MIRA INFORM REPORT
|
Report Date : |
22.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
wenzhou
c.l. import and export co. ltd. |
|
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Registered Office : |
No. 10 Fengnan Road, Ouhai Economic
Development Zone, Wenzhou City, Zhejiang Province 325014 PR |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
10.02.2006 |
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Com. Reg. No.: |
330304000069280 |
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Legal Form : |
Limited Liabilities Company |
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|
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Line of Business : |
International Trade. |
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No. of Employees : |
12 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
No Complaint |
|
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 |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
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 & ADDRESS
wenzhou c.l. import and export co.,
ltd.
no. 10 fengnan
road, ouhai economic development zone
wenzhou
city, ZHEJIANG PROVINCE 325014 PR CHINA
TEL: 86
(0) 577-86726226/86088788/86082028
FAX: 86
(0) 577-86764899
EXECUTIVE SUMMARY
Date of Registration : FEBRUARY 10, 2006
REGISTRATION NO. : 330304000069280
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 1,000,000
staff : 12
BUSINESS CATEGORY : TRADING
Revenue : CNY 139,287,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 3,844,000 (AS OF
DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.33= 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: The provide address (No. 332 Ouhai Grand
Road, Wenzhou) is SC’s registered address, while SC is operating in the heading
premise.
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 330304000069280 on February 10, 2006.
SC’s Organization Code Certificate No.: 78565633-2
SC’s Tax No. 330304785656332
SC’s registered capital: CNY 1,000,000
SC’s paid-in capital: CNY 1,000,000
Registration Change Record:-
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 |
|
Chen Lidong |
70 |
|
Chen Aimei |
30 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Chen
Lidong |
|
Supervisor |
Chen
Aimei |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Chen Lidong 70
Chen Aimei 30
MANAGEMENT
Chen
Lidong, Legal
Representative, Chairman and General Manager
------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 45
Ø
ID# 330321196701224819
Ø
Qualification: University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Also working in Wenzhou C.L. Textile
Technology Co., Ltd., Wenzhou Hongchang Non-woven Co., Ltd., and Wenzhou
Changhao Textile Machinery Co., Ltd. as legal representative
Chen
Aimei, Supervisor
-------------------------------------------
Ø
Gender: F
Ø Age: 55
Ø ID#
330321195706284824
BUSINESS OPERATION
SC’s registered business scope includes acting to import
and export commodities and technology.
SC is mainly
engaged in international trade.
SC’s
products mainly include:
SS
Polypropylene Spunbond Nonwoven Fabric
SMS
Polypropylene Spunbond Nonwoven Fabric
Polyester
Spunbond Nonwoven Fabric
Polymer
Lactic Acid Nonwoven Fabric
Etc.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly India, South Africa, USA, etc.
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.
*Major Supplier:
============
Wenzhou
Changlong Textile Technology Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 12 staff at present.
SC
rents an area as its operating office of approx. 100 sq. meters at the heading
address.
RELATED COMPANY
n
Wenzhou C.L. Textile Technology Co., Ltd.
Registration
No.: 330304000065000
Date
of Registration: April 23, 1993
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 10,000,000
Legal
Representative: Chen Lidong
Web:
www.clnonwoven.com
Address:
No. 10 Fengnan Road, Ouhai Economic Development Zone, Wenzhou, 325014, China
Tel:
86-577-86763780
Fax:
86-577-86764899
n
Wenzhou Hongchang Nonwoven Fabric Co., Ltd.
Registration
No.: 330304000010020
Date
of Registration: January 2, 2008
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 10,000,000
Legal
Representative: Chen Lidong
n
Wenzhou Changhao Textile Machinery Co., Ltd.
Registration
No.: 330305000015471
Date
of Registration: June 19, 2009
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 40,000,000
Legal
Representative: Chen Lidong
n
Wenzhou Chaolong Textile Machinery Co., Ltd.
Registration
No.: 330304000019491
Date
of Registration: April 3, 1992
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 66,680,000
Legal
Representative: Chen Lianzhong
n
Wenzhou Yonghong Chemical Fiber Fabric Co., Ltd.
Registration
No.: 330304000070778
Date
of Registration: April 25, 2002
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 1,000,000
Legal
Representative: Zhang Jianguo
PAYMENT
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: A
trade enquiry currently conducted with SC's supplier(s) reveal the following:
Supplier
A
Products
sold: Nonwoven
Fabric
Date
account opened: 2008
Line
of credit: No
comment
Terms: T/T, Credit
of 30-60 days
Average
monthly sales: No comment
Current
balance: No comment
Rating
Key: 3
Any Special Comments: N/a
Payment record keys :
1 = Prompt : Payment made before the credit period expires
2 = As agreed terms : Payment made upon due date
3 = Slightly slow but acceptable : Payment made 5 to 20 days
beyond agreed terms
4 = Slow : Payment made 16 to 45 days beyond agreed terms
5 = Poor : Payment made over 45 days beyond agreed terms
6 = No comment : Account is
newly opened & record is not yet established
Note : In
some instances, payment beyond terms can be the result of disputes over
merchandise, lost invoices, disputed accounts & etc.
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:
²
China
Construction Bank Wenzhou Ouhai Sub-branch Longxia Office
AC#:
33001628751053000272
Address: No.
205, Longxia Middle Road, Ouhai District, Wenzhou, Zhejiang Province
Tel:
86-577-86787999
²
Bank of
China Wenzhou Wutian Sub-branch
AC#: 820032018708091014
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
11,902 |
11,879 |
25,187 |
|
|
Notes receivable |
0 |
0 |
0 |
|
Accounts
receivable |
2,186 |
508 |
516 |
|
Advances to
suppliers |
5,135 |
18,879 |
-458 |
|
Other receivable |
-6,433 |
-14,800 |
17,769 |
|
Inventory |
807 |
0 |
345 |
|
Non-current
assets within one year |
0 |
0 |
0 |
|
Deferred
expense |
0 |
0 |
0 |
|
Other current
assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
13,597 |
16,466 |
43,359 |
|
Fixed assets |
9 |
5 |
3 |
|
Construction in
progress |
0 |
0 |
0 |
|
Intangible
assets |
0 |
0 |
0 |
|
Long-term
investment |
0 |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
13,606 |
16,471 |
43,362 |
|
|
============= |
============= |
============= |
|
Short-term loans |
1,762 |
0 |
2,930 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
-7,197 |
3,715 |
20,708 |
|
Salaries payable |
0 |
0 |
0 |
|
Welfare payable |
0 |
0 |
0 |
|
Taxes payable |
4 |
573 |
376 |
|
Advances from
clients |
17,362 |
8,970 |
14,847 |
|
Other payable |
268 |
714 |
657 |
|
Other unpaid
expenses |
0 |
0 |
0 |
|
Accrued expenses |
0 |
0 |
0 |
|
Other current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
12,199 |
13,972 |
39,518 |
|
Non-current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
12,199 |
13,972 |
39,518 |
|
Equities |
1,407 |
2,499 |
3,844 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
13,606 |
16,471 |
43,362 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
51,409 |
132,237 |
139,287 |
|
Cost of sales |
49,172 |
127,493 |
133,904 |
|
Sales expense |
1,459 |
2,667 |
2,369 |
|
Management expense |
291 |
735 |
518 |
|
Finance expense |
92 |
-477 |
1,007 |
|
Profit before
tax |
504 |
2,009 |
1,792 |
|
Less: profit tax |
126 |
502 |
448 |
|
378 |
1,507 |
1,344 |
Important Ratios
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.11 |
1.18 |
1.10 |
|
*Quick ratio |
1.05 |
1.18 |
1.09 |
|
*Liabilities to
assets |
0.90 |
0.85 |
0.91 |
|
*Net profit
margin (%) |
0.74 |
1.14 |
0.96 |
|
*Return on
total assets (%) |
2.78 |
9.15 |
3.10 |
|
*Inventory /
Revenue ×365 |
6 days |
0 |
1 day |
|
*Accounts
receivable/ Revenue ×365 |
16 days |
2 days |
2 days |
|
* Revenue/Total
assets |
3.78 |
8.03 |
3.21 |
|
* Cost of
sales / Revenue |
0.96 |
0.96 |
0.96 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears average, and it was rising significantly year by year.
l SC’s net profit
margin is average in three years.
l SC’s return on
total assets is average in 2009 and 2011, fairly good in 2010.
l
SC’s cost of goods sold is fairly high, comparing
with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level in three years.
l
SC’s quick ratio is maintained in a fairly good
level in three years.
l
The inventory of SC appears average in 2011.
l
The accounts receivable of SC appears average in
three years.
l
The short-term loans of SC appear fairly large in
2011.
l
SC’s revenue is in a
fairly good level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high in three years.
l
The risk for SC to go bankrupt is above average.
Overall financial condition
of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with
fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.90 |
|
UK Pound |
1 |
Rs.87.60 |
|
Euro |
1 |
Rs.70.00 |
INFORMATION DETAILS
|
Report Prepared
by : |
NLM |
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 |
|
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 |
|
-- |
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.