MIRA INFORM REPORT
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Report No. : |
322954 |
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Report Date : |
20.05.2015 |
IDENTIFICATION DETAILS
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Name : |
WUJIANG FOREIGN TRADE GROUP SUNWAY IMP. & EXP. CO.,
LTD. |
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Registered Office : |
Room 602, No. 110 Lize Road, Songling Town, Wujiang City, Jiangsu Province, 215200 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
08.08.2001 |
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Com. Reg. No.: |
320584000056595 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Importing and exporting various goods and technologies, trade agent. |
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No. of Employee : |
19 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – December 31, 2014
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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; (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.
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Source
: CIA |
Company name and address
WUJIANG
FOREIGN TRADE GROUP SUNWAY IMP. & EXP. CO., LTD.
ROOM 602, NO. 110
LIZE ROAD, SONGLING TOWN, WUJIANG CITY,
JIANGSU PROVINCE,
215200 PR CHINA
TEL: 86 (0)
512-63415185 FAX: 86 (0) 512-63421662
EXECUTIVE
SUMMARY
INCORPORATION DATE : AUG. 8, 2001
REGISTRATION NO. : 320584000056595
REGISTERED LEGAL
FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE : MR. ZHANG JIANGUO (CHAIRMAN)
STAFF STRENGTH : 19
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE : TRADE
AGENT
TURNOVER : CNY
192,120,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 7,010,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION
: FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.2013=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
Ren Min Bi
Note: SC is also
known as Shineway Lighting Material Co., Ltd. and the was SC’s former operation
address.
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 Aug. 8, 2001.
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 importing and exporting various goods and technologies,
trade agent.
SC is mainly
engaged in trade agent.
Mr. Zhang Jianguo
is legal representative, chairman and general manager of SC at present.
SC is known to
have approx. 19 employees at present.
SC is currently operating
at the above stated address, and this address houses its operating office in
the commercial zone of Wujiang. Detailed premise information is unspecified.
www.lampmaterial.com The design is
professional and the content is well organized. At present it is in English
version.
E-Mail: 835936121@qq.com, sales@lampmaterial.com
No significant
changes or events were found during our checks with local AIC.
Organization Code:
730714734
For the past two
years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of shareholdings
Labor Union of Wujiang Foreign Trade Group Sunway Imp. & Exp. Co.,
Ltd. 51.2
Zhang Jianguo 20
Chen Guojun 2
Zhang Jianmin 8.8
Yan Jianqiang 18
Legal
Representative, Chairman and General Manager:
Mr. Zhang Jianguo
is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as chairman, legal representative
and general manager
Directors:
Liu Hongbo
Qu Quansheng
Zhang Jianmin
Supervisors:
Wu Jiandong
Wang Yiqin
Qian Guomin
SC is mainly
engaged in trade agent.
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 refused to release
its main suppliers and customers.
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 refused to
release its banking information.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2014 |
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Cash & bank |
43,060 |
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Inventory |
0 |
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Accounts
receivable |
104,770 |
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Subsidy
receivable |
5,090 |
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Other receivables |
790 |
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------------------ |
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Current assets |
153,710 |
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Fixed assets net
value |
150 |
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------------------ |
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Total assets |
153,860 |
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=========== |
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Short loan |
1,880 |
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Accounts payable |
96,700 |
|
47,960 |
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Other accounts
payable |
310 |
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Taxes payable |
0 |
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------------------ |
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Current
liabilities |
146,850 |
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Long term
liabilities |
0 |
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------------------ |
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Total liabilities |
146,850 |
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Equities |
7,010 |
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------------------ |
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Total liabilities
& equities |
153,860 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2014 |
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Turnover |
192,120 |
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Cost of goods
sold |
186,380 |
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Taxes and additional of main operation |
60 |
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Sales expense |
3,220 |
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Management expense |
1,370 |
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Finance expense |
150 |
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Profit before tax |
940 |
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Less: profit tax |
250 |
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Profits |
690 |
Important Ratios
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As of Dec. 31, 2014 |
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*Current ratio |
1.05 |
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*Quick ratio |
1.05 |
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*Liabilities to
assets |
0.95 |
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*Net profit
margin (%) |
0.36 |
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*Return on total
assets (%) |
0.45 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
199 days |
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*Turnover/Total
assets |
1.25 |
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* Cost of goods
sold/Turnover |
0.97 |
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 high, 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.
SC has no inventory
in 2014.
The accounts
receivable of SC is large in 2014.
SC’s short loans
are average.
SC’s turnover is in
an average level, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of
SC is high.
The risk for SC to
go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
SC is considered small-sized
in its line with fairly stable financial conditions. The large amount of
accounts receivable would be a threat to SC’s financial conditions. Taking into
consideration of SC’s general performance and operation size
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.69 |
|
|
1 |
Rs.99.73 |
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Euro |
1 |
Rs.71.90 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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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.