MIRA INFORM REPORT
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Report Date : |
21.02.2012 |
IDENTIFICATION DETAILS
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Name : |
SHANXI HUASHENG HEAVY INDUSTRY GROUP CO.,
LTD. |
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Registered Office : |
Chenyu Bldg., No. 3 Central North Street,
National Hi-Tech Industry Development Zone, Taiyuan, Shanxi Province 030006
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
22.10.2008 |
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Com. Reg. No.: |
140100200378307 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
selling metallurgy heavy machinery & equipment |
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No. of Employees
: |
45 |
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) |
|
China |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
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
shanxi huasheng heavy industry group co., ltd.
chenyu bldg., no. 3
central north street
national hi-tech
industry development zone
taiyuan, shanxi PROVINCE
030006 PR CHINA
TEL: 86 (0)
315-2533088/2533177
FAX: 86 (0)
315-2533077
EXECUTIVE SUMMARY
Date of Registration : october 22, 2008
REGISTRATION NO. : 140100200378307
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL :
cny 30,000,000
staff : 45
BUSINESS CATEGORY :
trading
Revenue : CNY 140,770,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 24,970,000 (AS OF DEC. 31, 2011)
WEBSITE : www.huashengzg.com
E-MAIL :
huashengcn@vip.163.com
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD
100,000 (PERIODICAL REVIEW)
MARKET CONDITION : average
FINANCIAL CONDITION :
FAIRly stable
OPERATIONAL TREND :
ORDINARY
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
SC was
established as a limited liability company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 140100200378307 on October 22, 2008.
SC’s Organization Code Certificate No.:
68023537-1
SC’s registered capital: cny 30,000,000
SC’s paid-in capital: cny 30,000,000
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 |
|
Li Jintao |
57 |
|
Li Huirong |
22 |
|
Li Caiping |
21 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Li Jintao |
|
General Manager |
Ning Hongjun |
|
Director |
Li Caiping |
|
Supervisor |
Li Huirong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Li Jintao 57
Li Huirong 22
Li Caiping 21
MANAGEMENT
Li
Jintao, Legal
Representative and Chairman
------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 142431198101180019
Ø
Age: 31
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Ning
Hongjun, General Manager
------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
Li Caiping, Director
--------------------------------------
Ø
Gender: F
Ø
ID# 14243119531229002X
Ø
Age: 59
Li Huirong, Supervisor
--------------------------------------
Ø
Gender: M
Ø
ID# 142131195501220012
Ø
Age: 57
BUSINESS OPERATION
SC’s
registered business scope includes designing, developing, processing,
manufacturing, and selling mining machinery, general machinery, and electrical
machinery (only limited to process and manufacture by its subsidiaries), and
international trade.
SC is mainly
engaged in selling metallurgy heavy machinery & equipment.
SC’s products
mainly include: straight seam welded pipe unit, spiral welded pipe unit,
vertical and horizontal shear equipment, cold-formed steel equipment.
SC sources its materials 100%
from domestic market. SC sells 60% in domestic market, and 40% to overseas
market, mainly Southeast Asia, etc.
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:
=============
Baosteel Group
Xinjiang Bayi Iron & Steel Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 45 staff
at present.
SC
rents an area as its operating office, but the detailed information is unknown.
RELATED COMPANY
Subsidiaries,
----------------
Pingyao
Zhongye Heavy Industry Equipment Manufacturing Co., Ltd.
Shanxi
Shengbang Trade 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
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
15,870 |
340 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
9,490 |
25,000 |
|
Advances to
suppliers |
31,270 |
19,020 |
|
Other receivable |
8,770 |
8,060 |
|
Inventory |
17,160 |
25,520 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
4,950 |
3,990 |
|
|
------------------ |
------------------ |
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Current assets |
87,510 |
81,930 |
|
Long-term
investment |
23,240 |
23,240 |
|
Fixed assets |
11,460 |
17,940 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term prepaid
expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
122,210 |
123,110 |
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|
============= |
============= |
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Short-term loans |
10,000 |
20,000 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
8,770 |
48,120 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
0 |
0 |
|
Advances from
clients |
69,050 |
14,400 |
|
Other payable |
5,490 |
10,760 |
|
Other current
liabilities |
1,190 |
-250 |
|
|
------------------ |
------------------ |
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Current
liabilities |
94,500 |
93,030 |
|
Non-current
liabilities |
2,060 |
5,110 |
|
|
------------------ |
------------------ |
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Total
liabilities |
96,560 |
98,140 |
|
Equities |
25,650 |
24,970 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
122,210 |
123,110 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
140,770 |
|
Cost of sales |
129,030 |
|
Sales expense |
4,020 |
|
Management expense |
5,110 |
|
Finance expense |
3,480 |
|
Profit before
tax |
-640 |
|
Less: profit tax |
30 |
|
-670 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
0.93 |
0.88 |
|
*Quick ratio |
0.74 |
0.61 |
|
*Liabilities
to assets |
0.79 |
0.80 |
|
*Net profit
margin (%) |
-- |
-0.48 |
|
*Return on
total assets (%) |
-- |
-0.54 |
|
*Inventory /
Revenue ×365 |
-- |
67 days |
|
*Accounts receivable/
Revenue ×365 |
-- |
65 days |
|
*
Revenue/Total assets |
-- |
1.14 |
|
* Cost of
sales / Revenue |
-- |
0.92 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
fairly good in its line 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 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 average.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear average.
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. A credit line up to USD 100,000 is
recommended upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.21 |
|
UK Pound |
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 |
|
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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.