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MIRA INFORM REPORT
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Report No. : |
486595 |
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Report Date : |
19.01.2018 |
IDENTIFICATION DETAILS
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Name : |
WUYANG TEXTILE
MACHINERY CO., LTD. |
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Registered Office : |
No. 3 Longyue Road, South Area of Wujin Hi-Tech Development Zone,
Changzhou, Jiangsu Province 213164 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
25.09.1996 |
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Unified social credit code : |
91320412K120550129 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing
textile machinery, pharmaceutical machinery, plastic mesh, home textiles, clothing,
footwear; weaving cotton cloth; selling metal materials, hardware, transport
equipment, household appliances, and textiles; selling the above products
through the electronic commerce; importing and exporting various kinds of
commodities and technology. |
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No. of Employees : |
310 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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China |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state-support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, 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 liberalization. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi (RMB) after the currency was accepted as part of the IMF’s special drawing rights basket. After engaging in one-way, large-scale intervention to resist appreciation of the RMB for a decade, China’s 2016 intervention in foreign exchange markets has sought to prevent a rapid RMB depreciation that would have negative consequences for the United States, China, and the global economy.
China’s economic growth has slowed since 2011. The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) servicing its high corporate debt burdens to maintain financial stability; (c) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (d) dampening speculative investment in the real estate sector; (e) reducing industrial overcapacity; and (f) raising productivity growth rates through the more efficient allocation of capital. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. Under President XI Jinping, Beijing has signaled its understanding that China's long-term economic health depends on giving the market a more decisive role in allocating resources, but has moved slowly on market-oriented reforms because of potential negative consequences for stability and short-term economic growth. He has also increased state-control over key sectors and Party control over state-owned enterprises. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time.
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Source
: CIA |
Company
name and address
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COMPANY
NAME |
Wuyang
Textile Machinery Co., Ltd. |
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CURRENT
ADDRESS |
No. 3 Longyue
Road, South Area Of Wujin Hi-Tech Development Zone, Changzhou, Jiangsu
Province 213164 PR China |
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REGISTERED
ADDRESS |
(No. 6
Xinzhi Road, Nanxiashu Street, Wujin District) No. 3 Longyue Road, South Area
Of Wujin Hi-Tech Development Zone, Changzhou, Jiangsu Province 213164 PR
China |
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TEL. NO. |
86 (0)
519-86537838/86533988/86525322 |
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FAX NO. |
86 (0)
519-86537838 |
EXECUTIVE
SUMMARY
Date of
Registration : september
25, 1996
Unified
social credit code :
91320412K120550129
LEGAL FORM : Limited Liabilities
Company
CHIEF
EXECUTIVE : wang minqi
(LEGAL REPRESENTATIVE)
REGISTERED
CAPITAL : CNY 50,000,000
staff : 310
BUSINESS
CATEGORY : MANUFACTURING & TRADING
Revenue : CNY
125,690,000 (AS OF DEC. 31, 2016)
EQUITIES : CNY
119,370,000 (AS OF DEC. 31, 2016)
WEBSITE : www.wytex.com
E-MAIL : wmq@wytex.com
PAYMENT : AVERAGE
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : fairly stable
OPERATIONAL
TREND : FAIRLY STEADY
GENERAL
REPUTATION : AVERAGE
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 Unified Social Credit Code:
91320412K120550129.
SC’s
Import and Export Enterprise Code: 3200K12055012
SC’s
registered capital: CNY 50,000,000
Registration
Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2016-5-31 |
Company
Name |
Changzhou
Wujin Wuyang Textile Machinery Co., Ltd. |
Wuyang
Textile Machinery Co., Ltd |
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Registered
Capital/ Unified
Social Credit Code |
320483000039141 |
91320412K120550129 |
|
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Registered
Capital |
CNY
12,000,000 |
CNY 50,000,000 |
|
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% of
Shareholding |
Zhang
Ying 19.83% Wang
Minqi 80.17% |
Zhang
Ying 20% Wang
Minqi 80% |
Current Co
search indicates SC’s shareholders & chief executives are as follows:-
|
Name of
Shareholder (s) |
% of
Shareholding |
|
Zhang
Ying |
20 |
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Wang
Minqi |
80 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman and General Manager |
Wang
Minqi 王敏其 |
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Supervisor |
Zhang
Ying 张英 |
RECENT
DEVELOPMENT
No recent
development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Zhang Ying 20
Wang Minqi 80
MANAGEMENT
Wang Minqi
, Legal Representative, Chairman and General Manager
----------------------------------------------------------------------------------------------------
Gender: M
Nationality:
China
Age: 56
ID#
320421196208250910
Qualification:
University
Working
experience (s):
At
present, working in SC as legal representative, chairman and general manager
Supervisor
--------------
Zhang Ying
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing textile machinery, pharmaceutical
machinery, plastic mesh, home textiles, clothing, footwear; weaving cotton
cloth; selling metal materials, hardware, transport equipment, household
appliances, and textiles; selling the above products through the electronic
commerce; importing and exporting various kinds of commodities and technology.
SC is
mainly engaged in manufacturing and selling textile machinery.
Brand:
WYPJ
SC’s
products mainly include: jacquard warp knitting machine, double needle bar warp
knitting machine.
SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly U.S.A., Europe, Mid East, Southeast Asia, etc.
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.
*Major Customers*
-----------------------
Grupo
Textil Providencia SA
Embolpack
Emp Boliviana De Empaque
NOVOX,
S.A. DE C.V.
Staff
& Office:
--------------------------
SC is
known to have approx. 310 staff at present.
SC owns an
area as its operating office and factory, but the detailed information is
unknown.
RELATED
COMPANY
SC is
known to have 2 subsidiaries at present:
Changzhou
Hehuafu Venture Capital Co., Ltd.
Shenzhen
Lihe Angel Equity Investment Fund Partnerships
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:
Agricultural
Bank of China Wujin Sub-branch
AC#:
336608101040000079
FINANCIALS
Financial Summary
|
Unit:
CNY’000 |
As of
Dec. 31, 2013 |
As of
Dec. 31, 2014 |
As of
Dec. 31, 2015 |
As of
Dec. 31, 2016 |
|
Total
assets |
189,194 |
203,925 |
231,380 |
266,730 |
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Total
liabilities |
79,985 |
91,534 |
117,070 |
147,360 |
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Equities |
109,209 |
112,391 |
114,310 |
119,370 |
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------------- |
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------------- |
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Revenue |
200,722 |
115,515 |
119,782 |
125,690 |
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Profit
before tax |
26,314 |
3,904 |
2,330 |
5,760 |
|
Less:
profit tax |
3,497 |
969 |
350 |
320 |
|
Profits |
22,817 |
2,935 |
1,980 |
5,440 |
Important
Ratios
=============
|
|
As of
Dec. 31, 2013 |
As of Dec.
31, 2014 |
As of
Dec. 31, 2015 |
As of
Dec. 31, 2016 |
|
*Liabilities
to assets |
0.42 |
0.45 |
0.51 |
0.55 |
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*Net
profit margin (%) |
11.37 |
2.54 |
1.65 |
4.33 |
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*Return
on total assets (%) |
12.06 |
1.44 |
0.86 |
2.04 |
|
*Revenue/Total
assets |
1.06 |
0.57 |
0.52 |
0.47 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The
revenue of SC appears fairly good 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 a fair 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 average.
Overall
financial condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered
medium-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.84 |
|
|
1 |
INR 88.28 |
|
Euro |
1 |
INR 77.88 |
|
CNY |
1 |
INR 9.96 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
DNS |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.