MIRA INFORM REPORT
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Report No. : |
303960 |
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Report Date : |
20.01.2015 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU MUELLER-XINGRONG COPPER INDUSTRIES LTD. |
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Registered Office : |
No. 99 Huayang North Road, Jintan Economic Development Zone
Changzhou, Jiangsu Province 213200 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
05.12.2005 |
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Com. Reg. No.: |
320000400001828 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Designing and manufacturing copper tube, copper fittings and related products;
selling self-made commodities; providing after-sale service and related
service. |
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No. of Employee : |
320 |
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 : |
Satisfactory |
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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, 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 MUELLER-XINGRONG COPPER
INDUSTRIES LTD.
NO. 99 HUAYANG NORTH ROAD, JINTAN ECONOMIC DEVELOPMENT ZONE CHANGZHOU,
JIANGSU PROVINCE 213200 PR CHINA
TEL: 86 (0) 519-88207799*8030
FAX: 86 (0) 519-88213009
EXECUTIVE SUMMARY
Date of Registration : DECember 5, 2005
REGISTRATION NO. : 320000400001828
LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
JEFFREY A.MARTIN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 38,415,842
staff :
320
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue : CNY 1,024,470,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY
395,270,000 (AS OF DEC. 31, 2013)
WEBSITE : www.muellerxingrong.com
E-MAIL :
liuqing_shi@muellerxingrong.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.22 = 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.: 320000400001828
on December 5, 2005.
SC’s Organization Code Certificate No.:
78126921-2
SC’s Tax No.: 320482781269212
SC’s registered capital: USD 38,415,842
SC’s paid-in capital: USD 38,415,842
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010-3 |
Shareholder (s) (% of Shareholding) |
Mueller Streamline China, LLC (U.S.A.) 45.5% Mueller Streamline Holding, S.L. (Spain) 5% Jiangsu Baiyang Industrial Co., Ltd. 7% Jiangsu Xingrong Hi-tech Co., Ltd. 42.5% |
(U.S.A.) Mueller Streamline China, LLC 50.5% Jiangsu Baiyang Industrial Co., Ltd. 7.0% Jiangsu Xingrong High-Tech Co., Ltd. 42.5% |
|
2013-3-14 |
Legal Representative |
Kent A. Mckee |
Jeffrey A.Martin |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
(U.S.A.) Mueller Streamline China, LLC |
50.5 |
|
Jiangsu Baiyang Industrial Co., Ltd. |
7.0 |
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Jiangsu Xingrong High-Tech Co., Ltd. |
42.5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Jeffrey A.Martin |
|
Vice Chairman |
Xiao Kejian |
|
General Manager |
Gao Jiquan |
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Director |
Steffen Sigloch |
|
Nadiem Umar |
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Supervisor |
He Hongye |
|
Wilburn Roy Coleman |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(U.S.A.) Mueller Streamline China, LLC 50.5
Jiangsu Baiyang Industrial Co., Ltd. 7.0
Jiangsu Xingrong High-Tech Co., Ltd. 42.5
Jiangsu Xingrong High-Tech
Co., Ltd.
------------------------------------------
Jiangsu Xingrong High-Tech
Co., Ltd. is specialized in the production of non-ferrous metal tubing and
strip and the development and fabrication of related complete plant. It is the
only manufacturer to supply the continuous cast-and-roll process and complete
production lines for the manufacturing of precision copper tubing. Xingrong is
the first firm to pioneer an abbreviated process for turning cast and rolled
tube into strip and related equipment for the production of oxygen-free
precision copper strips. It is the original inventor of a copper-aluminum
composite tube featuring a metallurgical bonding and exclusively owns the core
technology and complete plant fabricating capability.
Tel: 86-519-85109627
Fax: 86-519-85109627
Website: www.xr-hitech.cn
MANAGEMENT
Jeffrey A.Martin, Legal Representative and Chairman
----------------------------------------------------------------------
Gender: M
Nationality: U.S.A.
Passport# 214826589
Working experience (s):
Before, as director of SC
At present, working in SC as legal representative and chairman
Xiao Kejian, Vice
Chairman
------------------------------------------------
Gender: M
Age: 62
ID# 320404195311070036
Working experience (s):
At present, working in SC as vice chairman
Gao Jiquan, General Manager
---------------------------------------------------
Gender: M
Age: 50
ID#110102651208237
Working experience (s):
At present, working in SC as general manager
Director
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Steffen Sigloch
Nadiem Umar
Supervisor
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He Hongye
Wilburn Roy Coleman
BUSINESS OPERATION
SC’s registered business scope includes designing and manufacturing
copper tube, copper fittings and related products; selling self-made
commodities; providing after-sale service and related service.
SC is mainly engaged in manufacturing and selling copper tube and copper
fittings.
Brand: MUELLER
SC’s products mainly include: bright tube,
capillary, inner groove tube, pancake tube, straight length tube and out fin
tube.
SC sources its materials
70% from domestic market, and 30% from overseas market. SC sells 70% of its
products in domestic market and 30% to overseas market.
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 Customer:
---------------------
Mueller Industries, Inc.
Staff &
Office:
--------------------------
SC is known to have approx. 320
staff at present.
SC owns an area as its operating office & factory of approx. 27,000
sq. meters at the heading address.
RELATED COMPANY
According to www.muellerindustries.com
Mueller PrimaFlow Limited
----------------------------------------
Unit 2, Stargate Business Park Cuckoo Rd. Birmingham B7 5SY England,
United Kingdom
Tel: 011-44-121-322-4800
Fax: 011-44-121-327-4046
Mueller Europe Limited
-----------------------------------
Oxford Street Bilston West Midlands, WV14 7DS England, United Kingdom
Tel:
011-44-1902-499-700
Fax: 011-44-1902-353-139
Mueller Copper Tube Products, Inc.
-------------------------------------------------
PO Box 309 1525 N. Falls Blvd. Wynne, AR 72396
Tel: 870-238-3201
Fax: 870-208-1081
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
Basic Bank:
China Construction Bank Changzhou Jintan Nanhuan Office
AC#: 32001626448059999888
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
24,080 |
|
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Notes receivable |
124,660 |
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Accounts receivable |
145,640 |
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Advances to suppliers |
7,910 |
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Other receivable |
280 |
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Inventory |
117,360 |
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Non-current assets within one year |
0 |
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Other current assets |
30,000 |
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------------------ |
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Current assets |
449,930 |
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Fixed assets |
125,440 |
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Construction in progress |
2,150 |
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Other non-current assets |
4,140 |
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------------------ |
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Total assets |
581,660 |
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============= |
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Short-term loans |
174,130 |
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Notes payable |
0 |
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Accounts payable |
870 |
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Advances from clients |
9,300 |
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Other payable |
2,550 |
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Other current liabilities |
2,490 |
|
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------------------ |
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Current liabilities |
189,340 |
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Non-current liabilities |
-2,950 |
|
|
------------------ |
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Total liabilities |
186,390 |
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Equities |
395,270 |
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------------------ |
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Total liabilities & equities |
581,660 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
1,024,470 |
|
Cost of sales |
996,290 |
|
Sales expense |
9,900 |
|
Management expense |
37,860 |
|
Finance expense |
4,490 |
|
Profit before tax |
1,020 |
|
Less: profit tax |
-1,910 |
|
2,930 |
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
|
*Current ratio |
2.38 |
|
*Quick ratio |
1.76 |
|
*Liabilities to assets |
0.32 |
|
*Net profit margin (%) |
0.29 |
|
*Return on total assets (%) |
0.50 |
|
*Inventory / Revenue ×365 |
42 days |
|
*Accounts receivable/ Revenue ×365 |
52 days |
|
* Revenue/Total assets |
1.76 |
|
* Cost of sales / Revenue |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is fairly high, comparing
with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
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 low.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.70 |
|
|
1 |
Rs.93.41 |
|
Euro |
1 |
Rs.71.33 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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 |
|
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 |
|
<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.