MIRA
INFORM REPORT
|
Report Date : |
11.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
Weihai Weiqiao Industrial Park Co., Ltd. |
|
|
|
|
Registered Office : |
No. 88 Huancui Road, Zhangcun Town, Huancui District, Weihai City, Shandong Province, 264203
Pr |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
30.01.2004 |
|
|
|
|
Com. Reg. No.: |
371002018012136 |
|
|
|
|
Legal Form : |
One-Person Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturing, processing and selling textiles, knitting
textiles and garments; heating sales |
|
|
|
|
No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
No complaints |
|
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, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 and address
Weihai Weiqiao
Industrial Park Co., Ltd.
No. 88 huancui road,
zhangcun town, huancui district,
weihai city, shandong
PROVINCE, 264203 PR CHINA
TEL: 86 (0)
631-5750936
FAX: 86 (0)
631-5750979
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 30, 2004
REGISTRATION NO. : 371002018012136
REGISTERED LEGAL FORM
: ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE : Ms. zhang hongxia (CHAIRMAN)
STAFF STRENGTH : N/A
REGISTERED CAPITAL : CNY 760,000,000
BUSINESS LINE : MANUFACTURING & TRADING
TURNOVER : CNY 713,550,000 (UNaudited, AS OF DEC. 31, 2013)
EQUITIES : CNY 607,900,000 (UNaudited, AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY 6.05 = 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 One-person Limited Liability Company at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Jan. 30, 2004.
Company Status: One-person
Limited Liability Company
Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes manufacturing, processing and selling textiles, knitting textiles and garments; heating sales. (Items which are prohibited by law and restricted under government regulation are exceptional. Special permit is required prior to execution for restricted item)
SC is mainly engaged in manufacturing and selling textiles.
Ms. Zhang Hongxia is legal representative and chairman of SC at present.
SC’s management declined to disclose its staff strength.
SC is currently operating at the above stated address, and this address houses its operating office and factory in Weihai. The detailed information of the premise is unspecified.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the local Administration for Industry and Commerce.
Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code: 758272827
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Weiqiao Textile Co., Ltd. 100
Registered no.: 370000018046763
Legal representative: Zhang Hongxia
Date of incorporation: December 6, 1999
It is listed in the Stock Exchange of Hong Kong with the code of 02698.
Tel: 0543-4161171
Fax: 0543-4161188
Web: http://www.wqfz.com
Legal representative and Chairman:
Ms. Zhang Hongxia born in 1971 with MBA Degree. She is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman
Also working in Weiqiao Textile Co., Ltd., Shandong Luteng Textile Co., Ltd. and Shandong Binteng Textile Co., Ltd. as legal representative
SC is mainly engaged in manufacturing and selling textiles.
SC’s products mainly include: textiles.
SC sources its materials 100% from domestic market. SC sells 70% of its products in domestic market, and 30% 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’s management declined to release its customer and supplier details.
Shandong Luteng Textile Co., Ltd.
Registered no.: 371600400000572
Legal representative: Zhang Hongxia
Binzhou Weiqiao Technology Industrial Park Co., Ltd.
Registered no.: 371627018000259
Shandong Binteng Textile Co., Ltd.
Registered no.: 371600400000589
Legal representative: Zhang Hongxia (张红霞)
Weiqiao Textile (HongKong) Trading Co., Limited
CR No.: 1670878
Date of Incorporation:
Company Status: Private
Active Status: Live
Etc.
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 management declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
|
Cash & bank |
54,790 |
|
Inventory |
125,270 |
|
Accounts receivable |
17,620 |
|
Advances to suppliers |
1,250 |
|
Other receivables |
-1,810 |
|
Other current assets |
0 |
|
|
------------------ |
|
Current assets |
197,120 |
|
Fixed assets net value |
1,227,230 |
|
Projects under construction |
70,230 |
|
Long term investment |
67,500 |
|
Intangible assets |
14,960 |
|
Other assets |
9,580 |
|
|
------------------ |
|
Total assets |
1,586,620 |
|
|
============= |
|
Short loans |
660,000 |
|
Accounts payable |
8,900 |
|
Other payable |
224,720 |
|
Taxes payable |
6,440 |
|
Accrued payroll |
11,820 |
|
Advances from clients |
840 |
|
Other current liabilities |
0 |
|
|
------------------ |
|
Current liabilities |
912,720 |
|
Long term liabilities |
66,000 |
|
|
------------------ |
|
Total liabilities |
978,720 |
|
Equities |
607,900 |
|
|
------------------ |
|
Total liabilities & equities |
1,586,620 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
|
Turnover |
713,550 |
|
Cost of goods sold |
702,280 |
|
Taxes and additional of main operation |
5,400 |
|
Sales expense |
1,770 |
|
Management expense |
41,290 |
|
Finance expense |
49,540 |
|
Non-operating income |
13,080 |
|
Profit before tax |
-73,790 |
|
Less: profit tax |
0 |
|
Profits |
-73,790 |
Note: The above financial
have not been audited.
Important Ratios
=============
|
|
as of Dec. 31, 2013 |
|
*Current ratio |
0.22 |
|
*Quick ratio |
0.08 |
|
*Liabilities to assets |
0.62 |
|
*Net profit margin (%) |
-10.34 |
|
*Return on total assets (%) |
-4.65 |
|
*Inventory /Turnover ×365 |
65 days |
|
*Accounts receivable/Turnover ×365 |
10 days |
|
*Turnover/Total assets |
0.45 |
|
* Cost of goods sold/Turnover |
0.98 |
PROFITABILITY: FAIR
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a poor level.
SC’s quick ratio is maintained in a poor level.
The inventory of SC appears large in 2013.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loan appears large in 2013.
SC’s turnover is in a fair 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 average.
Overall financial condition of the SC: Fairly stable
SC has 10 years development history with fairly stable
financial conditions. The large amount of inventory and short loans could be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.19 |
|
|
1 |
Rs.102.14 |
|
Euro |
1 |
Rs.84.74 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.