MIRA INFORM REPORT
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Report No. : |
343987 |
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Report Date : |
03.10.2015 |
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) : |
31.12.2014 |
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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 : |
Subject is engaged in manufacturing and selling special steel |
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No. of Employee : |
990 |
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 – 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.
|
Source
: CIA |
Company
name and 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) 523-80709027/80708021 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 :
990
REGISTERED CAPITAL : CNY 1,600,000,000
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER :
CNY 603,040,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 1,021,490,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2104 = 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. 990 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 |
|
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% |
|
|
2013-3 |
Legal representative |
Tao Fangguo |
Present one |
|
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 |
||
|
Registered capital |
CNY 2,000,000,000 |
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
l 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.
l
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.
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
|
|
As
of Dec. 31, 2014 |
As
of Dec. 31, 2013 |
|
Cash & bank |
20,960 |
1,177,590 |
|
Inventory |
212,860 |
358,200 |
|
Accounts
receivable |
174,530 |
187,160 |
|
Note receivable |
1,282,070 |
342,330 |
|
Advances to
suppliers |
89,830 |
150,920 |
|
Other
receivables |
926,150 |
397,690 |
|
Other current
assets |
383,000 |
354,170 |
|
|
------------------ |
------------------ |
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Current assets |
3,089,400 |
2,968,060 |
|
Fixed assets net
value |
1,246,700 |
1,302,560 |
|
Long term
investment |
3,000 |
3,000 |
|
Projects under
construction |
3,734,830 |
3,337,070 |
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Intangible and
other assets |
163,780 |
167,430 |
|
|
------------------ |
------------------ |
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Total assets |
8,237,710 |
7,778,120 |
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|
=========== |
=========== |
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Short loan |
592,370 |
911,540 |
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Accounts payable |
415,490 |
589,570 |
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Advances from
customers |
54,860 |
92,150 |
|
Taxes payable |
2,000 |
2,040 |
|
Payroll payable |
1,750 |
1,530 |
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Other accounts
payable |
2,033,750 |
1,216,230 |
|
Other current
liabilities |
36,050 |
28,950 |
|
Note payable |
2,246,720 |
1,992,950 |
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Long term
liabilities due within one year |
705,370 |
791,670 |
|
|
------------------ |
------------------ |
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Current
liabilities |
6,088,360 |
5,626,630 |
|
Long term
liabilities |
1,127,860 |
1,090,270 |
|
|
------------------ |
------------------ |
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Total
liabilities |
7,216,220 |
6,716,900 |
|
Equities |
1,021,490 |
1,061,220 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
8,237,710 |
7,778,120 |
|
|
=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2014 |
As of Dec. 31,
2013 |
|
Turnover |
603,040 |
608,840 |
|
Cost of goods
sold |
602,580 |
575,470 |
|
Taxes and additional of main operation |
1,940 |
200 |
|
Sales expense |
17,600 |
42,580 |
|
Management expense |
19,660 |
49,330 |
|
Finance expense |
17,520 |
10,490 |
|
Asset impairment
loss |
2,150 |
8,290 |
|
Non-operating
income |
19,710 |
240 |
|
Non-operating expense |
750 |
10 |
|
Profit before
tax |
-39,450 |
-77,290 |
|
Less: profit tax |
0 |
0 |
|
Profits |
-39,450 |
-77,290 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2014 |
As
of Dec. 31, 2013 |
|
*Current ratio
|
0.51 |
0.53 |
|
*Quick ratio |
0.47 |
0.46 |
|
*Liabilities to
assets |
0.88 |
0.86 |
|
*Net profit
margin (%) |
-6.54 |
-12.69 |
|
*Return on
total assets (%) |
-0.48 |
-0.99 |
|
*Inventory
/Turnover ×365 |
129 days |
215 days |
|
*Accounts
receivable/Turnover ×365 |
106 days |
113 days |
|
*Turnover/Total
assets |
0.07 |
0.08 |
|
* Cost of
goods sold/Turnover |
1.00 |
0.95 |
PROFITABILITY:
FAIR
l The turnover of SC appears fairly good in its line.
l SC’s net profit margin
is poor in 2013, but fair in 2014.
l SC’s return on
total assets is fair in both years.
l
SC’s cost of goods sold is fairly high in 2013, but
high in 2014.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears fairly large in both
years.
l
The accounts receivable of SC appears fairly large
in both years.
l
SC’s short loans are large in both years.
l
SC’s turnover is in a poor level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high in both years.
l
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, accounts receivable and inventory could be a
threat to SC’s financial situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.55 |
|
UK Pound |
1 |
Rs.99.17 |
|
Euro |
1 |
Rs.73.08 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
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Report Prepared
by : |
TPT |
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.