MIRA
INFORM REPORT
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Report Date : |
04.09.2007 |
IDENTIFICATION DETAILS
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Name : |
LINYI SANYUAN STEEL PIPE INDUSTRY 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 : |
December 1, 2005 |
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Com. Reg. No.: |
3713002805687 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
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 : |
Regular |
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Litigation : |
Clear |
NAME & ADDRESS
LINYI SANYUAN STEEL PIPE INDUSTRY CO., LTD.
TEL: 86 (0) 539-8914668
FAX: 86 (0) 539-8914669
EXECUTIVE SUMMARY
INCORPORATION DATE : december 1, 2005
REGISTRATION NO. : 3713002805687
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
600
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 187,530,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 99,770,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : AVERAGE
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.65 = US$1 AS OF 2007-5-24
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 December 1, 2005.
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 processing seamless steel tubes, and selling steel tubes.
SC is mainly engaged in manufacturing and selling seamless steel tubes.
Mr. Li Xing has been chairman of SC since 2005.
SC owns about 600
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 Linyi. Our checks reveal
that SC owns the total premise about 68,000 square meters.
http://www.sanyuanpipe.com The
design is professional and the content is well organized. At present the web
site is both in Chinese and English versions.
E-mail: sysp@sanyuanpipe.com
Changes of its registered information are as follows:
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Date of change |
Item |
Before the
change |
After the change |
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2006-12 |
Registered capital |
CNY 3,000,000 |
CNY 30,000,000 |
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2007-01 |
Registered capital |
CNY 30,000,000 |
CNY 50,000,000 |
SC has got the certificate ISO9001.
MAIN SHAREHOLDERS:
Name % of Shareholding
Li Xing 90
Zhao Wentao 10
l
Chairman:
Mr. Li Xing, 38 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman.
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General Manager:
Mr. Wang Shiqu, 32 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling seamless steel tubes.
SC has started its
normal operation in April of 2006.
Brand: Sanyuan
SC’s products
mainly include: Seamless Steel Pipe for Structural and equipment, Seamless
Steel Pipe for Liquid, Seamless Steel pipe for Boiler, Seamless Steel pipe for
Petroleum Cracking, High-Pressure Seamless Steel pipe for Chemical Fertiliger
Equipments, Seamless alloy steel pipe.
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, T/T and Credit of 30-45 days. The
payment terms of SC include T/T and Credit of 30-45 days.
*Major Customers:
==============
*Major Suppliers:
==============
Linyi Guolian Hardware Tools 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.
Construction Bank of
AC#：37001826201050147763
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
22,950 |
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Inventory |
70,550 |
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Accounts
receivable |
13,370 |
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Other Accounts
receivable |
35,570 |
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Prepayment |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
22,120 |
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------------------ |
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Current assets |
164,560 |
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Fixed assets net
value |
93,320 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
17,690 |
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Total assets |
275,570 |
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============= |
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Short loans |
64,800 |
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Accounts payable |
27,200 |
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Other Accounts
payable |
51,920 |
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Advances from
customers |
29,640 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
2,240 |
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Current
liabilities |
175,800 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
175,800 |
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Equities |
99,770 |
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Total
liabilities & equities |
275,570 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
187,530 |
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Cost of goods
sold |
183,950 |
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Sales expense |
2,380 |
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Management expense |
4,740 |
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Finance expense |
870 |
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Profit before
tax |
720 |
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Less: profit tax |
240 |
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Profits |
480 |
Important Ratios
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As
of Dec. 31, 2006 |
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*Current ratio |
0.94 |
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*Quick ratio |
0.53 |
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*Liabilities
to assets |
0.64 |
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*Net profit
margin (%) |
0.26 |
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*Return on
total assets (%) |
0.17 |
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*Inventory
/Turnover ×365 |
137 days |
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*Accounts
receivable/Turnover ×365 |
26 days |
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*Turnover/Total
assets |
0.68 |
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* Cost of
goods sold/Turnover |
0.98 |
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 average.
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SC’s return on total assets is average.
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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 an average
level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC is maintained in an
acceptable level.
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SC’s short-term loan is in a fairly large level.
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SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
Over the past 2 years, SC has made a stable growth with acceptable
profit. The large amount of short-term loan could be a threat of SC’s financial
condition. A credit line up to USD 500,000
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%)