MIRA INFORM REPORT
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Report Date : |
15.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
wuxi special steel material co., ltd. |
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Registered Office : |
20-21/F Mingzhu Plaza, No. 8 Dacheng Lane, Zhongshan Road, Wuxi, Jiangsu Province, 214000 Pr China |
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Date of Incorporation : |
16.03.1995 |
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Com. Reg. No.: |
3202852101759 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling stainless steel, alloy steel, carbon steel tubing, plate, good material, molding, pipeline fitting, welding material, metal material and seamless steel pipe. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
UP TO USD200,000 |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME
wuxi
special steel material co., ltd.
ADDRESS
20-21/f
mingzhu plaza, no. 8 dacheng lane, zhongshan road, wuxi, jiangsu province, 214000
PR CHINA.
TEL : 86 (0) 510-82796658
FAX : 86 (0) 510-82796678
EXECUTIVE SUMMARY
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INCORPORATION
DATE |
march 16,
1995 |
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REGISTRATION
NO. |
3202852101759 |
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REGISTERED
LEGAL FORM |
Limited liabilities company |
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STAFF
STRENGTH |
40 |
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REGISTERED
CAPITAL |
rmb 15,880,000 |
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BUSINESS
LINE |
trading |
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TURNOVER |
RMB 251,450,000 (AS OF DEC. 31, 2004) |
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EQUITIES |
RMB 20,210,000 (AS OF DEC. 31, 2004) |
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PAYMENT |
AVERAGE |
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RECOMM.
CREDIT RANGE |
UP TO
USD200,000 (PERIODICAL REVIEW) |
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MARKET
CONDITION |
COMPETITIVE |
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FINANCIAL
CONDITION |
FAIRLY STABLE |
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OPERATIONAL
TREND |
AVERAGE |
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GENERAL
REPUTATION |
AVERAGE |
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EXCHANGE
RATE |
RMB8.05
= US$1 AS OF 2006-03-06 |
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 limited liabilities company at local Administration for Industry & Commerce (The official body of issuing and renewing business license) on March 16, 1995.
Company Status: Limited liabilities co. This form of
business in PR China is defined as a legal person. Its registered capital
is contributed jointly by at least two shareholders and no more than fifty.
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. : RMB 500,000.00 -trading
&wholesaling co. : RMB 500,000.00 -retailing co. : RMB 300,000.00 -consultancy &
service co. : RMB 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 scopes include selling stainless steel, alloy steel, carbon steel tubing, plate, good material, molding, pipeline fitting, welding material, metal material and seamless steel pipe, acting as the agent of importing and exporting all kinds of commodities and technology, excluding the goods forbidden to exported by the government.
SC is mainly engaged in selling stainless steel, alloy steel, carbon steel tubing, plate, good material, molding, pipeline fitting, welding material, metal material and seamless steel pipe.
Mr. Chen Junde has been chairman of SC since 1995.
SC owns about 40 staff at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Wuxi. Our checks reveal that SC rents the total premise about 2,000 square meters.
The provided address from client - No.105 jinhui road, huishan economic development zone, Wuxi, Jiangsu, China, is SC’s warehouse.
http://www.wxtg.com.cn The design is professional and the content is well organized. At present the web site is both in Chinese and English versions.
E-mail: wxtg@wxtg.com.cn
No significant events or changes were found during our checks with the local Administration for Industry & Commerce.
MAIN
SHAREHOLDERS:
Name % of Shareholding
Chen Junde 30
Ouyang Lili 12
Shanghai Lingde International Trade Co., Ltd. 28
Wu Jiebao 15
Zhangjiagang F.T.Z. Deda International Trade Co., Ltd. 15
Chairman
and General Manager
Mr. Chen Junde, 52 years old with university education. He is currently responsible for the overall management of SC.
Working Experience(s)
From 1995 to present Working in SC as chairman and general manager.
SC is mainly engaged in selling stainless steel, alloy steel, carbon steel tubing, plate, good material, molding, pipeline fitting, welding material, metal material and seamless steel pipe.
SC’s products mainly include: tubes and steel products, such seamless alloyed steel pipes/tubes, seamless stainless steel pipes/tubes, seamless carbon steel pipes/tubes, welded steel pipes, gas pipes and petroleum pipes.
SC sources its materials 70% from domestic market, and 30% from international market, mainly from Japan and Spain. SC sells 70% of its products in domestic market, and 30% to international market, mainly to Middle - East countries.
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
SC’s suppliers include:
Shanghai Baoshan Iron & Steel Co., Ltd.
SC’s clients include:
Sinopec Guangzhou Branch
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.
Communications Bank of China Wuxi Branch.
AC# : 322000600018000374091
Relationship: Normal.
Balance Sheet (as of Dec. 31, 2004)
Unit: RMB thousand yuan
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Cash & bank |
40,260 |
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Inventory |
47,580 |
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Accounts receivable |
4,210 |
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Other Accounts receivable |
460 |
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Prepayment |
27,520 |
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Other current assets |
1,470 |
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------------------ |
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Current assets |
121,500 |
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Fixed assets |
10,670 |
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Fixed assets net value |
8,570 |
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Projects under construction |
0 |
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Long term investment |
2,150 |
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Other assets |
1,260 |
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Total assets |
133,480 |
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Short loans |
34,000 |
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Accounts payable |
6,760 |
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Other Accounts payable |
9,440 |
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Advances from customers |
13,530 |
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Note receivable |
48,500 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
1,040 |
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Current liabilities |
113,270 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
113,270 |
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Equities |
20,210 |
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Total liabilities & equities |
133,480 |
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Income Statement (as of Dec. 31, 2004)
Unit: RMB thousand yuan
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Turnover |
251,450 |
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Cost of goods sold |
220,660 |
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Sales expense |
15,430 |
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Management expense |
6,380 |
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Finance expense |
2,260 |
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Profit before tax |
6,670 |
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Less: profit tax |
2,200 |
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Profits |
4,470 |
Important Ratios (as of Dec. 31, 2004)
*Current ratio 1.07
*Quick ratio 0.65
*Liabilities to
assets 0.85
*Net profit
margin (%) 1.78
*Return on total
assets (%) 3.35
*Inventory
/Turnover ×365 69
days
*Accounts
receivable/Turnover ×365 6 days
*Turnover/Total
assets 1.88
* Cost of goods
sold/Turnover 0.88
PROFITABILITY:
AVERAGE
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 fairly good level.
l SC’s quick ratio is maintained in a fairly low level.
l The inventory of SC is maintained in an average level.
l The accounts receivable of SC is maintained in an acceptable level.
l SC’s short-term loan is in a fairly large level.
l 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
Fairly stable.
Over the past 11 years, SC has made a stable growth with satisfactory profit. A credit line up to USD200,000 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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