MIRA
INFORM REPORT
|
Report Date : |
21.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
shandong
luxing steel pipe co., ltd. |
|
|
|
|
Registered Office : |
Dongba Village, Dongba Town,
Qingzhou, Shandong Province 262500 Pr |
|
|
|
|
Country : |
China |
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|
|
|
Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
07.11.1996 |
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|
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Com. Reg. No.: |
370700400008744 |
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|
|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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|
|
Line of Business : |
Manufacturing Seamless Steel Tube; Selling its Owned Products |
|
|
|
|
No. of Employees : |
650 |
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 600,000 |
|
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
shandong luxing steel pipe co.,
ltd.
dongba
village, dongba town, qingzhou
shandong PROVINCE 262500 PR
CHINA
TEL: 86
(0) 536-3532057
FAX: 86 (0)
536-3532057
EXECUTIVE SUMMARY
Date of Registration : november 7, 1996
REGISTRATION NO. : 370700400008744
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL :
usd 4,500,000
staff : 650
BUSINESS CATEGORY :
manufacturing
Revenue :
CNY 868,600,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 153,585,000 (AS OF DEC. 31, 2011)
WEBSITE : www.lxpipe.cn
E-MAIL :
sales@xpipe.cn
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD 600,000
(PERIODICAL REVIEW)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.30 = USD
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.: 370700400008744 on November 7, 1996.
SC’s Organization Code Certificate
No.: 16937534-2
SC’s Tax No.: 370781169375342
SC’s Customs Registration No.:
3717934056
SC’s registered capital: usd 4,500,000
SC’s paid-in capital: usd 4,500,000 (CNY 32,934,635)
Registration Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
|
2011 |
Registration No. |
003726 |
370700400008744 |
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wu Xuechun |
35 |
|
Wu Xueji |
23 |
|
Wu Xuesheng |
17 |
|
Korea Nantong Trade Co., Ltd. |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and General
Manager |
Wu
Xueji |
|
Chairman |
Wu
Xuechun |
RECENT DEVELOPMENT
SC passed the ISO9001:2008 Quality Management Certification, API
5CT&
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Wu Xuechun
35
Wu Xueji
23
Wu Xuesheng
17
Korea Nantong Trade Co., Ltd.
25
MANAGEMENT
Wu
Xueji, Legal
Representative and General Manager
----------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and
general manager
Wu
Xuechun, Chairman
--------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as chairman
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
seamless steel tube; selling its owned products.
SC is
mainly engaged in manufacturing and selling seamless steel tube.
SC’s
products mainly include:
Piling service pipe
Mechnical application pipe
Pressure purpose pipe
Line pipe for sour service
API line pipe
API Casing & Tubing
SC owns 3 sets of hot-rolled seamless steel pipe
production line and 2 sets of hot-expanded seamless steel pipe production line
with annual production capacity of 450,000 tons. The size range is from
SC sources its materials 100% from domestic
market. SC sells 87% of its products in domestic market, and 13% to overseas
market, mainly Italy, Holland, Switzerland, etc.
The
import & export status of SC in 2010 is as follows,
|
Country |
Amount
of Exports (USD) |
Amount of Imports (USD) |
|
Italy |
4,300,000 |
-- |
|
Holland |
2,620,000 |
-- |
|
UK |
860,000 |
-- |
|
Turkey |
200,000 |
-- |
|
Switzerland |
1,170,000 |
-- |
|
Spain |
520,000 |
-- |
|
Yemen |
850,000 |
-- |
|
Greece |
350,000 |
-- |
|
Portugal |
560,000 |
-- |
|
Mexico |
550,000 |
-- |
|
Belgium |
380,000 |
-- |
|
Germany |
510,000 |
-- |
|
|
------------------- |
------------------- |
|
Total Amount |
12,870,000 |
-- |
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.
*Major Customer:
=============
Cangzhou Yucheng
Steel-Pipe Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 650
staff at present.
SC owns an area as
its operating office & factory of approx. 153,180 sq. meters at the heading
address.
RELATED COMPANY
SC is known to have a
subsidiary at present:
Qingzhou
Dongba Heat Supply Co., Ltd.
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:
Agricultural
Bank of China Qingzhou Dongba Office
AC#:
15436701040002344
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
110,810 |
196,509 |
|
|
Notes receivable |
50 |
7,874 |
|
Accounts
receivable |
30,049 |
8,497 |
|
Advances to
suppliers |
76,784 |
16,730 |
|
Other receivable |
4,075 |
59,884 |
|
Inventory |
145,492 |
200,206 |
|
Prepaid expenses |
9,972 |
11,237 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
377,232 |
500,937 |
|
Fixed assets |
376,964 |
371,457 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
5,585 |
5,350 |
|
Long-term
prepaid expenses |
1,097 |
705 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
3,370 |
4,870 |
|
|
------------------ |
------------------ |
|
Total assets |
764,248 |
883,319 |
|
|
============= |
============= |
|
Short-term loans |
229,430 |
307,722 |
|
Notes payable |
223,300 |
277,100 |
|
Accounts payable |
35,889 |
26,082 |
|
Wages payable |
3,735 |
3,249 |
|
Dividends
payable |
1,540 |
1,540 |
|
Taxes payable |
-2,017 |
-4,095 |
|
Advances from
clients |
30,944 |
32,630 |
|
Other payable |
34,691 |
79,864 |
|
Accrued expenses |
1,100 |
0 |
|
Other current
liabilities |
0 |
52 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
558,612 |
724,144 |
|
Non-current
liabilities |
6,689 |
5,590 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
565,301 |
729,734 |
|
Equities |
198,947 |
153,585 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
764,248 |
883,319 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
742,148 |
868,600 |
|
Cost of sales |
693,593 |
859,692 |
|
Taxes and surcharges |
0 |
181 |
|
Sales expense |
4,754 |
7,003 |
|
Management expense |
15,207 |
13,432 |
|
Finance expense |
20,671 |
39,883 |
|
Non-business
income |
0 |
687 |
|
Non-business expense |
133 |
3 |
|
Profit before tax |
840 |
-45,353 |
|
Less: profit tax |
0 |
0 |
|
840 |
-45,353 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
0.68 |
0.69 |
|
*Quick ratio |
0.41 |
0.42 |
|
*Liabilities
to assets |
0.74 |
0.83 |
|
*Net profit
margin (%) |
0.11 |
-5.22 |
|
*Return on
total assets (%) |
0.11 |
-5.13 |
|
*Inventory /
Revenue ×365 |
72 days |
85 days |
|
*Accounts
receivable/ Revenue ×365 |
15 days |
4 days |
|
*
Revenue/Total assets |
0.97 |
0.98 |
|
* Cost of
sales / Revenue |
0.93 |
0.99 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears fairly good, and it was
rising in 2011.
l
SC’s net profit margin is average in 2010 and fair
in 2011.
l
SC’s return on total assets is average in 2010 and
fair in 2011.
l
SC’s cost of sales 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.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loan of SC appears large.
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.
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 inventory & short-term loans may be a threat to SC’s
financial condition. A credit line up to USD 600,000 is recommended upon a
periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.21 |
|
|
1 |
Rs.77.75 |
|
Euro |
1 |
Rs.64.58 |
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.