MIRA
INFORM REPORT
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Report No. : |
345817 |
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Report Date : |
23.10.2015 |
IDENTIFICATION DETAILS
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Name : |
WENZHOU JINSHENG FASTENER CO., LTD. |
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Registered Office : |
No. 69, Xingguo Road, Wenzhou Foreign Comprehensive Agricultural Development Zone, Wenzhou City, Zhejiang Province, 325013 Pr |
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Country : |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
10.06.1991 |
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Com. Reg. No.: |
330303000039200 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is engaged in general management project: manufacturing and
selling fasteners, pen products; processing wiredrawing and electroplating (limited
only by branches); import and export of goods and technology. |
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No. of Employees : |
50 |
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 JINSHENG FASTENER CO., LTD.
NO. 69, XINGGUO ROAD, WENZHOU FOREIGN COMPREHENSIVE AGRICULTURAL
DEVELOPMENT ZONE, WENZHOU CITY, ZHEJIANG PROVINCE, 325013 PR CHINA
TEL: 86
(0) 577-86352209/86582268 FAX:
86 (0) 577-86356103
EXECUTIVE SUMMARY
INCORPORATION DATE :
JNUE 10, 1991
REGISTRATION NO. :
330303000039200
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. YUAN GUOXIONG (LEGAL REPRESENTATIVE)
STAFF STRENGTH : 50
REGISTERED CAPITAL :
CNY 19,500,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER : CNY 49,950,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 26,650,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.3455=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: the “
SC was registered as a Limited
liabilities co. 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 general management
project: manufacturing and selling fasteners, pen products; processing
wiredrawing and electroplating (limited only by branches); import and export of
goods and technology.
SC is mainly engaged in manufacturing and selling fasteners.
Mr. Yuan Guoxiong has been the legal representative and executive
director of SC since 1999.
SC is known to have approx. 50 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the development zone of Wenzhou.
Detailed premise information is not available at present.
www.wzjinsheng.com
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
E-mail: jsjgj@wzjinsheng.com
Changes
of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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1993-05-24 |
Legal Rep. |
Zhou Qin |
Yuan Guorong |
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Company Name |
Wenzhou Longwan Knitting Wool Factory (Literal Translation) |
Wenzhou Longwan Steel Processing Plant
(Literal Translation) |
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1999-08-13 |
Company Name |
Wenzhou Longwan Steel Processing Plant
(Literal Translation) |
Present one |
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Legal Rep. |
Yuan Guorong |
Present one |
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2009-08-10 |
Registration No. |
3303032000467 |
Present one |
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2009-11-17 |
Registered Capital |
CNY 1,500,000 |
Present amount |
Organization Code: 145235791
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of
shareholdings
Yuan Guoxiong 50
Zhang Yunhua 50
Legal Representative, Executive Director and General Manager:
Mr. Yuan Guoxiong is currently
responsible for the overall and daily management of SC.
Working Experience(s):
From 1999 to present Working
in SC as legal representative and executive director.
From 2007 to present
Working in SC as general manager.
Also working in Wenzhou Jinsheng Fastener Co., Ltd. Wiredrawing Workshop
as principal.
Supervisor:
Zhang Yunhua
SC is mainly engaged in manufacturing and selling fasteners.
SC’s products mainly include: nylon insert lock nuts, cap nuts, flange
nuts, weld nuts, hex nuts, fittings according to DIN, ANSI, GB, JIS, BS standard
and other non-standard fasteners.
SC sources its materials 100% from domestic market. SC sells 80% of its
products in domestic market, and 20% to overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include Check, L/C, T/T, L/C and Credit of 30-60 days.
Note: SC declined
to release its major suppliers and clients.
SC is known to
invest in the following company:
Wenzhou Longwan Ansheng Electroplate Factory (General Partnership)
(Literal Translation)
=================================
Incorporation Date: 2011-11-15
Registered No.: 330303000087705
Branch:
Wenzhou Jinsheng Fastener Co., Ltd. Wiredrawing Workshop
===================================
Incorporation date: 2001-11-19
Registration no.: 330303000063616
Principal: Yuan Guoxiong
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 management declined to release its bank
details.
Balance
Sheet
Unit: CNY’000
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As of Dec. 31,
2014 |
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Cash & bank |
4,410 |
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Inventory |
360 |
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Accounts receivable |
16,710 |
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Advances to suppliers |
1,850 |
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Other accounts receivable |
3,330 |
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Notes receivable |
270 |
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------------------ |
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Current assets |
26,930 |
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Fixed assets net value |
18,220 |
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Long-term deferred expense |
460 |
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Long term investment |
0 |
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Intangible and other assets |
2,450 |
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------------------ |
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Total assets |
48,060 |
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============= |
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Short loans |
4,000 |
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Accounts payable |
310 |
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Advances from clients |
3,620 |
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Taxes payable |
180 |
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Other accounts payable |
2,450 |
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Notes payable |
10,850 |
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------------------ |
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Current liabilities |
21,410 |
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Long-term liabilities |
0 |
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Total liabilities |
21,410 |
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Equities |
26,650 |
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Total liabilities & equities |
48,060 |
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Income
Statement
Unit: CNY’000
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As of Dec. 31, 2014 |
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Turnover |
49,950 |
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Cost of goods sold |
45,160 |
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Taxes and additional of main operation |
140 |
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Sales expense |
600 |
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Management expense |
2,580 |
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Finance expense |
250 |
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Investment income |
0 |
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Subsidy income |
0 |
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Non-operating income |
10 |
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Non-operating expenses |
0 |
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Profit before tax |
1,230 |
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Less: profit tax |
0 |
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Profits |
1,230 |
Important
Ratios
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As of Dec. 31,
2014 |
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*Current ratio |
1.26 |
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*Quick ratio |
1.24 |
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*Liabilities to assets |
0.45 |
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*Net profit margin (%) |
2.46 |
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*Return on total assets (%) |
2.56 |
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*Inventory /Turnover ×365 |
3 days |
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*Accounts receivable/Turnover ×365 |
123 days |
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*Turnover/Total assets |
1.04 |
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* Cost of goods sold/Turnover |
0.90 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line.
SC’s net profit margin appears average.
SC’s return on total assets appears average.
SC’s cost of goods sold is average, 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.
The inventory of SC appears small.
The accounts receivable of SC appears fairly large.
The short-term loan of SC appears average.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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 small-sized in its line with fairly stable financial conditions.
The fairly large amount of accounts receivable could be a threat to SC’s
financial condition. After our research and based on the information obtained.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
Rs.65.15 |
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|
1 |
Rs.100.54 |
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Euro |
1 |
Rs.73.97 |
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.