MIRA
INFORM REPORT
|
Report Date : |
14.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
WEIFANG ROYALROAD TRADING CO., LTD. |
|
|
|
|
Registered Office : |
Room 1509, Building A, Syno
Tower, No. 360 Dongfeng East
Street, Kuiwen District, Weifang, Shandong Province, 261041 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
01.08.2005 |
|
|
|
|
Com. Reg. No.: |
370705228016116 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Subject is engaged in trading of welding and plasma cutting products.
Products mainly include: Plasma, CO2/MIG/MAG, TIG, welding and
cutting torches, consumables and accessories |
|
|
|
|
No. of Employees : |
6 |
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 : |
Slow but correct |
|
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 & addresss
WEIFANG ROYALROAD TRADING Co., Ltd.
ROOM 1509, BUILDING A, SYNO TOWER, NO. 360
DONGFENG EAST STREET,
kuiwen district, WEIFANG, shandong PROVINCE,
261041 PR CHINA
TEL: 86 (0) 536-8297033/8297032
FAX: 86 (0) 536-8297035
EXECUTIVE SUMMARY
INCORPORATION DATE : aUG. 1, 2005
REGISTRATION NO. : 370705228016116
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
ZHANG NAN (CHAIRMAN)
STAFF STRENGTH :
6
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 16,800,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 710,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
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
Note: The given name “Weldcraft Co., Limited” belongs to SC’s related
company registered in Hong Kong, and SC mainly uses this name for international
trade.
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Aug. 1, 2005.
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 import and export of goods and technology,
processing of imported and exported goods & feed; sales of hardware,
mechanical and electrical products, instruments, native groceries, livestock
products, textiles, garments, silk, handicrafts, furniture. (excluding those
limited and prohibited by the law and regulations).
SC is mainly engaged in trading of welding and plasma cutting products.
Zhang Nan is legal representative and chairman of SC at present.
SC is known to have approx. 6 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Weifang. Detailed
information of the premise is unspecified.
http://www.easy-weld.com
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
E-mail: royalroad@126.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: 778414685
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Nan 70
Tao Jing 30
Legal Representative and Chairman:
Zhang Nan is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as
legal representative and chairman.
SC is mainly engaged in trading of welding and plasma cutting products.
SC’s products mainly include: Plasma, CO2/MIG/MAG, TIG, welding
and cutting torches, consumables and accessories
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.
Weldcraft Co., Limited (Hong Kong)
===========================
CR No.: 1551812
Date of Incorporation:
Company Status: Private
Active Status: Live
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, 2011 |
as
of Dec. 31, 2012 |
|
Cash & bank |
1,140 |
1,230 |
|
Inventory |
0 |
0 |
|
Accounts receivable |
0 |
0 |
|
Advances to suppliers |
970 |
1,790 |
|
Other receivables |
570 |
610 |
|
Dividends receivable |
0 |
0 |
|
Other current assets |
80 |
120 |
|
|
------------------ |
------------------ |
|
Current assets |
2,760 |
3,750 |
|
Fixed assets net value |
0 |
0 |
|
Projects under construction |
0 |
0 |
|
Long term investment |
0 |
0 |
|
Intangible assets |
0 |
0 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
2,760 |
3,750 |
|
|
============= |
============= |
|
Short loans |
0 |
0 |
|
Accounts payable |
0 |
380 |
|
Other accounts payable |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Taxes payable |
0 |
0 |
|
Advances from clients |
2,120 |
2,660 |
|
Accrued payroll |
0 |
0 |
|
Dividends payable |
0 |
0 |
|
Other payable |
0 |
0 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
2,120 |
3,040 |
|
Long term liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
2,120 |
3,040 |
|
Equities |
640 |
710 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
2,760 |
3,750 |
|
|
============= |
============= |
Income
Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2012 |
|
Turnover |
16,800 |
|
Cost of goods sold |
16,030 |
|
Sales expense |
620 |
|
Management expense |
0 |
|
Finance expense |
60 |
|
Profit before tax |
90 |
|
Less: profit tax |
20 |
|
Profits |
70 |
Important
Ratios
|
|
as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
|
*Current ratio |
1.30 |
1.23 |
|
*Quick ratio |
1.30 |
1.23 |
|
*Liabilities to assets |
0.77 |
0.81 |
|
*Net profit margin (%) |
/ |
0.42 |
|
*Return on total assets (%) |
/ |
1.87 |
|
*Inventory /Turnover ×365 |
/ |
/ |
|
*Accounts receivable/Turnover ×365 |
/ |
/ |
|
*Turnover/Total assets |
/ |
4.48 |
|
* Cost of goods sold/Turnover |
/ |
0.95 |
PROFITABILITY:
AVERAGE
·
The turnover of SC appears average in its line in
2012.
·
SC’s net profit margin is average in 2012.
·
SC’s return on total assets is average in 2012.
·
SC’s cost of goods sold is fairly high in 2012,
comparing with its turnover.
LIQUIDITY: AVERAGE
·
The current ratio of SC is normal.
·
SC’s quick ratio is maintained in a normal level.
·
SC has no inventory in both years.
·
SC has no accounts receivable in both years.
·
SC has no short-term loan in both years.
·
SC’s turnover is fairly good in 2012, comparing
with the size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is fairly high.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered small-sized in its line with fairly stable financial
conditions.
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 |
|
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.