MIRA INFORM REPORT
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Report No. : |
343900 |
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Report Date : |
13.10.2015 |
IDENTIFICATION DETAILS
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Name : |
WENZHOU CHAOLONG
TEXTILE MACHINERY CO., LTD |
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Registered Office : |
No. 62, Qinfeng Road, Xianyan Industrial Park, Ouhai District, Wenzhou City, Zhejiang Province,
325000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
03.04.1992 |
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Com. Reg. No.: |
330304000019491 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing, processing, selling textile machinery, non-woven
fabric; importing and exporting goods, technology. |
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No. of Employees : |
151 |
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 : |
No Complaints |
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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 & address
WENZHOU CHAOLONG TEXTILE
MACHINERY CO., LTD
no. 62, qinfeng road, xianyan industrial park,
ouhai district,
wenzhou city, ZHEJIANG province, 325000 PR
CHINA
TEL: 86 (0) 577-86369779/86726226 FAX: 86 (0) 577-86764899
EXECUTIVE
SUMMARY
INCORPORATION DATE :
APRIL 3, 1992
REGISTRATION NO. :
330304000019491
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : MR. CHEN LIDONG (LEGAL REPRESENTATIVE)
STAFF STRENGTH :
151
REGISTERED CAPITAL : CNY 76,680,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 130,610,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 116,770,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.3255 = 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 Shares
jointly owned enterprise at local Administration for Industry &
Commerce (AIC - The official body of issuing and renewing business license) on
April 3, 1992 and has been under present ownership since December 28, 2010.
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, processing,
selling textile machinery, non-woven fabric; importing
and exporting goods, technology.
SC is mainly engaged in manufacturing & selling textile machinery
equipment.
Mr. Chen Lidong has been legal representative of SC since June 29, 2015.
SC is known to have approx. 151 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 Wenzhou city.
The detailed information of the premise is unspecified.
http://www.clmachine.com.cn/
The design is professional and the content is well organized, and now it is in
Chinese and English versions.
Email: cl@clnonwoven.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
1992-9-29 |
Registered capital |
CNY 50,000 |
CNY 300,000 |
|
Company name |
Ouhai Wutian Textile Machinery Factory (literal translation) |
Wenzhou Ouhai Second Light Industrial Machinery Factory |
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|
2005-6-3 |
Registered capital |
CNY 300,000 |
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|
2008-7-23 |
Registered capital |
CNY 10,000,000 |
CNY 50,000,000 |
|
2008-7-24 |
Registration number |
3303041007090 |
Present one |
|
2010-12-28 |
Legal form |
Present one |
|
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Company name |
Wenzhou Ouhai Second Light Industrial Machinery Factory |
Present one |
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|
2011-8-17 |
Registered capital |
CNY 50,000,000 |
CNY 66,680,000 |
|
Shareholders & % of shareholding |
Chen Lidong 40% Chen Lianzhong 60% |
Present ones |
|
|
2015-6-29 |
Registered capital |
CNY 66,680,000 |
Present amount |
|
Legal representative |
Chen Lianzhong |
Organization code: 145283363
There is no litigation record of SC for the past two years.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xu Keqin 25
Chen Lianzhong 37.5
Chen Lidong 37.5
Legal
Representative, executive director and general manager:
Mr. Chen Lidong is currently responsible for the overall and daily
management of SC.
Working Experience(s):
From 2015 to present Working in
SC as legal representative, executive director and general manager.
Also working in Shanghai Kingfo Industrial Co., Ltd. as legal
representative and executive director, and working in
Wenzhou C.L Import and Export Co., Ltd. as legal
representative, executive director and general manager, etc.
Supervisor:
Chen Lianzhong
SC is mainly engaged in manufacturing & selling textile machinery
equipment.
SC sources its materials from domestic market and overseas market. SC sells
its products in domestic market and 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 refused to release its major clients and suppliers.
Trademark:
|
Trademark |
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Registration
No. |
4472309 |
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Registration
Date |
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Wenzhou C.L Import and Export Co., Ltd.
================================
Registration number: 330304000069280
Legal representative: Chen Lidong
Incorporation date:
Tel: 86 (0) 577-86763780
E-mail: 328730483@qq.com
Wenzhou Yonghong Chemical Fiber Fabric Co., Ltd.
======================================
Registration number: 330304000070778
Legal representative: Zhang Jianguo
Incorporation date:
Tel: 86 (0) 577-86089958
SC is known to invest in the following company:
Shanghai Kingfo Industrial Co., Ltd.
==========================
Registration number: 310228001327458
Legal representative: Chen Lidong
Incorporation date:
Tel: 86 (0) 21-37910988
E-mail: enor-00@163.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.
N/A
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
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Cash & bank |
1,410 |
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Inventory |
3,200 |
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Notes receivable |
2,100 |
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Accounts receivable |
63,970 |
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Advanced to suppliers |
13,830 |
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|
------------------ |
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Current assets |
84,510 |
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Fixed assets net value |
26,330 |
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Long-term prepaid assets |
220 |
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Long term investment |
92,690 |
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Total intangible and other assets |
3,900 |
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------------------ |
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Total assets |
207,650 |
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|
=========== |
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Short loans |
0 |
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Accounts payable |
12,310 |
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Accounts advanced from customers |
42,550 |
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Taxes payable |
3,790 |
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Other accounts payable |
32,230 |
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------------------ |
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Current liabilities |
90,880 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
90,880 |
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Equities |
116,770 |
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------------------ |
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Total liabilities & equities |
207,650 |
Income Statement
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Unit: CNY’000 |
As of Dec. 31, 2014 |
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Turnover |
130,610 |
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Cost of goods sold |
|
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Taxes and additional of
main operation |
690 |
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Sales expense |
10,830 |
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Management expense |
11,550 |
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Finance expense |
540 |
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Non-operating income |
460 |
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Profit before tax |
4,290 |
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Less: profit tax |
700 |
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Profits |
3,590 |
Important Ratios
|
|
As of Dec. 31, 2014 |
|
*Current ratio |
0.93 |
|
*Quick ratio |
0.89 |
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*Liabilities to assets |
0.44 |
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*Net profit margin (%) |
2.75 |
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*Return on total assets (%) |
1.73 |
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*Inventory /Turnover ×365 |
9 days |
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*Accounts receivable/Turnover ×365 |
179 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.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is in an average level.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears small.
SC’s accounts receivable is large.
SC has no short term loan in 2014.
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: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable could be a threat to its financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.73 |
|
|
1 |
Rs.99.30 |
|
Euro |
1 |
Rs.73.60 |
INFORMATION DETAILS
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Analysis Done by
: |
TRI |
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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 |
|
|
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 |
|
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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.