MIRA INFORM REPORT
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Report Date : |
23.04.2014 |
IDENTIFICATION DETAILS
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Name : |
HEBEI
FRIENDSHIP SPECIAL STEEL TRADING CO., LTD |
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Registered Office : |
Room 1803 N2 Kaiyuan Building, Xiantianxia, No.
322 Zhongshan East Road, Shijiazhuang, Hebei Province 050011 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
22.12.2004 |
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Com. Reg. No.: |
130100000362445 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Engaged in wholesaling steel materials, building materials and
decoration materials; importing and exporting various goods and technology; logistics
and marketing information consulting service Subject product ranges includes steel wire
rods, spring steel, cold heading steel & steel wires for welding |
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No of Employees : |
30 (approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
Slow But Correct |
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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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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 2013 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 consumption; (b) facilitating higher-wage job
opportunities for the aspiring middle class, including rural migrants and
increasing numbers of college graduates; (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. Debt overhang from its credit-fueled stimulus program in 2008-10,
particularly among local governments, and soaring property prices challenge
policy makers currently. Their efforts to cool a red-hot property market in
2011 appear to have curbed inflation, but contributed to slower GDP growth in
2012 and 2013. Slow recovery in Europe and other key export markets have also
retarded growth. 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 fixed investments
and exports in the future. However, China has made only marginal progress
toward these rebalancing goals. The new government of President XI Jinping has
signaled a greater willingness to undertake reforms that focus on China's
long-term economic health, including giving the market a more decisive role in
allocating resources.
|
Source
: CIA |
COMPANY
NAME & ADDRESS
HEBEI FRIENDSHIP SPECIAL STEEL TRADING CO.,
LTD
ROOM 1803 N2 KAIYUAN BUILDING,
XIANTIANXIA, NO. 322 ZHONGSHAN EAST ROAD, SHIJIAZHUANG, HEBEI PROVINCE 050011
PR CHINA
TEL: 86 (0) 311-86661218
FAX: 86 (0) 311-86661212
EXECUTIVE
SUMMARY
Date of
Registration : DECember 22, 2004
REGISTRATION NO. : 130100000362445
LEGAL FORM : Limited Liability Company
REGISTERED
CAPITAL
: CNY 20,000,000
staff : 30
BUSINESS
CATEGORY : TRADING
Revenue : CNY 430,010,000
(AS OF DEC. 31, 2012)
EQUITIES : CNY 56,162,000
(AS OF DEC. 31, 2012)
WEBSITE : www.chinasteels.com
E-MAIL : lilychas@hotmail.com
PAYMENT
: AVERAGE
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : fairly stable
OPERATIONAL
TREND : fairly STEADY
GENERAL REPUTATION
: AVERAGE
EXCHANGE
RATE : CNY 6.05 = 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
LEGAL STATUS & HISTORY
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 130100000362445 on December
22, 2004.
SC’s Organization Code Certificate No.:
76982460-7
SC’s registered capital: CNY 20,000,000
SC’s paid-in capital: CNY 20,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2005-5 |
Registered Capital |
CNY 10,000,000 |
CNY 20,000,000 |
|
Shareholder
(s) (% of Shareholding) |
Cha Li 20.00% Fan Jianjun 40.00% Fan Lei 20.00% Wang Wenjuan 20.00% |
Fan Jianjun 35.0% Fan Lei 32.5% Fan Zhijun 32.5% |
|
|
-- |
Registration No. |
1300002100495 |
130100000362445 |
Current
Co search indicates SC’s shareholders & chief executives are as follows:-
|
Name
of Shareholder (s) |
%
of Shareholding |
|
Fan Jianjun |
35.0 |
|
Fan Lei |
32.5 |
|
Fan Zhijun |
32.5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Fan Jianjun |
|
Supervisor |
Wang Wenjuan |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Fan Jianjun
ID# 130103550226217 35.0
Fan Lei
ID# 130105820918061 32.5
Fan Zhijun
ID# 130103600124211 32.5
MANAGEMENT
Fan Jianjun , Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 59
Ø Qualification:
University
Ø Working experience
(s):
Wang
Wenjuan, Supervisor
Ø
Gender: F
BUSINESS OPERATION
SC’s registered business scope includes wholesaling steel materials,
building materials and decoration materials; importing and exporting various
goods and technology; logistics and marketing information consulting service.
SC is mainly
engaged in selling steel materials.
SC’s
products mainly include: steel wire rods, spring steel, cold heading steel
& steel wires for welding
SC sources its materials 80% from domestic market, and 20% from the overseas market, mainly European countries. SC sells 40% of its products in domestic market, and 60% to the overseas market, mainly American and European countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier*
--------------------
Xinghua Friendship Special Steel Factory
Staff & Office:
--------------------------
SC is
known to have approx. 30
staff at present.
SC rents an area
as its operating office of approx. 600 sq. meters at the heading address.
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
The bank information of SC is not filed in SAIC.
FINANCIALS
Balance
Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
10,719 |
28,550 |
|
|
Notes receivable |
106,785 |
23,978 |
|
Accounts
receivable |
20,694 |
7,038 |
|
Advances to
suppliers |
45,651 |
9,881 |
|
Other receivable |
0 |
11,842 |
|
Inventory |
2,023 |
2,976 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
185,872 |
84,265 |
|
Fixed assets |
3,660 |
3,048 |
|
Other
non-current assets |
4,900 |
4,900 |
|
|
------------------ |
------------------ |
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Total assets |
194,432 |
92,213 |
|
|
============= |
============= |
|
Short-term loans |
30,000 |
0 |
|
Notes payable |
47,700 |
10,200 |
|
Accounts payable |
9,895 |
0 |
|
Wages payable |
25 |
25 |
|
Taxes payable |
384 |
103 |
|
Advances from
clients |
31,185 |
25,691 |
|
Other payable |
2,477 |
32 |
|
Other current
liabilities |
16 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
121,682 |
36,051 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
121,682 |
36,051 |
|
Equities |
72,750 |
56,162 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
194,432 |
92,213 |
|
|
============= |
============= |
Income
Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
553,147 |
430,010 |
|
Cost of sales |
536,290 |
417,469 |
|
Taxes and surcharges |
49 |
37 |
|
Sales expense |
5,946 |
5,274 |
|
Management expense |
467 |
401 |
|
Finance expense |
112 |
2,292 |
|
Profit before
tax |
10,280 |
4,552 |
|
Less: profit tax |
2,571 |
1,141 |
|
7,709 |
3,411 |
Important Ratios
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.53 |
2.34 |
|
*Quick ratio |
1.51 |
2.25 |
|
*Liabilities
to assets |
0.63 |
0.39 |
|
*Net profit
margin (%) |
1.39 |
0.79 |
|
*Return on
total assets (%) |
3.96 |
3.70 |
|
*Inventory /
Revenue ×365 |
2 days |
3 days |
|
*Accounts
receivable/ Revenue ×365 |
14 days |
6 days |
|
*Revenue/Total
assets |
2.84 |
4.66 |
|
*Cost of sales
/ Revenue |
0.97 |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears fairly good in its line.
l SC’s net profit
margin is average in both years.
l SC’s return on
total assets is average in both years.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
FAIRLY GOOD
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans in 2012.
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 low in 2012.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 60.71 |
|
|
1 |
Rs. 102.04 |
|
Euro |
1 |
Rs. 83.76 |
INFORMATION DETAILS
|
Report Prepared
by : |
mNl |
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 |
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.