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Report Date : |
28.03.2013 |
IDENTIFICATION DETAILS
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Name : |
Zhejiang
wanli textile machinery CO., LTD. |
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Registered Office : |
Kanshan Town, Xiaoshan
District, Hangzhou, Zhejiang Province,
311243 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.08.1997 |
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Com. Reg. No.: |
330181000113064 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing and selling textile machinery. |
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No. of Employees : |
700 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
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 |
Zhejiang wanli textile machinery CO., LTD.
kanshan
town, xiaoshan district, hangzhou,
zhejiang
PROVINCE, 311243 PR CHINA
TEL: 86
(0) 571-82557888/82585588 FAX: 86
(0) 571-82519868
INCORPORATION DATE : aug. 12, 1997
REGISTRATION NO. : 330181000113064
REGISTERED LEGAL FORM :
Limited liabilities company
STAFF STRENGTH : 700
REGISTERED CAPITAL :
CNY 35,180,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 400,650,000 (unaudited, AS OF
DEC. 31, 2012)
EQUITIES : CNY 70,920,000 (unaudited, AS OF
DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.2112 = usd
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 Aug. 12, 1997.
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 manufacturing textile machinery, molds, metal
machinery parts, plastic products; exporting its products and technology;
importing materials, instrument, machinery and equipment, parts and technology
needed for its production (excluding the goods prohibited or limited by the
country); processing with imported materials, processing with imported samples,
assembling with imported parts, and compensation trade in agreement, selling building materials, stone; real
estate development and management.
SC is
mainly engaged in manufacturing and selling textile machinery.
Mr.
Wan Zugan has been legal representative, chairman and general manager of SC
since 1997.
SC is
known to have approx. 700 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
Hangzhou. Our checks reveal that SC owns the total premise about 13,000 square
meters.
![]()
http://www.zjwanli.com/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: 82555888@163.com
![]()
SC has got the certificate of ISO9001:2000, SC was also
honored as“National Torch Project Certificate”, “Key High-tech Enterprise
Certificate”, “Famous trademark certificate”, etc.

Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2006 |
Registered capital |
CNY
15,180,000 |
CNY
35,180,000 |
|
Unknown |
Shareholders |
Wan Zugan 63% Wan Suchun 37% |
Present ones |
|
2011 |
Registration no. |
3301812310109 |
Present one |
![]()
MAIN SHAREHOLDERS:
Wan Zugan 63
Wan Tianjiao 37
![]()
l Legal
Representative, Chairman and General Manager:
Mr. Wan Zugan, about 61 years
old with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 1997 to present Working in SC as legal
representative, chairman and general manager.
![]()
SC is
mainly engaged in manufacturing and selling textile machinery.
SC’s products mainly include:
WL
WL99-2 Covering Machine
WL450(c) High Speed Electronic Jacquard Loom
WL450-K Wider Width Electronic Rapier Loom
wL450(c) High Speed Electronic Rapier Loom
WL2002 Two-for-one Twister for Short Fiber
Etc.
SC sources its materials 100%
from domestic market, mainly Zhejiang. SC sells 90% of its products in domestic
market, and 10% to overseas market, mainly Southeast Asian 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’s management refused to
release its main suppliers and clients.
![]()
Branch:
Zhejiang Wanli Textile Machinery Co., Ltd. Rapier Loom Branch
================================================
Registration no.: 330181000004556
Principal: Li Guixiang
Incorporation date:
The information on SC’s subsidiaries is not available.
![]()
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 Kanshan Office
AC#:083401040003519
Relationship:
Normal.
![]()
Balance
Sheet
Unit:
CNY’000
|
|
As of Dec. 31, 2012 |
|
Cash
& bank |
36,890 |
|
Inventory |
62,390 |
|
Bills
receivable |
0 |
|
Accounts
receivable |
38,060 |
|
Other
Accounts receivable |
12,000 |
|
Advances
to suppliers |
460 |
|
Other
current assets |
0 |
|
|
------------------ |
|
Current
assets |
149,800 |
|
Fixed
assets net value |
81,100 |
|
Long-term
investment |
23,080 |
|
Intangible
and other assets |
14,320 |
|
|
------------------ |
|
Total
assets |
268,300 |
|
|
============= |
|
Short
loans |
21,000 |
|
Accounts
payable |
86,360 |
|
Advance
from customers |
4,600 |
|
Other
Accounts payable |
38,820 |
|
Notes
payable |
38,680 |
|
Welfare
payable |
3,540 |
|
Taxes
payable |
4,360 |
|
Withdraw
the expenses in advance |
0 |
|
Other
current liabilities |
20 |
|
|
------------------ |
|
197,380 |
|
|
Long
term liabilities |
0 |
|
Other
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
197,380 |
|
Equities |
70,920 |
|
|
------------------ |
|
268,300 |
|
|
|
============= |
Income
Statement
Unit:
CNY’000
|
|
As of Dec. 31, 2012 |
|
Turnover |
400,650 |
|
Cost of goods sold |
360,180 |
|
Sales expense |
1,570 |
|
Management expense |
23,470 |
|
Finance expense |
5,940 |
|
Subsidy
income |
1,750 |
|
Profit
before tax |
10,510 |
|
Less:
profit tax |
2,630 |
|
Profits |
7,880 |
Note: The Financial Report for Year
2012 hasn’t been audited.
Important
Ratios
=============
|
|
As of Dec. 31, 2012 |
|
*Current
ratio |
0.76 |
|
*Quick
ratio |
0.44 |
|
*Liabilities
to assets |
0.74 |
|
*Net
profit margin (%) |
1.97 |
|
*Return
on total assets (%) |
2.94 |
|
*Inventory
/Turnover ×365 |
57 days |
|
*Accounts
receivable/Turnover ×365 |
35 days |
|
*Turnover/Total
assets |
1.49 |
|
*
Cost of goods sold/Turnover |
0.90 |
![]()
PROFITABILITY:
AVERAGE
l The
turnover of SC appears fairly good in its line.
l SC’s
net profit margin is average.
l SC’s
return on total assets is average.
l SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in
a fair level.
l
SC’s quick ratio is maintained in a
fair level.
l
The inventory of SC is maintained in an
average level.
l
The accounts receivable of SC is
maintained in an average level.
l
SC’s short-term loan appears average in
2012.
l
SC’s turnover is in an average level,
comparing with the size of its total assets.
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: Fairly stable.
![]()
SC is considered medium-sized in its line with fairly stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.27 |
|
|
1 |
Rs.82.49 |
|
Euro |
1 |
Rs.69.88 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.