |
90 |
20 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
151,660 |
175,780 |
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============= |
============= |
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Short loans |
9,500 |
15,000 |
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Accounts payable |
30,360 |
23,850 |
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Advances from
clients |
56,960 |
28,680 |
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Notes payable |
25,100 |
36,080 |
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Accrued Wages |
390 |
210 |
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Taxes payable |
-10,160 |
4,890 |
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Other payable |
15,350 |
370 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
127,500 |
109,080 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
127,500 |
109,080 |
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Equities |
24,160 |
66,700 |
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------------------ |
------------------ |
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Total
liabilities & equities |
151,660 |
175,780 |
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============= |
============= |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2010 |
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Turnover |
170,160 |
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Cost of goods sold |
121,840 |
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Taxes and additional of main operation |
230 |
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Sales expense |
10,470 |
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Management expense |
25,920 |
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Finance expense |
2,260 |
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Non-operation
income |
420 |
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Non-operation expense |
150 |
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Profit before
tax |
10,080 |
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Less: profit tax |
1,210 |
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Profits |
8,870 |
Important Ratios
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
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*Current ratio |
1.14 |
1.56 |
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*Quick ratio |
0.60 |
1.02 |
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*Liabilities to
assets |
0.84 |
0.62 |
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*Net profit
margin (%) |
/ |
5.21 |
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*Return on
total assets (%) |
/ |
5.05 |
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*Inventory
/Turnover ×365 |
/ |
127
days |
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*Accounts
receivable/Turnover ×365 |
/ |
127 days |
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*Turnover/Total
assets |
/ |
0.97 |
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* Cost of
goods sold/Turnover |
/ |
0.72 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in 2010.
l
SC’s net profit margin is fairly good in 2010.
l
SC’s return on total assets is fairly good in 2010.
l
SC’s cost of goods sold is average in 2010,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2009 and 2010.
l
SC’s quick ratio is maintained in a fair level in
2009 and in a normal level in 2010.
l
The inventory of SC is fairly large in 2009 and
2010.
l
The accounts receivable of SC is fairly large in
2009 and 2010.
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The short term loan is average in 2009 and 2010.
l
SC’s turnover is in an average level in 2010,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is fairly high in 2009 and
average in 2010.
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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 inventory and accounts receivable could be a
threat to SC’s financial conditions. A credit line up to USD 500,000 would appear
to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.69 |
|
|
1 |
Rs.73.12 |
|
Euro |
1 |
Rs.64.39 |
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 |
|
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 |
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 |
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-- |
NB |
New Business |
-- |
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.