MIRA
INFORM REPORT
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Report Date : |
28.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
WUXI XINGYA
SEAMLESS STEEL TUBE CO., LTD. |
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Registered Office : |
No. 185, Rongdong Village, Yuqi Town, Wuxi City Jiangsu Province
214183 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
12.05.1998 |
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Com. Reg. No.: |
3202852101682 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in
manufacturing seamless 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 60,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
Company name & Address
WUXI XINGYA SEAMLESS
STEEL TUBE CO., LTD.
NO. 185, RONGDONG VILLAGE, YUQI TOWN, WUXI
CITY JIANGSU PROVINCE 214183 PR CHINA
TEL :
86 (0) 510-83587234
FAX :
86 (0) 510-83587234
EXECUTIVE SUMMARY
INCORPORATION
DATE : MAY 12, 1998
REGISTRATION
NO. : 3202852101682
REGISTERED
LEGAL FORM : limited liabilities company
STAFF
STRENGTH : 285
REGISTERED
CAPITAL : CNY 5,000,000
BUSINESS
LINE :
manufacturing
TURNOVER : cny 156,160,000
(AS OF DEC. 31, 2005)
EQUITIES : CNY 9,530,000 (AS OF DEC. 31, 2005)
PAYMENT
: AVERAGE
RECOMM.
CREDIT RANGE : up to USD 60,000
(PERIODICAL REVIEW)
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : FAIRLY STABLE
OPERATIONAL
TREND : steady
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 7.83 = US$1
AS OF 2006-11-30
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 limited liabilities company at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on May 12, 1998.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. 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 listed as follows: -manufacturing co. : CNY 500,000.00 -trading &wholesaling
co. : CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy & service
co. : CNY 100,000.00 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 50% of the registered capital while
contribution by intangible assets must not exceed 20% 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 and selling seamless steel tube, and flat hot rolled
bar; and importing and exporting commodities and technologies.
SC is mainly engaged in manufacturing
seamless steel tube.
Mr. Wei Panxing has been chairman of SC since 1998.
SC owns about 285 staff 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 Wuxi. Our checks reveal that SC rents the total premise
about 70,000 square meters.
http://www.xywfgg.com The design is
professional and the content is well organized. At present the web site is only
in Chinese version.
E-mail: sales@xywfgg.com
No significant
events or changes were found during our checks with the local Administration
for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Wei Panxing ID#320222490816397 5
Wei Yonggang
ID#320222750117395 90
Zhu Yaqin
ID#320222630823394 5
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Chairman:
Mr. Wei Panxing,
ID#320222490816397, 57 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From
1998 to present Working in SC as
chairman.
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General
Manager:
Mr. Wei Yonggang,
ID#320222750117395, 31 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From
1998 to present Working in SC as
general manager.
SC is mainly engaged in manufacturing
seamless steel tube.
SC’s products mainly include: seamless steel
tube, flat hot rolled bar, etc.
SC produces about 60,000 tons of seamless
steel tube annually.
SC sources its materials 100% from domestic
market, mainly Jiangsu province; SC sells its products 100% in domestic market,
mainly Jiangsu province and Shanghai.
The buying terms of SC include T/T and
Credit of 30-60 days. The payment terms of SC include T/T and Credit of 30-60
days.
*Major Supplier:
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Changzhou ZENITH
Group Co., Ltd.
Address: Yin Shu Village,
No. 312 Ave. Changzhou City, Jiangsu province
Tel : 0519-8771301
Fax : 0519-8772849
*Major Customer:
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Shanghai Haitai Steel Tube Group Co., Ltd.
Address: No. 3900, Yunchuan Road, Baoshan District, Shanghai
Tel : 021-56195619
Fax : 021-56195555
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.
Rural Commercial
Bank
AC#：20100105405
Relationship:
Normal.
Balance Sheet (as
of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
7,320 |
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Inventory |
2,800 |
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Accounts receivable |
170 |
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Other Accounts receivable |
20 |
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Accounts payable in advance |
2,100 |
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To be apportioned expense |
70 |
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Other current assets |
550 |
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Current assets |
13,030 |
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Fixed
assets |
19,620 |
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Fixed assets net value |
18,540 |
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Projects under construction |
1,080 |
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Long term investment |
0 |
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Other assets |
2,130 |
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Total assets |
34,780 |
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Short loans |
8,000 |
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Accounts payable |
4,880 |
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Accounts receivable in advance |
0 |
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Other Accounts payable |
4,880 |
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Salaries payable |
0 |
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Welfares payable |
180 |
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Taxes payable |
480 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
4,560 |
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Current liabilities |
22,980 |
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Long term liabilities |
2,270 |
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Other liabilities |
0 |
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Total liabilities |
25,250 |
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Equities |
9,530 |
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Total liabilities & equities |
34,780 |
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Income Statement (as of
Dec. 31, 2005)
Unit: CNY’000
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Turnover |
156,160 |
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Cost of goods sold |
149,500 |
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Sales expense |
140 |
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Management expense |
3,160 |
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Finance expense |
290 |
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Non-operating income |
1,660 |
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Profit before tax |
4,730 |
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Less: profit tax |
1,560 |
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Profits |
3,170 |
Important
Ratios (as of Dec. 31, 2005)
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*Current ratio 0.57
*Quick ratio 0.45
*Liabilities to
assets 0.73
*Net profit
margin (%) 2.03
*Return on total
assets (%) 9.11
*Inventory
/Turnover ×365 7 days
*Accounts
receivable/Turnover ×365 1 day
*Turnover/Total
assets 4.49
*Cost of goods
sold/Turnover 0.96
PROFITABILITY: AVERAGE
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The turnover of
SC appears fairly good in its line.
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SC’s net
profit margin is average.
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SC’s return on
total assets is average.
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SC’s cost of
goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
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The current
ratio of SC is maintained in a fair level.
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SC’s quick
ratio is maintained in a fair level.
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The inventory
of SC is maintained in a normal level.
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The accounts
receivable of SC is maintained in an acceptable level.
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The short-term
loan of SC appears TOO LARGE.
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SC’s turnover
is in a fairly good level, comparing with the size of its total assets.
LEVERAGE: FAIR
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The debt ratio
of SC is fairly high.
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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 short-term loan could be a threat to SC’s financial condition. A
credit line up to USD 80,000 would appear to be within SC’s capacities upon a
periodical review basis.
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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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%)