MIRA INFORM REPORT
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Report No. : |
343187 |
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Report Date : |
09.10.2015 |
IDENTIFICATION DETAILS
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Name : |
TAIZHOU WINSTRONG IMPORT AND EXPORT TRADE CO., LTD. |
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Registered Office : |
Room 323, Building 5, Yangguang Xincheng, Nantong Road,
Taizhou City, Jiangsu Province,
225300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
11.08.2008 |
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Com. Reg. No.: |
321202000050525 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is mainly engaged in trading of goods, products mainly
include: gloves, safety shoe and raincoat. |
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No. of Employees : |
5 |
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 : |
Small Company |
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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
TAIZHOU
WINSTRONG IMPORT AND EXPORT TRADE CO., LTD.
ROOM 323, BUILDING
5, Yangguang Xincheng, Nantong Road,
Taizhou City,
Jiangsu PROVINCE, 225300 PR CHINA
TEL: 86 (0) 523-86331072/13901431072 FAX: 86 (0) 523-86666567
EXECUTIVE
SUMMARY
INCORPORATION DATE : AUG. 11, 2008
REGISTRATION NO. : 321202000050525
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 5
REGISTERED CAPITAL :
CNY 1,000,000
BUSINESS LINE :
TRADING
TURNOVER : CNY 14,200,000
(AS OF DEC. 31, 2014)
EQUITIES : CNY 1,910,000 (AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.35 = 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 Aug. 11, 2008.
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 of goods and
technology; wholesale and retail of daily necessities, string, nets and belt
(if needed with permit)
SC is mainly engaged in trading of goods.
Mr. Zhou Shengqun
is legal representative, executive director and general manager of SC at
present.
SC is known to
have approx. 5 employees at
present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Taizhou. Detailed premise
information is not available at present.
SC is not known to host website of its own at present.
For the past two years there is no record of
litigation.
No significant changes
were found during our checks with the local Administration for Industry and
Commerce.
Organization Code:
678977149
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Zhou Shengqun 70
Cao Chunxiang 30
l Legal
Representative, executive director and general manager:
Mr. Zhou Shengqun is currently responsible
for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative, executive director and general manager.
l
Supervisor:
Cao Chunxiang
Also working in Taizhou
Winstrong Special Net Co., Ltd. as legal representative.
SC is mainly engaged in trading of goods.
SC’s products mainly
include: gloves, safety shoe and raincoat, etc.
SC sources its materials 100% from domestic
market. SC sells 90% of its products to overseas market and 10% of its products
in domestic market.
The buying terms of SC include Check, T/T 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 declined to release its major
suppliers and clients.
Trademark & Patents
N/A
Taizhou
Winstrong Special Net Co., Ltd.
===============================
Registration no.: 321200400006693
Incorporated date: 2005-12-13
Legal representative: Cao Chunxiang
Website:
http://www.chinafishingnet.com/main.asp
Email:
china-fishingnet@163.com
; sales@chinafishingnet.com
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 accountant
refused to release the bank details.
Balance
Sheet
Unit:
CNY’000
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As of Dec. 31, 2014 |
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Cash & bank |
2,180 |
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Inventory |
50 |
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Accounts receivable |
950 |
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Advances to suppliers |
0 |
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Other receivables |
60 |
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Other current assets |
0 |
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------------------ |
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Current assets |
3,240 |
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Fixed assets net value |
210 |
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Long term investment |
0 |
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Projects under construction |
0 |
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Intangible and other assets |
0 |
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------------------ |
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Total assets |
3,450 |
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=========== |
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Short loan |
0 |
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Accounts payable |
610 |
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Advances from clients |
0 |
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Accrued payroll |
0 |
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Taxes payable |
0 |
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Other accounts payable |
930 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
1,540 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
1,540 |
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Equities |
1,910 |
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------------------ |
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Total liabilities & equities |
3,450 |
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=========== |
Income
Statement
Unit:
CNY’000
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As of Dec. 31, 2014 |
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Turnover |
14,200 |
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Cost of goods sold |
12,360 |
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Taxes and additional of main operation |
0 |
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Sales expense |
640 |
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Management expense |
1,070 |
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Finance expense |
110 |
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Non-operating income |
0 |
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Non-operating
expense |
0 |
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Profit before tax |
20 |
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Less: profit tax |
0 |
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Profits |
20 |
Important
Ratios
=============
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As of Dec. 31, 2014 |
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*Current ratio |
2.10 |
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*Quick ratio |
2.07 |
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*Liabilities to assets |
0.45 |
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*Net profit margin (%) |
0.14 |
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*Return on total assets (%) |
0.58 |
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*Inventory /Turnover ×365 |
1 day |
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*Accounts receivable/Turnover ×365 |
24 days |
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*Turnover/Total assets |
4.12 |
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* Cost of goods sold/Turnover |
0.87 |
PROFITABILITY:
AVERAGE
l The turnover of SC appears average in its
line in 2014.
l SC’s net profit
margin is average in 2014.
l SC’s return on
total assets is average in 2014.
l SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l The current ratio of SC is maintained in a
fairly good level in 2014.
l SC’s quick ratio is maintained in a fairly
good level in 2014.
l The inventory of SC appears small in 2014.
l SC’s accounts receivable appears average in 2014.
l SC has no short loans in 2014.
l SC’s turnover is in a fairly good level in
2014, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low in 2014.
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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.16 |
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|
1 |
Rs.99.78 |
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Euro |
1 |
Rs.73.33 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
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.