MIRA INFORM REPORT

 

 

Report No. :

352771

Report Date :

03.12.2015

 

IDENTIFICATION DETAILS

 

Name :

WENZHOU FENICE LEATHER & CHEMICAL CO., LTD.

 

 

Registered Office :

(No. 73-75 Wenzhou Shoes Chemical MarkEt) No. 99 Guojing Highway Wenzhou, Zhejiang Province 325000 PR

 

 

Country :

China

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

15.10.1998

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject engaged in selling chemical materials; selling leather finishing agent (limited to operate by SC’s branch); selling leather plastics; packing and processing chemical materials.

 

 

No. of Employee :

100

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name and address

 

WENZHOU FENICE LEATHER & CHEMICAL CO., LTD.

 

(NO. 73-75 WENZHOU SHOES CHEMICAL MARKET) NO. 99 GUOJING HIGHWAY

WENZHOU, ZHEJIANG PROVINCE 325000 PR CHINA

TEL: 86 (0) 577-88159981/88707868/89869188/88702888

FAX: 86 (0) 577-88707818/89869889

 

 

EXECUTIVE SUMMARY

 

Date of Registration                     : OCTOBER 15, 1998

Unified Social Credit Code           : 913303007043267975

LEGAL FORM                                       : Limited Liability Company

CHIEF EXECUTIVE                               : BAO GUANGHUA (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : CNY 5,000,000

staff                                                  : 100

BUSINESS CATEGORY             : PROCESSING & TRADING

Revenue                                            : CNY 13,590,000 (AS OF DEC. 31, 2014)

EQUITIES                                             : CNY 5,420,000 (AS OF DEC. 31, 2014)

WEBSITE                                              : www.fenice.cn

E-MAIL                                                 : N/A

PAYMENT                                            : SLOW BUT CORRECT

MARKET CONDITION                            : AVERAGE

FINANCIAL CONDITION                         : FAIRLY STABLE

OPERATIONAL TREND             : FAIRLY STEADY

GENERAL REPUTATION                       : AVERAGE

EXCHANGE RATE                                : CNY 6.40 = USD 1 AS OF 2015-12-2

 

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 limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 913303007043267975.

 

SC’s registered capital: CNY 5,000,000

 

SC’s paid-in capital: CNY 5,000,000

 

Registration Change Record:-

 

Date

Change of Contents

Before the change

After the change

2015-10-15

Shareholder (s) (% of Shareholding)

Bao Weijun 20%

Li Aichai 30%

Bao Guanghua 50%

Li Aichai 30%

Bao Guanghua 70%

Legal Representative

Bao Weijun

Bao Guanghua

Registration No./

Unified Social Credit Code

330300000012999

913303007043267975

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Li Aichai

30

Bao Guanghua

70

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative, Chairman and General Manager

Bao Guanghua

Supervisor

Li Aichai

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                              % of Shareholding

 

Li Aichai                                                                        30

 

Bao Guanghua                                                              70

 

 

MANAGEMENT

 

Bao Guanghua, Legal Representative, Chairman and General Manager

--------------------------------------------------------------------------------------------------------

Gender: M

Qualification: University

Working experience (s):

 

At present, working in SC as legal representative, chairman and general manager

 

Supervisor

--------------

Li Aichai

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes selling chemical materials; selling leather finishing agent (limited to operate by SC’s branch); selling leather plastics; packing and processing chemical materials.

 

SC is mainly engaged in processing and selling leather chemicals.

 

SC’s products mainly include: various leather chemicals

 

SC sources the materials 100% from domestic market. SC sells 30% of its products in domestic market, and 70% to overseas market.

 

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 Customer*

----------------------

Oi Wah Laundromat Inc.

 

Staff & Office:

--------------------------

SC is known to have approx. 100 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 a branch at present,

 

Wenzhou Fenice Leather & Chemical Co., Ltd. Juxi Branch

Registration No.: 330304000051563

Date of Registration: May 25, 2001

Principal: Li Xinyong

 

 

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

 

Basic Bank

 

Ouhai Rural Commercial Bank

 

AC#: N/a

 

 

FINANCIALS

 

Financial Summary

Unit: CNY’000

As of Dec. 31, 2014

Total assets

15,340

 

-------------

Total liabilities

9,920

Equities

5,420

 

-------------

Revenue

13,590

Profits

157

 

Important Ratios

=============

 

As of Dec. 31, 2014

*Liabilities to assets

0.65

*Net profit margin (%)

1.16

*Return on total assets (%)

1.02

*Revenue/Total assets

0.89

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: AVERAGE

The revenue of SC appears average in its line.

SC’s net profit margin is average.

SC’s return on total assets is average.

 

LIQUIDITY: FAIR

SC’s revenue is in a fair level, comparing with the size of its total assets.

 

LEVERAGE: AVERAGE

The debt ratio of SC is average.

The risk for SC to go bankrupt is above 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.66.62

UK Pound

1

Rs.100.34

Euro

1

Rs.70.67

CNY

1

Rs.10.43

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

Report Prepared by :

TRU

 


 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.