MIRA
INFORM REPORT
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Report Date : |
04.06.2014 |
IDENTIFICATION DETAILS
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Name : |
FUJIAN WUHANG STAINLESS STEEL PRODUCTS CO., LTD. |
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Registered Office : |
No. 110 Gongshang Road, Yingqian Town, Changle Fujian Province 350201 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
10.05.1993 |
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Com. Reg. No.: |
350100400015672 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject is engaged in the manufacturing various billet, bar, wire rod,
steel, stainless steel, low alloy steel, stainless steel, copper strip
products, and aluminum products; dismantling and processing scrap metal
equipment; terminal handling; wholesaling stainless steel products and minerals;
and recycling renewable resources. |
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No. of Employees : |
2,150 |
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 : |
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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, growth of the private sector, development of stock
markets and a modern banking system, 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
considered important to "economic security," explicitly looking to
foster globally competitive industries. After keeping its currency tightly
linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading band within
which the RMB is permitted to fluctuate. 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. Several factors are converging to slow China's growth, including
debt overhang from its credit-fueled stimulus program, industrial overcapacity,
inefficient allocation of capital by state-owned banks, and the slow recovery
of China's trading partners. The government's 12th Five-Year Plan, adopted in
March 2011 and reiterated at the Communist Party's "Third Plenum"
meeting in November 2013, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent in
the future on fixed investments, exports, and heavy industry. 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 and address
FUJIAN WUHANG STAINLESS STEEL
PRODUCTS CO., LTD.
NO. 110 GONGSHANG ROAD, YINGQIAN TOWN, CHANGLE
FUJIAN PROVINCE 350201 PR CHINA
TEL: 86 (0) 591-28991245/28993669
FAX: 86 (0) 591-28997938
EXECUTIVE SUMMARY
Date of Registration : may 10, 1993
REGISTRATION NO. : 350100400015672
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
CHIEF EXECUTIVE :
chen yu (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 683,000,000
staff :
2,150
BUSINESS CATEGORY : MANUFACTURING & trading
Revenue :
CNY 3,951,440,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 1,416,824,000 (AS OF DEC. 31, 2012)
WEBSITE : www.fjwg.com.cn
E-MAIL :
fjwhsteel@163.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.25 = 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 Chinese-foreign
equity joint venture enterprise of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 350100400015672 on May 10, 1993.
SC’s Organization Code Certificate No.:
61131555-4
SC’s Tax No.: 350182611315554
SC’s registered capital: CNY 683,000,000
SC’s paid-in capital: CNY 683,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
002755 |
350100400015672 |
|
2009 |
Legal Representative |
Lin Yinguan |
Chen Yu |
|
2010 |
Registered Capital |
CNY 133,000,000 |
CNY 333,000,000 |
|
2011 |
Registered Capital |
CNY 333,000,000 |
CNY 683,000,000 |
|
Shareholder (s) |
Chen Yu 75% Huaan Trading Inc. (U.S.A.) 25% |
Chen Yu 75% Jiang Songqing (Hong Kong) 25% |
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|
2012 |
Shareholder (s) |
Chen Yu 75% Jiang Songqing (Hong Kong) 25% |
Chen Yu 75% Tianwei Co., Ltd. (B.V.I.) 25% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Chen Yu |
75 |
|
Tianwei Co., Ltd. (B.V.I.) |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Chen Yu |
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Vice Chairman |
Chen Wei |
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Director |
Lin Min’en |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Chen Yu 75
Tianwei Co., Ltd. (B.V.I.) 25
MANAGEMENT
Chen Yu, Legal
Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------
Gender: M
ID# 350182198402101696
Age: 30
Working experience
(s):
At present, working in SC as legal representative, chairman and general
manager
Also working in Fujian Wuhang Stainless Steel Products Co., Ltd. Yangyu
Branch as principal
Chen Wei, Vice Chairman
-------------------------------------------
Gender: M
Working experience
(s):
At present, working in SC as vice chairman
Director
-----------
Lin Min’en
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
various billet, bar, wire rod, steel, stainless steel, low alloy steel,
stainless steel, copper strip products, and aluminum products; dismantling and
processing scrap metal equipment; terminal handling; wholesaling stainless
steel products and minerals; and recycling renewable resources.
SC is mainly engaged in manufacturing and selling stainless steel
products.
SC’s products mainly include: cold-rolled steel band of stainless steel,
hot-rolled steel band of stainless steel, wire rods of various brands and
specifications
SC sources its materials 99% from domestic market, and 1% from overseas
market, mainly Germany, etc. SC sells 88% of its products in domestic market,
and 12% to overseas market, mainly Vietnam, etc.
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 Supplier*
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Seaways Shipping and Logistics Limited
Staff &
Office:
--------------------------
SC is known to have approx. 2,150
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 branch at present,
Fujian Wuhang Stainless Steel Products Co., Ltd. Yangyu Branch
Registration No.: 350182500000470
Date of Registration: July 26, 2012
Legal Form: Branch
Principal: Chen Yu
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’s supplier refused 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.
BANKING
Basic Bank:
Industrial and Commercial Bank of China Changle
Sub-branch
AC#: 1402070109016200252
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
227,930 |
180,110 |
|
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Notes receivable |
0 |
0 |
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Accounts receivable |
10,470 |
9,330 |
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Advances to suppliers |
344,910 |
358,360 |
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Other receivable |
21,300 |
43,330 |
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Inventory |
490,070 |
870,440 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
260 |
270 |
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------------------ |
------------------ |
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Current assets |
1,094,940 |
1,461,840 |
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Fixed assets |
787,220 |
739,200 |
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Construction in progress |
1,770 |
22,990 |
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Intangible assets |
0 |
0 |
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Long-term investment |
499,500 |
605,540 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
13,800 |
16,070 |
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------------------ |
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Total assets |
2,397,230 |
2,845,640 |
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============= |
============= |
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Short-term loans |
632,000 |
340,000 |
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Notes payable |
641,160 |
245,830 |
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Accounts payable |
184,460 |
368,280 |
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Welfares payable |
0 |
0 |
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Taxes payable |
-16,760 |
2,370 |
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Advances from clients |
352,130 |
548,200 |
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Other payable |
0 |
0 |
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Other current liabilities |
73,330 |
87,630 |
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------------------ |
------------------ |
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Current liabilities |
1,866,320 |
1,592,310 |
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Non-current liabilities |
298,900 |
384,360 |
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------------------ |
------------------ |
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Total liabilities |
2,165,220 |
1,976,670 |
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Equities |
232,010 |
868,970 |
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------------------ |
------------------ |
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Total liabilities & equities |
2,397,230 |
2,845,640 |
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============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
3,310,780 |
4,269,870 |
|
Cost of sales |
3,233,300 |
4,168,950 |
|
Sales expense |
50,760 |
76,300 |
|
Management expense |
18,580 |
39,060 |
|
Finance expense |
61,280 |
42,010 |
|
Profit before tax |
-40,740 |
-45,820 |
|
Less: profit tax |
0 |
0 |
|
-40,740 |
-45,820 |
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Current assets |
2,327,511 |
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Long term investment |
631,720 |
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Intangible assets |
15,601 |
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Total assets |
3,877,743 |
|
|
------------- |
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Current liabilities |
1,777,503 |
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Non-current liabilities |
683,416 |
|
|
------------- |
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Total liabilities |
2,460,919 |
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Equities |
1,416,824 |
|
|
------------- |
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Revenue |
3,951,440 |
|
Cost of sales |
3,549,604 |
|
Profit before tax |
-32,155 |
|
Less: profit tax |
0 |
|
Profits |
-32,155 |
Important Ratios
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
0.59 |
0.92 |
1.31 |
|
*Quick ratio |
0.32 |
0.37 |
-- |
|
*Liabilities to assets |
0.90 |
0.69 |
0.63 |
|
*Net profit margin (%) |
-1.23 |
-1.07 |
-0.81 |
|
*Return on total assets (%) |
-1.70 |
-1.61 |
-0.83 |
|
*Inventory / Revenue ×365 |
54 days |
74 days |
-- |
|
*Accounts receivable / Revenue ×365 |
1 day |
1 day |
-- |
|
*Revenue / Total assets |
1.38 |
1.50 |
1.02 |
|
*Cost of sales / Revenue |
0.98 |
0.98 |
0.90 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
·
The revenue of SC appears fairly good in its line.
·
SC’s net profit margin is fair.
·
SC’s return on total assets is fair.
·
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a normal
level in 2012.
·
SC’s quick ratio is maintained in a fair level.
·
The inventory of SC appears average.
·
The accounts receivable of SC appears small.
·
The short-term loans of SC appear large.
·
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
·
The debt ratio of SC is average.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.21 |
|
|
1 |
Rs.99.17 |
|
Euro |
1 |
Rs.80.56 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
NNA |
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.