MIRA
INFORM REPORT
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Report Date : |
08.08.2007 |
IDENTIFICATION DETAILS
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Name : |
WUXI CITY DONGQUN
STEEL TUBE Co., Ltd. |
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Registered Office : |
No. 637, Suxi
Road, Taihu Town, Binhu District, Wuxi, Jiangsu Province, 214121 Pr |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
July 26, 2001 |
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Com. Reg. No.: |
3202112103728 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing and selling metal products. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
WUXI CITY DONGQUN
STEEL TUBE Co., Ltd.
NO. 637,
TEL :
86 (0) 510-85069912
FAX :
86 (0) 512-85069233
EXECUTIVE SUMMARY
INCORPORATION DATE : july 26, 2001
REGISTRATION NO. : 3202112103728
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 450
REGISTERED CAPITAL : CNY 15,089,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 190,630,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 47,560,000
(AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.56 = US1$ AS OF 2007-8-7
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
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 July 26, 2001.
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 manufacturing and selling seamless steel tube, metal products (excluding the pressure vessel); administrating
and acting as an agent of the import and export of various goods and
technologies (excluding the good prohibited or limited by the country)
SC is mainly
engaged in manufacturing and selling metal products.
Mr.
Xie Genkun has been legal representative and chairman of SC since 2001.
SC
owns approximately 450 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 20,000 square meters.
http://www.wxdqgg.com/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: info@wxdqgg.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xie Genkun 91.0
Xie Yongfeng 1.1
Xie Genliang 1.0
Deng Minwei 0.9
Deng Xiao’an 0.5
Xie Haifeng 0.5
Zhang Zhifeng 0.5
Zhu Dongsheng 0.5
Gu Guanrong 0.4
Wang Ronglun 0.4
Deng Xinjian 0.36
Tan Xinxing 0.36
Zhang Lifen 0.36
Zhou Jieming 0.36
Pan Hedi 0.36
Zhang Yuenan 0.3
Mi Zhengxing 0.2
Tang Ximing 0.2
Chen Xueqing 0.1
Mi Zhengfen 0.1
Tang Xiaoyan 0.1
Wu Xuefang 0.1
Zhang Qiuxing 0.1
Yang Cuihua 0.1
Zou Hui 0.1
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Legal representative and General manager:
Mr.
Working Experience(s):
From 2001 to present Working in SC as chairman and general manager.
l
Vice-president:
Mr.
Working Experience(s):
From 2001 to present Working in SC as vice-president.
SC is mainly
engaged in manufacturing and selling metal products.
SC’s products mainly include seamless steel tube for fluid
transport, carbon-manganese seamless steel tube for shipping, carbon steel tube
for boiler and heat exchanger, and alloy steel tube for tube, etc.
SC sources its materials 100%
from domestic market. SC sells 100% of its products in domestic market.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T and Credit of 30-60 days.
*Major Supplier:
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Wuxi Xuelang Iron & Steel Group Co., Ltd.
*Major Customer:
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Hangzhou Hangguo Industrial Boiler 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 Communications
AC#：322000152010210028959
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
7,310 |
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Inventory |
10,630 |
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Accounts receivable |
29,350 |
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Other
receivables |
0 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
47,290 |
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Fixed assets |
39,480 |
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Fixed assets net
value |
22,850 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
70,140 |
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Short loans |
17,550 |
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Accounts payable |
1,580 |
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Other payable |
360 |
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Taxes payable |
800 |
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Accrued payroll |
1,850 |
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Other current
liabilities |
440 |
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Current
liabilities |
22,580 |
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Long term
liabilities |
0 |
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Total
liabilities |
22,580 |
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Equities |
47,560 |
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Total
liabilities & equities |
70,140 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
190,630 |
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Cost of goods
sold |
177,120 |
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Taxes
and additional of main operation |
1,570 |
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Sales expense |
610 |
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Management expense |
2,800 |
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Finance expense |
1,110 |
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Profit before
tax |
7,410 |
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Less: profit tax |
2,450 |
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Profits |
4,960 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
2.09 |
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*Quick ratio |
1.62 |
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*Liabilities
to assets |
0.32 |
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*Net profit
margin (%) |
2.60 |
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*Return on
total assets (%) |
7.07 |
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*Fixed
assets/Total assets |
0.33 |
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*Inventory
/Turnover ×365 |
20days |
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*Accounts
receivable/Turnover ×365 |
56days |
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*Turnover/Total
assets |
2.72 |
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*Cost of goods
sold/Turnover |
0.93 |
PROFITABILITY:
FAIRLY GOOD
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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 fairly good.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIRLY
GOOD
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The current ratio of SC is maintained in a fairly
good level.
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SC’s quick ratio is maintained in a fairly good
level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC is maintained in a
normal level.
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SC’s short-term loan appears fairly large.
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SC’s turnover is in an acceptable level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
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The debt ratio of SC is fairly low.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly good.
SC is considered medium-sized in its line with favorable market conditions.
Over the past 6 years, SC has made a stable growth with acceptable profit. A
credit line up to USD 500,000 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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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%)