MIRA INFORM REPORT
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Report Date : |
31.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
JIANGYIN JIEDA SHAPED TUBE CO LTD |
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Registered Office : |
No. 388-398, West Renmin Road, Jiangyin City, Jiangsu Province 214433 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
07.01.1997 |
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Com. Reg. No.: |
320281000039777 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and
Selling Seamless Tubes & Shaped 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 : |
usd 150,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
jiangyin jieda shaped tube co., ltd.
no. 388-398, west renmin road, jiangyin city
jiangsu province 214433 PR CHINA
388-398
TEL: 86 (0) 510-86118588 FAX: 86 (0) 510-86115258
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 7, 1997
REGISTRATION NO. : 320281000039777
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
230
REGISTERED CAPITAL : CNY 18,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 182,400,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 21,700,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 150,000 (periodical review)
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.83 = USd 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 limited liabilities company at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Jan. 7, 1997.
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 and processing seamless tubes & shaped tubes;
selling metal, building materials, and machinery; importing and exporting
commodities & technology.
SC is mainly
engaged in manufacturing and selling seamless tubes & shaped tubes.
Mr. Xue Jianliang
has been chairman of SC since 1997.
SC is known to
have approx. 230 employees 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 Jiangyin. Our checks
reveal that SC rents the total premise about 100,000 square meters.
http://www.jsjieda.com
The design is professional and the content is well organized. At present the web
is both in Chinese and English versions.
E-mail: jeremy_xjp@jsjieda.com
SC has passed ISO14001 certificate.
MAIN
SHAREHOLDERS:
Name Investment
(CNY’ 000) % of
Shareholding
Xue Jianliang 15,130 84.06
Zhou Jianhua 2,870 15.94
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Chairman and General Manager:
Mr. Xue Jianliang, 48 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working
in SC as chairman and general manager.
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Board Members:
Zhou Xiuhua
ID#320219630316106
Yang Jijun
ID#320219700326101
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Supervisor:
Zhou Jianhua
ID#320219590823102
SC is mainly
engaged in manufacturing and selling seamless tubes & shaped tubes.
SC’s products mainly
include: special shaped steel tubes, cold-draw precision tubes, cold-draw
shaped tubes and automobile parts.
SC sources its materials 100% from domestic
market, mainly Jiangsu. SC sells 95% of its products in domestic market, mainly
Jiangsu and Shanghai, and 5% to overseas market, mainly Southeast Asia, Europe
and USA.
The buying terms of SC include Check, T/T, and Credit of 30-60 days. The
payment terms of SC include Check, L/C, T/T and Credit of 30-60 days.
*Major Supplier:
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Jiangsu Dajing Steel Co., Ltd.
*Major Customer:
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Jiangyin Chengxi Shipyard
SC is
known to have a subsidiary at present:
Jiangyin
Jieshun Auto Parts Manufacturing Co., Ltd.
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.
Rural Commercial
Bank Jiangyin Sub-branch
AC# 0110028839
Relationship: Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
55,060 |
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Inventory |
22,730 |
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Accounts
receivable |
-20,150 |
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Other Accounts
receivable |
230 |
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Advances to
suppliers |
0 |
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To be apportioned
expense |
0 |
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Other current
assets |
4,500 |
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------------------ |
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Current assets |
62,370 |
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Fixed assets net
value |
14,890 |
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Projects under
construction |
0 |
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Long term
investment |
48,110 |
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Other assets |
2,830 |
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Total assets |
128,200 |
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Short loans |
39,000 |
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Accounts payable |
10,600 |
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Advances from
clients |
0 |
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Other Accounts
payable |
4,930 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
51,970 |
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Current
liabilities |
106,500 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
106,500 |
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Equities |
21,700 |
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Total
liabilities & equities |
128,200 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
182,400 |
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Cost of goods
sold |
163,800 |
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Sales expense |
3,290 |
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Management expense |
7,140 |
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Finance expense |
2,760 |
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Profit before
tax |
4,710 |
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Less: profit tax |
1,500 |
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Profits |
3,210 |
Important Ratios (as of Dec. 31, 2007)
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*Current ratio 0.59
*Quick ratio 0.37
*Liabilities to
assets 0.83
*Net profit
margin (%) 1.76
*Return on total
assets (%) 2.50
*Inventory
/Turnover ×365 45days
*Accounts
receivable/Turnover ×365 /
*Turnover/Total
assets 1.42
* Cost of goods
sold/Turnover 0.90
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 average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is maintained in an average level.
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The short-term loan of SC appears 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 loans could be a threat to SC’s financial condition.
A credit line up to USD 150,000 appears to be within SC’s capacities upon a
periodical review basis.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 42.49 |
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UK Pound |
1 |
Rs. 84.21 |
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Euro |
1 |
Rs. 66.33 |
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%)