MIRA
INFORM REPORT
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Report Date : |
31.08.2007 |
IDENTIFICATION DETAILS
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Name : |
WUXI ZHENDA SPECIAL
STEEL TUBE MANUFACTURING CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Dec. 11, 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 : |
Engaged in manufacturing and selling seamless steel tubes. |
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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
wuxi zhenda special steel
tube manufacturing co., ltd.
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 :
1,118
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
cny 942,420,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 74,860,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.56 = US$1 AS OF
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 Dec. 11, 2002.
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;
exporting its products and technologies; importing machinery, components, raw
materials, technologies.
SC is
mainly engaged in manufacturing and selling seamless steel tubes.
Ms. Zhao Xiujuan
has been chairman of SC since 2002.
SC is known to have approx. 1,118 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 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.
In May of 2007, SC’s shareholding structure was changed. The former
shareholder Peng Yu transferred his 1% shareholding to Mr. Liu Dongfang. So
far, Mr. Liu has owned 1.4% of SC’s shareholding.
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 1.4
Liu Donghui 0.4
Liu Jianzhong 0.4
Liu Zhilan 5.0
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
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:
Ms.
Working Experience(s):
From 2002 to present Working in SC as chairman.
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General
Manager:
Mr. Chen Xudong, ID#320211196312041912, 44 years old with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
Since 2007 Working in SC as general manager
SC is mainly
engaged in manufacturing and selling seamless
steel tubes.
SC’s products
mainly include: seamless steel tubes, etc.
SC's annual output is approx. 200,000 tons of seamless steel
tubes.
SC sources its
materials 100% from domestic market, mainly
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.
*Major Customer:
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Shanghai Boiler Plant 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.
Shitangwan
Credit Association
AC#:
9706478561120101982742
Relation:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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Cash & bank |
196,810 |
14,870 |
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Inventory |
44,380 |
43,930 |
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Accounts
receivable |
30,780 |
92,170 |
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Other Accounts
receivable |
1,060 |
-23,180 |
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To be
apportioned expense |
3,390 |
0 |
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Other current
assets |
20 |
236,480 |
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Current assets |
276,440 |
364,270 |
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Fixed assets |
95,720 |
129,550 |
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Fixed assets net
value |
95,720 |
104,320 |
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Projects under
construction |
0 |
25,230 |
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Long term
investment |
0 |
0 |
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Other assets |
9,800 |
-20 |
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Total assets |
381,960 |
493,800 |
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Short loans |
108,500 |
175,000 |
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Bills payable |
203,210 |
0 |
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Accounts payable |
19,610 |
25,460 |
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Other Accounts
payable |
250 |
830 |
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Salaries payable |
0 |
0 |
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Welfares payable |
1,770 |
3,330 |
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Taxes payable |
1,100 |
1,410 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current
liabilities |
-5,410 |
212,910 |
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Current
liabilities |
329,030 |
418,940 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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Total
liabilities |
329,030 |
418,940 |
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Equities |
52,930 |
74,860 |
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Total
liabilities & equities |
381,960 |
493,800 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2005 |
As of Dec. 31,
2006 |
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Turnover |
473,280 |
942,420 |
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Cost of goods
sold |
454,630 |
872,300 |
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Sales expense |
5,170 |
9,900 |
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Management expense |
5,340 |
13,620 |
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Finance expense |
3,980 |
9,300 |
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Profit before
tax |
4,300 |
33,750 |
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Less: profit tax |
880 |
11,140 |
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Profits |
3,420 |
22,610 |
Important Ratios
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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*Current ratio |
0.84 |
0.87 |
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*Quick ratio |
0.71 |
0.76 |
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*Liabilities
to assets |
0.86 |
0.85 |
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*Net profit
margin (%) |
0.72 |
2.40 |
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*Return on
total assets (%) |
0.90 |
4.58 |
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*Inventory
/Turnover ×365 |
34 days |
17 days |
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*Accounts
receivable/Turnover ×365 |
24 days |
36 days |
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*Turnover/Total
assets |
1.24 |
1.91 |
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*Cost of goods
sold/Turnover |
0.96 |
0.93 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good
in its line.
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SC’s net profit margin is acceptable, and it
increased in 2006.
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SC’s return on total assets is acceptable, and it
increased in 2006.
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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 in both years.
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SC’s quick ratio is maintained in an average level
in both years.
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The inventory of SC is maintained in an average
level.
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The accounts receivable of SC appears fairly large.
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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 USD500,000 appears 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. |
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%)