MIRA INFORM REPORT
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Report Date : |
31.10.2011 |
IDENTIFICATION DETAILS
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Name : |
ZHENGZHOU HONGTAI STEEL PIPE CO., LTD. |
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Registered Office : |
No. 22 Golden Horse Steel Market, Intersection Of 107 State Road And
Xinzheng Road, Guancheng District, Zhengzhou, Henan Province, 450009 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
18.04.2001 |
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Com. Reg. No.: |
410100000013849 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling
Steel Pipe |
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 |
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 – September 30th, 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 & address
ZHENGZHOU HONGTAI STEEL PIPE CO., LTD.
NO. 22 GOLDEN HORSE STEEL MARKET,
INTERSECTION OF 107 STATE ROAD AND XINZHENG ROAD, GUANCHENG DISTRICT, ZHENGZHOU,
HENAN PROVINCE, 450009 PR CHINA
TEL: 86 (0)
371-66889212/67333675 FAX: 86 (0) 371-67333676
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 18, 2001
REGISTRATION NO. : 410100000013849
REGISTERED LEGAL FORM :
limited liabilities co.
STAFF STRENGTH :
30
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 197,140,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 11,610,000 (AS OF DEC. 31, 2010)
PAYMENT :
average
RECOMM. CREDIT RANGE : UP TO USD 100,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.35 =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: the given telephone/fax number “86-519
SC was registered as a limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Apr. 18, 2001.
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 steel pipe; import and
export of goods and technology (with permit if needed).
SC
is mainly engaged in selling steel pipe.
Mr. Ren Lei is the
legal representative and chairman of SC at present.
SC is known
to have approx. 30 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Zhengzhou. Our
checks reveal that SC rents the total premise, but SC’s employee refused to
release the gross area of the premise.
http://www.zzhtg.com/ The design is
professional and the content is well organized. At present it is in Chinese
version.
E-mail: zz_hongtai@163.com
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ren Lei
60.8
Du Zhishuang
39.2
l
Legal Representative and Chairman:
Mr. Ren Lei, ID# 410104650414051, born in 1965, he is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman
SC
is mainly engaged in selling steel pipe.
SC’s products
mainly include: fluid pipe, low and medium pressure boiler pipe, high pressure
boiler pipe, and auto professional pipe, alloy pipe, etc.
SC sources its
materials 100% from domestic market.
SC sells 70% of its products to the overseas market, and 30% in domestic
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.
Note:
SC’s management declined to release its major suppliers and clients.
Changzhou Office:
=============
Tel: 86-519-88056095
Fax: 86-519-88056095
According
to SC’s website:
Zhengzhou
Huatong Steel Pipe 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.
SC’s management
declined to release its banking information.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
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Cash & bank |
9,050 |
23,710 |
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Inventory |
4,320 |
5,020 |
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Accounts
receivable |
1,150 |
2,510 |
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Advances to
supplies |
25,290 |
46,110 |
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Notes receivable |
360 |
0 |
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Other
receivables |
0 |
0 |
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Other current
assets |
20 |
20 |
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------------------ |
------------------ |
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Current assets |
40,190 |
77,370 |
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Fixed assets net
value |
270 |
430 |
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Projects under
construction |
0 |
0 |
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Long-term
investments |
0 |
0 |
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Intangible and
other assets |
10 |
0 |
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------------------ |
------------------ |
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Total assets |
40,470 |
77,800 |
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============= |
============= |
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Short loans |
6,000 |
7,000 |
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Accounts payable |
0 |
0 |
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Other Accounts
payable |
12,100 |
18,900 |
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Notes payable |
10,500 |
39,970 |
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Advances from
clients |
380 |
210 |
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Taxes payable |
60 |
100 |
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Salaries and
welfare payable |
0 |
0 |
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Other
current liabilities |
0 |
10 |
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----------------- |
----------------- |
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Current
liabilities |
29,040 |
66,190 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
29,040 |
66,190 |
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Shareholders
equities |
11,430 |
11,610 |
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------------------ |
------------------ |
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Total
liabilities & equities |
40,470 |
77,800 |
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============= |
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Income Statement
Unit: CNY’000
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as of Dec. 31,
2010 |
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Turnover |
197,140 |
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Cost of goods
sold |
191,590 |
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Taxes
and additional of main operation |
80 |
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Sales expense |
2,670 |
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Management expense |
2,120 |
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Finance expense |
410 |
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Profit before
tax |
250 |
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Less: profit tax |
60 |
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Net profit |
190 |
Important Ratios
=============
|
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as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
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*Current ratio |
1.38 |
1.17 |
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*Quick ratio |
1.24 |
1.09 |
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*Liabilities
to assets |
0.72 |
0.85 |
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*Net profit
margin (%) |
/ |
0.10 |
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*Return on
total assets (%) |
/ |
0.24 |
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*Inventory
/Turnover ×365 |
/ |
9 days |
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*Accounts
receivable/Turnover ×365 |
/ |
5 days |
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*Turnover/Total
assets |
/ |
2.53 |
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* Cost of
goods sold/Turnover |
/ |
0.97 |
PROFITABILITY: AVERAGE
·
The
turnover of SC appears fairly good in its line in 2010.
· SC’s net profit margin is average in 2010.
·
SC’s return
on total assets is average in 2010.
·
SC’s cost
of goods sold is high in 2010, comparing with its turnover.
LIQUIDITY: AVERAGE
· The current ratio of SC is maintained in a normal level in both 2 years.
· SC’s quick ratio is maintained in a normal level in both 2 years.
·
The inventory of SC appears average in both 2 years.
·
The accounts
receivable of SC appears average in both 2 years.
·
The short-term loan of
SC appears average in both 2 years.
· SC’s turnover is in an average level in 2010, comparing with the size of its total assets.
LEVERAGE: FAIR
· The debt ratio of SC is high in 2010.
· 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. A credit line up to USD 100,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.82 |
|
UK Pound |
1 |
Rs.78.57 |
|
Euro |
1 |
Rs.69.29 |
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 |
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 |
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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.