MIRA
INFORM REPORT
|
Report Date : |
09.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
CHAOZHOU WEIDA CERAMICS MAKING CO., LTD. |
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Registered Office : |
The West Area Of Fengxi
Government, Chao’an County, Chaozhou,
Guangdong Province 515600 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
27.12.2001 |
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Com. Reg. No.: |
445100400006892 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and selling various ceramic, resin products, polyester
products, and ceramic ancillary products of rattan, iron, bamboo, wood,
cloth, glass, and plastic |
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|
No. of Employees |
85 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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
|
Source
: CIA |
Company name and address
CHAOZHOU WEIDA
CERAMICS MAKING CO., LTD.
the west
area of fengxi government, chao’an county
chaozhou,
guangdong PROVINCE 515600 PR CHINA
TEL: 86
(0) 768-2972668
FAX: 86
(0) 768-2972630
EXECUTIVE SUMMARY
Date of Registration : december 27, 2001
REGISTRATION NO. : 445100400006892
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL :
HKD 10,000,000
staff : 85
BUSINESS CATEGORY :
MANUFACTURING & TRADING
Revenue :
CNY 40,433,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 27,956,000 (AS OF DEC. 31, 2013)
WEBSITE : www.weidaceramics.com
E-MAIL :
cnweida@globalsources.com & info@weidaceramics.com
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.24 = USD 1
Adopted abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was
established as a Chinese-foreign equity joint venture enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 445100400006892 on December 27, 2001.
SC’s Organization Code Certificate
No.: 73413022-6
SC’s Tax No.: 445101734130226
SC’s registered capital: HKD 10,000,000
SC’s paid-in capital: HKD 10,000,000 (CNY 10,094,708.53)
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wellsoon Hong Kong Trading
Co., Limited |
84 |
|
Chaozhou Pengshun Ceramics Making
Co., Ltd. |
16 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
She
Zhoupeng |
|
Vice Chairman |
Zhan
Xuezhen |
|
Director |
She
Zhoulong |
|
Supervisor |
Zhan Shumian |
|
Zhan Haoyang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Wellsoon Hong Kong Trading Co.,
Limited 84
Chaozhou Pengshun Ceramics
Making Co., Ltd. 16
Wellsoon Hong Kong Trading Co., Limited
----------------------------------------------
Date of Registration: October 11, 2006
Registration No.: 1079893
Legal Form: Private
Status: Live
Chaozhou Pengshun Ceramics Making Co.,
Ltd.
-------------------------------------------------
Date of Registration: December 11, 2001
Registration No.: 445100000030906
Registered Capital: CNY 3,800,000
MANAGEMENT
She
Zhoupeng, Legal
Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative,
chairman and general manager, also working in Chaozhou
Pengshun Ceramics Making Co., Ltd. as legal representative
Zhan
Xuezhen, Vice
Chairman
----------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
Director
-----------
She Zhoulong
Supervisor
--------------
Zhan Shumian
Zhan Haoyang
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling various ceramic, resin products, polyester products, and ceramic
ancillary products of rattan, iron, bamboo, wood, cloth, glass, and plastic.
SC is
mainly engaged in manufacturing and selling ceramic products.
Brand: WEIDA
SC’s
products mainly include: dinnerware of western
style, tableware set such as microwave, tea sets, coffee sets, hotel ceramic,
etc.
SC sources its materials 100% from domestic market, mainly Guangdong. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly North America, South America, Europe, Canada, etc.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers:
----------------------
Costco Wholesale
Canada Ltd. (Canada)
Regalos Siglo Xxi,
SA (Mexico)
Old Time Pottery
Incorporated (U.S.A.)
London Drugs
Limited
Almacenes Exito SA
Staff & Office:
--------------------------
SC is
known to have approx. 85
staff at present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have 3
branches at present,
n
Chaozhou Weida Ceramics Making Co., Ltd. Household Ceramics Factory
n
Chaozhou Weida Ceramics Making Co., Ltd. No. 1 Branch
n
Chaozhou Weida Ceramics Making Co., Ltd. No. 2 Branch
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
2,063 |
318 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
6,946 |
10,141 |
|
Advances to
suppliers |
3,782 |
3,935 |
|
Other receivable |
2,966 |
3,613 |
|
Inventory |
5,735 |
4,604 |
|
Deferred
expenses |
310 |
300 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
21,802 |
22,911 |
|
Long-term
investment |
5,400 |
5,400 |
|
Fixed assets |
1,961 |
1,753 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
10 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
29,173 |
30,064 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
1,805 |
1,460 |
|
Wages payable |
745 |
952 |
|
Taxes payable |
-376 |
-1,053 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
3,014 |
3,400 |
|
Other current
liabilities |
4 |
10 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
5,192 |
4,769 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
5,192 |
4,769 |
|
Equities |
23,981 |
25,295 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
29,173 |
30,064 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
51,621 |
|
Cost of sales |
44,189 |
|
Taxes and surcharges |
531 |
|
Sales expense |
1,307 |
|
Management expense |
2,853 |
|
Finance expense |
320 |
|
Income from
investments |
255 |
|
Non-business
income |
138 |
|
Non-business expenditure |
90 |
|
Profit before
tax |
2,725 |
|
Less: profit tax |
904 |
|
1,821 |
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
Total assets |
32,187 |
|
|
------------- |
|
Total
liabilities |
4,231 |
|
Equities |
27,956 |
|
|
------------- |
|
Revenue |
40,433 |
|
Cost of sales |
37,510 |
|
Profit before
tax |
2,923 |
|
Less: profit tax |
261 |
|
Profits |
2,662 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
4.20 |
4.80 |
-- |
|
*Quick ratio |
3.09 |
3.84 |
-- |
|
*Liabilities
to assets |
0.18 |
0.16 |
0.13 |
|
*Net profit
margin (%) |
-- |
3.53 |
6.58 |
|
*Return on
total assets (%) |
-- |
6.06 |
8.27 |
|
*Inventory /
Revenue ×365 |
-- |
33 days |
-- |
|
*Accounts
receivable/ Revenue ×365 |
-- |
72 days |
-- |
|
*Revenue/Total
assets |
-- |
1.72 |
1.26 |
|
*Cost of sales
/ Revenue |
-- |
0.86 |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is fairly good.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans in 2011 and 2012.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with
fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.99 |
|
|
1 |
Rs.101.75 |
|
Euro |
1 |
Rs.83.48 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
PDT |
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.