MIRA INFORM REPORT
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Report No. : |
344044 |
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Report Date : |
08.10.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI WESCCO
CHEMICAL CO., LTD. |
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Registered Office : |
No. 87, Lane 1296, Jin’gao Road, Pudong
New District, Shanghai, 201206 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
14.10.2004 |
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Com. Reg. No.: |
310107000425787 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in trading of various kinds of chemicals |
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No. of Employee : |
6 |
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 – 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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 also 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 and address
SHANGHAI WESCCO
CHEMICAL CO., LTD.
NO. 87, LANE 1296, JIN’GAO ROAD,
PUDONG NEW DISTRICT, SHANGHAI, 201206 PR
CHINA
TEL: 86 (0) 21-50933265 FAX: 86
(0) 21-50933268
EXECUTIVE
SUMMARY
INCORPORATION DATE : OCT. 14, 2004
REGISTRATION NO. : 310107000425787
REGISTERED LEGAL FORM : Limited Liabilities
Company
STAFF STRENGTH :
6
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
trading
TURNOVER :
n/a (AS OF DEC. 31, 2014)
EQUITIES :
cny 980,000 (AS OF DEC. 31, 2014)
PAYMENT :
SLOW
BUT CORRECT
MARKET CONDITION : average
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2049 = 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
SC was registered as a limited
liabilities company at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license).
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 import and export business of
goods and technology; chemical products (excluding dangerous chemicals,
controlled chemicals, fireworks, civil explosives, precursor chemicals),
mineral products (except special), glassware, textile raw materials and textile
products (except special), mechanical and electrical products, plastic and
plastic products, wood products, equipment, ceramic products, auto parts
(sales). [with permit if needed].
SC is mainly
engaged in trading of various kinds of chemicals.
Mr. Yang Yueming
is legal representative and executive director of SC at present.
SC is known to have approx. 6 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Shanghai. The detailed information of the premise is unspecified.
http://www.wescco.com The design is professional and the content is well organized. At present it is in both Chinese and English versions.
E-Mail: sales@wescco.com
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2009 |
Registered Legal
Form |
Limited Liabilities Company |
One-Person
Limited Liability Company |
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Chairman |
Shu Jinglin |
Yang Yizhi |
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Shareholders |
Shu Jinglin 55% Yang Yizhi 45% |
Yang Yizhi 100% |
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|
Unknown |
Registered Legal
Form |
One-Person
Limited Liability Company |
Limited Liabilities Company |
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Chairman |
Yang Yizhi |
Present one |
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Shareholders |
Yang Yizhi 100% |
Present ones |
Organization Code: 76793073X
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yang Yizhi 10
Yang Yueming 90
l Legal
Representative and Executive Director:
Mr. Yang Yueming is currently responsible for the overall and
daily management of SC.
Working Experience(s):
At present Working in SC as legal representative and
executive director.
Supervisor:
========
Yang Chunmei
SC is mainly
engaged in trading of various kinds of chemicals.
SC’s products
mainly include: Vinyltrimethoxysilane, Trichlorosilane, Tetrachlorosilane,
3-Chloropropyl Triethoxysilane, and Tetraethoxysilane-28.
SC sources its materials 70%
from domestic market, and 30% from overseas market, mainly Europe. SC sells 40%
of its products in domestic market, and 60% to overseas market, mainly American
and Europe.
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.
According to SC’s
website,
Shanghai Weihe Chemical Co., Ltd. (literal translation)
Registration No.: 310113000941463
Incorporation Date: 2011-12-22
Legal representative: Yang Yizhi
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.
China Merchants Bank Shanghai Branch Minsheng Sub-branch
AC#：096712-7081122610001
Relationship:
Normal.
Balance Sheet
|
Unit: CNY’000 |
as
of Dec. 31, 2014 |
as
of Dec. 31, 2013 |
|
Cash & bank |
1,470 |
170 |
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Inventory |
1,000 |
5,570 |
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Accounts
receivable |
5,250 |
0 |
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Advances to suppliers |
120 |
0 |
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Other Accounts
receivable |
130 |
190 |
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Other current
assets |
0 |
1,020 |
|
|
------------------ |
------------------ |
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Current assets |
7,970 |
6,950 |
|
Fixed assets net
value |
10 |
40 |
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Long term
investment |
0 |
0 |
|
Other assets |
0 |
10 |
|
|
------------------ |
------------------ |
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Total assets |
7,980 |
7,000 |
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|
============= |
============= |
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Short loans |
1,470 |
3,130 |
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Accounts payable |
0 |
560 |
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Other Accounts
payable |
1,000 |
2,370 |
|
Taxes payable |
-70 |
-20 |
|
Advances from
clients |
4,600 |
110 |
|
|
------------------ |
------------------ |
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Current
liabilities |
7,000 |
6,150 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
7,000 |
6,150 |
|
Equities |
980 |
850 |
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------------------ |
------------------ |
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Total
liabilities & equities |
7,980 |
7,000 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
as of Dec. 31,
2013 |
|
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Turnover |
16,197 |
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Cost of goods
sold |
14,201 |
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Taxes and additional of main operations |
11 |
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Sales expense |
1,139 |
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Management expense |
545 |
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Finance expense |
287 |
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Subsidy income |
13 |
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Non-operating
income |
0 |
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Non-operating expense |
18 |
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Profit before
tax |
9 |
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Less: profit tax |
5 |
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Profits |
4 |
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Note: We did not
find SC’s Income Statement for Yr2014.
Important
Ratios
=============
|
|
As
of Dec. 31, 2014 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.14 |
1.13 |
|
*Quick ratio |
1.00 |
0.22 |
|
*Liabilities
to assets |
0.88 |
0.88 |
|
*Net profit
margin (%) |
/ |
0.02 |
|
*Return on
total assets (%) |
/ |
0.06 |
|
*Inventory
/Turnover ×365 |
/ |
126 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
/ |
|
*Turnover/Total
assets |
/ |
2.31 |
|
* Cost of
goods sold/Turnover |
/ |
0.88 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears average in its line in 2013.
l SC’s net profit
margin is average in 2013.
l SC’s return on
total assets is average in 2013.
l
SC’s cost of goods sold is average in 2013,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is in a normal level in
both years.
l
SC’s quick ratio is maintained in a poor level in
2013, but normal in 2014.
l
The inventory of SC appears large in 2013, but
average in 2014.
l
SC has no accounts receivable in 2013, but SC’s
accounts receivable appears large in 2014.
l
SC’s short-term loan is large in both years.
l
SC’s turnover is in an average level in 2013,
comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high in both years.
l
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 short-term loan and accounts receivable could be
a threat to SC’s financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.26 |
|
UK Pound |
1 |
Rs.99.53 |
|
Euro |
1 |
Rs.73.47 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
VNT |
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 |
|
|
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 |
|
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
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.