MIRA INFORM REPORT
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Report No. : |
302729 |
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Report Date : |
12.01.2015 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU VALIN-XIGANG SPECIAL STEEL CO., LTD. |
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Registered Office : |
No. 21 Xin’gang Avenue, Economic Development Zone, Jingjiang City, Jiangsu Province,
214516 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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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 : |
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; import and export of goods and
technology (excluding the items limited or prohibited by state) (if needed
with permit). |
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No. of Employee : |
1,200 |
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 : |
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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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 |
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, 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 & address
JIANGSU VALIN-XIGANG SPECIAL STEEL CO., LTD.
NO. 21 XIN’GANG AVENUE, 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 :
1,200
REGISTERED CAPITAL : CNY
1,600,000,000
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER :
CNY 608,840,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 1,061,220,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND :
FAIRLY STEADY
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
Note: The heading address was formerly known as No. 1, Kangqiao Road,
Xin’gang Park, Economic Development Zone, Jingjiang City, Jiangsu Province
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 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;
import and export of goods and technology (excluding the items limited or
prohibited by state) (if needed with permit).
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. 1,200
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: offic@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 |
|
2011 |
Registered capital |
CNY 1,200,000,000 |
CNY 2,000,000,000 |
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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: 1980-04-20
Registration no.: 320200000009262
Registered Capital: CNY 1,183,050,000
Legal rep.: Ling Zhongqiu
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.
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, etc.
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: 1997-11-09
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.
Balance
Sheet
Unit: CNY’000
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As of Dec. 31,
2013 |
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Cash & bank |
1,177,590 |
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Inventory |
358,200 |
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Accounts receivable |
187,160 |
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Note receivable |
342,330 |
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Advances to suppliers |
150,920 |
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Other receivables |
397,690 |
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Other current assets |
354,170 |
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------------------ |
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Current assets |
2,968,060 |
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Fixed assets net value |
1,302,560 |
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Long term investment |
3,000 |
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Projects under construction |
3,337,070 |
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Intangible and other assets |
167,430 |
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Total assets |
7,778,120 |
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=========== |
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Short loan |
911,540 |
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Accounts payable |
589,570 |
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Advances from customers |
92,150 |
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Taxes payable |
2,040 |
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Payroll payable |
1,530 |
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Other accounts payable |
1,216,230 |
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Other current liabilities |
28,950 |
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Note payable |
1,992,950 |
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Long term liabilities due within one year |
791,670 |
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Current liabilities |
5,626,630 |
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Long term liabilities |
1,090,270 |
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------------------ |
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Total liabilities |
6,716,900 |
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Equities |
1,061,220 |
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------------------ |
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Total liabilities & equities |
7,778,120 |
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Income
Statement
Unit: CNY’000
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As of Dec. 31,
2013 |
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Turnover |
608,840 |
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Cost of goods sold |
575,470 |
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Taxes and additional of
main operation |
200 |
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Sales expense |
42,580 |
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Management expense |
49,330 |
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Finance expense |
10,490 |
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Asset impairment loss |
8,290 |
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Non-operating income |
240 |
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Non-operating expense |
10 |
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Profit before tax |
-77,290 |
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Less: profit tax |
0 |
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Profits |
-77,290 |
Important
Ratios
=============
|
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As of Dec.
31, 2013 |
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*Current ratio |
0.53 |
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*Quick ratio |
0.46 |
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*Liabilities to assets |
0.86 |
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*Net profit margin (%) |
-12.69 |
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*Return on total assets (%) |
-0.99 |
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*Inventory /Turnover ×365 |
215 days |
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*Accounts receivable/Turnover ×365 |
113 days |
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*Turnover/Total assets |
0.08 |
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* Cost of goods sold/Turnover |
0.95 |
PROFITABILITY:
FAIR
The turnover of SC appears fairly good in its
line.
SC’s net profit margin is poor.
SC’s return on total assets is fair.
SC’s cost of goods sold is fairly high.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears fairly large.
The accounts receivable of SC appears fairly large.
SC’s short loans are large in 2013.
SC’s turnover is in a poor level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
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.
The large amount of short loans and inventory could be threats to SC’s
financial situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.40 |
|
|
1 |
Rs.94.17 |
|
Euro |
1 |
Rs.73.61 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
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 |
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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 |
-- |
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.