MIRA INFORM REPORT

 

 

Report Date :

06.09.2011

 

IDENTIFICATION DETAILS

 

Name :

RG PETRO-MACHINERY (GROUP) CO., LTD.

 

 

Registered Office :

No. 869, Western Zhongzhou Road Nanyang City, Henan Province 473003 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

30.04.2006

 

 

Com. Reg. No.:

411300400000490

 

 

Legal Form :

Chinese-Foreign Equity Joint Venture Enterprise

 

 

Line of Business :

Manufacturing and selling oil drilling equipment & components, general equipment & components; adapting special vehicles; repairing petroleum machines; exporting its finished equipment and related technology etc.

 

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

 

Maximum Credit Limit :

USD 2,500,000

Status :

Good

Payment Behaviour :

Usually Correct

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 – March 31st, 2011

 

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

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 and address

 

RG PETRO-MACHINERY (GROUP) CO., LTD.

NO. 869, WESTERN ZHONGZHOU ROAD

NANYANG CITY, HENAN PROVINCE 473003 PR CHINA

TEL: 86 (0) 371-63577394/63577535

FAX: 86 (0) 371-63552942/63577539

 

EXECUTIVE SUMMARY

 

Date of Registration          : april 30, 2006

REGISTRATION NO.                  : 411300400000490

LEGAL FORM                           : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE

CHIEF EXECUTIVE           : yang hanli (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : CNY 135,690,000

staff                                      : 2,015

BUSINESS CATEGORY             : MANUFACTURING

Revenue                                : CNY 842,232,000 (AS OF DEC. 31, 2010)

EQUITIES                                 : CNY 453,639,000 (AS OF DEC. 31, 2010)

WEBSITE                                 : www.ejpetro.com

E-MAIL                                     : ejcjck@ejpetro.com

PAYMENT                                : AVERAGE

Recommended Credit Limit: UP TO USD 2,500,000

MARKET CONDITION                : COMPETITIVE

FINANCIAL CONDITION             : fairly stable

OPERATIONAL TREND              : STEADY

GENERAL REPUTATION           : fairly good

EXCHANGE RATE                     : CNY 6.39 = 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 Chinese-foreign equity joint venture enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 411300400000490 on April 30, 2006.

 

SC’s Organization Code Certificate No.: 17631052-0

SC’s registered capital: CNY 135,690,000

 

SC’s paid-in capital: CNY 135,690,000

 

Registration Change Record:

 

Date

Change of Contents

Before the change

After the change

--

Registration No.

4113001000954

411300400000490

 

 

 

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Beijing Shenzhou Lvneng Technology Co., Ltd.

1.48

Meilian Petroleum Equipment (Beijing) Co., Ltd.

2.21

Yang Hanli and other 42 individuals

58.72

China Petroleum Technology & Development Corporation

8.84

Canada Changgong Petroleum Limited

28.75

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative, Chairman, and General Manager

Yang Hanli

Deputy General Manager

Li Tie

Director

Qu Ning

Zhang Yong

 

 

RECENT DEVELOPMENT

 

SC has established a complete quality assurance system and HSE system. It is one of the first companies that got the certification of ISO9001 /2000 in the industry of China and now its products are licensed with API spec 8A, 8C, 11E, 4F,7K and pass the “3C” compulsory certification of China.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                                                                   % of Shareholding

 

 

Beijing Shenzhou Lvneng Technology Co., Ltd.                                                     1.48

                                                                       

Meilian Petroleum Equipment (Beijing) Co., Ltd.                                                   2.21

                                                                       

Yang Hanli and other 42 individuals                                                                      58.72

 

China Petroleum Technology & Development Corporation                          8.84

                                                                                   

Canada Changgong Petroleum Limited                                                                 28.75

 

 

*         Beijing Shenzhou Lvneng Technology Co., Ltd.

======================================

Registration No.: 110114006360631

Date of Registration: December 24, 2003

Legal Form: Limited Liabilities Company

Registered Capital: CNY 1,500,000

Legal Representative: Tong Zhaosong

 

*         Meilian Petroleum Equipment (Beijing) Co., Ltd.

========================================

Registration No.: 110000410110835

Date of Registration: December 27, 1995

Legal Form: Wholly foreign-owned enterprise

Registered Capital: USD 400,000

Legal Representative: Zhen Zaiyuan

 

*         China Petroleum Technology & Development Corporation

===============================================

Registration No.: 100000000006385

Date of Registration: August 4, 1987

Legal Form: State-owned Enterprise

Registered Capital: CNY 443,470,000

Legal Representative: Bi Yueming

China Petroleum Technology & Development Corporation (CPTDC), a wholly-owned subsidiary of China National Petroleum Corporation (CNPC), as the largest supplier of Chinese petroleum and petrochemical materials and equipment in the world, engages in the overall plan of domestic sales and export of the manufactured materials and equipment of CNPC and takes the responsibility to provide materials and equipment for CNPC overseas projects.

Tel: +86-10-63591520

Fax: +86-10-63591500

Web: www.cnpc.com.cn

E-mail: webmaster@cptdc.cnpc.com.cn

 

 

MANAGEMENT

 

Yang Hanli  Legal Representative, Chairman and General Manager

---------------------------------------------------------------------------------------------------

Ø         Gender: M

Ø         Age: 47

Ø         Qualification: University

Ø         Working experience (s):

 

At present, working in SC as legal representative, chairman, and general manager

Also working in Nanyang RG Vehicle Manufacture Co., Ltd., Nanyang Huamei Petroleum Equipment Co., Ltd., NSLT Transmission Component Co., Ltd., and Nanyang Xincheng Elevated Equipment Co., Ltd. as legal representative

 

 

Li Tie , Deputy General Manager

----------------------------------------------------

Ø         Gender: M

Ø         Age: 56

Ø         Qualification: University

Ø         Working experience (s):

 

At present, working in SC as deputy general manager

 

 

Director

-----------

Qu Ning

Zhang Yong

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing and selling oil drilling equipment & components, general equipment & components; adapting special vehicles; repairing petroleum machines; exporting its finished equipment and related technology; importing and exporting raw materials, equipment & components, and technology needed by production and scientific research; manufacturing and selling pressure vessels and moulds; filling oxygen & nitrogen; metal mineral products inspection; accommodation & catering (operated by its branches).

 

SC is mainly engaged in manufacturing and selling oil drilling equipment & components, general equipment & components.

 

SC’s products mainly include:

Truck-mounted drilling rig

Skid-mounted drilling rig

Trailer-mounted drilling rig

Heavy-duty workover rig

Light-duty workover rig

Special environment rig

Petroleum special vehicles

Wellhead tools

Hoisting system and rotary equipments

      

 

SC provides 110 types of products in 10 series, including: 1000m-4000m truck-mounted drilling rigs, 1000m-7000m skid-mounted drilling rigs, 1000m-4000m trailer-mounted drilling rigs, 25T-225T onshore workover rigs, 60T-225T offshore workover rigs, 4000m-7500m well-logging equipment, 50T-70T heavy-duty trailers, top-drive unit, petroleum special vehicles and wellhead tools

 

SC sources its materials 100% from domestic market. SC sells 63% of its products in domestic market, and 37% to overseas market, mainly Kazakhstan, Egypt, USA, Indonesia, Russia, Kuwait,

India, Tajikistan, Finland, Libya, Columbia, Canada, Brazil, Venezuela, and Saudi Arabia.

 

The import & export status of SC in 2010 is as follows,

Country

Amount of Exports (USD)

Amount of Imports (USD)

Kazakhstan

36,896,000

0

Egypt

638,000

0

USA

615,000

0

Indonesia

950,000

0

Russia

261,000

0

Kuwait

2,005,000

0

India

1,190,000

0

Tajikistan

70,800

0

Finland

10,000

0

Libya

36,300

0

Columbia

255,800

0

Canada

809,900

0

Brazil

606,000

0

Venezuela

337,400

0

Saudi Arabia

891,000

0

 

------------------------

------------------------

Total Amount

45,572,200

0

 

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.

 

Staff & Office:

--------------------------

SC is known to have approx. 2,015 staff at present.

 

SC owns an area as its operating office and factory, but the detailed information is unknown.

 

 

RELATED COMPANY

 

SC is known to invest in the following companies,

=====================================

u        Nanyang RG Vehicle Manufacture Co., Ltd.

Registration No.: 411300100004391

Date of Registration: November 18, 2004

Legal Form: Limited Liabilities Company

Registered Capital: CNY 10,000,000

Legal Representative: Yang Hanli

 

u        Nanyang Huamei Petroleum Equipment Co., Ltd.

Registration No.: 411300400000432

Date of Registration: February 11, 1993

Legal Form: Limited Liabilities Company

Registered Capital: CNY 2,750,000

Legal Representative: Yang Hanli

 

u        Nanyang Wancheng RG Oilfield Drilling Service Co., Ltd.

Registration No.: 411300100025936

Date of Registration: June 15, 2006

Legal Form: Limited Liabilities Company

Registered Capital: CNY 3,000,000

Legal Representative: Lv Bing

 

u        NSLT Transmission Component Co., Ltd.

Registration No.: 411300100007875

Date of Registration: April 28, 1998

Legal Form: Limited Liabilities Company

Registered Capital: CNY 6,180,000

Legal Representative: Yang Hanli

www.nslitian.com

 

u        Nanyang Xincheng Elevated Equipment Co., Ltd.

Registration No.: 411300400000205

Date of Registration: May 5, 1998

Legal Form: Limited Liabilities Company

Registered Capital: CNY 3,200,000

Legal Representative: Yang Hanli

 

u        Nanyang Oilfield Zhongye Labor Technology Service Co., Ltd.

Registration No.: 411392000001404

Date of Registration: October 8, 2002

Legal Form: Limited Liabilities Company

Registered Capital: CNY 1,000,000

Legal Representative: Li Qingliang

 

u        Rg Petro-Machinery (Group) Co., Ltd. Petroleum Hotel

Registration No.: 411300510003948

Date of Registration: July 17, 2006

Registered Capital: CNY 375,000

Legal Representative: Zhang Yun

 

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

 

The bank information of SC is not filed in local SAIC.

 

 

FINANCIALS

 

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2010

Cash

170,730

Notes receivable

0

Accounts receivable

327,120

Advances to suppliers

0

Other receivable

55,680

Inventory

333,230

Non-current assets within one year

0

Other current assets

127,200

 

------------------

Current assets

1,013,960

Fixed assets

123,020

Construction in progress

90

Intangible assets

0

Long-term investments

116,080

Deferred income tax assets

0

Other non-current assets

61,031

 

------------------

Total assets

1,314,181

 

=============

Short-term loans

265,600

Notes payable

0

Accounts payable

321,490

Payroll payable

0

Advances from clients

0

Taxes payable

0

Other payable

49,370

Other current liabilities

224,082

 

------------------

Current liabilities

860,542

Non-current liabilities

0

 

------------------

Total liabilities

860,542

Equities

453,639

 

------------------

Total liabilities & equities

1,314,181

 

=============

 

Income Statement

Unit: CNY’000

As of Dec. 31, 2010

Revenue

842,232

Cost of sales

706,590

    Sales expense

34,320

    Management expense

87,290

    Finance expense

1,870

Profit before tax

40,362

Less: profit tax

5,045

Profits

35,317

 

Important Ratios

=============

 

                                           As of Dec. 31, 2010

*Current ratio

1.18

*Quick ratio

0.79

*Liabilities to assets

0.65

*Net profit margin (%)

4.19

*Return on total assets (%)

2.69

*Inventory / Revenue ×365

145 days

*Accounts receivable/ Revenue ×365

142 days

* Revenue/Total assets

0.64

* Cost of sales / Revenue

0.84

FINANCIAL COMMENTS

 

PROFITABILITY: FAIRLY GOOD

l         The revenue of SC appears fairly good in its line.

l         SC’s net profit margin is fairly good.

l         SC’s return on total assets is average.

l         SC’s cost of goods sold is average, comparing with its revenue.

 

LIQUIDITY: FAIR

l         The current ratio of SC is maintained in a normal level.

l         SC’s quick ratio is maintained in a fair level.

l         The inventory of SC appears fairly large.

l         The accounts receivable of SC appears fairly large.

l         SC’s short-term loans appear fairly large.

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 low.

 

Overall financial condition of the SC: Fairly Stable.

 

 

CONCLUSIONS

 

SC is considered large-sized in its line with fairly stable financial conditions. The fairly large amount of inventory & accounts receivable & short-term loans may be a threat to SC’s financial condition. Taking into consideration of SC’s good background, general performance, reputation as well as market conditions, a credit line up to USD 2,500,000 would appear to be within SC’s capacities.

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.46.12

UK Pound

1

Rs.74.18

Euro

1

Rs.64.87

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.