MIRA INFORM REPORT
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Report Date : |
19.06.2014 |
IDENTIFICATION DETAILS
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Name : |
CANGZHOU WINGO INTERNATIONAL TRADING CO., LTD. |
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Registered Office : |
Hope New Area, Hui Autonomous County of Mengcun, Cangzhou, Hebei Province, 061400 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
14.12.2012 |
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Com. Reg. No.: |
130930000007369 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in the selling steel pipes, tubing, pipe fittings,
metal products, metal materials, building materials, panel, steel materials,
iron and steel products, electro-mechanical equipment, electro-mechanical
products and hardware products; import and export of various goods and
technologies |
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No. of Employees : |
15 |
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 : |
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 – March 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, 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 and address
cangzhou wingo international trading Co., Ltd.
hope new area, Hui Autonomous County of
Mengcun,
cangzhou, hebei PROVINCE, 061400 PR CHINA
TEL: 86 (0) 317-5296685/6853701
FAX: 86 (0) 317-5296625
EXECUTIVE
SUMMARY
INCORPORATION DATE : dec. 14, 2012
REGISTRATION NO. : 130930000007369
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. zhang jianxin (legal representative)
STAFF STRENGTH :
15
REGISTERED CAPITAL : CNY 6,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 9,020,000 (UNaudited, AS OF
DEC. 31, 2013)
EQUITIES :
CNY 6,070,000 (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
6.23 = 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 limited liabilities co. at local Administration
for industry & commerce (AIC - the official body of issuing and renewing
business license) on Dec. 14, 2012.
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 selling steel pipes, tubing,
pipe fittings, metal products, metal materials, building materials, panel,
steel materials, iron and steel products, electro-mechanical equipment,
electro-mechanical products and hardware products; import and export of various
goods and technologies, excluding the goods forbidden by the government (not to
engage in any items prohibited by laws and regulations).
SC is mainly engaged in selling steel materials.
Mr. Zhang Jianxin is legal representative, chairman and general manager
of SC at present.
SC is known to have approx. 15 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in Cangzhou. The detailed information of the
premise is unspecified.
http://www.czwingo.com/
The design is professional and the content is well organized. At present it is
in English version.
Email: hypipe@hbhuayang.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Organization Code: 059445573
SC started its normal operation in Apr. of 2013.
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Jianxin 50
Zhang Jiankui 50
Legal
representative, Chairman and General manager:
Mr. Zhang Jianxin is currently responsible for the overall management of
SC.
Working
Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
Supervisor:
Zhang Jiankui
SC started its normal operation since Apr. of 2013.
SC is mainly engaged in selling steel materials.
SC’s products mainly include: SSAW Pipe, LSAW Pipe, ERW Steel Pipe, API
Pipe
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 customer and supplier
details.
Hebei Huayang Steel Pipe Co., Ltd.
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Registered no.: 130930000001330
Legal representative: Zhang Guoqing
Date of incorporation:
Tel: 0317-6886352
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
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as of Dec. 31,
2013 |
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Cash & bank |
4,340 |
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Inventory |
0 |
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Accounts receivable |
0 |
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Advances to suppliers |
200 |
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Other receivables |
960 |
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Other current assets |
0 |
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------------------ |
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Current assets |
5,500 |
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Fixed assets net value |
10 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
0 |
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Total assets |
5,510 |
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============= |
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Short loans |
0 |
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Accounts payable |
120 |
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Other payable |
80 |
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Taxes payable |
0 |
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Advances from clients |
-760 |
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Other current liabilities |
0 |
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Current liabilities |
-560 |
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Long term liabilities |
0 |
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Total liabilities |
-560 |
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Equities |
6,070 |
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------------------ |
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Total liabilities & equities |
5,510 |
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Income
Statement
Unit: CNY’000
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as of Dec. 31,
2013 |
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Turnover |
9,020 |
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Cost of goods sold |
7,910 |
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Sales expense |
370 |
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Management expense |
470 |
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Finance expense |
100 |
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Profit before tax |
170 |
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Less: profit tax |
90 |
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Profits |
80 |
Note: The above
financial have not been audited.
Important
Ratios
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as of Dec. 31,
2013 |
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*Current ratio |
-9.82 |
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*Quick ratio |
-9.82 |
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*Liabilities to assets |
-0.10 |
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*Net profit margin (%) |
0.89 |
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*Return on total assets (%) |
1.45 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
1.64 |
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* Cost of goods sold/Turnover |
0.88 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
·
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
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SC has no inventory in 2013.
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SC has no accounts receivable in 2013.
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SC has no short-term loan in 2013.
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SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.12 |
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1 |
Rs.102.00 |
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Euro |
1 |
Rs.81.43 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
NNA |
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.