MIRA INFORM REPORT
|
Report Date : |
22.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
YANTAI YUANHUA STEEL PIPE CO., LTD. |
|
|
|
|
Registered Office : |
No. 37 Shijiazhuang Road, Dajijia Industrial Park, E&T
Dev. Zone, Yantai, Shandong Province 264006 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
08.07.2005 |
|
|
|
|
Com. Reg. No.: |
370635228066089 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Manufacturing
and Selling Steel Pipe |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment
Behaviour : |
No Complaints |
|
|
|
|
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 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name & address
Yantai Yuanhua Steel Pipe Co., Ltd.
no. 37 shijiazhuang
road, dajijia industrial park, e&T Dev. Zone
yantai, shandong
province 264006 PR CHINA
TEL: 86 (0)
535-6977688/6977277/6977258
FAX: 86 (0)
535-6977298
EXECUTIVE SUMMARY
Date of Registration : july 8, 2005
REGISTRATION NO. : 370635228066089
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
cny 75,000,000
staff : 508
BUSINESS CATEGORY :
manufacturing
Revenue : CNY 639,150,000 (AS OF
DEC. 31, 2010)
EQUITIES : CNY 76,640,000 (AS OF
DEC. 31, 2010)
WEBSITE : www.yuanhuagg.com
E-MAIL :
yuanhua@yuanhuagg.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.38 = 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.: 370635228066089 on July 8,
2005.
SC’s Organization Code Certificate
No.: 77840607-9
SC’s registered capital: cny 75,000,000
SC’s paid-in capital: cny 75,000,000
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 |
|
Yantai Donghai Steel Pipe Co.,
Ltd. |
78.67 |
|
Shun Jiao |
21.33 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Sun
Yuantao |
|
Director |
Shun
Jiao |
RECENT DEVELOPMENT
SC has got the certificate ISO9001.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Yantai Donghai Steel Pipe Co.,
Ltd. 78.67
Shun Jiao 21.33
Yantai Donghai Steel Pipe Co., Ltd.:
=============================
Date of Registration: February 9, 1999
Legal Form: Limited
Liabilities Company
Address: No. 55 Huagong Road, Yantai,
Shandong Province
Tel: 86 (0) 535-6836118
Fax: 86 (0) 535-6835528
Web: www.dhsteeltube.com
MANAGEMENT
Sun
Yuantao, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
From 2005 to present, working in SC as legal representative,
chairman and general manager
Also
working in Yantai Donghai Steel Pipe Co., Ltd. as
legal representative and chairman
Director
-----------
Shun Jiao
BUSINESS OPERATION
SC’s registered business scope includes
processing and selling steel pipe, wholesale and retail of metal materials,
machinery and equipment, timber, building materials, chemical raw materials, importing and
exporting goods and technology.
SC is
mainly engaged in manufacturing and selling steel pipe.
Brand: 
SC’s
products mainly include:
Seamless Steel Pipe for High Pressure Boiler
Fertilizer Facility Pipe
Petroleum Cracking Tube
Petroleum Line Pipe
Petroleum Casing Pipe, Oil Tube
Automotive Axle Housing Tube
Seamless Steel Pipe for Hydraulic Pillar Service
Seamless Steel Pipes Oil Well
Pipe for Liquid Transportation
Seamless Steel Pipe for Low and Medium Pressure Boiler
Seamless Steel Pipe for Structural Purposes
SC could produce more than 300,000 tons of
finished products covering the specs of 76
SC sources its materials 100% from domestic
market. SC sells 75% of its products in domestic market, and 25% to overseas
market, mainly USA, Europe, Middle East, and Southeast Asia.
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.
Staff & Office:
--------------------------
SC is
known to have approx. 508
staff at present.
SC owns an area as
its operating office & factory of approx. 20,000 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:
China
Construction Bank Yantai Branch
AC#：N/A
***Note: SC’s management declined to release
whether it has account in Bank of China.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
118,620 |
52,640 |
|
|
Accounts
receivable |
0 |
0 |
|
Other receivable |
1,420 |
1,490 |
|
Inventory |
88,340 |
83,030 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
74,280 |
21,420 |
|
|
------------------ |
------------------ |
|
Current assets |
282,660 |
158,580 |
|
Fixed assets |
60,670 |
85,970 |
|
Construction in
progress |
17,020 |
10,760 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
10,500 |
10,060 |
|
|
------------------ |
------------------ |
|
Total assets |
370,850 |
265,370 |
|
|
============= |
============= |
|
Short-term loans |
115,170 |
73,000 |
|
Accounts payable |
45,350 |
7,560 |
|
Wages payable |
0 |
0 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
9,330 |
32,560 |
|
Other current
liabilities |
125,340 |
75,610 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
295,190 |
188,730 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
295,190 |
188,730 |
|
Equities |
75,660 |
76,640 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
370,850 |
265,370 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
|
Revenue |
639,150 |
|
Cost of sales |
603,750 |
|
Sales expense |
15,050 |
|
Management expense |
13,480 |
|
Finance expense |
4,990 |
|
Profit before
tax |
1,590 |
|
Less: profit tax |
400 |
|
1,190 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
0.96 |
0.84 |
|
*Quick ratio |
0.66 |
0.40 |
|
*Liabilities
to assets |
0.80 |
0.71 |
|
*Net profit
margin (%) |
-- |
0.19 |
|
*Return on total
assets (%) |
-- |
0.45 |
|
*Inventory /
Revenue ×365 |
-- |
48 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
-- |
|
*
Revenue/Total assets |
-- |
2.41 |
|
* Cost of
sales / Revenue |
-- |
0.94 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
fairly good in its line in 2010.
l
SC’s net profit margin is average in 2010.
l
SC’s return on total assets is average in 2010.
l
SC’s cost of goods sold is fairly high, comparing
with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears large in both years.
l
SC has no accounts receivable.
l
SC’s short-term loans appear large in both years.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average in both years.
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. The large amount of inventory and short-term loans may be
a threat to SC’s financial condition. A credit line up to USD 500,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.07 |
|
UK Pound |
1 |
Rs.79.16 |
|
Euro |
1 |
Rs.69.04 |
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.