MIRA INFORM REPORT
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Report Date : |
16.03.2012 |
IDENTIFICATION DETAILS
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Name : |
WISE WELDING TECHNOLOGY & ENGINEERING
CO., LTD. |
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Registered Office : |
Welding Industrial Zone, No. 6, Jing Er Road, Yinghai Town, Daxing District, Beijing, 100076 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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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 Co |
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Line of Business : |
manufacturing and selling
welding equipments |
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No. of Employees
: |
220 |
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 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 – September 30th, 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 & address
WISE WELDING
TECHNOLOGY & ENGINEERING CO., LTD.
WELDING INDUSTRIAL ZONE, NO. 6, JING ER
ROAD, YINGHAI TOWN,
DAXING DISTRICT, BEIJING, 100076 PR CHINA
TEL: 86 (0) 10-60262001/60262115 FAX: 86 (0) 10-60262002
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 9, 2000
REGISTRATION NO. : 110108001752139
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
STAFF STRENGTH : 220
REGISTERED CAPITAL : CNY 32,142,260
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 210,330,000 (unaudited, AS OF DEC. 31, 2011)
EQUITIES :
CNY 74,260,000 (unaudited, AS OF DEC.
31, 2011)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 500,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.33=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
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 technology.
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. 220 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.
Changes
of its registered information:
|
Date |
Item |
Before changed |
After changed |
|
Unknown |
Shareholders (% of shareholding) |
China National
Electric Engineering Co., Ltd. 40%; China Gaoxin Investment Group Corp. 30%;
Zhang Rentang 0.97%; Cheng Feng
1.35%; Gao Yanqing
1.44%; Tang Wei 13.11%; Wang Xintao 2.23%; Lu Biao 5%; Other 23
individual.9% |
Present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
China National Electric Engineering Co.,
Ltd. 40.00
China Gaoxin Investment Group Corp. 30.00
Tang Wei 13.26
Lu Biao 5.00
Wang Xintao 2.23
Gao Yanqing 1.44
Cheng Feng 1.35
Other 23 individuals 6.72
China National Electric Engineering Co.,
Ltd.
=================================
Legal representative: Zhao Ruolin
Registration No.: 100000000002358
Add: China Electric Building, No. 9 Shouti
South Road, Haidian District, Beijing
Tel:
86(0)10-68798899
Fax: 86(0)10-68798000
Website: http://www.cneec.com.cn
China Gaoxin Investment Group Corp.
===========================
Legal representative: Li Baolin
Registration No.: 100000000010085
Add.: Gaoxin Building, No. 1 Nanbinhe Road,
Guang’anmenwai, Xicheng District, Beijing
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. Wang Tianyi, ID# 110102196010012330, born in 1960 with university
education. He is currently responsible for the overall management of SC.
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: serpentuator bending machine, welding robot system, manipulator,
turning rolls, positioner, header nozzle welding machine, joining machine for
plate, all position automatic pipe welding machine, 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 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.
SC’s accountant refused to release
the detailed information of the banking.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Cash & bank |
17,420 |
18,550 |
|
Inventory |
58,770 |
54,560 |
|
Accounts
receivable |
59,050 |
83,680 |
|
Advances to
suppliers |
32,360 |
49,770 |
|
Notes receivable |
1,440 |
1,230 |
|
Other
receivables |
1,040 |
3,020 |
|
Other current
assets |
10 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
170,090 |
210,810 |
|
Fixed assets net
value |
5,250 |
3,790 |
|
Projects under
construction |
0 |
0 |
|
Long term
investment |
0 |
0 |
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Intangible
assets |
420 |
1,150 |
|
Deferred tax
assets |
20 |
140 |
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Other assets |
0 |
0 |
|
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------------------ |
------------------ |
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Total assets |
175,780 |
215,890 |
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|
============= |
============= |
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Short loans |
15,000 |
26,000 |
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Accounts payable |
23,850 |
19,610 |
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Advances from
clients |
28,680 |
36,290 |
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Notes payable |
36,080 |
46,960 |
|
Accrued Wages |
210 |
40 |
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Taxes payable |
4,890 |
5,580 |
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Other payable |
370 |
1,770 |
|
Other current
liabilities |
0 |
5,380 |
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------------------ |
------------------ |
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Current
liabilities |
109,080 |
141,630 |
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Long term
liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total
liabilities |
109,080 |
141,630 |
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Equities |
66,700 |
74,260 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
175,780 |
215,890 |
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|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Turnover |
170,160 |
210,330 |
|
Cost of goods sold |
121,840 |
154,830 |
|
Taxes and additional of main
operation |
230 |
490 |
|
Sales expense |
10,470 |
9,080 |
|
Management expense |
25,920 |
25,300 |
|
Finance expense |
2,260 |
4,850 |
|
Non-operation
income |
420 |
320 |
|
Non-operation expense |
150 |
10 |
|
Profit before
tax |
10,080 |
15,300 |
|
Less: profit tax |
1,210 |
630 |
|
Profits |
8,870 |
14,670 |
Note:
The above financial records of Year2011 have not been audited.
Important Ratios
=============
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
*Current ratio |
1.56 |
1.49 |
|
*Quick ratio |
1.02 |
1.10 |
|
*Liabilities
to assets |
0.62 |
0.66 |
|
*Net profit
margin (%) |
5.21 |
6.97 |
|
*Return on
total assets (%) |
5.05 |
6.80 |
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*Inventory
/Turnover ×365 |
127
days |
95 days |
|
*Accounts
receivable/Turnover ×365 |
127 days |
145 days |
|
*Turnover/Total
assets |
0.97 |
0.97 |
|
* Cost of
goods sold/Turnover |
0.72 |
0.74 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line,
and it increased in 2011.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears fairly large.
l
The short-term loan of SC is average in both years.
l
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 500,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.22 |
|
UK Pound |
1 |
Rs.78.64 |
|
Euro |
1 |
Rs.65.54 |
RATING EXPLANATIONS
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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 |
|
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.