MIRA
INFORM REPORT
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Report Date : |
17.11.2006 |
IDENTIFICATION
DETAILS
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Name : |
WUXI SEAMLESS STEEL TUBE CO., LTD. |
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Registered Office : |
No. 124 Tangnan Road, Nanchang District, Wuxi, Jiangsu Province, 214026 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
22.02.1995 |
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Com. Reg. No.: |
003085 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing
and selling alloy-steel tube. |
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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Maximum Credit Limit : |
Up To usd 600,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
WUXI SEAMLESS STEEL TUBE CO., LTD.
address
NO. 124 TANGNAN ROAD, NANCHANG DISTRICT, WUXI,
JIANGSU PROVINCE, 214026 PR CHINA
TEL: 86 (0) 512-85729105
FAX: 86 (0) 512-85756009
EXECUTIVE SUMMARY
INCORPORATION DATE :
FEB. 22, 1995
REGISTRATION NO. :
003085
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
206
REGISTERED CAPITAL :
USD 20,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 289,930,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 135,210,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO usd 600,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.90 = US$1 AS OF 2006-11-16
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
SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Feb. 22, 1995.
Company Status: Chinese-foreign equity joint
venture enterprise This form of
business in PR China is defined as a legal person. It is a limited co.
jointly invested by one or more foreign companies and one or more PR China
controlled companies within the territories of PR China according to a
certain proportion of capital investment. The investing parties exercise
business management, share profits and bear all risks and liabilities of
the co. together. The equity joint venture law requires that foreign party
contribute not less than 25% of the registered capital, with no maximum.
The joint venture usually have a limited duration of 10 to 50 years.
Enterprise with large investment, long construction periods, low investment
returns, introducing of advanced technology & advanced technology
products which have good competition position in international market may
extend beyond the 50 years limit.
SC’s registered business scope
includes manufacturing and selling alloy-steel tube, processing and assembly
agreements, processing the imported materials and manufacturing consignment.
SC is mainly engaged in
manufacturing and selling alloy-steel tube.
Mr. Huang Damin has been chairman
of SC since 2004.
SC owns 206 staff.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Wuxi. Our checks reveal
that SC owns the total premise about 25,000 square meters.
http://www.wxxmls.com. The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
Quality
Management: SC has awarded the Certificate of ISO9002 and the Certificate of
Authority to use Monogram on OCTG according to API SPEC 5CT by American
Petroleum Institute.
MAIN SHAREHOLDERS
Name %
of Shareholding
Wuxi Steel Factory 50
Jianbang Industry Co., Ltd. (Hong Kong) 50
l
Chairman:
Mr.
Huang Damin, in his 50’s with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 2004 to present Working
in SC as chairman.
l
General Manager
Mr. Xu
Hai, in his 30’s with university education. He is currently responsible for the
daily management of SC.
Working Experience(s):
From 2004 to present
Working in SC as general
manager.
SC is mainly engaged in
manufacturing and selling alloy-steel tube.
SC’s product range:
The product is hot rolling
seamless steel tube and pipe. Outside diameter: from 25-177.80mm, wall
thickness: from 2.5-20mm. Including: Tubing and Casing, Drill pipe, Line pipe,
Boiler tube, Tube for Structure, Tube for Conveyance of Fluid, Tube for
Bearing.
SC’s annual output can reach 220,000
tons.
SC sources its materials 100%
from domestic market. SC sells 70% of its products in domestic market, and 30%
to the overseas market, mainly to Japan and Europe.
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 Client:
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Xi’an Changqing Tianhe Co., Ltd.
*Major Supplier:
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Jiangyin Xincheng Steel Group Co., Ltd.
SC is
not known to have any subsidiary at present.
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.
Bank of
China Wuxi Branch
AC# :
16929208093001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2005 |
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Cash & bank |
21,550 |
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Accounts payable advance |
10,150 |
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Accounts receivable |
2,790 |
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Inventory |
29,320 |
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Other accounts receivable |
-7,290 |
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Expenses to be apportioned |
0 |
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Other current assets |
1,410 |
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Current assets |
57,930 |
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Fixed assets |
168,750 |
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Long term investment |
0 |
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Projects under construction |
0 |
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Other assets |
0 |
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Total assets |
226,680 |
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Short loans |
47,500 |
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Accounts payable |
10,610 |
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Salary payable |
1,000 |
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Tax payable |
350 |
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Account receivable advance |
6,780 |
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Estimated liabilities |
0 |
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Other accounts payable |
22,830 |
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Drawing-expense in advance |
0 |
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Other current liabilities |
2,400 |
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Current liabilities |
91,470 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
91,470 |
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Equities |
135,210 |
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Total liabilities &
equities |
226,680 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
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Turnover |
289,930 |
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Cost of goods sold |
257,320 |
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Sales expense |
1,480 |
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Management expense |
20,930 |
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Finance expense |
3,560 |
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Profit before tax |
12,220 |
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Less: profit tax |
1,640 |
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Profits |
10,580 |
Important Ratios
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2005 |
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*Current ratio |
0.63 |
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*Quick ratio |
0.31 |
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*Liabilities
to assets |
0.40 |
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*Net profit
margin (%) |
3.65 |
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*Return on
total assets (%) |
4.67 |
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*Fixed
assets/Total assets |
0.74 |
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*Inventory
/Turnover ×365 |
37days |
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*Accounts
receivable/Turnover ×365 |
4days |
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*Turnover/Total
assets |
1.28 |
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* Cost of
goods sold/Turnover |
0.89 |
PROFITABILITY: FAIRLY GOOD
l
The
turnover of SC appears fairly good in its line.
l
SC’s
net profit margin is average.
l
SC’s
return on total assets is average.
l
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
l
The
current ratio of SC is maintained in a fair level.
l
SC’s
quick ratio is maintained in a fair level.
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The
inventory of SC is maintained in a normal level.
l
The
accounts receivable of SC is maintained in a normal level.
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The
accounts payable of SC appears fairly large.
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SC’s
turnover is in an acceptable level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
l
The
debt ratio of SC is average.
l
The
risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Stable.
SC is
considered medium-sized in its line with stable financial conditions. A credit
line up to USD 600,000 would appear to be within SC’s capacities.
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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