MIRA
INFORM REPORT
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Report Date : |
25.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
WENZHOU BAOFENG SPECIAL STEEL CO., LTD. |
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Registered Office : |
NO.112, Changhai Road, Fupin Economic Developing Zone, Longwan
District, Wenzhou, Zhejiang Province, 325013 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
15.11.2002 |
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Com. Reg. No.: |
330303000006472 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing, Processing and Selling Various Stainless Steel 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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME & ADDRESS
WENZHOU BAOFENG SPECIAL STEEL CO., LTD.
NO.112, changhai road, fupin economic developing zone, Longwan district,
wenzhou, ZHEJIANG PROVINCE, 325013 PR CHINA.
TEL: 86 (0) 577-86657163
FAX: 86 (0) 577-86658987
EXECUTIVE SUMMARY
INCORPORATION DATE : NOVEMBER 15, 2002
REGISTRATION NO. : 330303000006472
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. ZHOU JUGUANG (CHAIRMAN)
STAFF STRENGTH :
180
REGISTERED CAPITAL : CNY 5,880,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 106,760,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 10,200,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 100,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.208 = 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 company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on November 15, 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 metal products, stainless steel pull tubes, mould steel, tube fittings,
low and middle pressure valves, stainless steel valve tubes, water heating
equipment, pharmaceutical machinery equipment, food machinery equipment; importing and exporting commodities and technology (not engage in
any items prohibited by law and administrative regulations).
SC is mainly engaged in manufacturing, processing and selling various
stainless steel pipes.
Mr. Zhou Juguang has been legal representative and chairman of SC since
2007.
SC is known to have approx. 180 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 Wenzhou. Our
checks reveal that SC owns the total premise, but SC’s accountant refused to
release the gross area.
http://www.wzbftg.com/ The design
is professional and the content is well organized. At present it is in both
Chinese and English versions.
SC’s quality system meets the international standard of ISO9001.
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
|
2007 |
Legal representative |
Han Shifeng |
Zhou Juguang |
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Han Shifeng 50
Han Shiwu 50
Legal representative and chairman:
Mr. Zhou Juguang about 50 years old. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 2007 to present Working
in SC as chairman and legal representative.
SC is mainly engaged in manufacturing, processing and selling various stainless
steel pipes.
Main Products:
Austenite steel bar, quadrate tube, rectangular tube, seamless stainless
steel tube of specification of OD 6 to 630 mm and welded tube of specification
upwards of OD 114mm according to the standard of GB, ASTM,. JIS, DIN and OST.
SC sources its materials 100% from domestic market. SC sells 60% of its
products in domestic market, and 40% to overseas market, mainly European and
American market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
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Songyang Refactory Co,.Ltd
*Major Customers:
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Shenyang Yongshang Steel 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: A
trade enquiry currently conducted with SC's supplier(s) reveal the following:
Supplier A
Products sold:
N/A
Date account opened: 2002
Line of credit:
N/A
Terms:
N/A
Average monthly sales: N/A
Current balance:
N/A
Rating Key : 2
Any Special Comments:
_______________________________________
Payment record keys :
1 = Prompt : Payment made before the credit period expires
2 = As agreed terms: Payment made upon due date
3 = Slightly slow but acceptable : Payment made 5 to 20 days beyond
agreed terms
4 = Slow: Payment made 16 to 45 days beyond agreed terms
5 = Poor: Payment made over 45 days beyond agreed terms
6 = No comment : Account is newly opened & record is not yet
established
Note : In some instances,
payment beyond terms can be the result of disputes over merchandise, lost
invoices, disputed accounts & etc.
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.
China Merchants Bank Wenzhou Branch Longwan Sub-branch.
AC#：N/A
Relationship: Normal.
Balance Sheet (as of
Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
9,130 |
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Notes receivable |
3,500 |
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Inventory |
10,180 |
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Accounts receivable |
-6,050 |
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Advances to suppliers |
1,240 |
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Other receivables |
8,780 |
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Other current assets |
10 |
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Current assets |
26,790 |
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Fixed assets |
8,270 |
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Fixed assets net value |
7,460 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Intangible assets |
2,990 |
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Other assets |
0 |
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Total assets |
37,240 |
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Short loans |
5,350 |
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Notes payable |
16,100 |
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Accounts payable |
920 |
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Advances from customers |
0 |
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Accrued payroll |
0 |
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Welfare expenses payable |
200 |
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Taxes payable |
1,470 |
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Surcharge payable |
30 |
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Other payable |
2,970 |
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Other current liabilities |
0 |
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Current liabilities |
27,040 |
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Long term liabilities |
0 |
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Total liabilities |
27,040 |
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Equities |
10,200 |
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Total liabilities & equities |
37,240 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
106,760 |
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Cost of goods sold |
99,930 |
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Taxes and additional of main operation |
455 |
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Sales expense |
1,190 |
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Management expense |
1,370 |
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Finance expense |
460 |
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Profit before tax |
3,360 |
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Less: profit tax |
1,460 |
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Profits |
1,900 |
Important Ratios
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as of Dec. 31,
2006 |
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*Current ratio |
0.99 |
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*Quick ratio |
0.61 |
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*Liabilities to assets |
0.73 |
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*Net profit margin (%) |
1.78 |
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*Return on total assets (%) |
5.10 |
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*Inventory /Turnover ×365 |
35 days |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
2.87 |
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* Cost of goods sold/Turnover |
0.94 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loan is in an average level.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
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.
A credit line up to USD 100,000 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. |
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%)