MIRA INFORM REPORT
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Report No. : |
332936 |
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Report Date : |
25.07.2015 |
IDENTIFICATION DETAILS
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Name : |
Yichang Monkey King
Welding Wire Co., Ltd. |
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Registered Office : |
No. 6 Zhongnan Road, Yichang, Hubei Province, 443300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
12.03.2002 |
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Com. Reg. No.: |
420500000008542 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Developing, manufacturing and selling welding wire; selling welding
rod, weld flux, welding equipment, mechanical equipment, automobile
(excluding car), packing products and metal materials (excluding precious
metals); import and export of various goods and technologies (excluding the
goods forbidden by the government). |
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No. of Employees : |
210 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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; (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 2014 more than 274 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 passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
name & address
Yichang Monkey King Welding Wire Co., Ltd.
No. 6 zhongnan road, yichang, hubei PROVINCE,
443300 PR CHINA
TEL: 86 (0) 717-6351958/6352078 FAX: 86 (0) 717-6355672
EXECUTIVE
SUMMARY
INCORPORATION DATE : mar. 12, 2002
REGISTRATION NO. : 420500000008542
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. dai dunle (legal representative)
STAFF STRENGTH :
210
REGISTERED CAPITAL : CNY
100,000,000
BUSINESS LINE :
DEVELOPING, MANUFACTURING & TRADING
TURNOVER :
CNY 151,990,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 184,210,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.21 = 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 Mar. 12, 2002.
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 developing, manufacturing and
selling welding wire; selling welding rod, weld flux, welding equipment,
mechanical equipment, automobile (excluding car), packing products and metal
materials (excluding precious metals); import and export of various goods and
technologies (excluding the goods forbidden by the government).
SC is mainly engaged in developing, manufacturing and selling welding
wires.
Mr. Dai Dunle is legal representative and chairman of SC at present.
SC is known to have approx. 210 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Yichang. The detailed
information of the premise is unspecified.
http://www.ychwhs.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: yxb@ychwhs.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2014-7-23 |
Registered capital |
CNY 35,000,000 |
Present amount |
Organization Code: 879060118
SC’s quality system meets the international standards of ISO 9001.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yichang Zhihe Investment Co., Ltd. 49
Yichang Yingdasi Investment Co., Ltd. 51
Yichang Zhihe Investment Co., Ltd.
==================
Reg. no.: 420500000006119
Legal representative: Zhang Weibin
Yichang Yingdasi Investment Co., Ltd.
====================
Reg. no.: 420500000006485
Legal representative: Dai Dunle
Legal
representative and Chairman:
Mr. Dai Dunle is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman
Also working in Yichang Yingdasi Investment Co., Ltd. as legal
representative
Directors:
Zhang Weibin
Xia Yuwen
Supervisors:
Li Yinfa
Yang Changlan
SC is mainly engaged in developing, manufacturing and selling welding
wires.
SC’s products mainly include: gas shielded welding wire, weather
resistant steel welding wire, carbon steel submerged arc welding wire, alloy
structural steel submerged arc welding wire, etc.
Trademarks &
patents
Registration no.: 8049506
Registration date:
Trademark design: 
Registration no.: 8049475
Registration date:
Trademark design: 
Registration no.: 8049486
Registration date: 2011-4-21
Trademark design: 
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.
SC is not known to have any subsidiary at present.
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,
2014 |
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Cash & bank |
11,020 |
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Notes receivable |
23,700 |
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Inventory |
16,920 |
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Accounts receivable |
30,170 |
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Advances to suppliers |
0 |
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Other receivables |
13,170 |
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Other current assets |
0 |
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------------------ |
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Current assets |
94,980 |
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Fixed assets net value |
77,490 |
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Projects under construction |
61,330 |
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Long term investment |
0 |
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Intangible assets |
9,080 |
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Other assets |
0 |
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------------------ |
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Total assets |
242,880 |
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============= |
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Short loans |
5,000 |
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Notes payable |
23,900 |
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Accounts payable |
16,980 |
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Other payable |
590 |
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Taxes payable |
2,080 |
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Advances from clients |
4,000 |
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Accrued expenses |
5,530 |
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Other current liabilities |
590 |
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------------------ |
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Current liabilities |
58,670 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
58,670 |
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Equities |
184,210 |
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------------------ |
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Total liabilities & equities |
242,880 |
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============= |
Income
Statement
Unit: CNY’000
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as of Dec. 31,
2014 |
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Turnover |
151,990 |
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Cost of goods sold |
120,170 |
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Sales expense |
8,360 |
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Management expense |
12,760 |
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Finance expense |
1,500 |
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Non-operating expense |
9,140 |
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Profit before tax |
1,400 |
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Less: profit tax |
400 |
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Profits |
1,000 |
Important
Ratios
=============
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as of Dec. 31,
2014 |
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*Current ratio |
1.62 |
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*Quick ratio |
1.33 |
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*Liabilities to assets |
0.24 |
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*Net profit margin (%) |
0.66 |
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*Return on total assets (%) |
0.41 |
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*Inventory /Turnover ×365 |
41 days |
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*Accounts receivable/Turnover ×365 |
73 days |
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*Turnover/Total assets |
0.63 |
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* Cost of goods sold/Turnover |
0.79 |
PROFITABILITY: AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC appears average in 2014.
SC’s short-term loan is in an average level.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.89 |
|
|
1 |
Rs.99.10 |
|
Euro |
1 |
Rs.70.12 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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.