MIRA INFORM REPORT
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Report Date : |
21.02.2014 |
IDENTIFICATION DETAILS
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Name : |
TIANJIN LIWEI IRON & STEEL CO., LTD. |
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Registered Office : |
21-2-201, Tingjingyuan,
Baocui Huadu, Chenchang Road, Beichen
District, Tianjin 300134 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
17.10.2003 |
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Com. Reg. No.: |
120192000047828 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Engaged in wholesale and retail of metal material, hardware, office
equipment, light industrial products, auto parts, building materials,
chemical raw materials, technology development, consulting and services of
computer, importing and exporting goods and technology. Subject
products ranges includes :- ·
Cold rolled steel coil ·
Hot rolled steel coil ·
Pickled steel coil ·
Black and bright surface ·
Galvanized steel coil ·
Galvanized steel strip ·
Prepainted galvanized steel
coil ·
ERW pipe · Seamless steel tube |
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No. of Employees : |
07 (approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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) |
|
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
tianjin liwei iron
& steel co., ltd.
21-2-201,
tingjingyuan, baocui huadu, chenchang road
beichen
district, tianjin 300134 PR CHINA
TEL: 86
(0) 22-26660421
FAX: 86
(0) 22-26684332
EXECUTIVE
SUMMARY
Date of Registration : october 17, 2003
REGISTRATION NO. : 120192000047828
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL :
CNY 500,000
staff : 7
BUSINESS CATEGORY :
TRADING
Revenue :
CNY 27,730,000
(AS OF DEC. 31, 2012)
EQUITIES :
CNY -740,000 (AS OF DEC. 31, 2012)
WEBSITE : www.liwei-inc.com
E-MAIL :
lisa@liweisteel.com.cn
PAYMENT : AVERAGE
MARKET CONDITION : fair
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fair
GENERAL REPUTATION : fair
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
LEGAL STATUS & HISTORY
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 120192000047828 on October 17, 2003.
SC’s Organization Code Certificate No.:
75480801-4
SC’s Tax No.: 120116754808014
SC’s registered capital: CNY 500,000
SC’s paid-in capital: CNY 500,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
-- |
Registration No. |
1201922002827 |
120192000047828 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhu Xiaowei |
70 |
|
Zhao Yan |
30 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zhu
Xiaowei |
|
Supervisor |
Zhao Yan |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhu Xiaowei 70
Zhao Yan 30
MANAGEMENT
Zhu
Xiaowei, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Mobile: 86 (0)
13032215702
Ø Working experience
(s):
From 2003 to present, working in SC as legal
representative, chairman and general manager
Zhao
Yan, Supervisor
-------------------------------------
Ø
Gender: F
BUSINESS OPERATION
SC’s registered business scope includes wholesale and
retail of metal material, hardware, office equipment, light industrial
products, auto parts, building materials, chemical raw materials, technology
development, consulting and services of computer, importing and exporting goods
and technology.
SC is
mainly engaged in selling steels.
SC’s products ranges mainly include:
·
Cold rolled steel coil
·
Hot rolled steel coil
·
Pickled steel coil
·
Black and bright surface
·
Galvanized steel coil
·
Galvanized steel strip
·
Prepainted galvanized steel coil
·
ERW pipe
·
Seamless steel tube
SC sources its products 100% from domestic market, mainly Guangdong. SC sells 30% of its products in domestic market, and 70% to overseas market.
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.
Staff & Office:
--------------------------
SC is
known to have approx. 7
staff at present.
SC
rents an area as its operating office, 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
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 |
|
-200 |
880 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
0 |
1,520 |
|
Advances to
suppliers |
10 |
230 |
|
Other receivable |
100 |
0 |
|
Inventory |
60 |
10 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
250 |
1,080 |
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|
------------------ |
------------------ |
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Current assets |
220 |
3,720 |
|
Fixed assets |
60 |
50 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
280 |
3,770 |
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|
============= |
============= |
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Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
0 |
2,000 |
|
Taxes payable |
0 |
-70 |
|
Advances from
clients |
160 |
2,420 |
|
Other payable |
860 |
160 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,020 |
4,510 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
1,020 |
4,510 |
|
Equities |
-740 |
-740 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
280 |
3,770 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
27,730 |
|
Cost of sales |
26,970 |
|
Sales expense |
200 |
|
Management expense |
500 |
|
Finance expense |
30 |
|
Profit before
tax |
17 |
|
Less: profit tax |
4 |
|
13 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.22 |
0.82 |
|
*Quick ratio |
0.16 |
0.82 |
|
*Liabilities
to assets |
3.64 |
1.20 |
|
*Net profit
margin (%) |
-- |
0.05 |
|
*Return on
total assets (%) |
-- |
0.34 |
|
*Inventory /
Revenue ×365 |
-- |
1 day |
|
*Accounts
receivable/ Revenue ×365 |
-- |
21 days |
|
*Revenue/Total
assets |
-- |
7.36 |
|
*Cost of sales
/ Revenue |
-- |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears average in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is poor in 2011 and fair in
2012.
l
SC’s quick ratio is poor in 2011 and normal in
2012.
l
The inventory of SC appears small.
l
The accounts receivable of SC is maintained in an
average level in 2012.
l
SC has no short-term loans in both years.
l
SC’s revenue is in a
fairly good level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.28 |
|
UK Pound |
1 |
Rs.103.84 |
|
Euro |
1 |
Rs.85.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
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.