MIRA INFORM REPORT
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Report Date : |
22.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
WUXI SINCERITY TRADE CO., LTD. |
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Registered Office : |
Building 1, No. 18 North Of Quanfeng Road, Huangxiang Street Beitang District, Wuxi, Jiangsu Province 214045 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
04.01.2009 |
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Com. Reg. No.: |
320204000050963 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling packaging machinery, general machinery & components, etc. |
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No. of Employees : |
8 |
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 : |
Small Company |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
|
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 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 and address
WUXI SINCERITY TRADE
CO., LTD.
BUILDING 1, NO. 18 NORTH OF QUANFENG ROAD, HUANGXIANG STREET
BEITANG DISTRICT, WUXI, JIANGSU PROVINCE 214045 PR CHINA
TEL: 86 (0) 510-83112798/88137058
FAX: 86 (0) 510-83112792
EXECUTIVE SUMMARY
Date of Registration : january 4, 2009
REGISTRATION NO. : 320204000050963
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 1,000,000
staff :
8
BUSINESS CATEGORY : trading
Revenue :
CNY 4,503,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 1,013,000 (AS
OF DEC. 31, 2011)
WEBSITE : www.wx-sincerity.com
E-MAIL :
info@wx-sincerity.com
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.23 = 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.: 320204000050963 on January 4, 2009.
SC’s Organization Code Certificate No.:
68411570-5
SC’s Tax No.: 320200684115705
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 |
|
Zhou Xingfen |
10 |
|
Li Peng |
60 |
|
Chen Lili |
30 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Zhou Xingfen |
|
Director/Supervisor |
Li Peng |
|
Chen Lili |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhou Xingfen 10
Li Peng 60
Chen Lili 30
MANAGEMENT
Zhou Xingfen , Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø Gender: F
Ø Age: 57
Ø ID#
320211195502201927
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Li
Peng , Director/Supervisor
----------------------------------------------
Ø Gender: M
Ø Age: 34
Ø ID#
320222197810100050
Chen
Lili , Director/Supervisor
---------------------------------------------------
Ø
Gender: F
Ø
Age: 34
Ø
ID# 320211197806211920
BUSINESS OPERATION
SC’s registered business scope includes selling packaging
machinery, general machinery & components, and metal products; importing and
exporting commodities and technology.
SC is mainly
engaged in selling packaging machinery, general machinery & components,
etc.
SC’s products
mainly include:
SR-G
Series High-speed Pringting Slotting Die-cutt
SR-D
Series Printing Slotting Die-Cutter machine
SR-L
Series printing slotting
SR-L
Series Flexo Printing Slotting Machine
SR-L
Series Slotting
SR-x
series printing slotting die cutter
SR-M
Series Die -Cutter
Thin
knife vertical-cutting pressing folding marke
Dxj
Series Carton Stapler
Semi-auto
Folder Gluer
Colorful
box anti-compression testing machine
Aptitude
model cardboard broken intensity testing machine
Double-wing
drop testing machine
The
microcomputer compressive strength examining machine
Print
wear testing machine
Simulation
transportation shaking workbench
Carton
anti-pressure testing machine
SBD
semi-auto stiching machine
Automatic
die-cutting and creasing machine
Semi-auto
gluer (gombined pressure model)
Automatic
folder gluer machine
Semi-auto
glue machine
ZH
BZJ-1300/1450/1600
BZJ-1300B
Semi-auto laminating machine adsorption
Automatic
wrapping machine
BJ
Series of gum mounting machine
BFY
Thin blade slitter scorer machine
GBJ
High speed automatic clapboard machine
PX
Series of touch the line machine
PYQ
Series of creasing cutting machine
Four
link slotting machine
SC sources its products 60% from domestic
market, and 40% from overseas market. SC sells 80% of its products in domestic
market, and 20% to overseas market, mainly Southeast Asia, etc.
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.
Staff & Office:
--------------------------
SC is known
to have approx. 8 staff at
present.
SC rents an area
as its operating office, but the detailed information is unknown.
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
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
311 |
272 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
-1,580 |
389 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
1,008 |
11 |
|
Inventory |
0 |
0 |
|
Subsidy
receivable |
172 |
120 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
-89 |
792 |
|
Fixed assets |
315 |
190 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term
investment |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
226 |
982 |
|
|
============= |
============= |
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Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
-795 |
-30 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
0 |
0 |
|
Dividend payable |
-4 |
0 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
-1 |
-1 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
-802 |
-31 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
-802 |
-31 |
|
Equities |
1,028 |
1,013 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
226 |
982 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
4,503 |
|
Cost of sales |
3,571 |
|
Taxes and surcharges |
0 |
|
Sales expense |
0 |
|
Management expense |
938 |
|
Finance expense |
-1 |
|
Non-business
income |
3 |
|
Non-business expenditure |
0 |
|
Profit before
tax |
-3 |
|
Less: profit tax |
0 |
|
-3 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
0.11 |
-25.55 |
|
*Quick ratio |
0.11 |
-25.55 |
|
*Liabilities
to assets |
-3.55 |
-0.03 |
|
*Net profit
margin (%) |
-- |
-0.07 |
|
*Return on
total assets (%) |
-- |
-0.31 |
|
*Inventory /
Revenue ×365 |
-- |
-- |
|
*Accounts
receivable/ Revenue ×365 |
-- |
32 days |
|
*
Revenue/Total assets |
-- |
4.59 |
|
* Cost of
sales / Revenue |
-- |
0.79 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC
appears average in 2011.
l SC’s net profit
margin is fair in 2011.
l SC’s return on
total assets is fair in 2011.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
SC has no inventory.
l
The accounts receivable of SC appears average in
2011.
l
SC has no short-term loans in both years.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.28 |
|
UK Pound |
1 |
Rs.82.06 |
|
Euro |
1 |
Rs.70.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.