MIRA
INFORM REPORT
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Report Date : |
31.10.2011 |
IDENTIFICATION DETAILS
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Name : |
WUXI HUALIAN PRECISION MACHINERY CO., LTD. |
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Registered Office : |
No. 238 Chengnan Road, Xin’an Town, New District, Wuxi, Jiangsu Province, 214100 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
11.01.1999 |
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Com. Reg. No.: |
320213000063781 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling precision 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 1,000,000 |
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Status : |
Good |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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China |
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 and address
WUXI HUALIAN
PRECISION MACHINERY CO., LTD.
NO. 238 CHENGNAN ROAD, XIN’AN TOWN, NEW
DISTRICT,
WUXI, JIANGSU PROVINCE, 214100 PR CHINA
TEL: 86 (0) 510-85384577/85388111 FAX: 86 (0) 510-85380257
EXECUTIVE SUMMARY
INCORPORATION DATE : Jan. 11, 1999
REGISTRATION NO. : 320213000063781
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
271
REGISTERED CAPITAL : CNY 14,740,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 148,820,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 114,140,000 (AS OF DEC. 31, 2010)
PAYMENT :
average
RECOMM. CREDIT RANGE : up to usd 1,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.3573= 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 Ren Min Bi
Note: SC’s current operating address should be the heading one,
while the given address (Beside of 312 National Way, Xin’an Town, Wuxi City,
Jiangsu Province) was the SC’s former address.
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 Jan. 11, 1999.
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 freight; designing and selling
precision cutting machinery, welding machinery, welding robot, precision
machinery and plug weld; importing and exporting various goods and technology,
excluding the items prohibited or limited by the country; operating by
branches: manufacturing and processing precision cutting machinery, welding
machinery, welding robot, precision machinery and plug weld.
SC is mainly
engaged in manufacturing and selling precision machinery.
Mr. Wu Qing has been chairman and general manager of SC
since 1999.
SC is known
to have approx. 271 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the new district of Wuxi. Our checks reveal
that SC owns the total premise about 17,000 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wuxi Hualian Science & Technology Group
Co., Ltd. 50.34
Wang Quanzhen ID#: 320222490819694 12.35
Wu Fang
ID#: 320222197404286929 14.39
Wu Qing
ID#: 32022219720425691X 22.92
Wuxi Hualian Science & Technology Group
Co., Ltd.
======================================
Wuxi Hualian Science & Technology Group
focused on manufacturing and marketing welding & cutting machine, numerical
control machine tool, welding power etc. These products are widely used in
shipbuilding, steel structure, bridge engineering, transportation, boiler,
chemical, mechanical, and metallurgy, electrical and other industries.
Tel: 86-510-85388111/85384577
Fax: 86-510-81819395/85381880
E-mail: info@wxhlhg.com
Website: http://www.wxhlhg.com
l
Chairman and General Manager:
Mr. Wu Qing , ID# 32022219720425691X, born in
1972 with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 1999 to present Working
in SC as chairman and general manager.
Also working in Wuxi Hualian Numerical Control
Technology Co., Ltd. and Wuxi Liancheng Steel Co., Ltd., as chairman.
l
Supervisor:
Wu Fang , ID# 320222197404286929
SC is mainly
engaged in manufacturing and selling precision machinery.
SC’s products mainly
include: precision cutting machinery, welding machinery, welding robot,
precision machinery and plug weld.
SC sources its
materials 90% from domestic market, and 10% from the overseas market, mainly
European countries. SC sells 80% of its products in domestic market, and 20% to
the overseas market, mainly Southeast Asia and European countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
Note:
SC refused to release its major clients and suppliers.
Wuxi
Hualian Welding & Cutting Equipment Factory
Wuxi
Hualian Numerical Control Technology Co., Ltd.
Wuxi
Liancheng Steel Co., Ltd.
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
AC#：476758198088
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2009 |
|
Cash & bank |
29,890 |
38,540 |
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Inventory |
12,450 |
8,270 |
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Accounts
receivable |
14,700 |
31,250 |
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Advances to
suppliers |
5,300 |
1,100 |
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Bills receivable |
44,600 |
0 |
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Other
receivables |
61,260 |
39,490 |
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Other current
assets |
0 |
19,830 |
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---------------- |
--------------- |
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Current assets |
168,200 |
138,480 |
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Fixed assets net
value |
11,830 |
11,640 |
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Projects under
construction |
1,400 |
600 |
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Long term
investment |
0 |
0 |
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Other assets |
550 |
480 |
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----------------- |
--------------- |
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Total assets |
181,980 |
151,200 |
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============ |
============ |
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Short loans |
0 |
4,070 |
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Accounts payable |
10,450 |
19,000 |
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Advances from
clients |
16,780 |
16,810 |
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Notes payable |
18,000 |
0 |
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Taxes payable |
920 |
2,600 |
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Welfare payable |
1,450 |
0 |
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Other payable |
20,210 |
1,770 |
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Surcharge
payable |
30 |
0 |
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Other current
liabilities |
0 |
10,670 |
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----------------- |
------------------- |
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Current
liabilities |
67,840 |
54,920 |
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Long term
liabilities |
0 |
0 |
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----------------- |
------------------- |
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Total
liabilities |
67,840 |
54,920 |
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Equities |
114,140 |
96,280 |
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------------------ |
------------------- |
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Total
liabilities & equities |
181,980 |
151,200 |
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============ |
=========== |
Income Statement
Unit: CNY’000
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2009 |
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Turnover |
148,820 |
178,010 |
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Cost of goods
sold |
86,820 |
113,950 |
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Sales expense |
9,720 |
9,950 |
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Management expense |
18,380 |
13,560 |
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Finance expense |
-400 |
-2,800 |
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Profit before
tax |
34,760 |
41,760 |
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Less: profit tax |
5,610 |
6,270 |
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Profits |
29,150 |
35,490 |
Important Ratios
=============
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|
2010 |
2009 |
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*Current ratio |
2.48 |
2.52 |
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*Quick ratio |
2.30 |
2.37 |
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*Liabilities
to assets |
0.37 |
0.36 |
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*Net profit
margin (%) |
19.59 |
19.94 |
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*Return on
total assets (%) |
16.02 |
23.47 |
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*Inventory
/Turnover ×365 |
31 days |
17 days |
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*Accounts
receivable/Turnover ×365 |
36 days |
64 days |
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*Turnover/Total
assets |
0.82 |
1.18 |
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* Cost of
goods sold/Turnover |
0.58 |
0.64 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line,
but it decreased in 2010.
l
SC’s net profit margin is good in both years.
l
SC’s return on total assets is good in both years.
l
SC’s cost of goods sold is low, comparing with its
turnover in both years.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is in a fairly good level
in both years.
l
SC’s quick ratio is in a fairly good level in both
years.
l
The inventory of SC is average in both years.
l
The accounts receivable of SC is average in both
years.
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SC has no short loans in 2010.
l
SC’s turnover is in an average level in 2009, but
fair in 2010, comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
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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 Good.
SC is considered medium-sized in its line with fairly good financial
conditions. It is considered a credit line up to USD 1,000,000 appears to be
within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.82 |
|
|
1 |
Rs.78.57 |
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Euro |
1 |
Rs.69.28 |
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 |
|
<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.