MIRA INFORM
REPORT
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Report Date : |
24.10.2011 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU QIGUAN ELECTRIC MACHINERY CO., LTD |
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Registered Office : |
Dangshan Industrial Garden, Xiaoshan District, Hangzhou, Zhejiang
Province 311245 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
01.12.1998 |
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Com. Reg. No.: |
330181000080105 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing
and Selling Textile Machinery |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 80,000 |
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Status : |
Moderate |
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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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
a2 |
a2 |
|
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
HANGZHOU QIGUAN ELECTRIC MACHINERY CO., LTD
dangshan industrial garden, xiaoshan district
hangzhou, zhejiang province 311245 PR CHINA
TEL: 86 (0) 571-83520020/82536877/82537260
FAX: 86 (0) 571-82536568
EXECUTIVE SUMMARY
Date
of Registration : december 1,
1998
REGISTRATION
NO. : 330181000080105
LEGAL
FORM : Limited liabilities company
REGISTERED CAPITAL : cny 5,180,000
staff :
80
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 26,930,000 (AS
OF DEC. 31, 2010)
EQUITIES :
CNY 13,150,000 (AS OF DEC. 31, 2010)
WEBSITE : www.hzqg-jidian.com
E-MAIL : welcome@hzqg-jidian.com
PAYMENT :
AVERAGE
Recommended Credit Limit : UP TO USD 80,000 (PERIODICAL REVIEW)
MARKET CONDITION :
average
FINANCIAL CONDITION : FAIRly STABLE
OPERATIONAL TREND : ordinary
GENERAL
REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.47 = USD 1
Adopted abbreviations
(as follows)
SC - Subject Company (the company inquired by you)
N/A – Not available
CNY – China Yuan Ren Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at
indicating the relative positions of SC in respect of its operational trend
& general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not
known Not
yet be determined
Not yet
be determined
LEGAL STATUS & HISTORY
Note: According to internet sources, SC is
also known as Hangzhou Qiguan Electrical Machinery Co., Ltd. (the given name)
SC was established as a limited
liabilities company of PRC with State Administration of Industry & Commerce
(SAIC) under registration No.: 330181000080105 on December
1, 1998.
SC’s Organization Code Certificate No.: 712518713
SC’s registered capital: cny 5,180,000
SC’s paid-in capital: cny 5,180,000
No significant changes of SC have been noted in SAIC
since its incorporation.
Current
Co search indicates SC’s shareholders & chief executives are as follows:-
|
Name
of Shareholder (s) |
%
of Shareholding |
|
Ping Gencan |
71.04 |
|
Chen Baichang |
28.96 |
SC’s
Chief Executives:-
Legal
Representative, Chairman and General Manager: Ping Gencan
Supervisor: Chen Baichang
RECENT DEVELOPMENT
In 2001, SC has
passed ISO9001:2000 Quality System Certificate.
SHAREHOLDER CHART &
BACKGROUND
Name % of Shareholding
Ping Gencan 71.04
Chen Baichang 28.96
MANAGEMENT
Ping Gencan, Legal
Representative, Chairman and General Manager
----------------------------------------------------------------------------------------------------
Ø
Gender:
M
Ø
Age: 48
Ø
ID# 330121196306205617
Ø
Working
experience (s):
At present, working in SC as legal representative,
chairman and general manager
Chen Baichang, Supervisor
------------------------------------------------
Ø
Gender:
M
Ø
Age: 52
Ø
ID#
330120195910094318
BUSINESS OPERATION
SC’s registered business scope includes manufacturing agricultural
machinery and accessories, electrical equipment, electronic instruments, textile
machinery and accessories, CNC machinery, machine tools, knitting machinery,
castings, assembly mahjong machine, importing and exporting goods and technology.
SC is mainly engaged in
manufacturing and selling textile machinery.
SC’s products mainly include:
High speed rapier loom, Jacquard rapier loom, Speed rapier loom, Rapier loom,
Towel rapier loom, Two-for-one twister, Computer-controlled winder.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC
sells 80% of its products in domestic market, and 20% to overseas market,
mainly Europe, Southeast Asian market.
The buying terms of SC include
T/T and Credit of 30-60 days. The payment terms of SC include T/T, L/C and
Credit of 30-60 days.
Staff & Office:
--------------------------
SC is known to
have approx. 80 staff at present.
SC rents an area as its operating office
& factory of approx. 14,000 sq. meters at the heading address.
RELATED COMPANY
SC is not known to have any subsidiary at present.
PAYMENT
Overall payment
appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
The bank information of SC is not filed in SAIC.
FINANCIALS
Balance
Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
950 |
4,760 |
|
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Accounts receivable |
3,210 |
2,560 |
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Advances to suppliers |
0 |
0 |
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Other receivable |
0 |
200 |
|
Inventory |
7,110 |
6,570 |
|
Non-current assets within one
year |
0 |
0 |
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Other current assets |
300 |
100 |
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|
------------------ |
------------------ |
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Current assets |
11,570 |
14,190 |
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Fixed assets |
9,310 |
8,890 |
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Construction in progress |
0 |
0 |
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Intangible assets |
4,970 |
4,750 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
4,040 |
3,520 |
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------------------ |
------------------ |
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Total assets |
29,890 |
31,350 |
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|
============= |
============= |
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Short-term loans |
12,000 |
12,000 |
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Notes payable |
0 |
0 |
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Accounts payable |
3,320 |
4,870 |
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Wages payable |
0 |
0 |
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Advances from clients |
0 |
0 |
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Other payable |
1,000 |
1,020 |
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Other current liabilities |
410 |
310 |
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------------------ |
------------------ |
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Current liabilities |
16,730 |
18,200 |
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Non-current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
16,730 |
18,200 |
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Equities |
13,160 |
13,150 |
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------------------ |
------------------ |
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Total liabilities & equities |
29,890 |
31,350 |
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============= |
============= |
Income
Statement
|
Unit: CNY’000 |
As of Dec. 31, 2010 |
|
Revenue |
26,930 |
|
Cost of sales |
24,790 |
|
Sales expense |
460 |
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Management expense |
1,310 |
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Finance expense |
380 |
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Profit before tax |
57 |
|
Less: profit tax |
46 |
|
11 |
Important Ratios
=============
|
|
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
*Current ratio |
0.69 |
0.78 |
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*Quick ratio |
0.27 |
0.42 |
|
*Liabilities to assets |
0.56 |
0.58 |
|
*Net profit margin (%) |
-- |
0.04 |
|
*Return on total assets (%) |
-- |
0.04 |
|
*Inventory / Revenue ×365 |
-- |
90 days |
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*Accounts receivable/ Revenue ×365 |
-- |
35 days |
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* Revenue/Total assets |
-- |
0.86 |
|
* Cost of sales / Revenue |
-- |
0.92 |
FINANCIAL COMMENTS
PROFITABILITY: AVERAGE
l
The revenue of SC appears average in its line in 2010.
l
SC’s net
profit margin is average in 2010.
l
SC’s return
on total assets is average in 2010.
l
SC’s
cost of goods sold is fairly high, comparing with its
revenue.
LIQUIDITY: FAIR
l
The
current ratio of SC is maintained in a fair level in both years.
l
SC’s quick
ratio is maintained in a fair level in both years.
l
The
inventory of SC appears slightly large
l
The
accounts receivable of SC is maintained in an average level.
l
The
short-term loans of SC appear large.
l
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
l
The debt
ratio of SC is average in both years.
l
The risk
for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly
stable.
CONCLUSIONS
SC is considered
small-sized in its line with fairly stable financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition. A credit line up to USD 80,000 is recommended upon a
periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.06 |
|
UK Pound |
1 |
Rs.79.15 |
|
Euro |
1 |
Rs.69.03 |
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 |
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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 |
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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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.