MIRA INFORM REPORT
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Report No. : |
345618 |
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Report Date : |
23.10.2015 |
IDENTIFICATION DETAILS
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Name : |
jiangsu kailai
steel tube Co., Ltd. |
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Registered Office : |
No. 37, Kuihua Avenue, Xuyi Economical Development Zone, Huaian, Jiangsu
Province, 211700 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
31.07.2007 |
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Com. Reg. No.: |
320830000031424 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing, processing and selling steel tube, welded pipe and
metal products, non-standard metal structures, equipment in oil refining and
parts, refractory materials and
vehicle parts; import and export of various goods and technologies.(with
permit if needed) |
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No. of Employees : |
120 |
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 |
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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
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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
jiangsu kailai steel tube Co., Ltd.
no. 37, kuihua avenue, xuyi economical
development zone,
huaian, jiangsu PROVINCE, 211700 PR CHINA
TEL: 86 (0) 517-80919597 FAX: 86 (0) 517-88298966
EXECUTIVE
SUMMARY
INCORPORATION DATE : july 31, 2007
REGISTRATION NO. : 320830000031424
REGISTERED LEGAL FORM : LIMITED
LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. xuan xingnan (EXECUTIVE DIRECTOR)
STAFF STRENGTH :
120
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 105,105,000 [AS OF
EQUITIES :
CNY 683,000 [AS OF
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.3462 = 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 Limited Liability Company at local Administration
for industry & commerce (AIC - the official body of issuing and renewing
business license) on July 31, 2007.
Company Status: Limited liabilities co. This
form of business in PR China is defined as a legal person. No more than
fifty shareholders contribute its registered capital jointly. Shareholders
bear limited liability to the extent of shareholding, and the co. is liable
for its debts only to extent of its total assets. The characteristics of
this form of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The
board of directors is comprised of three to thirteen members. The
minimum registered capital for a co. is CNY 30,000. Shareholders
may take their capital contributions in cash or by means of tangible assets
or intangible assets such as industrial property and non-patented
technology. Cash
contributed by all shareholders must account for at least 30% of the
registered capital. Existing
shareholders have pre-exemption right to purchase shares of the co. offered
for sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s registered business scope includes manufacturing, processing and
selling steel tube, welded pipe and metal products, non-standard metal
structures, equipment in oil refining and parts, refractory materials and vehicle parts;
import and export of various goods and technologies.(with permit if needed)
SC is mainly engaged in manufacturing and selling steel tubes and metal
products.
Mr. Xuan Xingnan is legal representative and executive director of SC at
present.
SC is known to have approx. 120 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office, factory and dormitory in the economical development
zone of Xuyi. Our checks reveal that SC owns the total premise about 30,000
square meters.
Note: Your (No 37
Kaihuagrand Road, Xuyi Economical Development Zone Xiyu City, Jiangsu Province,
China) contains some spelling mistakes.
http://www.kl-steeltube.com
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
Email: 1065089610@qq.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Organization Code: 664949999
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xuan Xingnan ID # 320222195012285995 51
Zhang Yun 49
Legal
representative and executive director:
Mr. Xuan Xingnan, born in 1950, with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative and executive
Also working in Wuxi Kailai Steel Tube Co., Ltd. as legal representative
General
manager:
Mr. Zhang Yun, born in 1964, with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
Supervisor:
Pu Yanna
SC is mainly engaged in manufacturing and selling steel tubes and metal
products.
SC’s products mainly include steel tube, welded pipe and metal products.
SC sources its materials 100% from domestic market. SC sells 100% of its
products in domestic market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T and Credit of 30-60 days.
Wuxi Kailai Steel Tube Co., Ltd.
=======================================
Registration No.: 320211000077170
Legal representative: Xuan Xingnan
Incorporation Date:
Tel: 0510-85067961
Fax: 0510-85071883
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 Xuyi Sub-branch
AC#：45280708091001
Relationship: Normal
Summary
Unit: CNY’000
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AS OF Dec. 31,
2014 |
AS OF Dec. 31,
2013 |
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Total assets |
81,936 |
79,436 |
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============= |
============== |
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Total liabilities |
81,253 |
77,967 |
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Equities |
683 |
1,469 |
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------------------------ |
----------------------- |
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Total liabilities & equities |
81,936 |
79,436 |
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=============== |
============== |
Unit: CNY’000
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AS OF Dec. 31,
2014 |
AS OF Dec. 31,
2013 |
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Turnover |
105,105 |
109,731 |
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Profit before tax |
-787 |
-2,406 |
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Less: profit tax |
0 |
0 |
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Profits |
-787 |
-2,406 |
Important
Ratios
=============
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AS OF Dec. 31,
2014 |
AS OF Dec. 31,
2013 |
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*Current ratio |
/ |
/ |
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*Quick ratio |
/ |
/ |
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*Liabilities to assets |
0.99 |
0.98 |
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*Net profit margin (%) |
-0.75 |
-2.19 |
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*Return on total assets (%) |
-0.96 |
-3.03 |
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*Inventory /Turnover ×365 |
/ |
/ |
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*Accounts receivable/Turnover ×365 |
/ |
/ |
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*Turnover/Total assets |
1.28 |
1.38 |
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* Cost of goods sold/Turnover |
/ |
/ |
PROFITABILITY:
FAIR
The turnover of SC appears fairly good in its line in both 2013 and
2014.
SC’s net profit margin is fair in both years and has a slight
improvement in 2014.
SC’s return on total assets is fair in both years.
SC’s turnover is in an average level in both years, comparing with the
size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is high in both years.
The risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.65.15 |
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|
1 |
Rs.100.54 |
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Euro |
1 |
Rs.73.97 |
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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
-- |
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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.