MIRA INFORM REPORT
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Report No. : |
331248 |
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Report Date : |
11.07.2015 |
IDENTIFICATION DETAILS
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Name : |
HUADI STEEL GROUP CO., LTD. |
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Registered Office : |
No. 1688 Tianzhong Road, Yongzhong Street, Longwan District,
Wenzhou, Zhejiang Province 325024 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
12.11.1998 |
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Com. Reg. No.: |
330300000021515 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling stainless steel pipes,
stainless sticks, and stainless steel board; research & development and
consulting service of stainless pipes and artificial leather; importing and
exporting commodities and technology; selling artificial leather, selling
common machinery, chemical materials (excluding hazardous chemicals),
stainless products, valves, ceramics products, automotive parts, motor parts
and electronic instrument. |
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No. of Employee : |
600 |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year... 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 2014 more than 274 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
COMPANY
NAME AND ADDRESS
HUADI STEEL GROUP CO., LTD.
NO. 1688 TIANZHONG ROAD, YONGZHONG STREET
LONGWAN DISTRICT, WENZHOU, ZHEJIANG PROVINCE 325024 PR CHINA
TEL: 86 (0) 577-85988985
FAX: 86 (0) 577-85988785
EXECUTIVE
SUMMARY
Date of Registration : november 12, 1998
REGISTRATION NO. : 330300000021515
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
CNY
100,280,000
staff : 600
BUSINESS CATEGORY :
manufacturing & trading
Revenue : CNY 476,140,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 159,710,000 (AS OF DEC. 31, 2014)
WEBSITE : www.huadigroup.com
E-MAIL : huadi@huadigroup.com
PAYMENT : AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.20 = USD
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.: 330300000021515 on November 12, 1998.
SC’s Organization Code Certificate No.:
71613065-2
SC’s Tax No.: 330303716130652
SC’s registered capital: CNY 100,280,000
SC’s paid-in capital: CNY 100,280,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Company Name |
Zhejiang Huadi Stainless Steel Group Co., Ltd. |
Huadi Steel Group Co., Ltd. |
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|
Legal Representative |
Wang Di |
Wang Huisen |
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Registration No. |
3303002004830 |
330300000021515 |
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|
Legal Representative |
Wang Huisen |
Wang Huizhi |
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Wang Huizhi |
Wang Di |
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Shareholder (s) (% of Shareholding) |
Wang Di 19.92% Wang Huisen 13.62% Wang Huizhi 13.62% Wang Jueqin 11.92% Xiang Guangchun 9.17% Zhang Bing 9.17% Wang Jueguang 4.84% Zhou Chengbiao 4.72% Wang Juepeng 4.34% Wang Juelin 4.34% Zhang Weifa 4.34% |
Wang Di 29.81% Wang Jueqin 16.64% Wang Huisen 13.96% Wang Huizhi 9.77% Zhang Bing 9.17% Wang Jueguang 4.84% Wang Juepeng 4.34% Wang Juelin 4.34% Zhang Weifa 4.34% Xiang Yuzhen 2.79% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wang Di |
29.81 |
|
Wang Jueqin |
16.64 |
|
Wang Huisen |
13.96 |
|
Wang Huizhi |
9.77 |
|
Zhang Bing |
9.17 |
|
Wang Jueguang |
4.84 |
|
Wang Juepeng |
4.34 |
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Wang Juelin |
4.34 |
|
Zhang Weifa |
4.34 |
|
Xiang Yuzhen |
2.79 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Wang Di |
|
Vice Chairman and General
Manager |
Wang Huisen |
|
Vice Chairman |
Wang Jueqin |
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Director |
Wang Juepeng |
|
Wang Juelin |
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Supervisor |
Zhang Weifa |
|
Wang Jueguang |
|
|
Wang Aichai |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Wang Di 29.81
Wang Jueqin 16.64
Wang Huisen 13.96
Wang Huizhi 9.77
Zhang Bing 9.17
Wang Jueguang 4.84
Wang Juepeng 4.34
Wang Juelin 4.34
Zhang Weifa 4.34
Xiang Yuzhen 2.79
MANAGEMENT
Wang Di , Legal
Representative and Chairman
--------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 70
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal representative and chairman
Wang Huisen , Vice Chairman and General Manager
--------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 57
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as vice chairman and general manager
Wang Jueqin , Vice
Chairman
-------------------------------------------------
Ø
Gender: M
Ø
Age: 43
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC
as vice chairman
Director
------------
Wang Juepeng
Wang Juelin
Supervisor
--------------
Zhang Weifa
Wang Jueguang
Wang Aichai
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and selling
stainless steel pipes, stainless sticks, and stainless steel board; research
& development and consulting service of stainless pipes and artificial
leather; importing and exporting commodities and technology; selling artificial
leather, selling common machinery, chemical materials (excluding hazardous
chemicals), stainless products, valves, ceramics products, automotive parts,
motor parts and electronic instrument.
SC is mainly
engaged in manufacturing and selling stainless steel products.
SC’s
products mainly include:
Seamless stainless
steel
Stainless steel
pipe
Stainless steel
bar
Stainless Steel
Elbow
Stainless ingots
Stainless steel
tube precision
SC sources its
materials 100% from domestic market. SC sells 30% of its products in domestic
market, and 70% to overseas market, mainly U.S.A., 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.
*Major Client*
------------------
Millennium
Industries
Staff & Office:
--------------------------
SC is
known to have approx. 600 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 subsidiaries and branches,
Wenzhou Dehong Waste Recycling Co., Ltd.
Registration
No.: 330303000030139
Date
of Registration: February 16, 2009
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 1,580,000
Legal
Representative: Wang Juelin
Taizhou
Huadi Industrial Co., Ltd.
Registration
No.: 331082000012194
Date
of Registration: December 19, 2006
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 106,880,000
Legal
Representative: Wang Juepeng
Wenzhou
Longwan Union Development Co., Ltd.
Registration
No.: 330300000074586
Date
of Registration: August 9, 2011
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 100,000,000
Legal
Representative: Jiang Xipeng
Shanghai
Huadi Stainless Steel Materials Co., Ltd.
Registration
No.: 310106000064591
Date
of Registration: December 17, 1996
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 2,018,000
Legal
Representative: Wang Jueguang
Huadi
Steel Group Co., Ltd. Wuxi Branch
Huadi
Steel Group Co., Ltd. Zibo Branch
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
Agricultural Bank of China Wenzhou Branch Longwan Sub-branch
AC#:
225101040003712
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
Cash |
28,490 |
81,310 |
|
Notes receivable |
10,210 |
23,680 |
|
Accounts
receivable |
164,280 |
113,000 |
|
Advances to
suppliers |
14,750 |
56,160 |
|
Other receivable |
2,690 |
10,970 |
|
Inventory |
105,350 |
81,370 |
|
Prepaid
expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
325,770 |
366,490 |
|
Long-term
investment |
188,080 |
188,080 |
|
Fixed assets |
56,710 |
54,340 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
14,890 |
14,890 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
585,450 |
623,800 |
|
|
============= |
============= |
|
Short-term loans |
347,210 |
348,600 |
|
Notes payable |
44,700 |
65,220 |
|
Accounts payable |
28,320 |
12,220 |
|
Wages payable |
1,600 |
2,020 |
|
Welfares payable |
120 |
0 |
|
Taxes payable |
-510 |
-680 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
7,790 |
1,280 |
|
Accrued expenses |
0 |
0 |
|
Other current
liabilities |
0 |
35,430 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
429,230 |
464,090 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
429,230 |
464,090 |
|
Equities |
156,220 |
159,710 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
585,450 |
623,800 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Revenue |
479,860 |
476,140 |
|
Cost of sales |
454,080 |
424,130 |
|
Sales expense |
5,140 |
5,830 |
|
Management expense |
11,740 |
16,240 |
|
Finance expense |
22,590 |
24,130 |
|
Profit before
tax |
-18,590 |
6,290 |
|
Less: profit tax |
0 |
340 |
|
Profits |
-18,590 |
5,950 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
0.76 |
0.79 |
|
*Quick ratio |
0.51 |
0.61 |
|
*Liabilities
to assets |
0.73 |
0.74 |
|
*Net profit
margin (%) |
-3.87 |
1.25 |
|
*Return on
total assets (%) |
-3.18 |
0.95 |
|
*Inventory /
Revenue ×365 |
81 days |
63 days |
|
*Accounts
receivable / Revenue ×365 |
125 days |
87 days |
|
*Revenue /
Total assets |
0.82 |
0.76 |
|
*Cost of sales
/ Revenue |
0.95 |
0.89 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears average in its line in both years.
l SC’s net profit
margin is fair in 2013, average in 2014.
l SC’s return on
total assets is fair in 2013, average in 2014.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
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 average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable
financial conditions. The large amount of short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.38 |
|
|
1 |
Rs.97.65 |
|
Euro |
1 |
Rs.70.43 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
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|
Report Prepared
by : |
ASH |
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.