MIRA
INFORM REPORT
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Report Date : |
23.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
TIANJIN PIPE INTERNATIONAL ECONOMIC & TRADING COrporation |
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Registered Office : |
W4-5AB, No. 51, 3rd Avenue, Economic & Technical
Development Zone Tianjin 300457 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
15.01. 1999 |
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Com. Reg. No.: |
1200001190098 |
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Legal Form : |
Sole State-Owned Enterprise |
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Line of Business : |
Selling Various Pipes |
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 : |
usd 2,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
TIANJIN PIPE INTERNATIONAL ECONOMIC & TRADING COrporation
W4-5AB, NO. 51, 3RD AVENUE,
ECONOMIC & TECHNICAL DEVELOPMENT ZONE
TIANJIN 300457 PR
CHINA
51W4-5AB
TEL: 86 (0)
22-66280988 FAX: 86 (0)
22-66280681
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 15, 1999
REGISTRATION NO. : 1200001190098
REGISTERED LEGAL FORM : sole state-owned
enterprise
STAFF STRENGTH :
123
REGISTERED CAPITAL : cny 40,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 5,458,540,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 337,260,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 2,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.99 = US$1
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 sole state-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Jan. 15, 1999.
Company Status: Sole state-owned enterprise This
form of business in PR China is defined as a commodity production or
operational units of a socialist character which in accordance with the
law, has autonomy in management, takes full responsibility for its profits
and losses and practices independent business accounting. It is a legal
person established directly by central / local government or enterprise
owned by central or local government. In theory, the liabilities of this
form of enterprise are ultimately borne by the government, since the adoption
of company law in mid-1994, the Chinese government has planned to separate
the ownership from management and liabilities bearing. The shareholders of this form
of limited liabilities company are State-owned Assets Supervision and
Administration Commission authorized by the State Council or local
Municipal Government. The regulation is set up by State-owned
Assets Supervision and Administration Commission, or by the board of
directors after approval of State-owned Assets Supervision and
Administration Commission. Sole state-owned enterprise
does not set up board of shareholders, which is replaced by State-owned
Assets Supervision and Administration Commission. State-owned Assets Supervision
and Administration Commission assign the board of directors.
SC’s registered
business scopes include importing and exporting commodities and technologies,
processing with imported materials, processing with imported samples,
assemblying with imported parts, and compensation trade in agreement; counter trade & transit trade, domestic trade
of imported commodities, selling machinery, metal materials and products,
petroleum, chemicals and equipment, and undertaking foreign projects.
SC is mainly
engaged in selling various steel pipes.
Mr. Xu Hua has been chairman of SC since 1999.
SC is known
to have approx. 123 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the development zone of Tianjin. Our checks reveal that SC
owns the total premise about 2,000 square meters.
http://www.tpcointernational.com
The design is professional and the content is well organized. At present it is
only in English version.
E-mail: tpcointl@tpco.cn
Change:
SC was formerly named “Tianjin Pipe Imp. & Exp. Co., Ltd.” and
adopted present name in September of 2004.
Honors:
In 2004, SC ranked 460th, in the list of China TOP 500 import
and export enterprises.
In 2005, SC acquired the iron ore import qualification published lately
by China ministry of commerce department. There are 118 enterprises in the
list.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Tianjin Pipe (Group) Corp. 100
Address: No. 396, Jintang Road, Dongli
District, Tianjin
396
Tel: 022-24802624
Fax: 022-24360649
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Chairman:
Mr. Xu Hua , in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1999 to present
Working in SC as chairman.
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General Manager:
Mr. Zhang Wenfeng (, in his 40’s with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 1999 to present
Working in SC as general manager.
SC is mainly
engaged in selling various pipes.
SC’s products
mainly include: drill pipes, line pipes, hydraulic cylinder tubes, stainless
steel coils, etc.
SC sources its materials 20% from domestic market, mainly Tianjin, and
80% from overseas market, mainly Germany and Italy. SC sells its products 100%
to overseas market, mainly America.
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 15-30 days.
*Major supplier:
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Tianjin Chang Li Da Industrial Co., Ltd.
*Major customer:
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TPCO Enterprise, Inc. U.S
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’s suppliers
declined to make any comments.
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.
Bank of China
AC#04906208091001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
1,006,940 |
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Inventory |
69,200 |
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Accounts
receivable |
239,980 |
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Other Accounts
receivable |
69,200 |
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Advances to
suppliers |
252,020 |
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To be
apportioned expense |
0 |
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Other current
assets |
-23,600 |
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------------------ |
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Current assets |
1,613,740 |
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Fixed assets |
27,860 |
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Long term
investment |
0 |
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Other assets |
78,670 |
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Total assets |
1,720,270 |
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Short loans |
213,980 |
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Accounts payable |
119,880 |
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Advance from
clients |
74,720 |
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Other Accounts
payable |
402,030 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
533,360 |
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Current
liabilities |
1,343,970 |
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Long term
liabilities |
39,040 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
1,383,010 |
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Equities |
337,260 |
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Total
liabilities & equities |
1,720,270 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
5,458,540 |
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Cost of goods
sold |
5,100,700 |
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Sales expense |
121,740 |
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Management expense |
42,480 |
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Finance expense |
46,480 |
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Profit before
tax |
147,290 |
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Less: profit tax |
48,600 |
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Profits |
98,690 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.20
*Quick ratio 1.15
*Liabilities to
assets 0.80
*Net profit
margin (%) 1.81
*Return on total
assets (%) 5.74
*Inventory
/Turnover ×365 5days
*Accounts
receivable/Turnover ×365 16days
*Turnover/Total
assets 3.17
* Cost of goods
sold/Turnover 0.93
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good 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 fairly good.
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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 fairly good level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC is maintained in an average level.
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The short-term loan of SC is maintained in an average level.
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SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is
considered medium-sized in its line with stable financial conditions. A credit
line up to USD 2,000,000 would appear 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%)