MIRA INFORM REPORT
|
Report Date : |
17.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
HUALU STEEL CO., LTD. BOXING COUNTY SHANDONG PROVINCE |
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Registered Office : |
East Sixth Road, Steel Market, Xingfu Industrial Park, Boxing County, Binzhou, Shandong Province, 256510 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
26.01.2003 |
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Com. Reg. No.: |
371625228004809 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Processing and selling steel products |
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No. of Employees : |
300 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to
China's, and is expected to further drag Chinese growth in 2013. 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.
Source
: CIA
Company name and address
HUALU STEEL CO., LTD.
BOXING COUNTY SHANDONG PROVINCE
EAST SIXTH ROAD, STEEL MARKET, XINGFU
INDUSTRIAL PARK, BOXING COUNTY, BINZHOU, SHANDONG PROVINCE, 256510 PR CHINA
TEL: 86 (0)
543-2163999/2163586 FAX: 86 (0)
543-2163598
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 26, 2003
REGISTRATION NO. : 371625228004809
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
300
REGISTERED CAPITAL : CNY 71,800,000
BUSINESS LINE :
processing and TRADING
TURNOVER :
CNY 4,683,092,000 (CONSOLIDATED, as of dec. 31, 2012)
EQUITIES :
CNY 1,285,012,000 (CONSOLIDATED, as of
dec. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY
6.1162 = 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 Ren Min Bi
Note:
SC’s correct name should be the heading one, and it is also written as Shandong
Province Boxing County Hualu Iron and Steel Co., Ltd. and Shandong Boxing Hualu
Steel Co., Ltd.
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 Jan. 26, 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 selling metal materials (excluding
non-ferrous metals); selling timber, machinery, handicrafts, agricultural
products (excluding maize, wheat, rice), textiles, metal, ore, iron ore (import
and export within the scope of the record).
SC is mainly
engaged in processing and selling steel products.
Mr. Wei
Yuefeng has been the legal
representative and chairman of SC since 2003.
SC is known
to have approx. 300 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 Boxing County. Our
checks reveal that SC owns the total premise about 15,000 square meters.
http://www.hualusteel.cn/ The design is professional and the content is
well organized. At present it is in Chinese and English versions.
E-Mail: hlgt.0543@163.com
; hlgt@hualusteel.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2005 |
Registered capital |
CNY 8,180,000 |
CNY 31,800,000 |
|
Shareholders (shareholding) |
Wei Yuefeng 58%; Lin Zhiyong 21%; Liu Zhonghua 21% |
Wei Yuefeng 58%; Li Baolan
32%; Liu Zhonghua 10% |
|
|
2012 |
Registered capital |
CNY 31,800,000 |
Present amount |
|
Shareholders (shareholding) |
Wei Yuefeng 58%; Li Baolan
32%; Liu Zhonghua 10% |
Present ones |
|
|
Unknown |
Registration no. |
3716252800480 |
Present one |
SC was awarded “A-Level Credit Unit”, “Credit private enterprise”, etc.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Li Baolan 25
Wei Yuefeng
75
l Legal
representative and Chairman:
Mr. Wei Yuefeng , born in 1967, he is currently responsible for the
overall management of SC.
Working Experience(s):
From 1990-1996 Worked in Shandong Boxing
Hengxiang Materials Co., Ltd. as legal representative and general manager;
From 1997-2002 Worked in Shandong Boxing Fada
Materials Co., Ltd. as director and vice general manager;
From 2003 to present Working in SC as legal representative and
chairman;
From 2007 to present Working in Shandong Hualu Weiye New Plate
Co., Ltd. as legal representative and chairman
Also working in Shaanxi
Hualu Weiye Technological New Plates Co., Ltd. as legal representative.
l General manager:
Mr. Li Yaoguang , born in 1976, he is
currently responsible for the daily management of SC.
Working Experience(s):
From 1999-2002 Worked in Shandong Boxing Fada
Materials Co., Ltd. as salesman;
From 2003 to 2006 Worked in SC as business manager;
From 2007 to present Working in SC as general manager
l Supervisor:
Li Baolan
SC is mainly
engaged in processing and selling steel products.
SC’s products
mainly include:
Rolled hard steel
plates
Galvanized steel
plates
Color coated steel
plates
Aluminized and
galvanized steel plates
Etc.
SC sources its
materials 80% from domestic market and 20% from overseas market. SC sells 2% of
its products to the overseas market, mainly Japan, India, Korea, Brazil, and
98% in domestic market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Major
clients:
………………
Shandong Boxing Lifeng Metal Co., Ltd.
Jiangsu Huatian Mechanical Equipment Co.,
Ltd.
Shanghai Gongshun Industry Co., Ltd.
Shanghai Zonggang Metal Materials Co., Ltd.
Major
suppliers:
…………………
Tianjin Hengxing Steel Industry Co., Ltd.
Langfang Jinhua Industry Co., Ltd.
Tangshan Guofeng Steel Co., Ltd.
SC is known to invest in the following company:
Shandong
Hualu Weiye New Plate Co., Ltd.
Legal representative: Wei Yuefeng
Registration No.: 371600400002210
Address: Chengdong Market, Boxing County, Shandong
Tel: +86543-2161111 +86543-2267828
Fax: +86543-2267816
+86543-2267891
Website: http://en.sdhlwy.com/
Related companies:
…………………….
Shanghai
Huahai Steel Co., Ltd.
Registration no.: 310110000365668
Registered capital: CNY 12,180,000
Legal representative: Li Baolan
Tel:
86-21-51683824
Fax:
86-21-51683454
Tianjin
Hualu International Trade Co., Ltd.
Registration
no.: 120192000077379
Legal
representative: Li Baojun
Shandong
Huawei New Materials Co., Ltd.
Registration
no.: 371625200001486
Tel:
0543-2161888
Fax:
0543-2163578-79
Shaanxi
Hualu Weiye Technological New Plates Co., Ltd.
Registration
no.: 610481100006419
Legal
representative: Wei Yuefeng
Phone:
+86-29 -38276224 +86-29
-38158873 +86-29 -38276225 +86-29 -38276900
E-mail:
prewittyu@gmail.com wangjinnicole@yahoo.com.cn zhx861218@126.com
Fax:
+86-29 -38276007
Etc.
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’s suppliers
declined to make any comments.
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.
Industrial &
Commercial Bank of China
AC#：1613002319200029142
Relationship:
Normal.
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2011 |
|
Cash & bank |
609,886 |
297,923 |
|
Notes receivable |
38,657 |
0 |
|
Inventory |
558,435 |
399,842 |
|
Accounts
receivable |
0 |
0 |
|
Advances to
supplies |
604,317 |
436,228 |
|
Other
receivables |
31,762 |
23,221 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
1,843,057 |
1,157,214 |
|
Fixed assets |
541,629 |
399,944 |
|
Projects under
construction |
0 |
59,838 |
|
Long-term
investments |
1,239 |
1,155 |
|
Intangible
assets |
45,504 |
0 |
|
Other assets |
35,690 |
36,442 |
|
|
------------------ |
------------------ |
|
Total assets |
2,467,119 |
1,654,593 |
|
|
============= |
============= |
|
Short loans |
333,000 |
195,000 |
|
Accounts payable |
0 |
0 |
|
Notes payable |
527,425 |
299,000 |
|
Advances from
customers |
794 |
5,988 |
|
Salaries and
welfare payable |
1,259 |
1,174 |
|
Taxes payable |
23,889 |
4,624 |
|
Surcharge payable |
218 |
131 |
|
Other Accounts
payable |
59,308 |
59,352 |
|
Other current
liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
945,893 |
565,269 |
|
Non-current
liabilities |
236,214 |
200,000 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,182,107 |
765,269 |
|
Equities |
1,285,012 |
889,324 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
2,467,119 |
1,654,593 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2011 |
|
Turnover |
4,683,092 |
4,097,699 |
|
Cost of goods sold |
4,111,600 |
3,651,015 |
|
Taxes and additional of main operation |
2,933 |
3,246 |
|
Profit from
other business |
402 |
0 |
|
Sales expense |
41,291 |
40,209 |
|
Management expense |
21,376 |
23,876 |
|
Finance expense |
32,139 |
17,877 |
|
Investment income |
95 |
55 |
|
Profit before
tax |
474,250 |
361,531 |
|
Less: profit tax |
118,563 |
62,352 |
|
Minority interests |
62,315 |
48,904 |
|
Profits |
293,372 |
250,275 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.95 |
2.05 |
|
*Quick ratio |
1.36 |
1.34 |
|
*Liabilities
to assets |
0.48 |
0.46 |
|
*Net profit
margin (%) |
6.26 |
6.11 |
|
*Return on total
assets (%) |
11.89 |
15.13 |
|
*Inventory
/Turnover ×365 |
44 days |
36 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
/ |
|
*Turnover/Total
assets |
1.90 |
2.48 |
|
* Cost of
goods sold/Turnover |
0.88 |
0.89 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is good.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
There is no accounts receivable of SC in both
years.
l
The short-term loan of SC appears average in both
years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.82 |
|
|
1 |
Rs.96.57 |
|
Euro |
1 |
Rs.82.45 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.