MIRA
INFORM REPORT
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Report Date : |
15.06.2013 |
IDENTIFICATION DETAILS
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Name : |
WUXI
SHENCHONG FORGING MACHINE CO., LTD. |
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Registered Office : |
No. 3
Tianshun Road, Luqu Industrial Park, Yangshan Town Huishan District, Wuxi,
Jiangsu Province 214156 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
23.07.2002 |
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Com. Reg. No.: |
320206000064602 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in manufacturing and selling machine tools. |
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No. of Employees : |
108 |
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 : |
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 – 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.
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Source
: CIA |
Company name and address
WUXI SHENCHONG FORGING MACHINE CO., LTD.
NO. 3 TIANSHUN
ROAD, LUQU INDUSTRIAL PARK, YANGSHAN TOWN HUISHAN DISTRICT, WUXI, JIANGSU
PROVINCE 214156 PR CHINA
TEL: 86 (0)
510-83958245
FAX: 86 (0)
510-83950611
EXECUTIVE SUMMARY
Date of Registration : JULY 23, 2002
REGISTRATION NO. : 320206000064602
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE :
YIN ZHIYONG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 6,000,000
staff :
108
BUSINESS CATEGORY : MANUFACTURING
Revenue :
CNY 52,010,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 9,490,000 (AS OF DEC. 31, 2012)
WEBSITE : www.shenchong.com
E-MAIL :
sc@shenchong.com
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.14 = 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
SC was established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 320206000064602 on July
23, 2002.
SC’s Organization Code Certificate No.:
74066364-3
SC’s Tax No.: 320200740663643
SC’s registered capital: CNY 6,000,000
SC’s paid-in capital: CNY 6,000,000
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 |
|
Cui Weibing |
1 |
|
Hu Xiaofeng |
1 |
|
Hua Xiaohong |
2 |
|
Huang Hanzhong |
10 |
|
Yang Ying |
12 |
|
Yin Zhiyong |
61 |
|
Zhang Ming |
2 |
|
Zhou Shuming |
10 |
|
Zhu Jiale |
1 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Yin Zhiyong |
|
Supervisor |
Zhang Ming |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Cui Weibing
ID# 321124196705091715 1
Hu Xiaofeng
ID# 320222197312063410 1
Hua Xiaohong
ID# 320222670925097 2
Huang Hanzhong
ID# 320222620225445 10
Yang Ying
ID# 320222680201552 12
Yin Zhiyong
ID# 320222196802094813 61
Zhang Ming
ID# 320222661223481 2
Zhou Shuming
ID# 320222640324483 10
Zhu Jiale
ID# 320222720922151 1
MANAGEMENT
Yin Zhiyong, Legal Representative, Chairman and General
Manager
----------------------------------------------------------------------------------------------------
Gender: M
Age: 45
ID# 320222196802094813
Qualification: University
Working experience (s):
From 2002 to present, working in SC as legal representative, chairman
and general manager
Zhang Ming,
Supervisor
-----------------------------------------
Gender: M
Age: 47
ID# 320222661223481
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and
processing machine tools, machine parts, non-standard metal structure,
operating and acting as an agent of importing and exporting various kinds of
commodities and technology, excluding the goods forbidden by the government.
SC is mainly engaged in manufacturing and selling machine tools.
Brand: SC
SC’s products mainly include: hydraulic press brake, hydraulic shearing
machine, three-roller bending machine, etc.
SC sources its materials 100% from domestic market, mainly Jiangsu. SC
sells 75% of its products in domestic market, and 25% to overseas market.
The buying terms of SC include Check, 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 Customer:
---------------------
Jose Rosendo Mejia Villavicencio
Staff &
Office:
--------------------------
SC is known to have approx. 108
staff at present.
SC rents an area as its operating office & factory of approx. 12,000
sq. meters at the heading address.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
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:
China Construction Bank Wuxi Branch
AC#: 32001617162050107077
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As of Dec. 31,
2012 |
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Long term investment |
0 |
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Total assets |
40,190 |
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Total liabilities |
30,700 |
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Equities |
9,490 |
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Revenue |
52,010 |
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Cost of sales |
43,470 |
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Profit before tax |
1,420 |
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Less: profit tax |
360 |
|
Profits |
1,060 |
Note: The detailed financials for Y2012 are not available in SAIC.
Important Ratios
=============
|
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As of Dec. 31,
2012 |
|
*Liabilities to assets |
0.76 |
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*Net profit margin (%) |
2.04 |
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*Return on total assets (%) |
2.64 |
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* Revenue/Total assets |
1.29 |
|
* Cost of sales / Revenue |
0.84 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
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.57.74 |
|
|
1 |
Rs.90.64 |
|
Euro |
1 |
Rs.77.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
<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.