MIRA
INFORM REPORT
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Report Date : |
14.02.2014 |
IDENTIFICATION DETAILS
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Name : |
WEIFANG KAWA MEDICAL PRODUCTS CO., LTD. |
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Registered Office : |
No. 2 Xing’an Road,
Beiluo Industrial Park, Development Zone, Shouguang, Weifang, Shandong
Province, 262705 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
26.07.2005 |
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Com. Reg. No.: |
370783400000338 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and selling of medical products |
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No. of Employees : |
80 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Status : |
Moderate |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
China |
A2 |
A2 |
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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 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 & address
Weifang Kawa Medical Products Co., Ltd.
no. 2 xing’an road, beiluo industrial park,
development zone,
shouguang, weifang, Shandong PROVINCE, 262705
PR CHINA
TEL: 86 (0) 536-5787696
FAX: 86 (0) 536-8507129/5787686
EXECUTIVE SUMMARY
INCORPORATION DATE : jul. 26, 2005
REGISTRATION NO. : 370783400000338
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. li rukai (CHAIRMAN)
STAFF STRENGTH :
80
REGISTERED CAPITAL : usd 360,000
BUSINESS LINE :
Manufacturing & SELLING
TURNOVER : CNY 17,500,000
(UNAUDITED, AS OF DEC. 31, 2013)
EQUITIES :
CNY -410,000 (UNAUDITED, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.06 = 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 wholly foreign-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Jul. 26, 2005.
Company Status: Wholly foreign-owned enterprise This
form of business in PR China is defined as a legal person. It is a limited
co. established within the territories of PR China with capital provided
totally by the foreign investors. More than one foreign investor may
jointly invest in a wholly foreign-owned enterprise. The investing
party/parties solely exercise management, reap profit and bear risks and
liabilities by themselves. This form of companies usually have a limited
duration is extendible upon approval of Examination and Approval
Authorities.
SC’s registered business scope includes production of auto-disable
disposable syringes, tampons, hemodialysis tubing, infusion sets, blood
transfusion approved business scope and relevant regulations; all of these
products must be sold abroad (excluding the above items in national
restrictions, on projects involving pre-approval to license should according to
the license.)
SC is mainly engaged in manufacturing and selling of medical products.
Mr. Li Rukai is legal representative, chairman and general manager of SC
at present.
SC is known to have approx. 80 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the development zone of Shouguang.
Detailed information of the premise is unspecified.
http://www.kawamedical.com/
The design is professional and the content is well organized. At present it is
only in English version.
E-mail: info@kawamedical.com
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: 77741961X
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Kawa Meditec Enterprise Limited (Hong Kong) 100
CR No.: 0979610
Date of Incorporation:
Company Status: Private
Active Status: Live
Legal Representative, Chairman and General Manager:
Mr. Li Rukai, in his
Working
Experience(s):
At present Working in SC
as legal representative, chairman and general manager.
SC is mainly engaged in manufacturing and selling of medical products.
SC’s products mainly include:
Kawa IV Infusion Set
Kawa Burette Infusion Set
Kawa Disposable Scalp Vein Set
Kawa Disposable Syringe
Kawa Wound Drainage
Kawa Hypodermic Needle
Kawa Blood Transfusion Set
Kawa Extension Set
Kawa Self-Destroy Products
SC sources its materials 100% from domestic market. SC sells 100% of its
products 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 major clients and suppliers.
According to SC’s website:
Kawa Meditech Enterprises Inc. (Japan)
==============================
Add.: 16-17, Isogo 7-chome,Isogo-ku, Yokohama-shi, Kanagawa, Japan
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 declined to release its bank details.
Balance
Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2012 |
as
of Dec. 31, 2013 |
|
Cash & bank |
5,170 |
5,110 |
|
Inventory |
14,230 |
18,880 |
|
Accounts receivable |
1,660 |
3,030 |
|
Advances to suppliers |
1,090 |
1,100 |
|
Other receivables |
200 |
1,640 |
|
Dividends receivable |
0 |
0 |
|
Other current assets |
310 |
70 |
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|
------------------ |
------------------ |
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Current assets |
22,660 |
29,830 |
|
Fixed assets net value |
2,370 |
2,060 |
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Projects under construction |
1,830 |
1,840 |
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Long term investment |
0 |
0 |
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Intangible assets |
10,390 |
10,180 |
|
Other assets |
30 |
20 |
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------------------ |
------------------ |
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Total assets |
37,280 |
43,930 |
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|
============= |
============= |
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Short loans |
8,500 |
14,200 |
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Accounts payable |
8,420 |
10,850 |
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Other accounts payable |
14,020 |
13,710 |
|
Notes payable |
3,170 |
2,190 |
|
Taxes payable |
-290 |
-290 |
|
Advances from clients |
0 |
0 |
|
Accrued payroll |
0 |
0 |
|
Dividends payable |
0 |
0 |
|
Other payable |
0 |
0 |
|
Other current liabilities |
50 |
40 |
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------------------ |
------------------ |
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Current liabilities |
33,870 |
40,700 |
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Long term liabilities |
120 |
0 |
|
Other liabilities |
3,720 |
3,640 |
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------------------ |
------------------ |
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Total liabilities |
37,710 |
44,340 |
|
Equities |
-430 |
-410 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
37,280 |
43,930 |
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|
============= |
============= |
Income
Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2013 |
|
Turnover |
17,500 |
|
Cost of goods sold |
14,190 |
|
Taxes and additional of main operation |
30 |
|
Sales expense |
570 |
|
Management expense |
1,530 |
|
Finance expense |
1,190 |
|
Non-operating income |
70 |
|
Non-operating expense |
30 |
|
Profit before tax |
30 |
|
Less: profit tax |
0 |
|
Profits |
30 |
Note: The above financial reports for Yr 2013 have not been audited.
Important
Ratios
|
|
as
of Dec. 31, 2012 |
as
of Dec. 31, 2013 |
|
*Current ratio |
0.67 |
0.73 |
|
*Quick ratio |
0.25 |
0.27 |
|
*Liabilities to assets |
1.01 |
1.01 |
|
*Net profit margin (%) |
/ |
0.17 |
|
*Return on total assets (%) |
/ |
0.07 |
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*Inventory /Turnover ×365 |
/ |
394 days |
|
*Accounts receivable/Turnover ×365 |
/ |
64 days |
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*Turnover/Total assets |
/ |
0.40 |
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* Cost of goods sold/Turnover |
/ |
0.81 |
PROFITABILITY:
AVERAGE
·
The turnover of SC appears average in its line in
2013.
·
SC’s net profit margin is average in 2013.
·
SC’s return on total assets is average in 2013.
·
SC’s cost of goods sold is average in 2013,
comparing with its turnover.
LIQUIDITY: FAIR
·
The current ratio of SC is fair.
·
SC’s quick ratio is maintained in a poor level.
·
SC’s inventory is large in both years.
·
The accounts receivable of SC appears average in
both years.
·
SC’s short-term loan appears large in both years.
·
SC’s turnover is fair in 2013, comparing with the
size of its total assets.
LEVERAGE: POOR
·
The debt ratio of SC is too high.
·
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair 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.62.27 |
|
|
1 |
Rs.103.47 |
|
Euro |
1 |
Rs.84.87 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
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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.