MIRA INFORM REPORT
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Report Date : |
08.06.2013 |
IDENTIFICATION DETAILS
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Name : |
WUXI HUATAI TRADING CO., LTD. |
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Registered Office : |
No. 165, Xigang Road, Dongbeitang, Xishan District, Wuxi, Jiangsu
Province 214191 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
20.12.2007 |
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Com. Reg. No.: |
320202000038592 |
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Legal Form : |
Limited
Liabilities Company |
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Line of Business : |
International Trade |
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No. of Employees : |
06 |
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 |
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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) |
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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 & address
WUXI
HUATAI TRADING CO., LTD.
NO. 165, XIGANG
ROAD, DONGBEITANG, XISHAN DISTRICT,
WUXI, JIANGSU
PROVINCE 214191 PR CHINA
TEL: 86 (0)
510-83773369 FAX: 86 (0)
510-82805056
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 20, 2007
REGISTRATION NO. : 320202000038592
REGISTERED LEGAL
FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE MR. lin weihong (CHAIRMAN)
STAFF STRENGTH : 6
REGISTERED CAPITAL :
CNY 1,900,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 2,240,000 (UNAUDITED, AS OF
DEC. 31, 2012)
EQUITIES :
CNY 1,450,000 (UNAUDITED, AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND :
FAIRLY
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.13= 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. 20, 2007.
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 selling daily necessities, needle textile
products, plastic products, packaging materials, building materials, chemical
products and raw materials, general machinery, metal materials, metal pipe
fittings, flanges; importing and exporting commodities and technologies,
excluding commodities and technologies prohibited by the state. (with permit if
needed).
SC is mainly
engaged in international trade.
Mr. Lin Weihong is
legal representative, chairman and general manager of SC at present.
SC is known to
have approx. 6 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in Wuxi. Our checks reveal that SC rents the total
premise about 50 square meters.
SC
is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Li Minghao 36.84
Lin Weihong 36.84
Wang Xuejun 26.32
Legal
representative, chairman and general manager:
Mr. Lin Weihong , born in 1967. He is currently responsible for the
overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative, chairman
and general manager.
l Supervisor:
---------------------
Li Minghao
SC is mainly
engaged in international trade.
SC’s products mainly include tinplate, printed tinplate and flexible
packing materials, etc.
SC sources its
materials 100% from domestic market. SC sells 30% of its products in domestic
market and 70% to overseas market.
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.
Note:
SC declined to release its major suppliers and clients.
SC is not known to have the subsidiary at present.
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 accountant
refused to release the bank details.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Cash & bank |
1,630 |
40 |
|
Inventory |
860 |
380 |
|
Accounts
receivable |
720 |
960 |
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Advances to
suppliers |
1,930 |
720 |
|
Other receivables |
0 |
2,550 |
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Other current
assets |
50 |
20 |
|
|
------------------ |
------------------ |
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Current assets |
5,190 |
4,670 |
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Fixed assets net
value |
30 |
30 |
|
Long term
investment |
0 |
0 |
|
Projects under
construction |
0 |
0 |
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Intangible and
other assets |
10 |
10 |
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|
------------------ |
------------------ |
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Total assets |
5,230 |
4,710 |
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=========== |
=========== |
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Short loan |
0 |
0 |
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Accounts payable |
1,960 |
0 |
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Advances from
clients |
0 |
0 |
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Taxes payable |
20 |
-40 |
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Other Accounts
payable |
1,350 |
3,300 |
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Other current
liabilities |
20 |
0 |
|
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------------------ |
------------------ |
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Current
liabilities |
3,350 |
3,260 |
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Long term
liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total
liabilities |
3,350 |
3,260 |
|
Equities |
1,880 |
1,450 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
5,230 |
4,710 |
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|
=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
|
Turnover |
2,240 |
|
Cost of goods sold |
1,680 |
|
Sales expense |
420 |
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Management expense |
520 |
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Finance expense |
0 |
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Profit before tax |
-430 |
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Less: profit tax |
0 |
|
Profits |
-430 |
Note: The financial reports for Yr2012 have not been audited.
Important
Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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*Current ratio |
1.55 |
1.43 |
|
*Quick ratio |
1.29 |
1.32 |
|
*Liabilities
to assets |
0.64 |
0.69 |
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*Net profit
margin (%) |
/ |
-19.20 |
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*Return on
total assets (%) |
/ |
-9.13 |
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*Inventory
/Turnover ×365 |
/ |
62 days |
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*Accounts
receivable/Turnover ×365 |
/ |
157 days |
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*Turnover/Total
assets |
/ |
0.48 |
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* Cost of
goods sold/Turnover |
/ |
0.75 |
PROFITABILITY:
FAIR
l The turnover of SC
appears average in 2012.
l SC’s net profit
margin is poor in 2012.
l SC’s return on
total assets is fair in 2012.
l
SC’s cost of goods sold is average, comparing with its
turnover in 2012.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets in 2012.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.74 |
|
UK Pound |
1 |
Rs.88.53 |
|
Euro |
1 |
Rs.75.20 |
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 |
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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 |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
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.