MIRA
INFORM REPORT
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Report Date : |
27.02.2014 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI WESCCO CHEMICAL CO., LTD. |
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Registered Office : |
No. 87, Lane 1296, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
14.10.2004 |
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Com. Reg. No.: |
310107000425787 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is
specialized in the research and development of agrochemical intermediate,
pharmaceutical intermediate, dyestuff intermediate and other fine
chemicals. Subject is also engaged import and export of goods and technology;
chemical products (excluding dangerous chemicals, controlled chemicals,
fireworks, civil explosives, precursor chemicals), mineral products (except
special), glassware, textile raw materials and textile products (except
special), mechanical and electrical products, plastic and plastic products,
wood products, equipment, ceramic products, auto parts (sales). [with permit
if needed]. Subject product range includes :- 3-Chloropropylmethyldimethoxysilane [2-(3,4-Epoxycyclohexyl)ethyl]trimethoxysilane 3-(Methacryloyloxy)propyltrimethoxysilane |
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No. of Employees |
06 (approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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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 – december 01, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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.
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Source : CIA |
Company name & address
SHANGHAI WESCCO
CHEMICAL CO., LTD.
NO. 87, LANE 1296, JINGAO ROAD,
PUDONG NEW DISTRICT, SHANGHAI, 201206 PR
CHINA
TEL: 86 (0) 21-50933265 FAX: 86
(0) 21-50933268
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT. 14, 2004
REGISTRATION NO. : 310107000425787
REGISTERED LEGAL
FORM : Limited Liabilities Company
CHIEF EXECUTIVE : MR. yang yueming (CHAIRMAN)
STAFF STRENGTH :
6
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
trading
TURNOVER :
cny 16,197,000 (unaudited, AS OF DEC. 31, 2013)
EQUITIES :
cny 850,000 (unaudited, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.12 = 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 Ren Min Bi
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license).
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 business of goods
and technology; chemical products (excluding dangerous chemicals, controlled
chemicals, fireworks, civil explosives, precursor chemicals), mineral products
(except special), glassware, textile raw materials and textile products (except
special), mechanical and electrical products, plastic and plastic products,
wood products, equipment, ceramic products, auto parts (sales). [with permit if
needed].
SC is mainly
engaged in trading of various kinds of chemicals.
Mr. Yang Yueming
is legal representative, general manager 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 Shanghai. The detailed information
of the premise is unspecified.
http://www.wescco.com The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
E-Mail: sales@wescco.com
Changes of its
registered information are as follows:
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Date
of change |
Item |
Before
the change |
After
the change |
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2009 |
Registered Legal Form |
Limited
Liabilities Company |
One-Person Limited Liability Company |
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Chairman |
Shu
Jinglin |
Yang Yizhi |
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Shareholders |
Shu
Jinglin 55% Yang
Yizhi 45% |
Yang Yizhi 100% |
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Unknown |
Registered Legal Form |
One-Person Limited Liability Company |
Limited Liabilities Company |
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Chairman |
Yang Yizhi |
Present one |
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Shareholders |
Yang Yizhi 100% |
Present ones |
Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code: 76793073X
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Yang Yizhi 10
Yang Yueming 90
Legal Representative,
Chairman and General Manager:
Mr. Yang Yueming is currently responsible for the overall and daily
management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager
Supervisor:
========
Shi Lei
SC is mainly
engaged in trading of various kinds of chemicals.
Sc is specialized
in the research and development of agrochemical intermediate, pharmaceutical
intermediate, dyestuff intermediate and other fine chemicals.
SC’s products mainly include: Vinyltrimethoxysilane,. Vinyltriethoxysilane, Trichlorosilane, Tetrachlorosilane, 3-Chloropropyltriethoxysilane
3-Chloropropylmethyldimethoxysilane,
Tetraethoxysilane-28, Methyltrimethoxysilane, [2-(3,4-Epoxycyclohexyl)ethyl]trimethoxysilane,
3-(Methacryloyloxy)propyltrimethoxysilane,
Bis[3-(triethoxysilyl)propyl]tetrasulfide
& 3-Aminopropyltrimethoxysilane
SC sources its materials 70% from domestic
market, and 30% from overseas market, mainly Europe. SC sells 40% of its
products in domestic market, and 60% to overseas market, mainly American and
Europe.
The buying terms of SC include Check, T/T, L/C 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.
According to SC’s website,
Shanghai
Weihe Chemical Co., Ltd. (literal translation)
======================
Registration
No.: 310113000941463
Incorporation
Date: 2011-12-22
Chairman:
Luo Yonghong
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.
China Merchants Bank Shanghai Branch Minsheng Sub-branch
AC#：096712-7081122610001
Relationship:
Normal.
Balance Sheet
|
Unit: CNY’000 |
as
of Dec. 31, 2012 |
as
of Dec. 31, 2013 |
|
Cash & bank |
110 |
170 |
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Inventory |
5,150 |
5,570 |
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Accounts
receivable |
0 |
0 |
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Other Accounts
receivable |
90 |
190 |
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Other current
assets |
370 |
1,020 |
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------------------ |
------------------ |
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Current assets |
5,720 |
6,950 |
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Fixed assets net
value |
50 |
40 |
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Long term
investment |
0 |
0 |
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Other assets |
850 |
10 |
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------------------ |
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Total assets |
6,620 |
7,000 |
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============= |
============= |
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Short loans |
1,470 |
3,130 |
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Accounts payable |
0 |
560 |
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Other Accounts
payable |
1,430 |
2,370 |
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Taxes payable |
-130 |
-20 |
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Advances from
clients |
3,010 |
110 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
5,780 |
6,150 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
5,780 |
6,150 |
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Equities |
840 |
850 |
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------------------ |
------------------ |
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Total
liabilities & equities |
6,620 |
7,000 |
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============= |
Income Statement
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Unit: CNY’000 |
as of Dec. 31,
2013 |
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Turnover |
16,197 |
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Cost of goods
sold |
14,201 |
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Taxes and additional of main operations |
11 |
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Sales expense |
1,139 |
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Management expense |
545 |
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Finance expense |
287 |
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Subsidy income |
13 |
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Non-operating
income |
0 |
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Non-operating expense |
18 |
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Profit before
tax |
9 |
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Less: profit tax |
5 |
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Profits |
4 |
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Note: The financial
reports for Yr2013 have not been audited.
Important
Ratios
=============
|
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As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.99 |
1.13 |
|
*Quick ratio |
0.10 |
0.22 |
|
*Liabilities
to assets |
0.87 |
0.88 |
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*Net profit
margin (%) |
/ |
0.02 |
|
*Return on
total assets (%) |
/ |
0.06 |
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*Inventory
/Turnover ×365 |
/ |
126 days |
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*Accounts
receivable/Turnover ×365 |
/ |
/ |
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*Turnover/Total
assets |
/ |
2.31 |
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* Cost of
goods sold/Turnover |
/ |
0.88 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line in
2013.
l
SC’s net profit margin is average in 2013.
l
SC’s return on total assets is average in 2013.
l
SC’s cost of goods sold is average in 2013,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is fair in 2012 and in a
normal level in 2013.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears large in both years.
l
SC has no accounts receivable in both years.
l
SC’s short-term loan is large in both years.
l
SC’s turnover is in an average level in 2013,
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.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of inventory and short-term loan could be a threat
to SC’s financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.94 |
|
UK Pound |
1 |
Rs.103.31 |
|
Euro |
1 |
Rs.85.11 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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 |
|
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
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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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<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.