MIRA INFORM REPORT
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Report Date : |
08.12.2014 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
19.08.1993 |
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Com. Reg. No.: |
330303000060760 |
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Legal Form : |
Limited Liabilities Company |
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LINE OF BUSINESS : |
SUBJECT IS ENGAGED IN IMPORTING AND EXPORTING VARIOUS GOODS
AND TECHNOLOGY; SELLING LIGHTING INDUSTRIAL PRODUCTS, ELECTROMECHANICAL
PRODUCTS, CHEMICAL PRODUCTS AND BUILDING MATERIALS; COMMON GOODS
TRANSPORTATION. |
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No of Employees : |
36 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources.
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Source
: CIA |
COMPANY NAME & ADDRESS
WENZHOU LONGWAN
FOREIGN TRADE CO., LTD.
NO. 999 AIRPORT
STREET, INDUSTRIAL DEVELOPMENT ZONE, WENZHOU
ZHEJIANG PROVINCE
325013 PR CHINA
TEL: 86 (0)
577-89708826/86651989/86651986
FAX: 86 (0)
577-86651966-803
EXECUTIVE SUMMARY
Date of Registration : AUGust 19, 1993
REGISTRATION NO. : 330303000060760
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 12,000,000
staff :
36
BUSINESS CATEGORY : trading
Revenue :
CNY 470,210,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 14,850,000 (AS OF DEC. 31, 2013)
WEBSITE : www.highwelder.com
E-MAIL :
sales@highwelder.com
& volcono-china@hotmail.com
PAYMENT :
NO COMPLAINTS
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.15 = 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.: 330303000060760 on August 19, 1993.
SC’s Organization Code Certificate No.:
14524796-0
SC’s Tax No.: 330303145247960
SC’s registered capital: cny 12,000,000
SC’s paid-in capital: cny 12,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010 |
Registration No. |
3303032003378 |
330303000060760 |
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Registered Capital |
CNY 3,000,000 |
CNY 43,000,000 |
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|
2012-03-23 |
Registered Capital |
CNY 43,000,000 |
cny 12,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
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Name of Shareholder (s) |
% of Shareholding |
|
Sun Furong |
60 |
|
Luo Bin |
40 |
SC’s Chief Executives:-
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Position |
Name |
|
Legal Representative, Chairman and General
Manager |
Sun Furong |
|
Supervisor |
Luo Bin |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Sun Furong 60
Luo Bin 40
MANAGEMENT
Sun Furong, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 61
Ø
ID# 330321195302153617
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Luo Bin,
Supervisor
-----------------------------------
Ø
Gender: F
Ø
Age: 45
Ø
ID# 51010319691016252X
Ø Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes importing and exporting various
goods and technology; selling lighting industrial products, electromechanical
products, chemical products and building materials; common goods
transportation.
SC is mainly
engaged in international trade.
SC’s products
mainly include: Welder, Inverter Welder, Welding machine, Welding equipment,
Welding product, TIG welder, MMA welder, ARC welder, MIG/MAG welder, CO2
welder, DC welder, AC/DC welder, Pulse welder, Air plasma cutter, Inverter
cutter, Cutting machine, Welding helmet, Safety product, Welding accessories,
and etc.
SC sources its products
60% from domestic market, and 40% from the overseas market, mainly European
countries. SC sells 40% of its products in domestic market, and 60% to the
overseas market, mainly American and European countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Clients*
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Sanitary Solutions
Inc.
Layton Home
Fashions
Fontecha Garcia
Neira
Staff & Office:
--------------------------
SC is known
to have approx. 36 staff at present.
SC owns an area as
its operating office of approx. 1,200 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:
Agricultural Bank of China Longwan Sub-branch
AC#:
225101040009891
China Construction Bank
AC#: N/a
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
21,480 |
8,570 |
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Notes receivable |
10,040 |
1,460 |
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Accounts
receivable |
360 |
3,240 |
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Advances to
suppliers |
55,970 |
89,990 |
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Export tax
refund receivable |
12,380 |
21,850 |
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Other receivable |
15,880 |
220 |
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Inventory |
18,040 |
15,740 |
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Non-current
assets within one year |
0 |
0 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
134,150 |
141,070 |
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Fixed assets |
1,070 |
15,640 |
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Construction in
progress |
0 |
0 |
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Intangible
assets |
0 |
0 |
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Long-term
prepaid expenses |
0 |
0 |
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Deferred assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
135,220 |
156,710 |
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============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
6,810 |
6,580 |
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Wages payable |
330 |
210 |
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Taxes payable |
-80 |
900 |
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Advances from
clients |
98,500 |
126,290 |
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Other payable |
13,300 |
6,210 |
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Other undue
payments |
0 |
0 |
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Other current
liabilities |
0 |
1,670 |
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------------------ |
------------------ |
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Current
liabilities |
118,860 |
141,860 |
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Non-current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
118,860 |
141,860 |
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Equities |
16,360 |
14,850 |
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------------------ |
------------------ |
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Total
liabilities & equities |
135,220 |
156,710 |
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============= |
============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
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Revenue |
434,220 |
470,210 |
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Cost of sales |
421,580 |
454,520 |
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Sales expense |
17,280 |
13,080 |
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Management expense |
3,480 |
5,270 |
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Finance expense |
-5,540 |
300 |
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Profit before
tax |
850 |
910 |
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Less: profit tax |
210 |
230 |
|
640 |
680 |
Important Ratios
=============
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As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.13 |
0.99 |
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*Quick ratio |
0.98 |
0.88 |
|
*Liabilities
to assets |
0.88 |
0.91 |
|
*Net profit
margin (%) |
0.15 |
0.14 |
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*Return on
total assets (%) |
0.47 |
0.43 |
|
*Inventory /
Revenue ×365 |
16 days |
13 days |
|
*Accounts
receivable / Revenue ×365 |
1 day |
3 days |
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*Revenue /
Total assets |
3.21 |
3.00 |
|
*Cost of sales
/ Revenue |
0.97 |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good, and it was rising in 2013.
l SC’s net profit
margin is average in both years.
l SC’s return on
total assets is average in both years.
l
SC’s cost of goods sold is fairly high, comparing
with its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fair
level in both years
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears small.
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: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.85 |
|
|
1 |
Rs. 96.73 |
|
Euro |
1 |
Rs. 76.53 |
INFORMATION DETAILS
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Analysis Done by
: |
SMT |
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Report Prepared
by : |
DPT |
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 |
|
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 |
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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.