MIRA
INFORM REPORT
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Report Date : |
03.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
changshu seamless
steel tube co., ltd. |
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Registered Office : |
No. 49, Shajiabang
Road, Changshu City, Jiangsu Province 215558 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
Jan. 30, 1980 |
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Com. Reg. No.: |
3205811100079 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in manufacturing seamless steel tubes. |
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 600,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
changshu seamless
steel tube co., ltd.
no. 49, shajiabang road, changshu city
jiangsu province 215558 PR CHINA
TEL :
86 (0) 512-52837854
FAX :
86 (0) 512-52837172
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 30, 1980
REGISTRATION NO. :
3205811100079
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
700
REGISTERED CAPITAL : CNY 16,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 170,293,000 (AS OF DEC. 31, 2005)
EQUITIES : CNY 40,827,000 (AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 600,000
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.47 =US1$
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a limited liabilities co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Jan.
30, 1980.
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,
processing, and selling seamless steel tubes, welding steel tubes, bearing
rings, metal products, and steel tube extension products; selling steel
materials, hardware, electromechanical products, metal products, and building
materials; exporting its self-made steel tubes and bonding gold wire; and
importing raw materials, machinery,
instruments and components needed in manufacture and scientific research.
SC is
mainly engaged in manufacturing seamless steel tubes.
Mr. Xu Renjie has been chairman of SC since 1980.
SC is
known to have approx. 700 staff members 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
Changshu. Our checks reveal that SC owns the total premise about 100,000 square
meters.
http://www.cssst.com The design is professional and the content
is well organized. At present it is both in Chinese and English versions.
E-mail: sales@cssst.com
SC’s predecessor was Jiangsu Changfeng Group Changshu
Seamless Tube Plant, which is a manufacturer producing all kinds of thin,
small, precise, slender and special seamless steel tubes in China.
SC has passed the certification of ISO9002.
MAIN SHAREHOLDERS:
Name Investment
(’000) % of Shareholding
SC’s Labor Union
11,141.2 69.63
Chen Guoqiang 511.1 3.19
Chen Jin
130.9 0.82
Lu Jianguo 113.4 0.71
Lu Jianxin 511.3
3.20
Lu Jinyuan 133.0
0.83
Lu Weigang
127.1 0.79
Lu Xueqin 110.6 0.69
Lv Juming 125.5
0.78
Qi Mu
130.1 0.81
Qu Jian
611.2 3.82
Tang Xiguo
110.9 0.69
Wang Bingyuan
114.1 0.71
Wang Jianguo
111.2 0.70
Wang Libao 128.9 0.81
Wu Yi
108.6 0.68
Xu Jiangang
133.0 0.83
Xu Renjie 809.2 5.06
Xu Xinhong
106.5 0.67
Zhao Jianhua
509.4 3.18
Zhou Zhenhua
113.1 0.71
Zhu Jiaping
109.7 0.69
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Chairman
and General Manager:
Mr. Xu Renjie, 58 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1980 to present Working in SC as chairman and general manager.
l
Vice-chairman:
Mr. Qu Jian, 53 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 1980 to present Working in SC as vice-chairman.
SC is
mainly engaged in manufacturing seamless steel tubes.
SC’s products mainly include: cold draw (rolling) carbon,
alloy structure seamless steel tubes; cold draw (rolling) stainless seamless
steel tubes; bearing steel tubes; high-pressure oil tubes; carbon structure
capillary; low, middle and high pressure boil tubes; fine inner seamless steel
tubes for hydraulic and air cylinders; seamless steel tubes for oil cracking;
high-pressure steel tubes for pesticide equipment and seamless steel tubes for
ship building.
SC’s brand is “"ChangFeng".
SC’s annual output of seamless steel tubes can reach
thirty-thousand ton.
SC sources its materials 80% from domestic market, mainly
Jiangsu province, and 20% from overseas market. SC sells 45% in domestic
market, mainly Zhejiang and Jiangsu province, and 55% to overseas market,
mainly European and American countries.
The buying terms of SC include T/T, L/C, Check and Credit of
30-60 days. The payment terms of SC include T/T, L/C, Check and Credit of 30-60
days.
SC is
known to have the following subsidiaries at present:
Hunan
Xiangdong Chemical Machinery Co., Ltd.
Address:
No. 74, Huaji Road, Zhuzhou City
Tel:
0733-4239004
Dongwu
Security Co., Ltd.
Address:
No. 28, Aiheqiao Road, Stone Bridge, Suzhou
Tel:
0512-65588066
Fax:
0512-65581101
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.
Industrial
and Commercial Bank of China Yangang Office
AC#：1102025109004007945
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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Cash & bank |
22,388 |
62,679 |
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Inventory |
8,529 |
26,429 |
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Accounts
receivable |
14,699 |
27,121 |
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Bills receivable |
4,898 |
3,635 |
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Other Accounts
receivable |
3,483 |
3,612 |
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Advances to
suppliers |
0 |
0 |
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To be
apportioned expense |
0 |
0 |
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Other current
assets |
0 |
164 |
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------------------ |
------------------ |
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Current assets |
53,997 |
123,640 |
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Fixed assets |
12,122 |
11,950 |
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Fixed assets net
value |
12,027 |
11,855 |
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Projects under
construction |
95 |
95 |
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Long term
investment |
0 |
25,394 |
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Other assets |
28,079 |
0 |
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------------------ |
------------------ |
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Total assets |
94,198 |
160,984 |
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============= |
============= |
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Short loans |
0 |
0 |
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Bills payable |
0 |
43,099 |
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Accounts payable |
30,576 |
56,881 |
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Salaries payable |
1,609 |
1,538 |
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Welfares payable |
5,354 |
6,665 |
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Taxes payable |
3,074 |
766 |
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Advance from
clients |
0 |
0 |
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Other Accounts
payable |
14,714 |
2,111 |
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Withdraw the
expenses in advance |
287 |
371 |
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Other current
liabilities |
230 |
-319 |
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------------------ |
------------------ |
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Current
liabilities |
55,844 |
111,112 |
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Long term
liabilities |
19,623 |
9,045 |
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Other
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
75,467 |
120,157 |
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Equities |
18,731 |
40,827 |
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------------------ |
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Total
liabilities & equities |
94,198 |
160,984 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
153,536 |
170,293 |
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Cost of goods
sold |
141,974 |
153,459 |
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Sales expense |
2,849 |
4,090 |
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Management expense |
10,964 |
12,819 |
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Finance expense |
-181 |
139 |
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Profit before tax |
5,996 |
6,019 |
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Less: profit tax |
1,986 |
2,006 |
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Profits |
4,010 |
4,013 |
Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
0.97 |
1.11 |
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*Quick ratio |
0.81 |
0.87 |
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*Liabilities to
assets |
0.80 |
0.75 |
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*Net profit
margin (%) |
2.61 |
2.36 |
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*Return on
total assets (%) |
4.26 |
2.49 |
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*Inventory
/Turnover ×365 |
20days |
57days |
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*Accounts
receivable/Turnover ×365 |
35days |
58days |
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*Turnover/Total
assets |
1.63 |
1.06 |
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* Cost of
goods sold/Turnover |
0.92 |
0.90 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line in 2004
and 2005.
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SC’s net profit margin is average in 2004 and 2005.
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SC’s return on total assets is average, and it decreased in
2005.
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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 normal level.
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The inventory of SC is maintained in an average level in both
years.
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The accounts receivable of SC appears average in both years.
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SC has no short-term loan in both years.
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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 an old-established business in medium size. Taking into consideration of SC’s general performance, reputation as well as market conditions we would rate SC as an average credit risk company.
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. |
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%)