MIRA INFORM REPORT
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Report No. : |
345120 |
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Report Date : |
17.10.2015 |
IDENTIFICATION DETAILS
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Name : |
WUXI RUIDONG INTERNATIONAL
CORPORATION |
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Registered Office : |
Room 1006, 1007, 1008, 10/F
Science & Technology Building No. 168 Xueqian Street, Wuxi, Jiangsu
Province 214001 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
07.04.1998 |
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Com. Reg. No.: |
320200000110982 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
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No. of Employee : |
14 |
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
|
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.
|
Source
: CIA |
Company
name and address
WUXI RUIDONG INTERNATIONAL CORPORATION
ROOM 1006, 1007, 1008, 10/F
SCIENCE & TECHNOLOGY BUILDING NO. 168 XUEQIAN STREET, WUXI, JIANGSU
PROVINCE 214001 PR CHINA
TEL: 86 (0) 510-82736554
FAX: 86 (0) 510-82714294
EXECUTIVE
SUMMARY
Date of Registration : april 7, 1998
REGISTRATION NO. : 320200000110982
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE :
gong jian (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 5,216,000
staff :
14
BUSINESS CATEGORY : TRADING
Revenue :
CNY 61,930,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 9,225,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND : Ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.33 = USD 1
Adopted abbreviations
(as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL
TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL
STATUS & HISTORY
SC was established as a limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 320200000110982 on April 7, 1998.
SC’s Organization Code Certificate No.:
25051173-5
SC’s registered capital: CNY 5,216,000
SC’s paid-in capital: CNY 5,216,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Gong Jian |
20 |
|
Ma Liping |
20 |
|
Liu Wei |
7 |
|
Shao Qiang |
17 |
|
Wang Yiyi |
7 |
|
Wu Dongbiao |
11 |
|
Xu Yongying |
11 |
|
Yang Shuping |
7 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Gong Jian |
|
Director |
Shao Qiang |
|
Yang Shuping |
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Supervisor |
Wu Dongbiao |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Gong Jian 20
Ma Liping 20
Liu Wei 7
Shao Qiang 17
Wang Yiyi 7
Wu Dongbiao 11
Xu Yongying 11
Yang Shuping 7
MANAGEMENT
Gong Jian, Legal Representative, Chairman
and General Manager
------------------------------------------------------------------------------------------------
Gender: M
ID# 32020419630217163X
Age: 52
Qualification: University
Working experience
(s):
At present, working in SC as legal representative, chairman and general
manager
Director
------------
Shao Qiang ID# 320502196504110556
Yang Shuping ID# 320211196510102229
Supervisor
--------------
Wu Dongbiao
ID# 320202197004041011
BUSINESS
OPERATION
SC’s registered business scope includes selling machinery and equipment, parts, textiles, garments, art crafts
(excluding gold and silver), chemical products, building materials, and
electronic products; importing and exporting
commodities and technology, excluding the goods forbidden to exported by
the government.
SC is mainly engaged in international trade.
SC’s products mainly include: automotive parts, textiles & chemical products.
SC sources its products 100% from domestic market. SC sells 20% of its products in domestic market, and 80% to overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Staff &
Office:
--------------------------
SC is known to have approx. 14
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank
Bank of China Wuxi Branch
AC#: 01051730304508091001
Industrial & Commercial Bank of China
AC#: 201-6001-08
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
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Total assets |
26,130 |
25,435 |
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------------- |
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Total liabilities |
16,620 |
15,510 |
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Equities |
9,510 |
9,225 |
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------------- |
------------- |
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Revenue |
64,440 |
61,930 |
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Profit before tax |
270 |
899 |
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Less: profit tax |
100 |
167 |
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Profits |
170 |
732 |
Important Ratios
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As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
*Liabilities to assets |
0.64 |
0.61 |
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*Net profit margin (%) |
0.26 |
1.18 |
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*Return on total assets (%) |
0.65 |
2.88 |
|
*Revenue / Total assets |
2.47 |
2.43 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
LIQUIDITY: AVERAGE
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.11 |
|
|
1 |
Rs.99.50 |
|
Euro |
1 |
Rs.74.24 |
INFORMATION DETAILS
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Analysis Done by
: |
HEE |
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Report Prepared
by : |
SDA |
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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.