MIRA
INFORM REPORT
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Report Date : |
26.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
wuxi zhenda
special steel tube manufacturing co., ltd. |
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Registered Office : |
Meijing Village, Shitangwan, Wuxi City, Jiangsu Province 214185 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
11.12.2002 |
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Com. Reg. No.: |
3202852101399 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling
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 200,000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
wuxi zhenda special
steel tube manufacturing co., ltd.
MEIJING VILLAGE, SHITANGWAN, WUXI CITY
JIANGSU PROVINCE 214185 PR CHINA
TEL: 86 (0) 510-83268267
FAX: 86 (0) 510-81001873
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 11, 2002
REGISTRATION NO. : 3202852101399
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
1,000
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
cny 473,280,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 52,930,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to USD 200,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.76 = US$1 AS OF 2007-02-07
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 Dec. 11, 2002.
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; exporting self-made products and technology; and importing machinery,
component, raw material, accessories and technology.
SC is
mainly engaged in manufacturing and selling seamless steel tube.
Ms. Zhao Xiujuan
has been chairman of SC since 2002.
SC owns about
1,000 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 owns the total premise about 80,000 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the local
Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Wuxi Zhenda Steel Tube Manufacturing Co.,
Ltd. 40
Chen Jialiang 10
Chen Jianjun 0.2
Chen Ruiliang 0.2
Chen Xiaoming 2.0
Chen Xufang 12.2
Hu Guanqing 0.2
Huang Kexian 0.2
Huang Mingzhe 0.6
Huang Shengqi 0.2
Huang Yuanfa 0.1
Huang Zhiqiang 0.4
Huang Yichao 0.2
Jiang Jianping 0.1
Lin Guolian 0.1
Liu Dongfang 0.4
Liu Donghui 0.4
Liu Jianzhong 0.4
Liu Zhilan 5.0
Peng Yu 1.0
Ping Lijuan 0.2
Qian Qin 0.2
Qian Weidong 2.0
Ren Bijun 0.2
Ren Mingsheng 2.2
Shen Weiqi 2.2
Tao Jingjing 0.2
Xiao Xixing 0.6
Xu Xiongwei 0.4
Yang Xiaoyan 0.2
Yao Fenglan 0.8
Ye Jianrong 0.4
You Xuliang 0.4
Zhao Xiujuan 15.8
Zhao Zhanqi 0.2
Zhou Jianguo 0.1
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Chairman and
General Manager:
Ms. Zhao Xiujuan, ID#510215601102162, 47 years old with university
education. She is currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as
chairman and general manager.
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Assistant
Manager:
Mr. Chen Xufang, ID#320211650916193, 42 years old with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2002 to present Working in SC as
assistant manager
SC is mainly
engaged in manufacturing and selling seamless
steel tube.
SC’s products mainly
include: seamless steel tube, etc.
SC's annual output of seamless steel tube
is approx. 200,000 tons.
SC sources its
materials 100% from domestic market, mainly Jiangsu province; SC sells its
products 80% to overseas market, mainly America and Singapore, and 20% in
domestic market, mainly Shanghai and Jiangsu province.
The buying terms
of SC include 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 Supplier:
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Jiangyin Xingcheng Steel Co., Ltd.
Address: No. 168, Renmin East Road, Jiangyin
Tel: 0510-6286088
Fax: 0510-6287936
*Major Customer:
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Shanghai Boiler Plant Co., Ltd.
Address: No. 250, Huaning Road, Minhang District, Shanghai
Tel: 021-64302391
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.
Shitangwan
Credit Cooperatives
AC#: 9706478561120101982742
Relation: Normal
Balance Sheet (as
of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
196,810 |
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Inventory |
44,380 |
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Accounts
receivable |
30,780 |
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Other Accounts
receivable |
1,060 |
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Accounts payable
in advance |
0 |
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To be
apportioned expense |
3,390 |
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Other current
assets |
20 |
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Current assets |
276,440 |
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Fixed assets |
95,720 |
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Long term
investment |
0 |
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Other assets |
9,800 |
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Total assets |
381,960 |
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Short loans |
108,500 |
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Bills payable |
203,210 |
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Accounts payable |
19,610 |
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Accounts
receivable in advance |
0 |
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Other Accounts
payable |
250 |
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Salaries payable |
0 |
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Welfares payable |
1,770 |
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Taxes payable |
1,100 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-5,410 |
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Current
liabilities |
329,030 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
329,030 |
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Equities |
52,930 |
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Total
liabilities & equities |
381,960 |
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Income Statement (as
of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
473,280 |
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Cost of goods
sold |
454,630 |
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Sales expense |
5,170 |
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Management expense |
5,340 |
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Finance expense |
3,980 |
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Non-operating
income |
140 |
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Profit before
tax |
4,300 |
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Less: profit tax |
880 |
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Profits |
3,420 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 0.84
*Quick ratio 0.71
*Liabilities to
assets 0.86
*Net profit margin
(%) 0.72
*Return on total
assets (%) 0.90
*Inventory
/Turnover ×365 34 days
*Accounts
receivable/Turnover ×365 24 days
*Turnover/Total
assets 1.24
* Cost of goods
sold/Turnover 0.96
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its line.
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SC’s net profit margin is acceptable.
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SC’s return on total assets is acceptable.
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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 slightly large level.
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The accounts receivable of SC is maintained in
a normal level.
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The short-term loan of SC appears TOO LARGE.
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SC’s turnover is in an average 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 200,000 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%)
PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions