MIRA
INFORM REPORT
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Report Date : |
05.05.2012 |
IDENTIFICATION DETAILS
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Name : |
WUXI HUAYOU SPECIAL STEEL CO., LTD. |
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Registered Office : |
Zhenhu Road, Hudai Industrial Park, Binhu District, Wuxi, Jiangsu Province, 214000 Pr |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
21.02.2006 |
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Com. Reg. No.: |
320200000131533 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Seamless Steel Pipes |
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No. of Employees : |
210 |
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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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 – March 31st, 2012
|
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
WUXI HUAYOU
SPECIAL STEEL CO., LTD.
ZHENHU ROAD, HUDAI INDUSTRIAL PARK, BINHU
DISTRICT,
WUXI, JIANGSU PROVINCE, 214000 PR CHINA
TEL: 86 (0) 510-83073086/83073056 FAX: 86 (0) 510-83073056
EXECUTIVE SUMMARY
INCORPORATION DATE :
FEBRUARY 21, 2006
REGISTRATION NO. :
320200000131533
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
210
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 1,762,710,000 (AS OF DEC. 31, 2009)
EQUITIES :
CNY 39,470,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.30 = USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
Note: SC’s address should be the heading one, while the
given address “No. 183, Xihu Road, Wuxi City, Jiangsu” was SC’s former address.
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on February 21, 2006.
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 selling metal materials, machine equipment, building
materials, hardware, chemical raw materials and products; importing and exporting
commodities and technologies, excluding the items prohibited by the state.
SC is mainly
engaged in selling seamless steel pipes.
Mr. Ni Honghu has been legal representative, chairman and
general manager of SC since 2006.
SC is known to have approx. 210 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and head office in the industrial zone of Wuxi. Detailed
information of the premise is unknown.
http://www.wxhytg.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: huayou@wxhytg.com
Certificate: ISO9001: 2000
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2008-01 |
Registered capital |
CNY 10,000,000 |
CNY 20,000,000 |
|
Unknown |
Registered capital |
CNY 20,000,000 |
CNY 30,000,000 |
|
Shareholders and % of Shareholdings |
Ni Honghu95% Yu Zhen’gang5% |
Ni Honghu95% Xia Meiying5% |
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|
2011 |
Registered capital |
CNY 30,000,000 |
The present amount |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ni Honghu 95
Xia Meiying 5
l
Legal representative, chairman and general
manager:
Mr. Ni Honghu ID#
320222196603046018, born in 1966. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2006 to present Working in SC as legal representative,
chairman and general manager.
l
Supervisor:
Xia MeiyingID# 321028194008250822
SC is mainly
engaged in selling seamless steel pipes.
Main Products:
seamless steel pipe.
SC sources its materials 100% from domestic
market. SC sells 85% of its products in domestic market, and 15% to overseas
market, mainly North America and Brazil.
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.
Note: SC refused
to release its major suppliers and customers.
According to SC’s website:
Wuxi
Special Steel Pipe Manufacture Co., Ltd.
Wuxi
Pulisaisi Pipe Manufacture Co., Ltd.
Offices:
======
Jiangyin
Office
Changzhou
Office
Shanghai
Office
Hangzhou
Office
Suzhou
Office
Nanjing
Office
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 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.
Jiangsu Xizhou Rural Commercial Bank
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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As of Dec. 31, 2009 |
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Cash & bank |
17,550 |
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Notes receivable |
90 |
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Inventory |
99,360 |
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Accounts
receivable |
30,980 |
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Advances to
suppliers |
0 |
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Prepaid expenses |
100 |
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Other accounts receivable |
6,680 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
154,760 |
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Fixed assets net
value |
8,790 |
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Project under
construction |
0 |
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Long term
investment |
0 |
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Intangible and
other assets |
0 |
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------------------ |
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Total assets |
163,550 |
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============= |
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Short loans |
140,830 |
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Notes payable |
0 |
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Accounts payable |
-40,050 |
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Advances from
clients |
0 |
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Accrued payroll |
0 |
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Taxes payable |
-6,490 |
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Accrued expenses |
2,850 |
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Other accounts
payable |
-370 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
96,770 |
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Long-term
liabilities |
27,310 |
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------------------ |
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Total
liabilities |
124,080 |
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Equities |
39,470 |
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------------------ |
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Total
liabilities & equities |
163,550 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2009 |
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Turnover |
1,762,710 |
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Cost of goods sold |
1,674,950 |
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Taxes and additional of main operation |
20 |
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Sales expense |
38,820 |
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Management expense |
40,580 |
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Finance expense |
2,200 |
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Non-operating
income |
470 |
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Non-operating expense |
1,130 |
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Profit before
tax |
5,480 |
|
510 |
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Profits |
4,970 |
Note: SC has not lodged the latest annual returns
in the local registry, hence no up-to-date detailed financial information could
be provided.
Important Ratios
=============
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as
of Dec. 31, 2009 |
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*Current ratio |
1.60 |
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*Quick ratio |
0.57 |
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*Liabilities
to assets |
0.76 |
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*Net profit
margin (%) |
0.28 |
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*Return on
total assets (%) |
3.04 |
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*Inventory
/Turnover ×365 |
21 days |
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*Accounts
receivable/Turnover ×365 |
7 days |
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*Turnover/Total
assets |
10.78 |
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* Cost of goods
sold/Turnover |
0.95 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
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 large in 2009.
l
The accounts receivable of SC appears average in
2009.
l
The short-term loan of SC appears large in 2009.
l
SC’s turnover is in a fairly good 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 large-sized in its line with fairly stable financial
conditions. The large amount of inventory and short-term loan could be a threat
to SC’s financial condition. A credit line up to USD 150,000 would appear to be
within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.72 |
|
|
1 |
Rs.86.98. |
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Euro |
1 |
Rs.70.64 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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.