MIRA INFORM REPORT
|
Report No. : |
302590 |
|
Report Date : |
14.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
WUXI GUOSHENG PRECISION TOOL CO., LTD. |
|
|
|
|
Registered Office : |
No. 8, Yang’gao Road, Wuxi, Jiangsu Province, 214024 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
02.11.1997 |
|
|
|
|
Com. Reg. No.: |
320200000077881 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing mould, general machinery parts, plastic parts, stamping parts, photovoltaic equipment and components; technology development, technology transfer and technology services of computer software and hardware; economic information intermediary services; import and export of various goods and technologies (excluding the goods forbidden by the government) (with permit if needed). |
|
|
|
|
No. of Employee : |
328 |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 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 & address
Wuxi Guosheng Precision Tool Co., Ltd.
No. 8, yang’gao road, wuxi, jiangsu PROVINCE,
214024 PR CHINA
TEL: 86 (0) 510-85430310/85436026 FAX: 86 (0) 510-85430320
EXECUTIVE
SUMMARY
INCORPORATION DATE : nov. 2, 1999
REGISTRATION NO. : 320200000077881
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
328
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 74,340,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 89,290,000 (AS OF DEC. 31, 2013)
PAYMENT :
slow but correct
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.2039= 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
Note: SC is also known as Wuxi G.S. Precision
Tool Co., Ltd.
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 Nov. 2, 1999.
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 manufacturing mould, general machinery
parts, plastic parts, stamping parts, photovoltaic equipment and components;
technology development, technology transfer and technology services of computer
software and hardware; economic information intermediary services; import and
export of various goods and technologies (excluding the goods forbidden by the
government) (with permit if needed).
SC is mainly
engaged in manufacturing and selling mould.
Mr. Dai Pinrong is
legal representative, chairman and general manager of SC at present.
SC is known
to have approx. 328 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in Wuxi. Our checks reveal that SC rents the total
premise, but SC’s accountant refused to release the gross area of the premise.
http://www.gstool.cn The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: sales@gstool.cn lillian@gstool.cn
No significant events or changes were found during our checks with the local
Administration for Industry and Commerce.
Organization code: 717483871
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Dai Pinrong 46
Ren Letian 17
Dai Liang 5
Shanghai Dunde Equity Investment Co., Ltd. 15
Wuxi Mingyang Investment Co., Ltd. 10
Shanghai Xiangdu Investment Management Co.,
Ltd. 7
Shanghai Xiangdu Investment Management Co.,
Ltd.
======================================
Registered no.: 310115001923528
Legal representative: Lu Jianping
Registered capital: CNY 5,000,000
Shanghai Dunde Equity Investment Co., Ltd.
================================
Registered no.: 310000000115556
Legal representative: Jia Yaqin
l Legal
representative, Chairman and General manager:
Mr. Dai Pinrong is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager
Also working in Wuxi Guosheng
Precision Tool Co., Ltd. Advanced Manufacturing Technology Research Institute
as principal; working in Wuxi Guosheng Bio-Engineering Co., Ltd. as
legal representative.
l Vice chairman:
Mr. Lu Jianping is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as vice chairman
Also working in Shanghai Xiangdu Investment
Management Co., Ltd. as chairman.
l Directors:
Zhang Yao
Dai Liang
Hua Xiqing
SC is mainly
engaged in manufacturing and selling mould.
SC’s products
mainly include: connectors, motor stator, electric gun, molding, etc.
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 70% of its products in domestic
market, and 30% to overseas market.
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.
Trademark & Patents
|
Registration No. |
3423455 |
9959160 |
9993574 |
|
Registration Date |
2004-7-7 |
2012-12-7 |
2012-12-28 |
|
Trademark Design |
|
|
|
SC
is known to have a branch at present:
Wuxi Guosheng Precision Tool Co., Ltd. Advanced
Manufacturing Technology Research Institute
======================================
Registered no.: 320200000200775
Principal: Dai Pinrong
Date of incorporation: 2012-05-29
SC is known to invest in the following company:
Wuxi Guosheng Bio-Engineering Co., Ltd.
===============================
Registered no.: 320200000201420
Legal representative: Dai Pinrong
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
|
|
as
of Dec. 31, 2012 |
as
of Dec. 31, 2013 |
|
Cash & bank |
16,870 |
6,290 |
|
Notes receivable |
8,040 |
3,960 |
|
Inventory |
40,650 |
31,620 |
|
Accounts
receivable |
62,340 |
37,450 |
|
Advances to
suppliers |
8,800 |
7,760 |
|
Other
receivables |
5,490 |
8,760 |
|
Other current assets |
20 |
30 |
|
|
------------------ |
------------------ |
|
Current assets |
142,210 |
95,870 |
|
Fixed assets net
value |
105,600 |
92,830 |
|
Projects under
construction |
12,630 |
15,310 |
|
Long term
investment |
8,100 |
3,000 |
|
Intangible
assets |
2,330 |
2,400 |
|
Other assets |
420 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
271,290 |
209,410 |
|
|
============= |
============= |
|
Short loans |
105,360 |
70,900 |
|
Accounts payable |
12,780 |
10,650 |
|
Other payable |
11,920 |
22,020 |
|
Taxes payable |
890 |
810 |
|
Advances from
clients |
11,860 |
1,390 |
|
Other current
liabilities |
850 |
5,480 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
143,660 |
111,250 |
|
Long term
liabilities |
18,330 |
8,870 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
161,990 |
120,120 |
|
Equities |
109,300 |
89,290 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
271,290 |
209,410 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2013 |
|
Turnover |
104,260 |
74,340 |
|
Cost of goods
sold |
80,500 |
65,980 |
|
Sales expense |
3,360 |
2,860 |
|
Management expense |
28,130 |
25,060 |
|
Finance expense |
5,810 |
6,830 |
|
Profit before
tax |
-10,580 |
-14,950 |
|
Less: profit tax |
0 |
0 |
|
Profits |
-10,580 |
-14,950 |
Important Ratios
=============
|
|
as
of Dec. 31, 2012 |
as
of Dec. 31, 2013 |
|
*Current ratio |
0.99 |
0.86 |
|
*Quick ratio |
0.71 |
0.58 |
|
*Liabilities
to assets |
0.60 |
0.57 |
|
*Net profit
margin (%) |
-10.15 |
-20.11 |
|
*Return on
total assets (%) |
-3.90 |
-7.14 |
|
*Inventory
/Turnover ×365 |
143 days |
156 days |
|
*Accounts
receivable/Turnover ×365 |
219 days |
184 days |
|
*Turnover/Total
assets |
0.38 |
0.35 |
|
* Cost of
goods sold/Turnover |
0.77 |
0.89 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in its line
in 2012 but average in 2013.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory conversion period of SC appears long.
l
The accounts receivable collection period of SC
appears long.
l
SC’s short-term loan appears large.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial conditions.
The large amount of inventory, accounts receivable and short loans could be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.10 |
|
|
1 |
Rs.94.09 |
|
Euro |
1 |
Rs.73.41 |
INFORMATION DETAILS
|
Analysis Done by
: |
RSM |
|
|
|
|
Report Prepared
by : |
DPT |
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.