MIRA INFORM REPORT
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Report No. : |
350718 |
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Report Date : |
24.11.2015 |
IDENTIFICATION DETAILS
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Name : |
tianjin yanqiao
welding materials co., ltd. |
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Registered Office : |
No. 1 Liujing Road, Dongli Economic Development Area, Tianjin, 300300
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
25.12.1995 |
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Com. Reg. No.: |
120000400058163 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing and selling welding electrode, welding wire, welding
powder, water glass and relation products. |
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No. of Employees : |
80 |
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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 also 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 & address
tianjin yanqiao welding materials co., ltd.
no. 1 liujing road, dongli economic development
area,
tianjin, 300300 PR CHINA
TEL: 86 (0) 22-24980386 FAX: 86 (0) 22-24980386
EXECUTIVE
SUMMARY
INCORPORATION DATE : december 25, 1995
REGISTRATION NO. : 120000400058163
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. hou shengchang (CHAIRMAN)
STAFF STRENGTH :
80
REGISTERED CAPITAL : CNY
10,000,000
BUSINESS LINE :
manufacturing AND TRADING
TURNOVER :
CNY 84,710,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 60,460,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.4056 = 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 Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on December 25, 1995.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR China
is defined as a legal person. It is a limited co. jointly invested by one
or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition position
in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing and selling
welding electrode, welding wire, welding powder, water glass and relation
products.
SC is mainly engaged in manufacturing and selling welding rod and
welding wire.
Mr. Hou Shengchang has been the legal representative, chairman and
general manager of SC since 1995.
SC is known to have approx. 80 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the economic development zone of
Tianjin. The detailed information of the area is unspecified.
http://www.tjgoldenbridge.com
The website belongs to Tianjin Golden Bridge Welding Materials Group Co., Ltd.
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
E-mail: jj.wang@g-welding.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2008-5 |
Registration No. |
009604 |
120000400058163 |
Tax registration no.: 12011560089604X
Organization code: 60089604X
Credibility Code: 9112011660089604XM
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Tianjin Golden Bridge Welding Materials Group Co., Ltd. 74.59082
Yang Yanfang (Singaporean) 25.40918
Tianjin Golden Bridge Welding Materials Group Co., Ltd.
==========================================
Tianjin Golden Bridge Welding Materials Group Co., Ltd. is at present a
large welding material manufacturer both in China and throughout the world and
it produces Golden Bridge Welding Materials. It has been keeping its leading
position all the time in the same industry in China due to its substantial
technical strength, huge scale of production and precise scientific management.
The company has been persisting in the constant innovation of science and
technology, system and almost all the other fields for a long period of time,
which has made Golden Bridge Welding Materials own a lot of obvious
characteristics, such as its abundant kinds of products, high technology, high
quality and low prices.
Incorporation Date: May 3, 1995
Registration No.: 120000000002816
Registered capital: CNY 405,070,000
Legal form: Limited Liabilities Company
Legal Representative: Hou Yonghe
Address: No. 1, Liujing Road, Dongli Economic Development Area, Tianjin,
P. R. China
Telephone: 86 (022) 58296666/24997375/58292301
Fax: 86 (022) 24996812
Website: http://www.tjgoldenbridge.com
E-mail: export@tjgoldenbridge.com
Legal Representative, Chairman and General Manager:
Mr. Hou Shengchang, with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1995 to present Working in SC as legal representative, chairman
and general manager.
Vice Chairman:
Ms. Yang Yanfang, Singaporean, passport no. S2190223C, she is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as vice chairman.
Director:
Hou Yongping
SC is mainly engaged in manufacturing and selling welding electrode and
welding wire.
SC’s products mainly include:
|
Welding Electrode |
Welding Wire |
Sintered Flux |
|
1. Carbon Steel Electrode 2. Low-alloy Steel Electrode 3. Corrosion-resistant Steel Electrode 4. Heat-resistant Steel Electrode 5. Low Temperature Steel Electrode 6. Cr Stainless Steel Electrode 7. Cr-Ni Stainless Steel Electrode 8. Dual-phase Stainless Steel Electrode 9. Surfacing Electrode 10. Cast Iron Electrode 11. Pipe Welding Electrode |
1. Gas-shielded Solid Welding Wire 2. Argon-arc Welding Wire 3. Submerged-arc Welding Wire 4. Gas-shielded Flux-cored Welding Wire 5. Self-shielded Flux-cored Welding Wire |
1. Fluoride-basic Type Sintered Flux 2. Calcium-silicate Type Sintered Flux 3. Silicon-manganese Type Acid Sintered Flux 4. Aluminate-rutile Type Acid Sintered Flux |
SC sources its materials 100% from domestic market, mainly Hebei. SC sells
20% of its products in domestic market, and 80% to overseas market, mainly to
Middle East and Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, L/C, T/T, and Credit of 30-60 days.
Trademarks & Patents
No record
Note: SC’s
management declined to release its major clients and suppliers.
Tianjin Golden Bridge Welding Materials Group Sales Co., Ltd.
==============================================
Incorporation date: 2010-1-14
Legal rep.: Li Yongli
Tianjin Golden Bridge Welding Materials Group International Trade Co.,
Ltd.
======================================================
Incorporation date: 2012-11-27
Legal rep.: Hou Yongming
Tianjin Golden Bridge Welding Materials Group Business Center
============================================
Incorporation date: 1999-8-29
Principal: Hou Yongtai
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.
SC’s management declined to release its bank details.
Balance
Sheet
|
Unit: CNY’000 |
as of Dec. 31,
2014 |
|
Cash & bank |
11,590 |
|
Inventory |
4,790 |
|
Accounts receivable |
570 |
|
Other Accounts receivable |
40 |
|
Advances to suppliers |
79,840 |
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Other current assets |
430 |
|
|
------------------ |
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Current assets |
97,260 |
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Fixed assets net value |
2,510 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
99,770 |
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|
============= |
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Short loans |
0 |
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Accounts payable |
1,200 |
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Other Accounts payable |
9,420 |
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Advances from clients |
2,120 |
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Employee pay payable |
21,540 |
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Taxes payable |
-310 |
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Dividends payable |
5,340 |
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Other current liabilities |
0 |
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|
------------------ |
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Current liabilities |
39,310 |
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Long term liabilities |
0 |
|
|
------------------ |
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Total liabilities |
39,310 |
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Equities |
60,460 |
|
|
------------------ |
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Total liabilities & equities |
99,770 |
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|
============= |
Income
Statement
|
Unit: CNY’000 |
as of Dec. 31,
2014 |
|
Turnover |
84,710 |
|
Cost of goods sold |
65,680 |
|
Taxes and additional of main operation |
560 |
|
Sales expense |
2,890 |
|
Management expense |
1,570 |
|
Finance expense |
-170 |
|
Non-operating income |
40 |
|
Non-operating expense |
0 |
|
Profit before tax |
14,220 |
|
Less: profit tax |
3,550 |
|
Profits |
10,670 |
Important
Ratios
=============
|
|
As of Dec. 31,
2014 |
|
*Current ratio |
2.47 |
|
*Quick ratio |
2.35 |
|
*Liabilities to assets |
0.39 |
|
*Net profit margin (%) |
12.60 |
|
*Return on total assets (%) |
10.69 |
|
*Inventory /Turnover ×365 |
21 days |
|
*Accounts receivable/Turnover ×365 |
3 days |
|
*Turnover/Total assets |
0.85 |
|
* Cost of goods sold/Turnover |
0.78 |
PROFITABILITY:
FAIRLY GOOD
The turnover of SC appears average in its line.
SC’s net profit margin is good.
SC’s return on total assets is good.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIRLY
GOOD
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 is maintained in an average level.
The accounts receivable of SC is maintained in a small level.
SC has no short-term loan in 2014.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly good.
SC is considered small-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.35 |
|
|
1 |
Rs.100.66 |
|
Euro |
1 |
Rs.70.47 |
INFORMATION DETAILS
|
Analysis Done by
: |
HEE |
|
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
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.