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MIRA INFORM REPORT
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Report No. : |
516517 |
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Report Date : |
23.06.2018 |
IDENTIFICATION DETAILS
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Name : |
WENZHOU EASTERN STEEL CO.,LTD |
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Registered Office : |
No. 93, Bldg. 9 Leyi North Road, Yongxing Street Longwan District Wenzhou Zhejiang Province, Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
17.04.2008 |
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Com. Reg. No.: |
91330303674755178W |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject includes selling of stainless steel pipes, fittings, flanges, valves, meta steel, carbon steel, alloy steel, tube blank; importing and exporting goods and technologies. |
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No. of Employees : |
7 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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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
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Country Name |
Previous Rating (31.12.2017) |
Current Rating (01.04.2018) |
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China |
A2 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early 2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.
The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.
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Source
: CIA |
Company
name and address
Company Name : WENZHOU EASTERN STEEL CO.,LTD
Address : No.
93, BLDG. 9 Leyi North Road, Yongxing street
Longwan
District Wenzhou zhejiang PROVINCE, PR CHINA
Telephone : 0086 577 85980070
Facsimile : --
Website : --
Email :
58092461@qq.com
REGISTRATION INFORMATION
Established
Date : 2008-04-17
Credibility Code : 91330303674755178W
Legal
Form : Limited
liabilities co.
Registration Authority :
Market Supervision Bureau – Longwan Dist. Wenzhou
Status : Active
Registered
Capital : RMB 1,000,000
Paid Up Capital : RMB
1,000,000
Turnover : RMB
5,465,000 (as of Dec. 31, 2017)
Equities : RMB 1,391,000 (as of Dec. 31, 2017)
Chief
Executive : Zhang
Chongbang
Business
Line : Trade
Manpower : 7
Tax
Registration
Certificate
No. : 91330303674755178W
Organization
Code : 67475517-8
HS code : 3303963360
Import & Export code : 3300674755178
Financial
Condition : Fairly Stable
Business
Size : Small
Enterprise
Payment
: Average
REGISTERED ADDRESS
No. 93, BLDG. 9 Leyi North Road, Yongxing street Longwan District
Wenzhou zhejiang
PROVINCE, PR CHINA
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
RMB 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.
Premise
The subject
operates from premises located at the heading address, and this address houses
its operating office in Wenzhou. Our checks reveal that the subject rents the
total premise, but the square meters are unknown.
MANAGEMENT
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Position |
Name |
Nationality |
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Legal representative, General Manager Executive
Director |
Zhang
Chongbang |
Chinese |
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Supervisors |
Chen Huafei |
Chinese |
MAJOR SHAREHOLDERS
Name % Shareholding
Zhang Chongbang 75
Chen Huafei 25
KEY EVENTS
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
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2010-01-19 |
Company name |
WENZHOU EASTERN STEEL TRADE CO.,LTD |
Present one |
BUSINESS OPERATIONS
The subject’s registered business scope
includes selling stainless steel pipes, fittings, flanges, valves, meta steel,
carbon steel, alloy steel, tube blank; importing and exporting goods and
technologies.
The subject is
mainly engaged in selling stainless steel products.
Products:
Stainless steel
pipe
Stainless steel
seamless tube
Stainless steel
welded pipe
Stainless steel
capillary
Pipe fitting
Elbow
Etc.
The subject sources its materials 80% from
domestic market, and 20% from overseas market. the subject sells 20% of its
products in domestic market, and 80% to overseas market, mainly India, etc.
The buying terms of the subject include
Check, T/T, L/C and Credit of 30-60 days. The payment terms of the subject
include Check, T/T, L/C and Credit of 30-60 days.
SUPPLIER
& CUSTOMER
*Major customer:
Krystal
Steel Manufacturing Pvt Ltd.
Etc.
RELATED COMPANIES
No Subsidiary
NEGATIVE INFORMATION
Lawsuit
Record: No record.
Trade payment experience: The subject 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 the subject was placed to us for collection
within the last 6 years.
Customs administrative penalty: No record.
Equity freeze information: No
record.
Administrative Penalty: No
record.
MORTGAGE
There is no record of mortgage information at
present.
TRADEMARK
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Registration Date |
Trademark Design |
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17684458 |
2015-08-17 |
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PATENT
No record.
BANKING
China
Merchants Bank
Wenzhou
Longwan Sub-Branch
Account No.: 577902996510111
ABBREVIATED FINANCIAL STATEMENT
Financial
Summary
===============
Unit:
RMB’000
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As of Dec. 31, 2016 |
As of Dec. 31, 2017 |
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Total
assets |
1,581 |
2,610 |
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========= |
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Total
liabilities |
217 |
1,219 |
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Equities |
1,364 |
1,391 |
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-------------- |
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Total
liabilities & equities |
1,581 |
2,610 |
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Turnover |
2,931 |
5,465 |
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Profits before tax |
39 |
30 |
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Less: tax |
4 |
3 |
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Profits |
35 |
27 |
Important Ratios
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As of Dec. 31, 2016 |
As of Dec. 31, 2017 |
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*Liabilities
to assets |
0.14
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0.47
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*Net
profit margin (%) |
1.19
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0.49
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*Return
on total assets (%) |
2.21
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1.03
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*Turnover/Total
assets |
1.85
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2.09
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PROFITABILITY:
AVERAGE
The
turnover of the subject appears average in its line.
The
subject’s net profit margin is average.
The
subject’s return on total assets is average.
The
subject’s turnover is average, comparing with the size of its total
assets.
LEVERAGE: FAIRLY GOOD
The
debt ratio of the subject is low.
The
risk for the subject to go bankrupt is average.
TREND ANALYSIS
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2015 |
2016 |
2017 |
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Sales Trend |
-- |
-- |
Ç |
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Profit margin |
-- |
-- |
È |
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Debt to assets ratio |
-- |
-- |
Ç |
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Overall
Financial Condition |
□Good □Fairly Good □Stable ■Fairly Stable □Fair □Poor |
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COMMENT
The subject was registered as a Limited
liabilities co. at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license).
The subject is considered small-sized in its
line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 67.77 |
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1 |
INR 89.96 |
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Euro |
1 |
INR 78.86 |
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CNY |
1 |
INR 10.43 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.