MIRA
INFORM REPORT
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Report Date : |
13.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
JIANGYIN XINGCHENG SPECIAL STEEL WORKS CO.,
LTD. |
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Registered Office : |
No. 297 Binjiang East Road, Jiangyin,
Jiangsu Province, 214400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
NOV. 23, 1994 |
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Com. Reg. No.: |
002660 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing
and selling ferrous metal, nonferrous metal and auxiliary materials. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 5,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
JIANGYIN XINGCHENG SPECIAL STEEL WORKS CO.,
LTD.
NO. 297 BINJIANG EAST ROAD, JIANGYIN,
JIANGSU PROVINCE, 214400 PR CHINA
TEL : 86 (0) 510-86271795
FAX : 86 (0) 510-86191452
EXECUTIVE SUMMARY
INCORPORATION
DATE : NOV. 23, 1994
REGISTRATION
NO. : 002660
REGISTERED
LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF
STRENGTH : 1,456
REGISTERED
CAPITAL : USD 168,650,320
BUSINESS
LINE :
MANUFACTURING
TURNOVER : RMB
4,737,820,000 (AS OF DEC. 31, 2005)
EQUITIES : RMB
1,819,010,000 (AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM.
CREDIT RANGE : up to usd 5,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
stable
OPERATIONAL TREND :
UPWARD
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 7.76=US$1 AS OF 2007-2-12
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
RMB - China Ren Min Bi Yuan
SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (The official body of issuing and renewing business license) on Nov. 23, 1994.
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, processing and selling black
and Non-ferrous metal materials and accessory materials.
SC is
mainly engaged in manufacturing and selling special steel.
Mr. Li Songxing has been chairman of SC since 1994.
SC owns
about 1,456 staff.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Jiangyin. Our checks
reveal that SC owns the total premise about 65,000 square meters.
http://www.jyxc.com . The design is professional and the
content is well organized. At present it is in both Chinese and English versions.
E-Mail: jyxcfta@public1.wx.js.cn
SC has
got the certificate of ISO/TS16949：2002.
MAIN SHAREHOLDERS:
Name %
of Shareholdings
Jiangsu
Taifu Xingcheng Special Steel Co., Ltd. 45.00
Jiangyin
Steel Co., Ltd. 6.44
Tianshui
Investment Co., Ltd. (B.V.I) 4.57
CITIC
PACIFIC LTD. (B.V.I) 43.99
l
Chairman:
Mr. Li Songxing,
in his 50’s with university education. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 1994 to present Working in SC as chairman.
Also working in CITIC Pacific Hong Kong as general manager.
l
General Manager:
Mr. Yu
Yapeng, in his 40’s with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working
in SC as general manager.
SC is mainly engaged in
manufacturing and selling ferrous metal, nonferrous metal and auxiliary
materials.
SC’s products mainly include:
bearing steel, gear steel, alloy spring steel, oil well tube steel. Its
products are widely used for automobile, railway, ship, machinery, oils and
electric, etc.
At present SC’s annual output can
reach 3,000,000 tons.
SC sources its
materials 80% from domestic market and 20% from Europe and American. SC sells
85% of its products in domestic market and exports 15% to Europe and American
Countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60
days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customers:
===============
Germany FAG Group
Sweden SKF Company
Germany INA Bearing Company
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.
Construction
Bank of China Jiangyin branch
AC#：32001616136050024786
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2005 |
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Cash & bank |
122,070 |
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Accounts payable advance |
253,840 |
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Accounts receivable |
158,180 |
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Inventory |
582,710 |
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Other accounts receivable |
420,350 |
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Expenses to be apportioned |
0 |
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Other current assets |
270,570 |
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Current assets |
1,807,720 |
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Fixed assets |
1,207,840 |
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Projects under construction |
2,439,610 |
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Other assets |
121,920 |
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Total assets |
5,577,090 |
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Short loans |
207,350 |
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Accounts payable |
486,700 |
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Salary payable |
9,440 |
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Tax payable |
5,720 |
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Account receivable advance |
157,520 |
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Estimated liabilities |
0 |
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Long-term investment with in
one year |
0 |
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Other accounts payable |
475,010 |
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Drawing-expense in advance |
0 |
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Other current liabilities |
283,830 |
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Current liabilities |
1,625,570 |
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Long term liabilities |
1,665,710 |
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Other liabilities |
466,800 |
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Total liabilities |
3,758,080 |
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Equities |
1,819,010 |
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Total liabilities &
equities |
5,577,090 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
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Turnover |
4,737,820 |
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Cost of goods sold |
4,100,610 |
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Profit before tax |
426,990 |
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Less: profit tax |
12,150 |
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Profits |
414,840 |
Important Ratios
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As
of Dec. 31, 2005 |
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*Current ratio |
1.11 |
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*Quick ratio |
0.75 |
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*Liabilities
to assets |
0.67 |
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*Net profit
margin (%) |
8.76 |
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*Return on
total assets (%) |
7.44 |
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*Fixed
assets/Total assets |
0.22 |
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*Inventory
/Turnover ×365 |
45days |
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*Accounts
receivable/Turnover ×365 |
12days |
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*Turnover/Total
assets |
0.85 |
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* Cost of
goods sold/Turnover |
0.87 |
PROFITABILITY: FAIRLY GOOD
l
The
turnover of SC appears fairly good in its line.
l
SC’s
net profit margin is fairly good.
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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: AVERAGE
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The
current ratio of SC is maintained in a normal level.
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SC’s
quick ratio is maintained in a fair level.
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The
inventory of SC is average.
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The
accounts receivable of SC is average.
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SC’s
short-term loan appears fairly large, and its accounts payable is 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.
Over the
past 12 years, SC has made a stable growth with satisfactory profit. A credit
line of USD 5,000,000 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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