MIRA
INFORM REPORT
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Report Date : |
19.05.2011 |
IDENTIFICATION DETAILS
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Name : |
BaoFeng Steel Group Co., LTD. |
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Registered Office : |
No. 217, Ruiyang Avenue, Industrial Zone,
Songyang County, Lishui, Zhejiang Province, 323400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
16.01.2007 |
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Com. Reg. No.: |
331124000007128 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing
and selling stainless steel pipe, stainless steel products, stainless steel
pipe fittings, stainless steel valves. |
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 100,000 |
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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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Name and address
BaoFeng Steel Group Co., LTD.
NO. 217, ruiyang
avenue, INDUSTRIAL ZONE, songyang county,
lishui, zhejiang
PROVINCE, 323400 PR CHINA
TEL: 86 (0)
578-8016589 FAX: 86 (0) 578- 8017518
EXECUTIVE SUMMARY
INCORPORATION DATE : january 16, 2007
REGISTRATION NO. : 331124000007128
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
400
REGISTERED CAPITAL : CNY 51,800,000
BUSINESS LINE :
manufacturing & trading
TURNOVER :
CNY 125,753,000 (AS OF DEC. 31, 2009)
EQUITIES :
CNY 47,357,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 100,000 (PERIODICAL REVIEW)
MARKET CONDITION : average
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.50 = 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
Note: the given tel. no. (0577-86656713) and fax no.
(0577-86656227) belongs to SC’s sales center in Wenzhou.
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 January
16, 2007.
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 stainless steel pipe,
stainless steel products, stainless steel pipe fittings, stainless steel
valves, goods import and export.
SC is mainly
engaged in manufacturing and selling stainless steel pipe, stainless steel
products, stainless steel pipe fittings, stainless steel valves.
Mr. Han
Shifeng has been chairman of SC since
2007.
SC is known to
have approx. 400 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 Lishui. Our checks
reveal that SC owns the total premise, but the gross area is unspecified.
The
address of Wenzhou Sales Center: No. 112 Changhai Road, Wenzhou Industrial
Zone, Zhejiang Province
Tel:
86 (0) 577-86656713/86651888 Fax: 86 (0) 577-86656227/28866779
http://www.china-baogang.com
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: baofeng@wzbftg.com
SC has got the certificate ISO9001.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
|
Registered
capital |
CNY 30,000,000 |
The present
amount |
|
|
Company name |
Zhejiang Baofeng Steel Pipe Co., Ltd. |
Baofeng Steel
Industrial Co., Ltd. |
|
|
Company name |
Baofeng Steel Industrial
Co., Ltd. |
Baofeng Steel
Group Co., Ltd. |
|
|
Registered no. |
3325282002241 |
The present one |
|
|
Shareholders |
Han Shiwu
10% Jiang Duyao 10% Wang Huaping 10% Zheng Xulin 10% Zhou Juguang 10% Han Shifeng 50% |
The present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Han Shifeng (ID# 330321197110203615) 70
Wang Huaping (ID# 330302196601147116) 30
l
Chairman:
Mr. Han Shifeng , born in 1971 with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2007 to present Working
in SC as chairman
l
General Manager:
Mr. Xu Caozhi, ID # 330322196210241215, born
in 1962, with university education. He is currently responsible for the daily
management of SC.
Working Experience(s):
At present Working
in SC as general manager.
l
Supervisor:
Wang Huaping
SC is mainly engaged
in manufacturing and selling stainless steel pipe, stainless steel products,
stainless steel pipe fittings, stainless steel valves.
Brand: BAOFENG
SC’s products
mainly include:
Stainless steel
pipe
Stainless steel
tube
Stainless steel seamless
pipe
Stainless steel
round bar
Stainless steel
Mirror surface tube
Stainless steel
ingot
Stainless stain
steel welded pipe
Stainless steel
square pipe
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 Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
According
to SC’s website, it is known to have the following subsidiaries:
Baofeng
Special Steel Factory
Baofeng
Seamless Pipe Factory
Baofeng
Punching Factory
Baofeng
Welded Pipe Factory
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.
Bank of China Songyang County Sub-branch
AC#830034251108091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2008 |
as of Dec. 31,
2009 |
|
Cash & bank |
4,181 |
4,684 |
|
Inventory |
63,675 |
61,472 |
|
Accounts
receivable |
0 |
9,757 |
|
Notes receivable |
535 |
770 |
|
Advances to
supplies |
5,124 |
12,411 |
|
Other
receivables |
5,947 |
4,066 |
|
Other current
assets |
5 |
108 |
|
|
------------------ |
------------------ |
|
Current assets |
79,467 |
93,268 |
|
Fixed assets net
value |
43,205 |
40,432 |
|
Projects under
construction |
0 |
0 |
|
Long-term
investments |
0 |
32,646 |
|
Intangible and
other assets |
3,661 |
3,688 |
|
|
------------------ |
------------------ |
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Total assets |
126,333 |
170,034 |
|
|
============= |
============= |
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Short loans |
30,000 |
75,000 |
|
Accounts payable |
0 |
4,373 |
|
Other Accounts
payable |
29,219 |
31,215 |
|
Notes payable |
17,000 |
0 |
|
Advances from
clients |
1,613 |
11,993 |
|
Taxes unpaid |
-751 |
-690 |
|
Accrued payroll |
831 |
666 |
|
Accrued expenses |
71 |
108 |
|
Other current
liabilities |
91 |
12 |
|
|
----------------- |
----------------- |
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Current
liabilities |
78,074 |
122,677 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total liabilities |
78,074 |
122,677 |
|
Shareholders
equities |
48,259 |
47,357 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
126,333 |
170,034 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2008 |
as of Dec. 31,
2009 |
|
Turnover |
216,114 |
125,753 |
|
Cost of goods
sold |
211,974 |
124,690 |
|
Taxes and
additional of main operation |
489 |
189 |
|
Add: Income from
other operations |
5,303 |
4,300 |
|
Sales expense |
2,539 |
3,016 |
|
Management expense |
2,770 |
2,583 |
|
Finance expense |
2,559 |
2,435 |
|
Operation Profit |
1,190 |
-1,587 |
|
Less: profit tax |
767 |
0 |
|
Net profit |
423 |
-1,587 |
Important Ratios
=============
|
|
as of Dec. 31,
2008 |
as of Dec. 31,
2009 |
|
*Current ratio |
1.02 |
0.76 |
|
*Quick ratio |
0.20 |
0.26 |
|
*Liabilities
to assets |
0.62 |
0.72 |
|
*Net profit
margin (%) |
0.20 |
-1.26 |
|
*Return on
total assets (%) |
0.33 |
-0.93 |
|
*Inventory
/Turnover ×365 |
108 days |
179 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
29 days |
|
*Turnover/Total
assets |
1.71 |
0.74 |
|
* Cost of
goods sold/Turnover |
0.98 |
0.99 |
PROFITABILITY: FAIR
The turnover of SC appears fairly good in its line, but it decreasing in
2009.
l
SC’s net profit margin is average in 2008, but
fair in 2009.
SC’s return on total assets is average in 2008, but fair in 2009.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in 2009
l
SC’s quick ratio is maintained in a poor in both
years.
l
The inventory of SC appears LARGE in both years.
l
The accounts receivable of SC appears average in
2009.
l
SC’s short-term loan appears large in 2009.
l
SC’s turnover is in an average 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.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short loans and inventory could be a threat to SC’s
financial condition. A credit line up to USD 100,000 appears to be within SC’s
capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.08 |
|
|
1 |
Rs.73.35 |
|
Euro |
1 |
Rs.64.30 |
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 |
|
-- |
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.