MIRA INFORM REPORT
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Report Date : |
23.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
WUXI HUAYOU SPECIAL STEEL CO
LTD |
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Registered Office : |
Jinshanbei Industrial Garden, No.888 West Jianghai Road, Wuxi, Jiangsu Province, 214000 |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
21.02.2006 |
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Com. Reg. No.: |
320200000131533 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Seamless Steel Pipes |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 30,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
Wuxi Huayou special steel Co., Ltd.
Jinshanbei Industrial Garden, NO.888 West
Jianghai Road,
WUXI, JIANGSU PROVINCE, 214000 PR CHINA.
888
TEL: 86 (0) 510-83073072 FAX: 86 (0) 510-83073072
EXECUTIVE SUMMARY
INCORPORATION DATE : FEBRUARY 21, 2006
REGISTRATION NO. : 320200000131533
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
120
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 610,270,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 11,130,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 30,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.82603 = 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
Note: The given address is SC’s registered address, while
the heading one is its operation address.
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 February 21, 2006.
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 selling metal materials, machine equipment (excluding
state specially permitted items), building materials, hardware, chemical raw
materials and products (excluding
hazardous chemicals); importing and
exporting commodities and technologies (excluding the items prohibited by the state)
(operating the limited items after obtaining the permits).
SC is mainly engaged
in selling seamless steel pipes.
Mr. Ni Honghu has
been legal representative and chairman of SC since February 2006.
SC is known to have approx. 120 employees at present.
SC is currently
operating at the above stated address, and this address houses its operating
office and head office in the industrial zone of Wuxi. Our checks reveal that
SC rents the premise, but SC’s accountant refused to release the gross area.
http://www.wxhytg.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: huayou@wxhytg.com
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
|
2008-01 |
Registered capital |
CNY 10,000,000 |
CNY 20,000,000 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ni Honghu 95
Yu Zhengang 5
l
Legal representative, chairman and general
manager:
Mr. Ni Honghu, born in 1966. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman, legal representative and general manager.
l
Financial controller:
Mr. Yu Zhengang, born in 1966.
Working Experience(s):
From 2006 to present Working
in SC as financial controller.
SC is mainly
engaged in selling seamless steel pipes.
Main Products:
seamless steel pipe
SC sources its materials 100% from domestic market.
SC sells 95% of its products in domestic market, and 5% to overseas market,
mainly Canadian 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 Customer:
=============
Jiangsu Huahong
Technology Co., Ltd
SC is known to have the following subsidiary:
Wuxi
Huayou Special Steel Co., Ltd. Shanbei Branch
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.
Jiangsu Xizhou Rural Commercial Bank Chengzhong Sub-branch.
AC# 9706478801120100011972
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
350 |
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Notes receivable |
1,430 |
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Inventory |
87,650 |
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Accounts
receivable |
-3,270 |
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Advances to
suppliers |
0 |
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Subsidies
receivable |
-320 |
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Other
receivables |
2,560 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
88,400 |
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Fixed assets |
4,000 |
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Fixed assets net
value |
2,880 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
91,280 |
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Short loans |
39,800 |
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Notes payable |
20,000 |
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Accounts payable |
1,260 |
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Advances from
customers |
0 |
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Accrued payroll |
0 |
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Welfare expenses
payable |
120 |
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Taxes payable |
-1,420 |
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Other payable |
-8,690 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
51,070 |
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Long term liabilities |
29,080 |
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------------------ |
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Total
liabilities |
80,150 |
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Equities |
11,130 |
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------------------ |
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Total
liabilities & equities |
91,280 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
610,270 |
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Cost of goods sold |
576,960 |
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Sales expense |
19,610 |
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Management expense |
10,270 |
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Finance expense |
2,240 |
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Non-operating expense |
90 |
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Profit before
tax |
1,100 |
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Profits |
1,090 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
1.73 |
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*Quick ratio |
0.01 |
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*Liabilities
to assets |
0.88 |
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*Net profit
margin (%) |
0.18 |
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*Return on
total assets (%) |
1.19 |
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*Inventory /Turnover
×365 |
53 days |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
6.69 |
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* Cost of
goods sold/Turnover |
0.95 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
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 normal level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears large.
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SC’s short-term loan appears large.
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SC’s turnover is in a fairly good 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: Fair.
SC is considered medium-sized in its line with fair financial conditions.
The large amount of inventory could be a threat to SC’s financial condition. A
credit line up to USD 30,000 would appear 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. 42.33 |
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UK Pound |
1 |
Rs.84.32 |
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Euro |
1 |
Rs.66.75 |
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%)