MIRA
INFORM REPORT
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Report Date : |
13.05.2014 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU
VALIN-XIGANG SPECIAL STEEL CO., LTD. |
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Registered Office : |
NO. 1, Kangqiao Road, Xin’gang
Park, Economic Development, Zone, Jingjiang City, Jiangsu Province, 214516 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
08.12.2008 |
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Com. Reg. No.: |
321282000078041 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Manufacturing and selling special steel include: tubing and casing, line pipe, oil drilling
pipe, high pressure boiler, hydraulic pillar pipe, gas bottle pipe |
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No. of Employees |
2,000 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 : |
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 – March 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 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
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Source
: CIA |
Company name and address
JIANGSU
VALIN-XIGANG SPECIAL STEEL CO., LTD.
NO. 1, KANGQIAO ROAD, XIN’GANG
PARK, ECONOMIC DEVELOPMENT
ZONE, JINGJIANG CITY, JIANGSU PROVINCE,
214516 PR CHINA
TEL: 86 (0) 523-80708999/80708021 FAX: 86 (0) 523-80709053
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC.
8, 2008
REGISTRATION NO. : 321282000078041
REGISTERED LEGAL FORM :
ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE :
MR. LING ZHONGQIU (LEGAL REPRESENTATIVE)
STAFF STRENGTH :
2,000
REGISTERED CAPITAL : CNY 1,600,000,000
BUSINESS LINE : MANUFACTURING and trading
TURNOVER :
CNY 809,470,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 1,138,510,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2122 = USD 1
Adopted
abbreviations:
ANS - amount not
stated
NS - not stated
SC - subject
company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a limited liabilities co. at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) Dec.
8, 2008, and has been under present legal form since 2013.
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person LLC has no shareholder
meeting.
SC’s registered business scope includes general business scope:
processing and selling steel-making, steel; manufacturing and selling steel
used in high-speed overloaded railway; manufacturing and selling oil well pipes
used in petroleum exploration, high-pressure boiler tubes used in power station
and steel pipes used in long-distance conveying of oil and gas; designing and
assembling steelmaking equipment, metallurgy ordinary casting equipment and
metal rolling machinery; providing metallurgical technology service; purchasing
self-used steel scrap; international trade (excluding the items limited or
prohibited by state).
SC is mainly
engaged in manufacturing and selling special steel.
Mr. Ling Zhongqiu
has been legal representative, executive director and general manager since
2013.
SC is
known to have approx. 2,000 employees
at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the development zone of Jingjiang. Our checks reveal
that SC owns the total premise about 900,000 square meters.
http://www.hlxgco.com/ The design is professional and the content
is well organized. At present it is in Chinese and English versions.
E-mail: alex@hlxgco.com; liwenhao@hlxgco.com
For the past two years there is no record of litigation.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
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2011 |
Registered capital |
CNY 1,200,000,000 |
Present amount |
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Shareholding |
Jiangsu Xigang Group Co., Ltd. 98% Wuxi Huarun Steelmaking Co., Ltd. 2% |
Jiangsu Xigang Group Co., Ltd. 98.4% Wuxi Huarun Steelmaking Co., Ltd. 1.6% |
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2013-3 |
Legal representative |
Tao Fangguo |
Present one |
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Shareholding |
Jiangsu Xigang Group Co., Ltd. 98.4% Wuxi Huarun Steelmaking Co., Ltd. 1.6% |
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Registered legal form |
Limited Liabilities Company |
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Registered capital |
CNY 2,000,000,000 |
Subject
passed the annual inspection of 2012 with Administration for Industry &
Commerce.
Organization
Code: 683503589
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiangsu Xigang Group Co., Ltd. 100
Incorporation Date:
Registration no.: 320200000009262
Registered Capital: CNY 1,183,050,000
Legal rep.: Ling Zhongqiu (凌仲秋)
Add: No. 124, Tangnan Road, Wuxi, Jiangsu
Province
l
Legal Representative, Executive Director and
General Manager:
Mr. Ling Zhongqiu is currently responsible for the overall and daily
management of SC.
Working Experience(s):
From 2013
to present Working in SC
as legal representative, executive director and general manager.
Also working in Jiangsu Xigang Group Co.,
Ltd. as legal representative.
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Supervisor:
Chen Guohua
SC is mainly
engaged in manufacturing and selling special steel.
SC’s products mainly include: tubing
and casing, line pipe, oil drilling pipe, high pressure boiler, hydraulic
pillar pipe, gas bottle pipe.
SC sources its
materials 100% from domestic market. SC sells 70% of its products in domestic
market, and 30% to overseas market, mainly Southeast Asia.
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.
Note: SC declined to release its major
suppliers and clients.
According
to SC’s website:
Hunan
Valin Iron & Steel Group Co., Ltd.
==============================
Incorporation Date:
Registration No.: 430000000057587
Registered Capital: CNY 2,000,000,000
Legal Rep.: Cao Huiquan
Website:
http://www.chinavalin.com/
Overall payment appraisal:
( ) Excellent ( )
Good (X) Average (
) Fair ( ) Poor
( ) Not yet 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.
Bank of China Jingjiang Sub-branch
AC#: 545658223044
Relationship:
Normal.
Financial Summary
Unit: CNY’000
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As
of Dec. 31, 2012 |
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Current assets |
3,495,650 |
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Total assets |
8,017,160 |
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Current
liabilities |
5,508,380 |
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Total
liabilities |
6,878,650 |
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Equities |
1,138,510 |
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=========== |
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Turnover |
809,470 |
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Profit before
tax |
-248,390 |
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Profits |
-248,390 |
Note: We did not find SC’s detailed financial statements.
Important
Ratios
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As
of Dec. 31, 2012 |
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*Current ratio
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0.63 |
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*Liabilities
to assets |
0.86 |
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*Net profit
margin (%) |
-30.69 |
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*Return on
total assets (%) |
-3.10 |
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*Turnover/Total
assets |
0.10 |
PROFITABILITY:
FAIR
l
The turnover of SC appears
fairly good in its line.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is fair.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s turnover is in a poor 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 average.
Overall financial
condition of the SC: Fair.
SC is considered large-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
Rs.59.72 |
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1 |
Rs.100.81 |
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Euro |
1 |
Rs.82.22 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.