MIRA
INFORM REPORT
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Report Date : |
27.05.2014 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG SHENGYANG STAINLESS STEEL MANUFACTURE CO., LTD. |
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Registered Office : |
No. 318 Ruiyang Road, Songyang Industrial Zone, Lishui, Zhejiang Province 323400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
05.12.2006 |
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Com. Reg. No.: |
331124000003801 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing, processing, and selling stainless steel pipe, and stainless steel pipe fittings; importing and exporting commodities and technology. |
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No of Employees : |
92 |
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 – September 30, 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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate 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 & ADDRESS
ZHEJIANG SHENGYANG
STAINLESS STEEL MANUFACTURE CO., LTD.
NO. 318 RUIYANG ROAD,
SONGYANG INDUSTRIAL ZONE
LISHUI, ZHEJIANG
PROVINCE 323400 PR CHINA
TEL: 86 (0)
578-8685577
FAX: 86 (0)
578-8685598
EXECUTIVE SUMMARY
Date of Registration : december 5, 2006
REGISTRATION NO. : 331124000003801
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 8,000,000
staff :
92
BUSINESS CATEGORY : manufacturing
& processing & trading
Revenue :
CNY 47,400,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 10,650,000 (AS OF DEC. 31, 2013)
WEBSITE : www.stainless-steel-sy.com
E-MAIL :
shengyang@sy-pipe.com
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : ORDINARY
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 limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 331124000003801 on December 5, 2006.
SC’s Organization Code Certificate No.:
79646383-5
SC’s Tax No.: 331124796463835
SC’s registered capital: cny 8,000,000
SC’s paid-in capital: cny 8,000,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Ye Zhexiao |
55 |
|
Chen Jiqiang |
45 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General
Manager |
Ye Zhexiao |
|
Supervisor |
Chen Jiqiang |
RECENT DEVELOPMENT
Honors,
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ISO 9001:2000 Certificate
European Pressure Equipment En10204.3.1 Certificate
China’s Special Equipment Manufacturing License
China’s Petroleum Pipeline Testing Recognition Certificate
Etc.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Ye Zhexiao 55
Chen Jiqiang 45
MANAGEMENT
Ye Zhexiao, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Chen Jiqiang, Supervisor
--------------------------------------------
Ø
Gender: M
BUSINESS OPERATION
SC’s registered business scope includes manufacturing, processing,
and selling stainless steel pipe, and stainless steel pipe fittings; importing
and exporting commodities and technology.
SC is mainly
engaged in manufacturing, processing and selling stainless steel pipe, and
stainless steel pipe fittings.
SC’s products
mainly include:
Stainless Steel
Pipe
Stainless Steel
Tube
Stainless Steel
Flange
Stainless Steel
Fittings
Brand: Shengyang.
SC sources its materials 100% from domestic
market. SC sells 30% of its products in domestic market, and 70% to overseas
market, mainly USA, Canada, Russia, Europe, India, Middle East, 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. 92 staff at
present.
SC rents an area
as its operating office and factory, 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 local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
3,900 |
2,660 |
|
|
Notes receivable |
0 |
0 |
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Accounts
receivable |
14,250 |
12,160 |
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Advances to
suppliers |
0 |
0 |
|
Other receivable |
-1,480 |
-2,240 |
|
Inventory |
6,620 |
4,560 |
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Non-current
assets within one year |
0 |
0 |
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Other current
assets |
180 |
4,820 |
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|
------------------ |
------------------ |
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Current assets |
23,470 |
21,960 |
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Fixed assets |
4,100 |
5,110 |
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Construction in progress |
0 |
0 |
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Intangible
assets |
0 |
0 |
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Long-term
investment |
0 |
0 |
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Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
10 |
250 |
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------------------ |
------------------ |
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Total assets |
27,800 |
27,320 |
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|
============= |
============= |
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Short-term loans |
18,900 |
14,450 |
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Notes payable |
0 |
0 |
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Accounts payable |
-1,760 |
2,530 |
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Welfares payable |
0 |
0 |
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Taxes payable |
0 |
0 |
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Advances from
clients |
0 |
0 |
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Other payable |
420 |
-2,050 |
|
Other current liabilities |
0 |
1,740 |
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------------------ |
------------------ |
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Current
liabilities |
17,560 |
16,670 |
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Non-current
liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total
liabilities |
17,560 |
16,670 |
|
Equities |
10,240 |
10,650 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
27,800 |
27,320 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
55,170 |
47,400 |
|
Cost of sales |
49,120 |
41,960 |
|
Sales expense |
1,600 |
1,530 |
|
Management expense |
1,760 |
1,640 |
|
Finance expense |
1,920 |
1,830 |
|
Profit before
tax |
1,090 |
560 |
|
Less: profit tax |
270 |
180 |
|
820 |
380 |
Important Ratios
=============
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|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
*Current ratio |
1.34 |
1.32 |
|
*Quick ratio |
0.96 |
1.04 |
|
*Liabilities
to assets |
0.63 |
0.61 |
|
*Net profit
margin (%) |
1.49 |
0.80 |
|
*Return on
total assets (%) |
2.95 |
1.39 |
|
*Inventory /
Revenue ×365 |
44 days |
36 days |
|
*Accounts
receivable / Revenue ×365 |
95 days |
94 days |
|
*Revenue /
Total assets |
1.98 |
1.73 |
|
*Cost of sales
/ Revenue |
0.89 |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears average in its line, and
it decreased in 2013.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear large.
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 average.
l
The risk for SC to go bankrupt is above average.
Overall financial condition
of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable and short-term loans may be
a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 58.58 |
|
|
1 |
Rs. 98.66 |
|
Euro |
1 |
Rs. 79.81 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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Report Prepared
by : |
DPT |
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 |
|
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.