MIRA
INFORM REPORT
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Report Date : |
16.11.2012 |
IDENTIFICATION DETAILS
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Name : |
CHANGZHOU TONGXING STEEL TUBE CO., LTD. |
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Registered Office : |
North Of Nan’an Bridge, Along |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
29.12.2000 |
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Com. Reg. No.: |
320483000089216 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and processing of seamless pipe and precision steel pipe |
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No. of Employees : |
238 |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned
system to a more market-oriented one that plays a major global role - in 2010
China became the world's largest exporter. Reforms began with the phasing out
of collectivized agriculture, and expanded to include the gradual
liberalization of prices, fiscal decentralization, increased autonomy for state
enterprises, creation of a diversified banking system, development of stock
markets, rapid growth of the private sector, and opening to foreign trade and
investment. China has implemented reforms in a gradualist fashion. In recent
years, China has renewed its support for state-owned enterprises in sectors it
considers important to "economic security," explicitly looking to
foster globally competitive national champions. After keeping its currency
tightly linked to the US dollar for years, in July 2005 China revalued its
currency by 2.1% against the US dollar and moved to an exchange rate system
that references a basket of currencies. From mid 2005 to late 2008 cumulative
appreciation of the renminbi against the US dollar was more than 20%, but the
exchange rate remained virtually pegged to the dollar from the onset of the
global financial crisis until June 2010, when Beijing allowed resumption of a
gradual appreciation. The restructuring of the economy and resulting efficiency
gains have contributed to a more than tenfold increase in GDP since 1978.
Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2010 stood as the second-largest economy in the world
after the US, having surpassed Japan in 2001. The dollar values of China's
agricultural and industrial output each exceed those of the US; China is second
to the US in the value of services it produces. Still, per capita income is
below the world average. The Chinese government faces numerous economic
challenges, including: (a) reducing its high domestic savings rate and
correspondingly low domestic demand; (b) sustaining adequate job growth for
tens of millions of migrants and new entrants to the work force; (c) reducing
corruption and other economic crimes; and (d) containing environmental damage
and social strife related to the economy's rapid transformation. Economic
development has progressed further in coastal provinces than in the interior,
and by 2011 more than 250 million migrant workers and their dependents had
relocated to urban areas to find work. One consequence of population control
policy is that China is now one of the most rapidly aging countries in the
world. Deterioration in the environment - notably air pollution, soil erosion,
and the steady fall of the water table, especially in the North - is another
long-term problem. China continues to lose arable land because of erosion and
economic development. The Chinese government is seeking to add energy
production capacity from sources other than coal and oil, focusing on nuclear
and alternative energy development. In 2010-11, China faced high inflation
resulting largely from its credit-fueled stimulus program. Some tightening
measures appear to have controlled inflation, but GDP growth consequently
slowed to near 9% for 2011. An economic slowdown in Europe is expected to
further drag Chinese growth in 2012. Debt overhang from the stimulus program,
particularly among local governments, and a property price bubble challenge
policy makers currently. The government's 12th Five-Year Plan, adopted in March
2011, emphasizes continued economic reforms and the need to increase domestic
consumption in order to make the economy less dependent on exports in the
future. However, China has made only marginal progress toward these rebalancing
goals.
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Source : CIA |
Company name & address
CHANGZHOU TONGXING
STEEL TUBE CO., LTD.
NORTH OF NAN’AN BRIDGE, ALONG QIYUE ROAD, QISHUYAN
CHANGZHOU CITY, JIANGSU PROVINCE 213011 PR CHINA
TEL: 86 (0) 519-88771781/88772045
FAX: 86 (0) 519-88388611
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 29, 2000
REGISTRATION NO. : 320483000089216
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 30,000,000
staff :
238
BUSINESS CATEGORY : MANUFACTURING & trading
Revenue :
CNY 185,420,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 30,940,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.24 = 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 liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 320483000089216 on December 29, 2000.
SC’s Organization Code Certificate No.:
72522043-0
SC’s Tax No.: 320400725220430
SC’s registered capital: CNY 30,000,000
SC’s paid-in capital: CNY 30,000,000
Registration Change Record:-
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Date |
Change of Contents |
Before the change |
After the change |
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-- |
Registered
Capital |
CNY 10,000,000 |
CNY 30,000,000 |
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2012 |
Shareholder (s)
(% of Shareholding) |
Sun Xiaoming 60% Zhang Sannan 30% Zhu Yanjing 10% |
Sun Xiaoming 70% Zhu Yanjing 30% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
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Name of Shareholder (s) |
% of Shareholding |
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Sun Xiaoming |
70 |
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Zhu Yanjing |
30 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman, and
General Manager |
Sun Xiaoming |
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Supervisor |
Zhu Yanjing |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Sun Xiaoming
70
Zhu Yanjing 30
MANAGEMENT
Sun Xiaoming,
Legal Representative, Chairman, and General Manager
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Ø
Gender: M
Ø
ID# 320421741103073
Ø
Age: 38
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman,
and general manager
Zhu Yanjing,
Supervisor
--------------------------------------------
Ø
Gender: F
Ø
ID# 32042119740126004X
Ø
Age: 38
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and processing
seamless pipe and precision steel pipe; importing and exporting commodities and
technology, excluding the items limited or prohibited by state.
SC is mainly engaged
in manufacturing and selling seamless pipe.
SC’s products
mainly include:
Structure Pipe
Fluid pipe
Low or middle
pressure boiler seamless pipe
Hydraulic pressure
cylinder pipe
Etc.
SC sources its
materials 100% from domestic market. SC sells 70% of its products in domestic
market, and 30% to the overseas markets, mainly U.S.A., India, etc.
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.
*Major Client*
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Iml Industries
Inc.
Staff & Office:
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SC is known
to have approx. 238 staff at
present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is not known to have any subsidiary at present.
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 Qishuyan Sub-branch
AC#:
32001629036050217689
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As
of Dec. 31, 2011 |
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Long term investment |
0 |
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Total assets |
114,280 |
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Total
liabilities |
83,340 |
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Equities |
30,940 |
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Revenue |
185,420 |
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Profit before
tax |
510 |
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Less: profit tax |
0 |
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Profits |
510 |
Note: The detailed financials for Y2011 are not available in SAIC.
Important Ratios
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As
of Dec. 31, 2011 |
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*Liabilities
to assets |
0.73 |
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*Net profit
margin (%) |
0.28 |
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*Return on
total assets (%) |
0.45 |
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*
Revenue/Total assets |
1.62 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue 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.
LIQUIDITY: 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.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.96 |
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UK Pound |
1 |
Rs.87.10 |
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Euro |
1 |
Rs.70.03 |
INFORMATION DETAILS
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Report Prepared
by : |
NIT |
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 |
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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.