MIRA
INFORM REPORT
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Report Date : |
10.05.2012 |
IDENTIFICATION DETAILS
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Name : |
WUHAN CHALLENGE MIRACLE CO., LTD. |
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Registered Office : |
Room 2601, B-26/F, Jiangcheng Commercial Plaza, Jianshe Second
Road, Qingshan District, Wuhan, Hubei Province, 430081 Pr |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
25.06.2002 |
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Com. Reg. No.: |
420107000057270 |
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Legal Form : |
Limited
Liabilities Company |
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Line of Business : |
selling iron and steel products, iron and steel raw materials, building
materials |
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No. of Employees : |
25 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
|
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
wuhan challenge miracle co., ltd.
ROOM 2601, b-26/f,
jiangcheng commercial plaza, jianshe SECOND road, QINGSHAN DISTRICT, wuhan, hubei
PROVINCE, 430081 PR CHINA
TEL: 86 (0)
27-51601797 FAX: 86 (0)
27-86877737
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 25, 2002
REGISTRATION NO. : 420107000057270
REGISTERED LEGAL FORM :
LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 25
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 602,010,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY -9,120,000 (AS OF
DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.29 = 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 Renminbi
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 June 25, 2002.
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 wholesale and retail machinery equipments, building
materials, general merchandise, office supplies, labor protection products, hardware,
steels, metallurgy furnace charge, office automation equipments, chemical
products (excluding hazardous products), minerals; import and export of goods,
technology, and agent business; computer software & hardware development,
computer system service.
SC is mainly
engaged in selling iron and steel products, iron and steel raw materials,
building materials.
Mr. Xu Hai has
been the legal representative, chairman and general manager of SC since Feb. of
2012.
SC is known
to have approx. 25 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Wuhan. Our checks reveal that SC
rents the total premise about 200 square meters.
SC is not known to host website of its own at present.
SC was awarded as A Class Management
Enterprise by Wuhan Customs, Hubei Metal trade industry Top 30, The Contract
and Trustworthy Enterprise by Hubei AIC, etc.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2003-7 |
Registered capital |
CNY 1,000,000 |
CNY 1,050,000 |
|
2005-3 |
Registered capital |
CNY 1,050,000 |
CNY 5,050,000 |
|
2011-3 |
Registration no. |
4201002113079 |
Present one |
|
2011-11 |
Registered capital |
CNY 5,050,000 |
Present amount |
|
Shareholders |
Wang Wei 98% Liu Jinzhi 2% |
Present ones |
|
|
2012-2 |
Legal representative |
Wang Wei |
Present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xu Hai 98
Liu Jinzhi
2
ID# 420107571228334
Legal
representative, Chairman and General Manager:
Mr. Xu Hai, born in 1970. He is currently responsible for the overall
management of SC.
Working Experience(s):
From Feb. of 2012 to present Working in SC as legal representative, chairman and general manager.
SC is mainly
engaged in selling iron and steel products, iron and steel raw materials,
building materials.
SC’s products
mainly include: silicon steel, special steel, steel wire rod, galvanized steel,
welding and cutting machines, welding helmets, rock drilling tools, etc.
SC sources its materials 100% from domestic
market, mainly Wuhan. SC sells 10% of its products in domestic market, and 90%
to overseas market, mainly Morocco, Brazil, United Arab Emirates.
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.
*Major Supplier:
==============
Wuhan Iron & Steel (Group) Corporation
Shanghai Zhongqi Trading Co., Ltd.
*Major Customer:
==============
Wuhan Qiaodu Materials Trade Co., Ltd.
SC is known to have two
branches at present:
==================================
· Wuhan Challenge Miracle Co., Ltd. Jiangcheng Branch
Wuhan
Challenge Miracle Co., Ltd. Dongguan Branch
SC
also has offices in Shanghai, Hong Kong, Shenzhen, Changsha, Guangzhou, 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’s suppliers
declined to make any comments.
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.
Agricultural Bank of China Wuhan Branch
AC# 046201040004616
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2010 |
as of Dec. 31, 2011 |
|
Cash & bank |
223,640 |
494,010 |
|
Inventory |
26,610 |
39,490 |
|
Notes receivable |
0 |
50,000 |
|
Accounts
receivable |
0 |
0 |
|
Advances to
supplies |
359,410 |
161,810 |
|
Other
receivables |
100,490 |
65,720 |
|
Subsidies
receivable |
440 |
11,710 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
710,590 |
822,740 |
|
Fixed assets net
value |
590 |
710 |
|
Projects under
construction |
0 |
0 |
|
Long-term
investments |
0 |
0 |
|
Long-term deferred
expenses |
15,000 |
11,000 |
|
Intangible
assets |
0 |
0 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
726,180 |
834,450 |
|
|
============= |
============= |
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Short loans |
324,570 |
269,730 |
|
Accounts payable |
0 |
0 |
|
Advances from
customers |
68,640 |
180 |
|
Notes payable |
328,190 |
576,200 |
|
Welfares payable |
50 |
50 |
|
Taxes payable |
-420 |
-3,840 |
|
Other accounts
payable |
6,850 |
1,250 |
|
Other current
liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
727,880 |
843,570 |
|
Long term
liabilities |
0 |
0 |
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Other long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
727,880 |
843,570 |
|
Shareholders
equities |
-1,700 |
-9,120 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
726,180 |
834,450 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
Turnover |
895,130 |
602,010 |
|
Cost of goods sold |
871,820 |
599,790 |
|
Taxes and additional of main
operation |
120 |
90 |
|
Sales expense |
9,840 |
7,920 |
|
Management expense |
4,890 |
3,900 |
|
Finance expense |
9,010 |
22,740 |
|
Subsidy income |
60 |
60 |
|
Profit before
tax |
-490 |
-32,370 |
|
Less: profit tax |
0 |
0 |
|
Profits |
-490 |
-32,370 |
Important Ratios
=============
|
|
as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
|
*Current ratio |
0.98 |
0.98 |
|
*Quick ratio |
0.94 |
0.93 |
|
*Liabilities
to assets |
1.00 |
1.01 |
|
*Net profit
margin (%) |
-0.05 |
-5.38 |
|
*Return on
total assets (%) |
-0.07 |
-3.88 |
|
*Inventory
/Turnover ×365 |
11
days |
24 days |
|
*Accounts
receivable/Turnover ×365 |
0 |
0 |
|
*Turnover/Total
assets |
1.23 |
0.72 |
|
* Cost of
goods sold/Turnover |
0.97 |
1.00 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in both
years, but it decreased in 2011.
l
SC’s net profit margin is fair in both years.
l
SC’s return on total assets is fair in both years.
l
SC’s cost of goods sold is high in both years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC is average in both years.
l
SC has no accounts receivable in both years.
l
The short term loan of SC is large in both years.
l
SC’s turnover is in an average level in 2010, but
fair in 2011, comparing with the size of its total assets.
LEVERAGE: POOR
l
The debt ratio of SC is too high.
l
The risk for SC to go bankrupt is high.
Overall financial
condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions. The large amount of short-term loan could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.46 |
|
UK Pound |
1 |
Rs.86.27 |
|
Euro |
1 |
Rs.69.40 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
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.