MIRA
INFORM REPORT
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Report Date : |
03.05.2012 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG HUABAO STEEL PIPE CO.,
LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
21.12.2008 |
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Date of Incorporation : |
09.12.2003 |
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Com. Reg. No.: |
371300018019818 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing and selling oil pipe |
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No. of Employees : |
400 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 30, 2011
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 and address
SHANDONG HUABAO STEEL PIPE CO., LTD.
NO. 205 National Highway Road East,
ZAOGOUTOU INDUSTRY ZONE, LANSHAN DISTRICT, LINYI, SHANDONG PROVINCE, 276038 PR
CHINA
TEL: 86 (0) 539-8632527/8632179/ 8632007
FAX: 86 (0) 539-8632063/8632681
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 9, 2003
REGISTRATION NO. : 371300018019818
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
400
REGISTERED CAPITAL : CNY 50,400,000
BUSINESS LINE :
MANUFACTURING & selling
TURNOVER :
cny 182,960,000 (AS OF DEC. 31, 2008)
EQUITIES :
cny 25,590,000 (AS OF DEC. 31, 2008)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2964 = usd
Adopted abbreviations
ANS - amount not
stated
NS - not stated
SC - subject
company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
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
Dec. 9, 2003.
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 manufacturing seamless pipe;
processing casing; selling seamless pipe and steel products.
SC is mainly
engaged in manufacturing and selling oil pipe.
Mr. Wang
Yongxiang is the legal representative, chairman
and general manager of SC at present.
SC is known
to have approx. 400 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Linyi. Our checks reveal
that SC owns the total premise about 1,000 square meters.
http://www.huabaogangguan.com/
The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
E-mail: steeltubeharry@gmail.com
Changes
of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
2009-03 |
Registered capital |
CNY 20,000,000 |
CNY 35,000,000 |
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Shareholdings |
Wang Yongxiang 75.5% Wang Feng 24.5% |
Wang Yongxiang86% Wang Feng 14% |
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Unspecified |
Registered capital |
CNY 35,000,000 |
Present amount |
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Shareholdings |
Wang Yongxiang 86% Wang Feng 14% |
Present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wang Yongxiang 90.28
Wang Feng 9.72
l
Legal representative, chairman and general manager:
Mr. Wang Yongxiang, born in 1963, with university education. He is
currently responsible for the overall and daily management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
l
Supervisor:
Liu Yuzhong
SC is mainly
engaged in manufacturing and selling oil pipe.
SC’s products mainly
include: seamless steel pipe, car pipe, oil pipe and boiler tubes, etc.
SC sources its
materials 100% from domestic market. SC sells 50% of its products in domestic
market, and 50% to the overseas markets, mainly to America and Middle East
countries.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Note:
SC’s management declined to release its major clients and suppliers.
Branch and subsidiary:
Shandong
Huabao Steel Pipe Co., Ltd. Linyi Huarun Branch
Registration
No.: 371330100000045
Yinan
Yishang Hot Spring Resort Co., Ltd. (literal translation)
Registration
No.: 371321228003561
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 refused to release any information of
its suppliers and the trade reference was not available.
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.
Linshang Bank Jinqueshan Sub-branch
AC#: N/A
Relationship:
Normal.
Note: The given
bank “Winshang Bank Co., Ltd.” should be the above one.
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2008 |
|
27,970 |
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Bills receivable |
0 |
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Accounts
receivable |
37,940 |
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Advances to
suppliers |
10,570 |
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Inventory |
12,440 |
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Other
receivables |
8,400 |
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Prepaid expenses |
2,480 |
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Other current assets |
0 |
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------------------ |
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Current assets |
99,800 |
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Fixed assets net
value |
33,190 |
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Projects under
construction |
1,050 |
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Other assets |
1,390 |
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------------------ |
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Total assets |
135,430 |
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============= |
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Short loans |
43,100 |
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Bills payable |
26,000 |
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Accounts payable |
18,730 |
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Advances from
clients |
6,380 |
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Salaries payable |
1,300 |
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Welfare payable |
0 |
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Taxes payable |
-1,630 |
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Other accounts
payable |
15,960 |
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Other current
liabilities |
0 |
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------------------ |
|
109,840 |
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Long term
liabilities |
0 |
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------------------ |
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109,840 |
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Equities |
25,590 |
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Total
liabilities & equities |
135,430 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2008 |
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Turnover |
182,960 |
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Cost of goods sold |
153,650 |
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Sales
expense |
5,280 |
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Management expense |
5,920 |
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Finance expense |
4,100 |
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Profit before tax |
13,520 |
|
1,320 |
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Profits |
12,200 |
Note: SC’s latest financial reports can not be found in local AIC.
Important Ratios
=============
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As
of Dec. 31, 2008 |
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*Current ratio |
0.91 |
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*Quick ratio |
0.80 |
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*Liabilities
to assets |
0.81 |
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*Net profit
margin (%) |
6.67 |
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*Return on total
assets (%) |
9.01 |
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*Inventory
/Turnover ×365 |
25 days |
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*Accounts
receivable/Turnover ×365 |
76 days |
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*Turnover/Total
assets |
1.35 |
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* Cost of
goods sold/Turnover |
0.84 |
PROFITABILITY: FAIRLY
GOOD
l
The turnover of SC appears fairly good in its line
in 2008.
l
SC’s net profit margin is fairly good in 2008.
l
SC’s return on total assets is fairly good in 2008.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in 2008.
l
SC’s quick ratio is maintained in a normal level
2008.
l
The inventory of SC appears average in 2008.
l
The accounts receivable of SC appears fairly large
in 2008.
l
The short loan of SC appears fairly large in 2008.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high.
l
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 150,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.93 |
|
|
1 |
Rs.85.85 |
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Euro |
1 |
Rs.69.94 |
INFORMATION DETAILS
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Report Prepared
by : |
PDT |
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 |
-- |
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.