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MIRA INFORM REPORT
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Report No. : |
495935 |
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Report Date : |
06.03.2018 |
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) : |
31.12.2015 |
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Date of Incorporation : |
08.12.2008 |
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Credibility Code
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91321282683503589R |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject registered business scope includes steel-making, steel rolling
processing and sales; 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).
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No. of Employees : |
990 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 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 early2015, 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
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) 523-80708777 FAX: 86 (0) 523-80709087
EXECUTIVE
SUMMARY
INCORPORATION DATE : DEC. 8, 2008
CREDIBILITY CODE :
91321282683503589R
REGISTERED LEGAL FORM :
ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE :
MR. GUO HUAIKUI (LEGAL REPRESENTATIVE)
STAFF STRENGTH :
990
REGISTERED CAPITAL : CNY 1,600,000,000
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER :
CNY 396,420,000 (AS OF DEC. 31, 2015)
EQUITIES :
CNY 980,320,000 (AS OF DEC. 31, 2015)
PAYMENT :
slow but correct
MARKET CONDITION : AVERAGE (AS OF DEC. 31, 2015)
FINANCIAL CONDITION : fair (AS OF DEC. 31, 2015)
OPERATIONAL TREND : fairly STEADY (AS OF DEC. 31, 2015)
GENERAL REPUTATION : AVERAGE
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, Jingjiang
Economic Development Zone, Jiangsu Province.
The correct name is the heading 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) 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 steel-making, steel rolling
processing and sales; 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. Guo Huaikui has been legal representative, executive director and
general manager since 2017.
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.
Email: office@hlxgco.com
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 |
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Shareholding |
Jiangsu Xigang Group Co., Ltd. 98% Wuxi Huarun Steelmaking Co., Ltd. 2% |
Jiangsu Xigang Group Co. 98.4% Wuxi Huarun Steelmaking Co., Ltd. 1.6% |
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2013-3 |
Legal rep. |
Tao Fangguo |
Ling Zhongqiu |
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Shareholding |
Jiangsu Xigang Group Co., Ltd. 98.4% Wuxi Huarun Steelmaking Co., Ltd. 1.6% |
Present one |
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Registered form |
Limited Liabilities Company |
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Registered capital |
CNY 2,000,000,000 |
||
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2017-11-30 |
Legal rep. |
Ling Zhongqiu |
HS Code: 3212961369
Import/ Export License Number: 3200683503589
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiangsu Xigang Group Co., Ltd. 100
Incorporation Date: 1980-04-20
Credibility Code: 91320200135899420Y
Registered Capital: CNY 1,183,050,000
Legal rep.: Guo Huaikui
Legal
Representative, Executive Director and General Manager:
Mr. Guo Huaikui, is currently responsible for the overall and daily
management of SC.
Working Experience(s):
From 2017 to present Working
in SC as legal representative, executive director and general manager.
Also working in Jiangsu Xigang Group Co., Ltd., Shanghai Lingjing
International Trading Co., Ltd. and Hualing Jingjiang Pipe Processing Co., Ltd.
(In Chinese Pinyin) as legal representative, etc.
Supervisor:
Mr. 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, etc.
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.
Trademark &
Patents
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Registration No. |
362121 |
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Registration Date |
1989-09-20 |
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Trademark Design |
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Industry code:
3100
Industry name:
Smelting and Pressing of Ferrous Metals
The gross domestic product of China in 2016 which is 74412.72 billion that
is increased 6.7% than previous year.
According to the China
Steel Association estimates that in 2015 the domestic crude steel production
was 804 million tons, down 1,887 million tons, decreased by 2.29%, China's
annual crude steel production for the first time to reduce. From the supply perspective,
with the gradual release of new capacity, as of the end of 2014, the national
steel production capacity of more than 1 billion tons, annual crude steel
output reached 823 million tons, increased by 0.9%, with the apparent
consumption of crude steel Than in the downstream demand growth in the case of
insufficient capacity, a significant surplus of excess production, construction
steel and sheet metal products such as market oversupply contradictions become
more apparent. In terms of steel exports, according to the statistics of the
General Administration of Customs of China, the export volume of steel products
in the whole year was USD 62.827 billion, decreased by 11.30% year on year, and
the total export volume was 11.24 million tons, increased by 19.9% has
worsened.
SC is known to invest in the following companies:
Shanghai Lingjing International Trading Co., Ltd.
======================
Incorporation Date: 2015-11-09
Credibility Code: 91310000MA1K31Y53D
Legal Rep.: Guo Huaikui
Hualing Jingjiang Pipe Processing Co., Ltd. (In Chinese Pinyin)
======================
Incorporation Date: 2010-07-16
Credibility Code: 91321282559264365H
Legal Rep.: Guo Huaikui
Jingjiang Shengli Gas Co., Ltd. (In Chinese Pinyin)
======================
Incorporation Date: 2009-07-23
Credibility Code: 91321282692135896R
Legal Rep.: Tanfu-Hwa
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 records 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
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As of Dec. 31,
2015 |
As of Dec. 31,
2014 |
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Cash & bank |
1,750,100 |
20,960 |
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Inventory |
156,770 |
212,860 |
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Accounts receivable |
63,130 |
174,530 |
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Note receivable |
790 |
1,282,070 |
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Advances to suppliers |
95,470 |
89,830 |
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Other receivables |
843,730 |
926,150 |
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Other current assets |
339,360 |
383,000 |
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------------------ |
------------------ |
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Current assets |
3,249,350 |
3,089,400 |
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Fixed assets net value |
1,188,270 |
1,246,700 |
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Long term investment |
3,000 |
3,000 |
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Projects under construction |
4,161,410 |
3,734,830 |
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Intangible and other assets |
160,130 |
163,780 |
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------------------ |
------------------ |
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Total assets |
8,762,160 |
8,237,710 |
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=========== |
=========== |
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Short loan |
1,393,290 |
592,370 |
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Accounts payable |
258,490 |
415,490 |
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Advances from customers |
39,570 |
54,860 |
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Taxes payable |
2,040 |
2,000 |
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Payroll payable |
1,250 |
1,750 |
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Other accounts payable |
1,907,470 |
2,033,750 |
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Other current liabilities |
25,330 |
36,050 |
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Note payable |
3,097,950 |
2,246,720 |
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Long term liabilities due within one year |
489,840 |
705,370 |
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------------------ |
------------------ |
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Current liabilities |
7,215,230 |
6,088,360 |
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Long term liabilities |
566,610 |
1,127,860 |
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------------------ |
------------------ |
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Total liabilities |
7,781,840 |
7,216,220 |
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Equities |
980,320 |
1,021,490 |
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------------------ |
------------------ |
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Total liabilities & equities |
8,762,160 |
8,237,710 |
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Income
Statement
Unit: CNY’000
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As of Dec. 31,
2015 |
As of Dec. 31,
2014 |
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Turnover |
396,420 |
603,040 |
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Cost of goods sold |
426,250 |
602,580 |
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Taxes and additional of
main operation |
1,950 |
1,940 |
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Sales expense |
16,730 |
17,600 |
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Management expense |
11,600 |
19,660 |
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Finance expense |
2,860 |
17,520 |
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Asset impairment loss |
0 |
2,150 |
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Non-operating income |
22,090 |
19,710 |
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Non-operating expense |
290 |
750 |
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Profit before tax |
-41,170 |
-39,450 |
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Less: profit tax |
0 |
0 |
|
Profits |
-41,170 |
-39,450 |
Note: We did not find SC’s latest financial reports.
Important
Ratios
=============
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As of Dec. 31,
2015 |
As of Dec. 31,
2014 |
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*Current ratio |
0.45 |
0.51 |
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*Quick ratio |
0.43 |
0.47 |
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*Liabilities to assets |
0.89 |
0.88 |
|
*Net profit margin (%) |
-10.39 |
-6.54 |
|
*Return on total assets (%) |
-0.47 |
-0.48 |
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*Inventory /Turnover ×365 |
145 days |
129 days |
|
*Accounts receivable/Turnover ×365 |
59 days |
106 days |
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*Turnover/Total assets |
0.05 |
0.07 |
|
* Cost of goods sold/Turnover |
1.08 |
1.00 |
PROFITABILITY:
FAIR
The turnover of SC appears fairly good in its
line, but it decreased in 2015.
SC’s net profit margin is fair in 2014, but poor in 2015.
SC’s return on total assets is fair in both years.
SC’s cost of goods sold is too high in both years.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level in 2014, but poor
in 2015.
SC’s quick ratio is maintained in a fair level in both years.
The inventory of SC appears fairly large in both years.
The accounts receivable of SC appears fairly large in 2014, and average
in 2015.
SC’s short loans are fairly large in 2014, but large in 2015.
SC’s turnover is in a poor 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 average.
Overall financial
condition of the SC: Fair (as of Dec. 31, 2015)
SC is considered large-sized in its line with a development history of
10 years. Due to lack of the latest financial statements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 65.05 |
|
|
1 |
INR 89.70 |
|
Euro |
1 |
INR 80.03 |
|
CNY |
1 |
INR 10.25 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on secured
terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
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.