MIRA INFORM REPORT
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Report Date : |
21.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG GUOBANG STEEL CO., LTD. |
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Registered Office : |
No. 203 Ruiyang Avenue, Songyang Industrial
Park, Lishui, Zhejiang Province
323400 Pr |
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Country : |
china |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
04.04.2007 |
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Com. Reg. No.: |
331124000003885 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling stainless steel pipe |
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No. of Employees
: |
130 persons |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 200,000 |
|
Status : |
Moderate |
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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 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
China |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
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 & address
zhejiang guobang steel co., ltd.
no. 203 ruiyang
avenue, songyang industrial park, lishui
zhejiang province
323400 PR CHINA
TEL: 86 (0)
577-86853908/86893188/86895961
FAX: 86 (0)
577-86853088
EXECUTIVE SUMMARY
Date of Registration : april 4, 2007
REGISTRATION NO. : 331124000003885
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 28,180,000
staff :
130
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 70,970,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 28,594,000 (AS OF DEC. 31, 2010)
WEBSITE : www.guobanggroup.com
E-MAIL :
gbe@guobanggroup.com
PAYMENT :
AVERAGE
Recommended Credit Limit: UP TO USD 200,000
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly
stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.34 = USD 1
Adopted abbreviations
(As Follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 331124000003885 on April 4, 2007.
SC’s Organization Code Certificate No.:
66055802-6
SC’s Tax No.: 331124660558026
SC’s registered capital: cny 28,180,000
SC’s paid-in capital: cny 28,180,000
Registration Change Record:
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Chen Guochun |
70 |
|
Chen Jiuqiu |
10 |
|
Jiang Baolin |
10 |
|
Zhang Xiuli |
10 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Chen Guochun |
|
Supervisor |
Jiang Baolin |
RECENT DEVELOPMENT
SC has got the certificate ISO9001.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Chen Guochun (ID# 330321196306143314) 70
Chen Jiuqiu (ID# 330321196011283619) 10
Jiang Baolin (ID# 330321196209113316) 10
Zhang Xiuli (ID# 330321196500103340) 10
MANAGEMENT
Chen Guochun, Legal
Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 48
Ø
Qualification:
University
Ø
Working
experience (s):
From 2007 to present, working in SC as legal representative,
chairman and general manager
Jiang
Baolin,Supervisor
--------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø
Qualification:
University
Wang Yin, Sales
Manager
-------------------------------------------
Ø
Gender: M
Ø
Mobile: 86 (0) 13094738362
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling stainless steel pipe, alloy steel, petroleum and natural gas steel
pipe, pipe fittings; international trade.
SC is mainly engaged
in manufacturing and selling stainless steel pipe.
Brand: 
SC’s products
mainly include: stainless steel pipes, pipe fittings, coiled pipes and flanges.
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 70% of its products in domestic market, and
30% to overseas market, mainly USA, Japan, South Africa, etc.
The buying terms
of SC include T/T and Credit of 30-60 days. The payment terms of SC include
T/T, L/C and Credit of 30-60 days.
*Major Local Competitors:
=====================
Zhejiang Dongnan Pipe Made Co., Ltd.
Zhejiang Yongshang Stainless Industrial Co., Ltd.
Huzhou Baohua Stainless Steel Tube Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 130 staff at
present.
SC owns an area as
its operating office & factory of approx. 36,000 sq. meters at the heading
address.
RELATED COMPANY
SC is
not known to have any subsidiary at present.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
Bank
of China Songyang County Sub-branch
AC#: 830035281408091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
12,134 |
19,612 |
|
|
Accounts
receivable |
130 |
2,229 |
|
Advances to
suppliers |
9,358 |
22,197 |
|
Other receivable |
-1 |
400 |
|
Inventory |
8,149 |
3,771 |
|
Deferred
expenses |
99 |
748 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
29,869 |
48,957 |
|
Fixed assets |
16,324 |
17,170 |
|
Construction in
progress |
17 |
149 |
|
Intangible
assets |
7,286 |
7,126 |
|
Long-term
investment |
9 |
9 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
345 |
224 |
|
|
------------------ |
------------------ |
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Total assets |
53,850 |
73,635 |
|
|
============= |
============= |
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Short-term loans |
3,500 |
19,650 |
|
Notes payable |
17,300 |
22,800 |
|
Accounts payable |
957 |
924 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
-387 |
-399 |
|
Unpaid profit |
-2,818 |
-3,377 |
|
Advances from
clients |
2,200 |
5,333 |
|
Other payable |
4,498 |
911 |
|
Other current
liabilities |
6 |
-801 |
|
|
------------------ |
------------------ |
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Current
liabilities |
25,256 |
45,041 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
25,256 |
45,041 |
|
Equities |
28,594 |
28,594 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
53,850 |
73,635 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Revenue |
42,694 |
70,970 |
|
Cost of sales |
43,206 |
69,473 |
|
Taxes and surcharges |
55 |
173 |
|
Sales expense |
1,391 |
826 |
|
Management expense |
2,555 |
2,227 |
|
Finance expense |
260 |
507 |
|
Non-business
income |
381 |
435 |
|
Non-business expense |
450 |
8 |
|
Profit before
tax |
-3,163 |
-559 |
|
Less: profit tax |
0 |
0 |
|
-3,163 |
-559 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
1.18 |
1.09 |
|
*Quick ratio |
0.86 |
1.00 |
|
*Liabilities
to assets |
0.47 |
0.61 |
|
*Net profit
margin (%) |
-7.41 |
-0.79 |
|
*Return on
total assets (%) |
-5.87 |
-0.76 |
|
*Inventory /
Revenue ×365 |
70 days |
20 days |
|
*Accounts
receivable/ Revenue ×365 |
2 days |
12 days |
|
* Revenue/Total
assets |
0.79 |
0.96 |
|
* Cost of
sales / Revenue |
1.01 |
0.98 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears average, and it was
rising in 2010.
l
SC’s net profit margin is poor in 2009 and fair in
2010.
l
SC’s return on total assets is poor in 2009 and
fair in 2010.
l
SC’s cost of goods sold is fairly high, comparing
with its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loan is in an average level.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. A credit line up to USD 200,000
would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.03 |
|
UK Pound |
1 |
Rs.82.34 |
|
Euro |
1 |
Rs.68.99 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.