MIRA INFORM REPORT

 

 

Report Date :

19.02.2014

 

IDENTIFICATION DETAILS

 

Name :

TIANHE OIL GROUP HUIFENG PETROLEUM EQUIPMENT CO., LTD.

 

 

Registered Office :

No. 43 West Diming Street, Mudanjiang Heilongjiang Province 157011 PR

 

 

Country :

China

 

 

Date of Incorporation :

11.07.2006

 

 

Com. Reg. No.:

231000100004893         

 

 

Legal Form :

Shares Limited Company

 

 

Line of Business :

Manufacturing, researching & developing and selling land & offshore oil drilling tools & equipment and mining machinery which used in oil drilling, workover, cementing and well completion; providing land & sea oil drilling technology service, consultation and development transfer; selling related materials and parts; importing & exporting commodities and technology.

 

 

No. of Employees :

800

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No complaints

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

 

TIANHE OIL GROUP HUIFENG PETROLEUM EQUIPMENT CO., LTD.

NO. 43 WEST DIMING STREET, MUDANJIANG

HEILONGJIANG PROVINCE 157011 PR CHINA

TEL: 86 (0) 453-6558966/5979986/5979972/5979953

FAX: 86 (0) 453-5979789

 

 

EXECUTIVE SUMMARY

 

Date of Registration                    : JULY 11, 2006

REGISTRATION NO.                  : 231000100004893

LEGAL FORM                           : SHARES LIMITED COMPANY

CHIEF EXECUTIVE                    : LI GUANGFENG (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : CNY 99,800,000

staff                                          : 800

BUSINESS CATEGORY             : MANUFACTURING & trading

Revenue                                    : N/A (AS OF DEC. 31, 2013)

EQUITIES                                 : N/A (AS OF DEC. 31, 2013)

WEBSITE                                 : www.tianheoil.com

E-MAIL                                     : N/A

PAYMENT                                : AVERAGE

MARKET CONDITION                : COMPETITIVE

FINANCIAL CONDITION             : FAIRLY STABLE

OPERATIONAL TREND              : FAIRLY STEADY

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                     : CNY 6.06 = 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 shares limited company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 231000100004893 on July 11, 2006.

 

SC’s Organization Code Certificate No.: 79051103-1

 

SC’s Tax No.: 231083790511031

 

SC’s registered capital: CNY 99,800,000

 

SC’s paid-in capital: CNY 99,800,000

 

Registration Change Record:-

 

Date

Change of Contents

Before the change

After the change

2007-09-29

Legal Representative

Sun Guangxin

 

Li Guangfeng

 

Registered Capital

CNY 30,000,000

CNY 45,000,000

2009-04-16

Registered Capital

CNY 45,000,000

CNY 69,000,000

2009-04-27

Company Name

Mudanjiang Huifeng Petroleum Drilling Tool Co., Ltd.

Tianhe Oil Group Mudanjiang Huifeng Petroleum Drilling Tool Co., Ltd.

Registered Capital

CNY 69,000,000

CNY 85,000,000

2010-09-26

Company Name

Tianhe Oil Group Mudanjiang Huifeng Petroleum Drilling Tool Co., Ltd.

 

Mudanjiang Huifeng Petroleum Drilling Tool Co., Ltd.

 

2010-09-29

Company Name

Mudanjiang Huifeng Petroleum Drilling Tool Co., Ltd.

Tianhe Oil Group Huifeng Petroleum Equipment Co., Ltd.

2011-02-25

Registered Capital

CNY 85,000,000

CNY 99,800,000

--

Registration No.

2310001001056

231000100004893

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Beijing Fundturn Investment
Co., Ltd.

 

0.50

Beijing Jinghuachang Technology Co., Ltd.

 

1.59

Guoke Ruihua Venture Capital Enterprise

 

22.31

Ningbo Huajian Risk Investment Co., Ltd.

 

2.19

Shanghai Angnuo Investment & Management Co., Ltd.

 

1.10

Shenzhen Dingheng Ruiji Investment Enterprise (Limited Partnership)

 

1.75

Shenzhen Songhe Jiyou Venture Investment Partnership (Limited Partnership)

 

6.59

Tianhe Oil Group Co., Ltd.

 

42.59

China Venture Capital Co., Ltd.

 

1.10

Li Guangfeng

 

19.59

Sun Hua

 

0.03

Xu Tiejun

 

0.53

Yin Lei

0.13

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative, Chairman and General Manager

Li Guangfeng

Director

Li Yunming

Dou Tiecheng

Wu Yulan

Xu Tiejun

Supervisor

Yin Lei

Li Xinge

Huang Lihong

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                                                                               % of Shareholding

 

Beijing Fundturn Investment Co., Ltd.                                                                               0.50

 

Beijing Jinghuachang Technology Co., Ltd.                                                                       1.59

 

Guoke Ruihua Venture Capital Enterprise                                                             22.31

 

Ningbo Huajian Risk Investment Co., Ltd.                                                             2.19

 

Shanghai Angnuo Investment & Management Co., Ltd.                                                      1.10

 

Shenzhen Dingheng Ruiji Investment Enterprise (Limited Partnership                                  1.75

 

Shenzhen Songhe Jiyou Venture Investment Partnership (Limited Partnership)                    6.59

 

Tianhe Oil Group Co., Ltd.                                                                                              42.59

 

China Venture Capital Co., Ltd.                                                                                       1.10

 

Li Guangfeng                                                                                                                 19.59

 

Sun Hua                                                                                                                        0.03

 

Xu Tiejun                                                                                                                       0.53

 

Yin Lei                                                                                                                          0.13

 

Beijing Fundturn Investment Co., Ltd.

----------------------------------------------

Registration No.: 110108010355685

Legal Form: Limited Liabilities Company

Registered Capital: CNY 10,000,000

Legal Representative: Deng Lei

 

Beijing Jinghuachang Technology Co., Ltd.

----------------------------------------------------

Registration No.: 110105007388861

Date of Registration: August 6, 2004

Legal Form: Limited Liabilities Company

Registered Capital: Limited 30,000,000

Legal Representative: Zhang Qiulian

 

Guoke Ruihua Venture Capital Enterprise

---------------------------------------------------

Registration No.: 120000400077020

Registered Capital: CNY 1,011,230,000

Legal Representative: Wang Jin

 

Ningbo Huajian Risk Investment Co., Ltd.

---------------------------------------------------

Registration No.: 330215000025402

Registered Capital: CNY 88,000,000

Legal Representative: Xu Pingju

 

Shanghai Angnuo Investment & Management Co., Ltd.

------------------------------------------------------------------

Registration No.: 310112000344259

Date of Registration: January 30, 2002

Legal Form: One-person Limited Liabilities Company

Registered Capital: CNY 30,000,000

Legal Representative: Li Qing

 

Shenzhen Dingheng Ruiji Investment Enterprise (Limited Partnership)

-------------------------------------------------------------------------------------

Registration No.: 440305602234798

 

Shenzhen Songhe Jiyou Venture Investment Partnership (Limited Partnership)

----------------------------------------------------------------------------------------------

Registration No.: 440304602255000

 

Tianhe Oil Group Co., Ltd.

--------------------------------

Registration No.: 231000100039550

Registered Capital: CNY 70,000,000

Legal Representative: Li Guangfeng

 

China Venture Capital Co., Ltd.

--------------------------------------

Registration No.: 110000006460982

Date of Registration: April 24, 1987

Legal Form: Limited Liabilities Company

Registered Capital: CNY 200,000,000

Legal Representative: Chen Zhengli

 

 

MANAGEMENT

 

Li Guangfeng  Legal Representative, Chairman and General Manager

------------------------------------------------------------------------------------------------------

Gender: M

ID# 231002196907162731

Age: 45

Working experience (s):

 

At present, working in SC as legal representative, chairman and general manager

Also working in Tianhe Oil Group Co., Ltd. as legal representative

 

Director

------------

Li Yunming

ID# 230103196307045153

Dou Tiecheng

ID# 231083196310016131

Wu Yulan

ID# 231084196605083768

Xu Tiejun

ID# 231123197102281815

 

Supervisor

--------------

Yin Lei

ID# 110105670818541

Li Xinge

ID# 231002196403060010

Huang Lihong

ID# 231003197212311041

 

 

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing, researching & developing and selling land & offshore oil drilling tools & equipment and mining machinery which used in oil drilling, workover, cementing and well completion; providing land & sea oil drilling technology service, consultation and development transfer; selling related materials and parts; importing & exporting commodities and technology.

 

SC is mainly engaged in manufacturing and selling oil drilling tools & equipment.

 

SC’s products mainly include:

Drill Pipe

Drill Collar

Kellys

Heavy Weight Drill Pipe

Jars Tools

Drill Stem Tools

Fishing Tools

Accessory Tools

Coring Tools

Milling Tools

Cementing Tools

SC sources its materials 100% from domestic market. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly U.S.A., 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.

 

*Major Client*

------------------

Weatherford International Inc.

 

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’s subsidiary information is not available 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:

 

Bank of China Mudanjiang Branch

 

AC#: 172702230829

 

 

FINANCIALS

 

SC’s financials are not filed in local SAIC, and SC also refused to release the details.

 

 

CONCLUSIONS

 

SC is considered medium-sized in its line with 8 years business history. Taking into consideration of SC’s general performance, reputation as well as market conditions, credit dealings with SC should be confined into moderate amount at present.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.12

UK Pound

1

Rs.103.93

Euro

1

Rs.85.17

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.