MIRA
INFORM REPORT
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Report No. : |
347098 |
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Report Date : |
31.10.2015 |
IDENTIFICATION DETAILS
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Name : |
Cangzhou Huaxin
Pipe Manufacturing Co., Ltd. |
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Registered Office : |
Yingbin Road, Hope Industrial Zone, Mengcun Hui Autonomous County,
Cangzhou, Hebei Province, 061400 Pr |
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Country : |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
26.04.2001 |
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Com. Reg. No.: |
130930000001670 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject processing and selling elbow and pipe fittings; selling flange
and tubing; importing and exporting various kinds of commodities and
technology, excluding the goods forbidden by the government. (with permit if
needed) |
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No. of Employees : |
110 |
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 : |
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
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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
Cangzhou Huaxin Pipe Manufacturing Co., Ltd.
yingbin road, hope industrial zone, mengcun Hui
Autonomous County,
cangzhou, hebei PROVINCE, 061400 PR CHINA
TEL: 86 (0) 317-6827788/6827288 FAX: 86 (0) 317-6817899
EXECUTIVE SUMMARY
INCORPORATION DATE : APRIL 26, 2001
REGISTRATION NO. :
130930000001670
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. LIU FUYIN (CHAIRMAN)
STAFF STRENGTH :
110
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE : PROCESSING AND TRADING
TURNOVER :
CNY 71,600,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 22,780,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.3537 = 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: SC’s correct name is the headline one.
SC was registered as a limited liabilities co. at local Administration
for industry & commerce (AIC - the official body of issuing and renewing
business license) on Apr. 26, 2001.
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 processing and selling elbow and
pipe fittings; selling flange and tubing; importing and exporting various kinds
of commodities and technology, excluding the goods forbidden by the government.
(with permit if needed)
SC is mainly engaged in processing and selling elbow and pipe fittings.
Mr. Liu Fuyin is legal representative and chairman of SC at present.
SC is known to have approx. 110 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Cangzhou. Our
checks reveal that SC owns the total premise, but SC’s accountant refused to
release the gross area of the premise.
http://www.czhuaxin.com.cn
/ www.huaxinpipe.com The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: sales@huaxinpipe.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration no. |
1309302000084 |
Present one |
|
2014-6-24 |
Shareholders |
Liu Fuyin 38% Liu Meng 20% Liu Jinghua 20% Liu Meili 20% Liu Fuheng 2% |
Organization Code: 601302186
SC’s quality system meets the international standards of ISO 9001.
Certificates:
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Liu Fuyin 40
Liu Meng 20
Liu Jinghua 20
Liu Meili 20
Legal
representative and Chairman:
Mr. Liu Fuyin, born in 1962, 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 chairman
Supervisor:
Liu Jinghua
SC is mainly engaged in processing and selling elbow and pipe fittings.
SC’s products mainly include:
Steel Series
Seamless steel pipe
ERW steel pipe
Galvanized steel pipe
API
ASTM A106 steel pipe
ASTM A53 steel pipe
Carbon Steel
Elbow
Tee
Concentric reducer
Pipe cap
Bend pipe
Pipe cross
Stainless steel pipe fittings
Alloy pipe fittings
Flange
Weld neck flange
Plate weld flange
Blind flange
SC sources its materials 100% from domestic market. SC sells 40% of its
products in domestic market, and 60% to overseas market, mainly India and
Malaysia, Middle East.
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’s
management declined to release its major clients and suppliers.
Trademark &
Patents
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Registration No. |
6805748 |
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Registration Date |
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Trademark Design |
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SC is not known to have any subsidiary at present.
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.
Cangzhou Credit Union Mengcun Sub-branch
AC#：0552815998012
Relationship: Normal
Balance
Sheet
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Unit: CNY’000 |
as of Dec. 31,
2014 |
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Cash & bank |
3,790 |
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Inventory |
6,890 |
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Accounts receivable |
23,000 |
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Advances to suppliers |
9,720 |
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Other Accounts receivable |
0 |
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------------------ |
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Current assets |
43,400 |
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Fixed assets net value |
14,230 |
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Long-term deferred expenses |
450 |
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Other assets |
2,330 |
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------------------ |
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Total assets |
60,410 |
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============= |
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Short loans |
0 |
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Accounts payable |
6,950 |
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Advances from clients |
30,400 |
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Taxes payable |
60 |
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Other Accounts payable |
170 |
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Accrued payroll |
50 |
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------------------ |
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Current liabilities |
37,630 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
37,630 |
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Equities |
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------------------ |
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Total liabilities & equities |
60,410 |
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============= |
Income
Statement
|
Unit: CNY’000 |
as of Dec. 31,
2014 |
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Turnover |
71,600 |
|
Cost of goods sold |
67,030 |
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Tax and additional of main
operation |
250 |
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Sales expense |
1,660 |
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Management expense |
970 |
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Finance expense |
470 |
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Non-operating income |
500 |
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Non-operating expense |
0 |
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Profit before tax |
1,720 |
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Less: profit tax |
430 |
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Profits |
1,290 |
Important
Ratios
=============
|
|
As of Dec. 31,
2014 |
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*Current ratio |
1.15 |
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*Quick ratio |
0.97 |
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*Liabilities to assets |
0.62 |
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*Net profit margin (%) |
1.80 |
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*Return on total assets (%) |
2.14 |
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*Inventory /Turnover ×365 |
35 days |
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*Accounts receivable/Turnover ×365 |
117 days |
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*Turnover/Total assets |
1.19 |
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* Cost of goods sold/Turnover |
0.94 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line.
SC’s net profit margin is average in 2014.
SC’s return on total assets is average in 2014.
SC’s cost of goods sold is average in 2014, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears fairly large.
SC has no short-term loan in 2014.
SC’s turnover is in an average level in 2014, comparing with the size of
its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average in 2014.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.22 |
|
|
1 |
Rs.99.93 |
|
Euro |
1 |
Rs.71.67 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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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 |
|
|
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.