MIRA
INFORM REPORT
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Report Date : |
11.02.2014 |
IDENTIFICATION DETAILS
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Name : |
YONGXING SPECIAL STAINLESS STEEL CO., LTD. |
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Registered Office : |
Yangjiabu, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
19.07.2000 |
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Com. Reg. No.: |
330000000000388 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in smelting, manufacturing and processing stainless
steel ingot, bar, tube, wire rod & steel wire, and other metal materials. |
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No of Employees : |
800 |
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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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 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 & ADDRESS
YONGXING SPECIAL
STAINLESS STEEL CO., LTD.
YANGJIABU, HUZHOU,
ZHEJIANG PROVINCE 313005 PR CHINA
TEL: 86 (0)
572-2351518/2768671/2768668
FAX: 86 (0)
572-2350602/2768672
EXECUTIVE SUMMARY
Date of Registration : july 19, 2000
REGISTRATION NO. : 330000000000388
LEGAL FORM : shares limited company
REGISTERED CAPITAL :
CNY 150,000,000
staff : 800
BUSINESS CATEGORY :
smelting & MANUFACTURING & PROCESSING
Revenue : CNY 3,523,560,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 1,436,790,000 (AS OF DEC. 31, 2013)
WEBSITE : www.yongxingbxg.com
E-MAIL :
sales@bxg-bx.com
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
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
Not yet be determined
LEGAL STATUS & HISTORY
SC was
established as a limited liabilities company of PRC on July 19, 2000. However, SC changed to
present legal form, and was registered as a shares limited company of PRC with
State Administration for Industry & Commerce (SAIC) under registration No.:
330000000000388 on June 28, 2007.
SC’s Organization Code Certificate
No.: 72276253-3
SC’s Tax No.: 330501722762533
SC’s registered capital: CNY 150,000,000
SC’s paid-in capital: CNY 150,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2000-10-08 |
Registered Capital |
CNY 1,000,000 |
CNY 20,000,000 |
|
2001-11-22 |
Registered Capital |
CNY 20,000,000 |
CNY 33,000,000 |
|
2007-06-28 |
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
Company Name |
Huzhou Jiuli Special Steel Co.,
Ltd. |
Yongxing Special Stainless Steel
Co., Ltd. |
|
|
Registered Capital |
CNY 33,000,000 |
CNY 150,000,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Gao Xingjiang |
68.45 |
|
Yang Jinmao |
5.82 |
|
Zhou Guirong |
4.50 |
|
Yang Hui |
4.00 |
|
Qiu Jianrong |
3.50 |
|
Gu Jianqiang |
3.50 |
|
Yao Zhanqin |
3.03 |
|
Fang Jianping |
3.00 |
|
Li Dechun |
2.00 |
|
Gu Jiping |
1.50 |
|
Beijin Huijin Lifang Investment
Management Center (Limited Partnership) |
0.70 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Gao Xingjiang |
|
Vice Chairman |
Li Dechun |
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Deputy General Manager |
Gu Jianqiang |
|
Yang Hui |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name % of Shareholding
Gao Xingjiang 68.45
Yang Jinmao 5.82
Zhou Guirong 4.50
Yang Hui 4.00
Qiu Jianrong 3.50
Gu Jianqiang 3.50
Yao Zhanqin 3.03
Fang Jianping 3.00
Li Dechun
2.00
Gu Jiping 1.50
Beijin Huijin Lifang Investment
Management Center (Limited Partnership) 0.70
MANAGEMENT
Gao
Xingjiang, Legal
Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 51
Ø
Qualification:
MBA
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman and
general manager
Also working in Huzhou Yongxing
Special Steel Import & Export Co., Ltd. as legal representative
Li
Dechun, Vice Chairman
----------------------------------------------
Ø
Gender: M
Ø
Age: 54
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
Gu
Jianqiang, Deputy General
Manager
---------------------------------------------------------------
Ø
Gender: M
Ø
Age: 52
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
Also working in Huzhou Yongxing Materials Recycling Co., Ltd. as
legal representative
Yang
Hui, Deputy General
Manager
-------------------------------------------------------
Ø
Gender: M
Ø
Age: 51
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
BUSINESS OPERATION
SC’s
registered business scope includes smelting, manufacturing and processing
stainless steel ingot, bar, tube, wire rod & steel wire, and other metal
materials.
SC is mainly
engaged in smelting, manufacturing and processing stainless steel products.
SC’s products
mainly include:
Easy
Cutting Stainless Steel Bar
Stainless
Steel Wire
Stainless
Steel Pipe Billet
Common
Austenitic Stainless Steel Wire for Welding
Stainless
Steel Wire for Cold Heading
Etc.
SC sources its
materials 100% from domestic market. SC sells 60% in domestic market and 40% to
overseas market, mainly Southeast Asia, etc.
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.
Staff & Office:
--------------------------
SC is known
to have approx. 800 staff at
present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is
known to have the following subsidiaries at present,
Huzhou Yongxing Materials Recycling Co., Ltd.
Date of Registration: December 2, 1999
Legal Form: One-person Limited Liabilities Company
Registered Capital: CNY 5,000,000
Legal Representative: Gu Jianqiang
Huzhou Yongxing Special Steel Import & Export Co., Ltd.
Date of Registration: May 27, 2005
Legal Form: One-person Limited Liabilities Company
Registered Capital: CNY 50,000,000
Legal Representative: Gao Xingjiang
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 local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
415,550 |
|
|
Notes receivable |
0 |
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Accounts
receivable |
55,870 |
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Advances to
suppliers |
8,620 |
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Other receivable |
2,650 |
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Inventory |
246,000 |
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Non-current
assets within one year |
0 |
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Other current
assets |
490,520 |
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------------------ |
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Current assets |
1,219,210 |
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Fixed assets |
391,090 |
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Construction in
progress |
31,210 |
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Intangible
assets |
0 |
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Long-term
investment |
97,150 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
81,770 |
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|
------------------ |
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Total assets |
1,820,430 |
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============= |
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Short-term loans |
34,490 |
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Notes payable |
0 |
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Accounts payable |
211,160 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Advances from
clients |
0 |
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Other payable |
7,750 |
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Other current
liabilities |
119,170 |
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|
------------------ |
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Current
liabilities |
372,570 |
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Non-current
liabilities |
11,070 |
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|
------------------ |
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Total
liabilities |
383,640 |
|
Equities |
1,436,790 |
|
|
------------------ |
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Total
liabilities & equities |
1,820,430 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
3,523,560 |
|
Cost of sales |
3,153,290 |
|
Sales expense |
24,390 |
|
Management expense |
51,270 |
|
Finance expense |
20,130 |
|
Profit before
tax |
267,190 |
|
Less: profit tax |
37,830 |
|
229,360 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
|
*Current ratio |
3.27 |
|
*Quick ratio |
2.61 |
|
*Liabilities
to assets |
0.21 |
|
*Net profit
margin (%) |
6.51 |
|
*Return on
total assets (%) |
12.60 |
|
*Inventory /
Revenue ×365 |
26 days |
|
*Accounts
receivable / Revenue ×365 |
6 days |
|
*Revenue /
Total assets |
1.94 |
|
*Cost of sales
/ Revenue |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of sales is average, 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 appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear 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 low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions. Taking into consideration of SC’s general performance, reputation
as well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.19 |
|
|
1 |
Rs. 102.13 |
|
Euro |
1 |
Rs. 84.74 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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.