MIRA
INFORM REPORT
|
Report Date : |
14.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
WUXI FASTUBE DINGYUAN PRECISION STEEL PIPE CO., LTD. |
|
|
|
|
Registered Office : |
Qianqiao Industrial Park, Huishan District Wuxi, Jiangsu
Province 362133 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
25.04.2002 |
|
|
|
|
Com. Reg. No.: |
320200400011990 |
|
|
|
|
Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
|
|
|
|
Line of Business : |
Manufacturing oil pipe, oil & gas pipe, welded pipe, seamless steel tubes, round steel tube, shaped steel tube, proximate matter, wire cable and steel tubes. |
|
|
|
|
No. of Employees : |
120 |
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 50,000 |
|
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 30, 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 and address
WUXI FASTUBE DINGYUAN PRECISION STEEL PIPE CO., LTD.
QIANQIAO INDUSTRIAL PARK, HUISHAN DISTRICT
WUXI, JIANGSU PROVINCE 362133 PR CHINA
TEL: 86 (0) 510-83231334
FAX: 86 (0) 510-83218987
EXECUTIVE SUMMARY
Date of Registration : april 25, 2002
REGISTRATION NO. : 320200400011990
LEGAL FORM : CHINESE FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
REGISTERED CAPITAL : HKD 60,000,000
staff :
120
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 305,030,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 18,430,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
Recommended Credit Limit: UP TO USD 50,000 (PERIODICAL REVIEW)
MARKET CONDITION : fair
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.30 = 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
***Note: SC’s address should be the heading one,
instead of the given one-Qingdao Industrial Park, Huishan District, Wuxi City,
Jiangsu Province.
SC was established
as a Chinese foreign equity joint venture enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 320200400011990 on April 25, 2002.
SC’s Organization Code Certificate No.:
73573232-5
SC’s registered capital: HKD 60,000,000
SC’s paid-in capital: HKD 60,000,000 (CNY 58,850,000)
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 |
|
Total Boost Enterprises Limited (B.V.I.) |
55 |
|
Jiangsu Sujia Group Co., Ltd. |
45 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Gong Yucai |
|
Director |
Gong Haitao |
|
Geng Lei |
|
|
Supervisor |
Mao Jiayue |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Total Boost Enterprises Limited (B.V.I.) 55
Jiangsu Sujia Group Co., Ltd. 45
l
Jiangsu Sujia Group Co., Ltd.
----------------------------------------
Registration No.: 320206000081222
Date of Registration: April 13, 2001
Legal Representative: Gong Yucai
Registered Capital: CNY 128,760,400
MANAGEMENT
Gong Yucai , Legal
Representative, Chairman, and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 38
Ø
ID# 32110219740529041X
Ø
Qualification:
University
Ø
Working
experience (s):
At
present, working in SC as legal representative, chairman, and general manager
Also working in Jiangsu Sujia Group Co.,
Ltd., Wuxi Sujia Steel Pipe Co., Ltd., Wuxi Fastube Industry Co., Ltd., Jiangsu
Sujia Group New Materials Co., Ltd., Jiangsu Sujia Group Wuxi International
Trade Co., Ltd., Wuxi Fastube Energy Development Science & Technology Co.,
Ltd., Wuxi Sujia New Materials Research Institute Co., Ltd., and Wuxi Sujia
Real Estate Development Co., Ltd. as legal representative
Gong Haitao , Director
-----------------------------------------
Ø
Gender: M
Ø
Age: 63
Ø
ID# 320222194901234819
Geng Lei, Director
---------------------------------
Ø
Gender: M
Ø
Age: 38
Ø
ID# 320211197406213430
Mao Jiayue , Supervisor
------------------------------------------
Ø
Gender: M
Ø
Age: 32
Ø
ID# 32022219801026481X
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing oil pipe, oil & gas pipe, welded
pipe, seamless steel tubes, round steel tube, shaped steel tube, proximate
matter, wire cable and steel tubes.
SC is mainly
engaged in manufacturing and selling precision steel pipes.
SC’s products
mainly include: high precision seamless tube, shaped seamless steel pipe, etc.
SC sources its
materials 100% from domestic market. SC sells 70% of its products in domestic
market, and 30% to the overseas market, mainly U.S.A. and Southeast Asia.
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.
*Major Customer:
=============
WuXi Huaguang Boiler Co., Ltd.
*Major Supplier:
=============
Wuxi Precese
Corporation
Staff & Office:
--------------------------
SC is known
to have approx. 120 staff at
present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
Wuxi
Sujia Steel Pipe Co., Ltd.
Wuxi
Fastube Industry Co., Ltd.
Jiangsu
Sujia Group New Materials Co., Ltd.
Jiangsu
Sujia Group Wuxi International Trade Co., Ltd.
Wuxi
Fastube Energy Development Science & Technology Co., Ltd.
Wuxi
Sujia New Materials Research Institute Co., Ltd.
Wuxi
Sujia Real Estate Development Co., Ltd.
Etc.
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
AC#: N/A
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
22,600 |
42,790 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
172,610 |
49,860 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
1,480 |
27,910 |
|
Inventory |
51,270 |
51,980 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
23,950 |
14,400 |
|
|
------------------ |
------------------ |
|
Current assets |
271,910 |
186,940 |
|
Fixed assets |
113,610 |
92,660 |
|
Construction in
progress |
3,140 |
2,300 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income tax
assets |
0 |
0 |
|
Other
non-current assets |
1,770 |
660 |
|
|
------------------ |
------------------ |
|
Total assets |
390,430 |
282,560 |
|
|
============= |
============= |
|
Short-term loans |
76,700 |
90,000 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
12,370 |
32,790 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
0 |
0 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
105,870 |
26,970 |
|
Other current
liabilities |
32,330 |
64,370 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
227,270 |
214,130 |
|
Non-current
liabilities |
100,000 |
50,000 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
327,270 |
264,130 |
|
Equities |
63,160 |
18,430 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
390,430 |
282,560 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
305,030 |
|
Cost of sales |
317,100 |
|
Sales expense |
940 |
|
Management expense |
8,200 |
|
Finance expense |
8,310 |
|
Profit before
tax |
-18,140 |
|
Less: profit tax |
0 |
|
-18,140 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.20 |
0.87 |
|
*Quick ratio |
0.97 |
0.63 |
|
*Liabilities
to assets |
0.84 |
0.93 |
|
*Net profit
margin (%) |
-- |
-5.95 |
|
*Return on
total assets (%) |
-- |
-6.42 |
|
*Inventory /
Revenue ×365 |
-- |
63 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
60 days |
|
*
Revenue/Total assets |
-- |
1.08 |
|
* Cost of
sales / Revenue |
-- |
1.04 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears fairly good in 2011.
l
SC’s net profit margin is fair in 2011.
l
SC’s return on total assets is fair in 2011.
l
SC’s cost of goods sold is high, comparing with its
revenue.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in 2010, and appears fair in 2011.
l
SC’s quick ratio is maintained in a normal level in
2010, and appears fair in 2011.
l
The inventory of SC is maintained in an average
level in both years.
l
The accounts receivable of SC is maintained in an
average level in 2011.
l
The short-term loans of SC appear large.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition. A credit line up to USD 50,000
would appear to be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.32 |
|
|
1 |
Rs.77.84 |
|
Euro |
1 |
Rs.65.35 |
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.