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MIRA INFORM REPORT
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Report No. : |
517315 |
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Report Date : |
28.06.2018 |
IDENTIFICATION DETAILS
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Name : |
WENZHOU BOLAI STAINLESS STEEL CO LTD |
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Registered Office : |
Room 602 Bldg. 5 Yongzhong Street Longwan
Dist. 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 : |
22.03.2016 |
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Credibility Code : |
91330303MA285F604L |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
The subject’s registered business scope includes selling stainless
steel pipe, metal products, meta steel, billet, angle steel, pipe fittings, valves,
flanges, heads, steel plates, steel strips, machinery and equipment;
importing and exporting goods and technologies. |
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No. of Employees : |
4 |
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 : |
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
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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 & address
Company Name : WENZHOU BOLAI
STAINLESS STEEL CO LTD
Address : 8th Rd. 2nd Road Binhai
Industrial Zone, Economic Technological Development
Zone Longwan
District, Wenzhou, Zhejiang Province, PR China
Telephone : 0086 577-85889628
Facsimile : 0086 577 86997036
Website : http://bolaisteel.com
Email : cys@bolaisteel.com
REGISTRATION
INFORMATION
Established Date : 2016-03-22
Credibility Code : 91330303MA285F604L
Legal Form : One-Person
Limited Liability Company
Registration Authority: Market Supervision Bureau – Longwan Dist. Wenzhou
Status : Active
Registered Capital : RMB 500,000
Paid Up Capital : RMB 0
Turnover : RMB 433,000 (as of Dec. 31, 2017)
Equities : RMB 71,000 (as of Dec.
31, 2017)
Chief Executive : Chen Yansheng
Business Line : Trade
Manpower : 4
Tax Registration
Certificate No. : 91330303MA285F604L
Organization Code : MA285F604
HS code : --
Import &
Export code: --
Financial Condition : Fairly
Stable
Business Size : Small Enterprise
Payment : Slow but correct
Registered Address
ROOM 602 BLDG. 5 YONGZHONG STREET LONGWAN
DIST. WENZHOU ZHEJIANG PROVINCE, PR CHINA
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 RMB100,000. 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.
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 |
Chen Yansheng |
Chinese |
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Supervisors |
Xiang Lixue |
Chinese |
MAJOR
SHAREHOLDERS
Name % Shareholding
Chen Yansheng 100
KEY
EVENTS
No Significant Changes.
BUSINESS OPERATIONS
The subject’s registered business scope includes selling stainless steel
pipe, metal products, meta steel, billet, angle steel, pipe fittings, valves,
flanges, heads, steel plates, steel strips, machinery and equipment; importing
and exporting goods and technologies.
The subject is mainly engaged in selling
stainless steel pipe, tube and pipeline accessories.
Products:
Industrial Seamless Pipe
Precision Tube
Polished Welded Pipe
U-bend Tube
Nickel Base Alloy Tube
Pipe Fitting
Flange
Valve
Etc.
The
subject sources its materials 90% from domestic market, and 10% from overseas
market. the subject sells 80% of its products in domestic market, and 20% to
overseas market.
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
No record.
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
No record.
PATENT
No record.
BANKING
Zhejiang Wenzhou Longwan Rural Commercial Bank Hi Tech Sub Branch
Denghaicheng Office
Account No.: 201000151807931
ABBREVIATED FINANCIAL STATEMENT
Financial Summary
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Unit: RMB’000
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As
of Dec. 31, 2016 |
As
of Dec. 31, 2017 |
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Total assets |
143 |
538 |
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Total liabilities |
110 |
467 |
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Equities |
33 |
71 |
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-------------- |
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Total liabilities & equities |
143 |
538 |
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========= |
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Turnover |
2,460 |
433 |
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Profits before tax |
36 |
42 |
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Less: tax |
3 |
4 |
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Profits |
33 |
38 |
Important Ratios
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As
of Dec. 31, 2016 |
As
of Dec. 31, 2017 |
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*Liabilities to assets |
0.77 |
0.87 |
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*Net profit margin (%) |
1.34 |
8.78 |
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*Return on total assets (%) |
23.08 |
7.06 |
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*Turnover/Total assets |
17.20 |
0.80 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of
the subject appears average in its line in 2016 but fair in 2017.
l the subject’s net
profit margin is average in 2016 and fairly good in 2017.
l the subject’s
return on total assets is fairly good.
l the subject’s
turnover is fairly good in 2016 but fair in 2017, comparing with the size of
its total assets.
LEVERAGE: FAIR
l The debt ratio of the
subject is high.
l 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 |
-- |
-- |
È |
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Profit margin |
-- |
-- |
Ç |
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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 One-person Limited Liability Company 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 68.52 |
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1 |
INR 90.60 |
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Euro |
1 |
INR 79.87 |
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CNY |
1 |
INR 10.38 |
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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NIS |
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Report Prepared
by : |
TPT |
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.