MIRA INFORM REPORT
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Report Date : |
29.04.2013 |
IDENTIFICATION DETAILS
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Name : |
Foshan Welling Washer Motor Manufacturing
Co., Ltd. |
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Registered Office : |
Xingye Road, Beijiao Industrial Park, Shunde District, Foshan, Guangdong
Province, 528311 |
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Country : |
China |
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Date of Incorporation : |
24.07.1998 |
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Com. Reg. No.: |
440681400010318 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and Selling of Commutator Machine and Fractional
Horsepower Motors. |
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No. of Employees : |
1,500 |
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 : |
Unknown |
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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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to
China's, and is expected to further drag Chinese growth in 2013. 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
FOSHAN WELLING WASHER MOTOR MANUFACTURING CO., LTD.
XINGYE ROAD, BEIJIAO INDUSTRIAL PARK, SHUNDE DISTRICT,
FOSHAN, GUANGDONG PROVINCE, 528311 PR CHINA
TEL: 86
(0) 757-26339900/26333506 FAX:
86 (0) 757-26339989
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 24, 1998
REGISTRATION NO. : 440681400010318
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
1,500
REGISTERED CAPITAL : USD
6,400,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER : N/A
EQUITIES :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : N/A
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1673= 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 Chinese-foreign equity
joint venture enterprise at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license).
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing and selling commutator machine and fractional horsepower motors.
SC is mainly engaged in manufacturing and selling motors.
Mr. Zhou Xiangyang is legal representative and chairman of SC at present.
SC is known to have approx. 1,500 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 Foshan. The detailed information of the premise is unspecific.
SC has another factory located in No. 21, Gangqian Road, Beijiao Town, Shunde District, Foshan, Guangdong Province.
http://www.welling.com.cn The website belongs to SC’s ultimate parent. The design is professional and the content is well organized. At present it is in Chinese and English versions.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Legal rep. |
Cai Qiwu |
Present one |
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Welling International Hong Kong Limited 25
Guangdong Welling Motor Manufacturing Co.,
Ltd. 75
Welling International Hong Kong Limited
==============================
Registered number: 1246214
Legal form: Private
Guangdong Welling Motor Manufacturing Co.,
Ltd.
======================================
Incorporation
date: Oct. 6, 1992
Registration
no.: 440681400010300
Registered
capital: USD 48,810,000
Legal
rep.: Zhou Xiangyang
Add: Xingye Road, Beijiao Industrial Zone,
Shunde District, Foshan, Guangdong Province
Tel: 86 757-26339900/26339707
l Legal
Representative and Chairman:
Mr. Zhou Xiangyang, about 41 years old, he holds a Bachelor’s Degree in
Electrical Engineering from Harbin Institute of Technology and an Executive Master
of Business Administration Degree (EMBA) from the Guanghua School of Management
of Peking University. He is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC as legal
representative and chairman.
Also working in Welling Holding Limited as
chairman; and in Guangdong Welling Motor Manufacturing Co., Ltd.,Foshan Welling
Electronic & Electric Co. Ltd., Huaian Welling Motor Manufacturing Co.,
Ltd., etc. as legal representative.
SC is mainly
engaged in manufacturing and selling motors.
SC’s products
mainly include: washer motors.
SC sources its
materials 90% from domestic market, and 10% from the overseas market, mainly European
countries. SC sells 30% of its products in domestic market, and 70% 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’s management declined to release its main clients and
suppliers.
Welling
Holding Limited (Hong Kong)
==========================
Incorporation
date: Dec. 23, 1992
Registration
no.: 0395267
Legal
form: Listed Company
The
said company is a listed company in Hong Kong Stock Exchange Market with the
code of 00382.
Web:
www.welling.com.cn
E-mail: sales@welling.com.hk
Tel:
(852) 3669 4888
Fax:
(852) 2175 0031
Foshan
Welling Electronic & Electric Co. Ltd.
=================================
Incorporation
date: June 1, 2001
Registration
no.: 440681400004899
Registered
capital: USD 15,000,000
Legal
rep.: Zhou Xiangyang
Huaian
Welling Motor Manufacturing Co., Ltd.
=================================
Legal
rep.: Zhou Xiangyang
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.
Agricultural Bank of China Foshan Branch
AC#：477701040007020
Relationship:
Normal.
SC’s management declined to release any financial information.
SC is considered large-sized in its line with a development history of
15 years. Taking into consideration of SC’s general performance, reputation as well
as market conditions we would rate SC as an average credit risk company. Credit
up to moderate amount may be considered.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
|
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.70.68 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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 |
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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.