MIRA
INFORM REPORT
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Report Date : |
24.12.2013 |
IDENTIFICATION DETAILS
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Name : |
Dongguan Winn
Technology Co., Ltd. |
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Registered Office : |
No. 2, Xianghe Street, Xinmin Area, Chang’an Town, Dongguan,
Guangdong Province, 523879 pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.12.2011 |
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Com. Reg. No.: |
441900001223881 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling
electronics |
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No. of Employees : |
400 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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
Dongguan Winn Technology Co., Ltd.
No. 2, xianghe
street, xinmin area, chang’an town,
dongguan, GUANGDONG
PROVINCE, 523879 PR CHINA
TEL: 86 (0)
769-85092088
FAX: 86 (0)
769-85092722
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 12, 2011
REGISTRATION NO. : 441900001223881
REGISTERED LEGAL FORM
: LIMITED
LIABILITIES COMPANY
CHIEF EXECUTIVE : MR. chen
yarong (CHAIRMAN)
STAFF STRENGTH : 400
REGISTERED CAPITAL : CNY 3,000,000
BUSINESS LINE : MANUFACTURING & TRADING
TURNOVER : CNY 102,290,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 3,050,000 (AS OF DEC. 31,
2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.07 = 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 co. at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Dec. 12, 2011.
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 researching, manufacturing and selling electronics, electronic components and light-emitting diode; import and export of goods and technologies (items which are prohibited by law and restricted under government regulation are exceptional. Special permit is required prior to execution for restricted item).
SC is mainly engaged in manufacturing and selling electronics.
Mr. Chen Yarong has been the legal representative and chairman of SC since 2013.
SC is known to have approx. 400 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 Dongguan. The detailed information of the premise is unspecified.
http://www.winn-tec.com The design is professional and the content is well organized. At present it is only in English version.
E-mail: sales@winn-tec.com
No significant events or changes were found during our checks with the local Administration for Industry and Commerce.
Tax Registration Certificate No.: 441900588260363
Organization Code: 588260363
According to SC’s accountant Miss Yang, SC started its normal operation since Apr. of 2012.
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name % of Shareholding
Chen Yarong 95
Yin Shaozhen 5
Legal representative
and Chairman:
Mr. Chen Yarong , in his
Working Experience(s):
From 2013 to present Working in SC as legal representative and chairman
According to SC’s accountant Miss Yang, SC started its normal operation since Apr. of 2012.
SC is mainly engaged in manufacturing and selling electronics.
SC’s products mainly include: electronics.
SC’s product range covers Mobile Internet Devices, Portable GPS Navigation Devices and Mobile Phones.
SC sources its materials 90% from domestic market, and 10% from overseas market. SC sells 40% of its products in domestic market, and 60% to overseas market.
The buying terms of SC include Check, T/T, L/C 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 customer and supplier details.
Shenzhen Sales Office: (website sources)
Tel: +86 755 8621 9211
Fax: +86 755 8619 6152
Email: contact@winn-tec.com
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 management declined to release its bank details.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2012 |
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Cash & bank |
2,010 |
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Inventory |
29,220 |
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Accounts receivable |
8,340 |
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Advances to suppliers |
11,900 |
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Other receivables |
11,630 |
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Other current assets |
0 |
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------------------ |
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Current assets |
63,100 |
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Fixed assets net value |
1,760 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
1,240 |
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------------------ |
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Total assets |
66,100 |
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============= |
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Short loans |
0 |
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Accounts payable |
56,850 |
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Other payable |
1,700 |
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Taxes payable |
-1,820 |
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Advances from clients |
6,320 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
63,050 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
63,050 |
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Equities |
3,050 |
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------------------ |
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Total liabilities & equities |
66,100 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2012 |
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Turnover |
102,290 |
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Cost of goods sold |
95,990 |
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Sales expense |
450 |
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Management expense |
5,350 |
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Finance expense |
550 |
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Profit before tax |
60 |
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Less: profit tax |
10 |
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Profits |
50 |
Important Ratios
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as of Dec. 31, 2012 |
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*Current ratio |
1.00 |
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*Quick ratio |
0.54 |
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*Liabilities to assets |
0.95 |
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*Net profit margin (%) |
0.05 |
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*Return on total assets (%) |
0.08 |
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*Inventory /Turnover ×365 |
105 days |
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*Accounts receivable/Turnover ×365 |
30 days |
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*Turnover/Total assets |
1.55 |
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* Cost of goods sold/Turnover |
0.94 |
PROFITABILITY: AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears large in 2012.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loan in 2012.
SC’s turnover is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is above average.
Overall financial condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial conditions. The large amount of inventory could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.99 |
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|
1 |
Rs.101.37 |
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Euro |
1 |
Rs.84.82 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.