MIRA INFORM REPORT
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Report Date : |
11.10.2012 |
IDENTIFICATION DETAILS
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Name : |
WUXI ZHOUXIANG HEAVY INDUSTRY SCIENCE & TECHNOLOGY
CO., LTD. |
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Registered Office : |
Dongsheng Road, S228 Provincial Road, Donggang Industrial Zone
Donggang Town, Wuxi, Jiangsu Province 214196 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
23.10. 2006 |
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Com. Reg. No.: |
320200400028124 |
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Legal Form : |
Chinese-Foreign Contractual Joint Venture
Enterprise |
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Line of Business : |
Researching, developing and manufacturing metal cutting equipment, welding equipment, veneer reeling machine; providing the after sale service. |
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No. of Employees : |
400 |
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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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China
has moved from a closed, centrally planned system to a more market-oriented one
that plays a major global role - in 2010 China became the world's largest
exporter. Reforms began with the phasing out of collectivized agriculture, and
expanded to include the gradual liberalization of prices, fiscal
decentralization, increased autonomy for state enterprises, creation of a
diversified banking system, development of stock markets, rapid growth of the
private sector, and opening to foreign trade and investment. China has
implemented reforms in a gradualist fashion. In recent years, China has renewed
its support for state-owned enterprises in sectors it considers important to
"economic security," explicitly looking to foster globally
competitive national champions. After keeping its currency tightly linked to
the US dollar for years, in July 2005 China revalued its currency by 2.1%
against the US dollar and moved to an exchange rate system that references a
basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the
renminbi against the US dollar was more than 20%, but the exchange rate
remained virtually pegged to the dollar from the onset of the global financial
crisis until June 2010, when Beijing allowed resumption of a gradual
appreciation. The restructuring of the economy and resulting efficiency gains
have contributed to a more than tenfold increase in GDP since 1978. Measured on
a purchasing power parity (PPP) basis that adjusts for price differences, China
in 2010 stood as the second-largest economy in the world after the US, having
surpassed Japan in 2001. The dollar values of China's agricultural and
industrial output each exceed those of the US; China is second to the US in the
value of services it produces. Still, per capita income is below the world
average. The Chinese government faces numerous economic challenges, including:
(a) reducing its high domestic savings rate and correspondingly low domestic
demand; (b) sustaining adequate job growth for tens of millions of migrants and
new entrants to the work force; (c) reducing corruption and other economic
crimes; and (d) containing environmental damage and social strife related to
the economy's rapid transformation. Economic development has progressed further
in coastal provinces than in the interior, and by 2011 more than 250 million
migrant workers and their dependents had relocated to urban areas to find work.
One consequence of population control policy is that China is now one of the
most rapidly aging countries in the world. Deterioration in the environment -
notably air pollution, soil erosion, and the steady fall of the water table,
especially in the North - is another long-term problem. China continues to lose
arable land because of erosion and economic development. The Chinese government
is seeking to add energy production capacity from sources other than coal and
oil, focusing on nuclear and alternative energy development. In 2010-11, China
faced high inflation resulting largely from its credit-fueled stimulus program.
Some tightening measures appear to have controlled inflation, but GDP growth
consequently slowed to near 9% for 2011. An economic slowdown in Europe is
expected to further drag Chinese growth in 2012. Debt overhang from the
stimulus program, particularly among local governments, and a property price
bubble challenge policy makers currently. The government's 12th Five-Year Plan,
adopted in March 2011, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent on
exports in the future. However, China has made only marginal progress toward
these rebalancing goals.
Source : CIA
Company
name and address
WUXI ZHOUXIANG HEAVY INDUSTRY SCIENCE & TECHNOLOGY CO.,
LTD.
DONGSHENG ROAD, S228 PROVINCIAL ROAD, DONGGANG INDUSTRIAL ZONE
DONGGANG TOWN, WUXI, JIANGSU PROVINCE 214196 PR CHINA
TEL: 86 (0) 510-88602222/88794236
FAX: 86 (0) 510-88602333
EXECUTIVE
SUMMARY
Date of Registration : OCTober 23, 2006
REGISTRATION NO. : 320200400028124
LEGAL FORM : Chinese-foreign contractual joint venture
enterprise
REGISTERED CAPITAL : USD 5,080,000
staff :
400
BUSINESS CATEGORY : manufacturing
REVENUE :
CNY 62,310,000 (JAN. 1 2012 TO
JUN. 30, 2012)
EQUITIES :
CNY 94,210,000 (AS OF JUN. 30, 2012)
WEBSITE : www.wxzhouxiang.com
E-MAIL :
info@wxzhouxiang.com
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.29 = 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: SC’s
correct name should be the above stated one, instead of the given name - WUXI XHOUXIANG HEAVY INDUSTRY SCIENCE AND
TECHNOLOGY CO LTD.
SC was established
as a Chinese-foreign contractual joint
venture enterprise of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 320200400028124
on October 23, 2006.
SC’s Organization Code Certificate No.:
79234434-5
SC’s registered capital: USD 5,080,000
SC’s paid-in capital: USD 5,080,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
008129 |
320200400028124 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wuxi Zhouxiang Complete Set of Welding
Equipment Co., Ltd. |
0.20 |
|
H.K Yilisha Trading Limited |
99.80 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Xu Huizhong |
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Director |
Huang Qiufen |
|
Xu Dan |
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Supervisor |
Huang Qinfen |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Wuxi Zhouxiang Complete Set of Welding
Equipment Co., Ltd. 0.20
H.K Yilisha Trading Limited 99.80
Wuxi Zhouxiang Complete
Set of Welding Equipment Co., Ltd.
----------------------------------------------------------------------------------
Date of Registration: July 15, 2001
Registration No.: 320200400010001
Legal Form: Chinese-Foreign
Contractual Joint Venture Enterprise
Registered Capital: USD 1,500,000
H.K Yilisha
Trading Limited
-----------------------------------------
Registration No.: 1068933
Date of Registration: Aug. 23, 2006
Legal form: Private
MANAGEMENT
Xu Huizhong , Legal Representative, Chairman and General
Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 52
Ø
ID# 320222196004082535
Ø Qualification:
University
Ø Working experience
(s):
From
2006 to present, working in SC as legal representative, chairman and general
manager
Also
working in Wuxi Zhouxiang Complete Set of Welding Equipment Co., Ltd., and Wuxi
Zhouxiang International Trading Co., Ltd., as legal representative
Director
-----------
Huang Qiufen ID# 320222196405282466
Xu Dan ID#
32028319860101249X
Supervisor
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Huang Qinfen ID# 320222196106192487
BUSINESS
OPERATION
SC’s registered business scope includes researching, developing and manufacturing
metal cutting equipment, welding equipment, veneer reeling machine; providing
the after sale service.
SC is mainly
engaged in manufacturing and selling machinery.
Brand: ZHOUXIANG
SC’s products mainly include: H beam
production line, mechanical/hydraulic tri-rollers plate rolling machine,
upper-roll multi-function plate rolling machine, special 3-rollers plate
bending machine for stock car industry, leveling machine, pipe bending machine,
welding manipulator, welding rotator, face milling machine.
SC sources its
materials 80% from domestic market, and 20% from the overseas market, mainly
European countries. SC sells 60% of its products in domestic market, and 40% to
the overseas market, mainly Japan, Southeast Asia, American 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.
*Major Customer:
=============
Tubecraft LLC.
Staff & Office:
--------------------------
SC is known
to have approx. 400 staff at
present.
SC owns an area as
its operating office & factory of approx. 60,000 sq. meters at the heading
address.
RELATED
COMPANY
Wuxi Zhouxiang International
Trading Co., Ltd.
----------------------------------------------------------------
Registration No.: 320205000081178
Legal Form: Limited Liabilities
Company
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
Basic Bank:
Bank of China Wuxi Xishan Sub-branch
AC#:
21042303708092014
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Jun. 30, 2012 |
|
34,980 |
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Notes receivable |
0 |
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Accounts
receivable |
14,600 |
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Advances to
suppliers |
8,710 |
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Other receivable |
17,190 |
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Inventory |
3,620 |
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Non-current
assets within one year |
0 |
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Other current assets |
140 |
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------------------ |
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Current assets |
79,240 |
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Fixed assets |
22,390 |
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Construction in
progress |
17,670 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
4,270 |
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------------------ |
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Total assets |
123,570 |
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============= |
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Short-term loans |
0 |
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Accounts payable |
13,240 |
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Wages payable |
760 |
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Taxes payable |
-310 |
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Advances from
clients |
11,250 |
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Other payable |
4,330 |
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Other current
liabilities |
90 |
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Current
liabilities |
29,360 |
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Non-current
liabilities |
0 |
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Total
liabilities |
29,360 |
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Equities |
94,210 |
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------------------ |
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Total
liabilities & equities |
123,570 |
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============= |
Income Statement
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Unit: CNY’000 |
Jan.
1 2012 to Jun. 30, 2012 |
|
Revenue |
62,310 |
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Cost of sales |
45,480 |
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Sales expense |
3,420 |
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Management expense |
1,390 |
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Finance expense |
420 |
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Profit before
tax |
10,350 |
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Less: profit tax |
2,150 |
|
8,200 |
Important Ratios
=============
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As
of Jun. 30, 2012 |
|
*Current ratio |
2.70 |
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*Quick ratio |
2.58 |
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*Liabilities
to assets |
0.24 |
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*Net profit
margin (%) |
13.16 |
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*Return on
total assets (%) |
6.64 |
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*Inventory /
Revenue ×180 |
11 days |
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*Accounts
receivable/ Revenue ×180 |
86 days |
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*
Revenue/Total assets |
0.50 |
|
* Cost of
sales / Revenue |
0.73 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears average in its line.
l SC’s net profit
margin is good.
l SC’s return on total
assets is fairly good.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears fairly large.
l
SC has no short-term loans.
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 low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.04 |
|
|
1 |
Rs.84.83 |
|
Euro |
1 |
Rs.68.21 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
|
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 |
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<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.