MIRA INFORM REPORT
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Report No. : |
318982 |
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Report Date : |
28.04.2015 |
IDENTIFICATION DETAILS
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Name : |
WUXI SHENGCHONG INTERNATIONAL TRADE CO., LTD. |
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Registered Office : |
Tianshun Road, Yangshan Supporting Area, Huishan Economic Development
Zone, Wuxi, Jiangsu Province, 214156 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
15.01.2010 |
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Com. Reg. No.: |
320206000148261 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in selling
mechanical products |
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No. of Employee : |
7 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 |
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, 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. In
2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world,
surpassing the US that year� 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; � 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. In 2014 China agreed to begin limiting carbon dioxide
emissions by 2030. China implemented several economic reforms in 2014,
including legislation allowing local governments to issue bonds, further
opening several state-owned enterprises to private investment, loosening the
one-child policy, passing harsher pollution fines, and cutting administrative
red tape.
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. In 2014 China agreed to begin limiting carbon dioxide
emissions by 2030. China implemented several economic reforms in 2014,
including legislation allowing local governments to issue bonds, further
opening several state-owned enterprises to private investment, loosening the
one-child policy, passing harsher pollution fines, and cutting administrative
red tape.
|
Source
: CIA |
Company
name and address
WUXI SHENGCHONG INTERNATIONAL TRADE CO., LTD.
TIANSHUN ROAD, YANGSHAN SUPPORTING AREA, HUISHAN ECONOMIC DEVELOPMENT ZONE,
WUXI, JIANGSU PROVINCE, 214156 PR CHINA
TEL: 86 (0) 510-83958245
FAX: 86 (0) 510-83950611
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JAN. 15, 2010
REGISTRATION NO. :
320206000148261
REGISTERED LEGAL FORM :
ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE :
YANG YING (CHAIRMAN)
STAFF STRENGTH :
7
REGISTERED CAPITAL :
CNY 1,500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 1,270,000 (UNAUDITED, AS OF
DEC. 31, 2014)
EQUITIES :
CNY 400,000 (UNAUDITED, AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1977 = 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 one-person limited liability company at local
Administration for Industry & Commerce (AIC - The official body of issuing and
renewing business license) on Jan. 15, 2010.
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes importing and exporting
commodities and technology (excluding the items prohibited or limited by the
country).
SC is mainly engaged in selling mechanical
products.
Yang Ying is the legal representative, chairman and general manager of
SC at present.
SC is known to have approx. 7 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the Huishan Economic Development Zone of Wuxi.
SC’s employee refused to release the detailed information of the premise.
http://www.wxshengchong.com/ The design is professional and the content is
well organized. At present it is in English and other versions.
E-mail: yzy@shenchong.com
No significant changes were found during our checks with the local AIC.
Organization Code: 550210256
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yang Ying 100
Legal representative, chairman and general manager:
Yang Ying is currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman, legal representative and general manager.
Supervisor:
Zhou Hongjuan
SC is mainly engaged in selling mechanical
products.
SC’s products mainly include:
Hydraulic shearing machine
Hydraulic press brake
Hydraulic rolling machine
Cutting machine
Welding equipment
Forming line
Leveling line
Drilling and milling machine
Power machine
SC sources its materials 100% from domestic market. SC sells 10% of its
products in domestic market, and 90% 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 refused to release its main suppliers and clients.
Wuxi Shenchong Forging Machine Tool Co., Ltd.
===============================
Registration no.: 320206000064602
Legal representative: Yin Zhiyong
Incorporation date: 2002-07-23
Tel: 0510-83953883
Fax: 0510-83959350
Branch:
Wuxi Shengchong International Trade Co., Ltd. Beitang Branch
=================================================
Registration no.: 320204000098285
Principal: Liu Midan
Incorporation date: 2014-03-26
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 banking details.
Balance
Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2014 |
|
Cash & bank |
410 |
|
Notes receivable |
0 |
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Accounts receivable |
-1,000 |
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Advances to suppliers |
0 |
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Other receivables |
0 |
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Inventory |
200 |
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Other current assets |
0 |
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|
------------------ |
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Current assets |
-390 |
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Fixed assets net value |
270 |
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Long term investment |
0 |
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Intangible and other assets |
10 |
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------------------ |
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Total assets |
-110 |
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|
============= |
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Short loans |
0 |
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Notes payable |
0 |
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Accounts payable |
-1,110 |
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Advances from clients |
0 |
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Accrued payroll |
0 |
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Taxes payable |
-70 |
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Other accounts payable |
670 |
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Surcharge payable |
0 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
-510 |
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Long term loans |
0 |
|
Other liabilities |
0 |
|
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------------------ |
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Total liabilities |
-510 |
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Equities |
400 |
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|
------------------ |
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Total liabilities & equities |
-110 |
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============= |
Income
Statement
|
Unit: CNY’000 |
as of Dec. 31, 2014 |
|
Turnover |
1,270 |
|
Cost of goods sold |
1,000 |
|
Sales expense |
200 |
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Management expense |
610 |
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Finance expense |
20 |
|
Profit before tax |
-540 |
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Less: profit tax |
0 |
|
Profits |
-540 |
Note: The above Financial Report hasn’t been
audited.
Important
Ratios
=============
|
|
as of Dec. 31, 2014 |
|
*Current ratio |
/ |
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*Quick ratio |
/ |
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*Liabilities to assets |
/ |
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*Net profit margin (%) |
-42.52 |
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*Return on total assets (%) |
/ |
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*Inventory /Turnover ×365 |
58 days |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
-11.55 |
|
* Cost of goods sold/Turnover |
0.79 |
PROFITABILITY:
FAIR
The turnover of SC appears average in its line.
SC’s net profit margin is poor.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The inventory of SC is maintained
in an average level.
SC has no short-term loan in 2014.
LEVERAGE: AVERAGE
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.61 |
|
|
1 |
Rs.96.56 |
|
Euro |
1 |
Rs.69.18 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
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Report Prepared
by : |
ANK |
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 |
|
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.