MIRA
INFORM REPORT
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Report Date : |
14.12.2011 |
IDENTIFICATION DETAILS
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Name : |
HUADI STEEL GROUP CO., LTD. |
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Registered Office : |
No. 64-76 Zhenbiao East Road, Yongzhong Town, Longwan District, Wenzhou, Zhejiang Province, 325024 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
12.11.1998 |
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Com. Reg. No.: |
330300000021515 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling stainless products |
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No. of Employees : |
600 |
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 800,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name and address
HUADI STEEL GROUP
CO., LTD.
NO. 64-76 ZHENBIAO EAST ROAD, YONGZHONG
TOWN, LONGWAN DISTRICT,
WENZHOU,
ZHEJIANG PROVINCE, 325024 PR CHINA
TEL: 86 (0) 577-85988985 FAX: 86 (0) 577-85988785
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOV. 12, 1998
REGISTRATION NO. :
330300000021515
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
600
REGISTERED CAPITAL : CNY 100,280,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 606,950,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 158,840,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 800,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.34= 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 Ren Min Bi
Note: SC’s present address “No. 64-76, Zhenbiao East Road” was
formerly named as “No. 24-32 Zhenbiao Road”.
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 Nov. 12, 1998.
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 stainless steel pipes,
stainless sticks, stainless steel board; researching, developing consulting
service of stainless pipes and leatheroid; importing and exporting commodities and
technologies; selling leatheroid, common machinery, chemical materials
(excluding chemicals), stainless products, valves, ceramics products,
automotive parts, motor parts and electronic instrument.
SC is mainly
engaged in manufacturing and selling stainless products.
Mr. Wang Di has been legal representative and chairman of
SC since 2011.
SC is known
to have approx. 600 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 Wenzhou. Our checks
reveal that SC owns the total premise about 126,800 square meters.
Note:
SC has a new factory located in No. 1688, Tianzhong Road, Yongqiang High-tech
Industrial Park, Longwan District, Wenzhou, Zhejiang
http://www.huadigroup.com
The design is professional and the content is well organized. At present it is
in Chinese, English, Russian and Spanish versions.
E-Mail: huadi@huadigroup.com
(According to SC’s website) SC has already passed ISO9001, France bv
company astm/asme products authentication and authentication of ce products
(ped )、tüv, Asian-pacific economic and trade
commission and France scientific and technological quality supervise committee
choose as " European union market , American market " recommended
products and "high quality scientific and technological products",
"Chinese and foreign famous brand products", "units of 500 tops
of enterprise run by the local people of country of china", "the
famous trade mark" of Zhejiang province, "leading brand
products" of Zhejiang province, "such honorary titles as sincere
demonstration enterprises" of Zhejiang province , "leading brand
products" in Wenzhou , "the famous trade mark of Wenzhou "and so
on honors.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
unknown |
Legal
representative |
Wang Huisen |
Wang Huizhi |
|
2011-10 |
Legal
representative |
Wang Huizhi |
The present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wang Di 19.92
Wang Huisen 13.62
Wang Huizhi
13.62
Wang Jueqin 11.92
Xiang Guangchun 9.17
Zhang Bing 9.17
Wang Jueguang 4.84
Zhou Chengbiao 4.72
Wang Juepeng 4.34
Wang Juelin 4.34
Zhang Weifa 4.34
l
Legal representative and chairman:
Mr. Wang Di , born in 1945. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2011 to present Working
in SC as legal representative and chairman.
l
General manager:
Mr. Wang Huisen , ID# 330321195804193010,
born in 1958. He is currently responsible for the daily management of SC.
Working Experience(s):
At present
Working in SC as general
manager.
SC is mainly engaged
in manufacturing and selling stainless products.
SC’s products
mainly include:
Seamless stainless
steel
Stainless steel
bar
Stainless steel
pipe
Stainless Steel
Elbow
Stainless ingots
SC sources its
materials 90% from domestic market, and 10% from the overseas market, mainly
European countries. SC sells 70% of its products in domestic market, and 30% to
the overseas market, mainly American and European countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note: SC refused
to release its major suppliers and customers.
SC
is known to have the following subsidiaries:
=================================
Wenzhou
Huadi Ceramics Co., Ltd.
Taizhou
Huadi Metal Material Recycling Co., Ltd.
Wenzhou
Huadi Metal Material Recycling Co., Ltd.
Wenzhou
Dehong Waste Recycling Co., Ltd.
Wenzhou
New Huadi Synthetic Leather Co., Ltd.
Taizhou
Huadi Industrial Co., Ltd.
Etc.
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.
Agricultural Bank of China Wenzhou Branch Longwan Sub-branch
AC#:
225101040003712
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2010 |
|
Cash & bank |
120,320 |
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Inventory |
112,700 |
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Accounts
receivable |
105,520 |
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Advances to
suppliers |
213,950 |
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Notes receivable |
3,760 |
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Other
receivables |
15,460 |
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Other current assets |
0 |
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------------------ |
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Current assets |
571,710 |
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Fixed assets net
value |
84,830 |
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Projects under
construction |
0 |
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Long term
investment |
136,370 |
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Intangible
assets |
3,740 |
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Other assets |
0 |
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------------------ |
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Total assets |
796,650 |
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============= |
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Short term loan |
453,070 |
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Accounts payable |
15,480 |
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Advances from
clients |
8,490 |
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Notes payable |
133,310 |
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Taxes payable |
1,710 |
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Salaries payable |
1,310 |
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Other payable |
22,960 |
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Other current
liabilities |
1,480 |
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------------------ |
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Current
liabilities |
637,810 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
637,810 |
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Equities |
158,840 |
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------------------ |
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Total
liabilities & equities |
796,650 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2010 |
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Turnover |
606,950 |
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Cost of goods sold |
552,800 |
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Taxes and additional of main operation |
1,930 |
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Sales expense |
8,190 |
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Management expense |
10,860 |
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Finance expense |
25,870 |
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Investment
income |
4,000 |
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Profit before
tax |
14,220 |
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Less: profit tax |
2,500 |
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Profits |
11,720 |
Important Ratios
=============
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As
of Dec. 31, 2010 |
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*Current ratio |
0.90 |
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*Quick ratio |
0.72 |
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*Liabilities
to assets |
0.80 |
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*Net profit
margin (%) |
1.93 |
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*Return on total
assets (%) |
1.47 |
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*Inventory
/Turnover ×365 |
68
days |
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*Accounts
receivable/Turnover ×365 |
64
days |
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*Turnover/Total
assets |
0.76 |
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* Cost of
goods sold/Turnover |
0.91 |
PROFITABILITY: AVERAGE
l
The turnover of SC appears fairly good.
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
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is average.
l
The accounts receivable of SC is average.
l
The short term loan of SC is large.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
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 term loan could be a threat to SC’s financial
condition. A credit line up to USD 800,000 appears acceptable upon a periodical
review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.40 |
|
|
1 |
Rs.83.32 |
|
Euro |
1 |
Rs.70.44 |
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
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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-- |
NB |
New Business |
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.