MIRA INFORM REPORT

Report No. :	507897
Report Date :	10.05.2018

IDENTIFICATION DETAILS

Name :	TIANJIN XINYUE INDUSTRIAL AND TRADE CO.,LTD.
Registered Office :	Manjingzi Village, Daqiuzhuang Town, Jinghai County
Country :	China
Financials (as on) :	31.12.2016
Date of Incorporation :	11.04.2006
Unified Social Credit Code :	91120223786368164L
Legal Form :	Limited Liabilities Company
Line of Business :	Subject is mainly engaged in manufacture and sales of steel pipe. Its products include high frequency welded pipe, galvanized steel pipe, oil casing, oil pipe, steel plastic composite pipe, color coil, galvanized steel plate, cold coil, strip steel and so on.
No. of Employees :	500

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory
Payment Behaviour :	Slow but Correct
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
China	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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.

Source : CIA

INVESTIGATION RECORD

Name of Interviewee	Ms. Xiao and Ms. Feng
Tel	(86 731)89702586; (86)13687358803; (86 22)88383163
Investigation Way	Telephone

ORDER DETAILS & INVESTIGATION RESULTS

-	Order Information	Verification
Name(English)	TIANJIN XINYUE INDUSTRIAL AND TRADE CO LTD	Correct
Address (English)	DAQIUZHUANG INDUSTRIAL AREA, JINGHAI COUNTY, TIANJIN CHINA, PC 301606	Inaccurate
Tel	+86-731-89702586 / +86-13687358803	Correct

ABSTRACT

BASIC INFORMATION

Name (English)	TIANJIN XINYUE INDUSTRIAL AND TRADE CO.,LTD. (Given by Official Sources)
Unified Social Credit Code	91120223786368164L
AIC registration No.	120223000076339
National Organization Code	786368164
Company Status	Operational
Executive	Gao Rongmei
Registered Capital	CNY 20,000,000.00
Date of Establishment	2006-04-11
Employee	500
Website	www.xinyuesteel.com
Company Size	Medium
SIC (China)	3140,Steel Pressing
Import/Export Permit	Yes

CONTACTS

Tel	(86 22)88383163
Fax	(86 22)58357360
Address	Daqiuzhuang Industrial Zone, Jinghai District, Tianjin City(Office; Plant)
Address Post code	301606
Ownership	-

GENERAL COMMENTS

RISK ANALYSIS

Established in Apr. 2006, subject is mainly engaged in manufacture and sales of steel pipes. With a long history, subject has accumulated rich experience in the industry. Subject has limited capability of financing and resisting risks with natural individuals as shareholders.

According to subject's current financial information, the company's operating income of 2016 increases over that of 2015, which suggests subject's business was expanded well in 2016. The company's net profit margin of 2016 is low, which suggests subject's profitability is poor. The company's turnover of total assets of 2016 decreases over that of 2015 but is still high, which suggests subject's capital operating capability is good. The company's liabilities to assets ratio of 2016 is average, which suggests subject's long-term debt paying pressure is average.

REGISTRATION INFORMATION

REGISTRATION INFORMATION

Unified Social Credit Code	91120223786368164L
AIC registration No.	120223000076339
Date of Establishment	2006-04-11
Registered Address	Manjingzi Village, Daqiuzhuang Town, Jinghai County
Registry	Market and Quality Supervisory Administration - Jinghai District, Tianjin City
Legal Representative	Gao Rongmei
Legal Form	Limited Liabilities Company
Registered Capital	CNY 20,000,000.00
Paid-in Capital	CNY 20,000,000.00
Latest Year of Annual Report	2017
Operation duration	2006-04-11 to 2026-04-10
Business Scope	Manufacturing and processing of steel tubes; wholesale and retail of metal materials, building materials, machinery and equipment, electronic products, auto parts, motorcycle accessories, hardware, electricity, needle textiles, chemical products; Import and export of goods and technologies and agency of import and export of goods. (Of the above projects where a permit is required, permit shall be obtained.)

REGISTRATION CHANGES

-	Date	Item Changed	From	To
1	2012-07-06	Registered capital	CNY1,000,000.00	CNY20,000,000.00

SHAREHOLDER INFORMATION

-	Name	% Ownership	Capital Contributed	Currency	Investment Way	Paid-in %	Country
1	Ren Zhiman	53.00	10,600,000.00	CNY	Capital	100	China
2	Gao Rongmei	47.00	9,400,000.00	CNY	Capital	100	China
Total		100.0	20,000,000

ULTIMATE HOLDING

-	Ultimate Shareholder	Investment Way
1	Ren Zhiman	Capital

English Name	Ren Zhiman
Country	China
Type	Natural individual shareholder
Investment Way	Capital
Note	Ren Zhiman -->53.00% TIANJIN XINYUE INDUSTRIAL AND TRADE CO.,LTD.

BRANCHES

No branch information of subject is searched out from database.

INVESTMENT IN OTHER COMPANIES

No investment information of subject is searched out from database.

MANAGEMENT

LEGAL REPRESENTATIVE

Name	Gao Rongmei
Position	Executive Director
Age	52

INVOLVEMENT IN OTHER COMPANIES

-	Name (English)	License Status	Legal Representative	Position	Type of Engagement
1	TIANJIN NOLITE STEEL CO., LTD.	Operational	NO	Supervisor	Directorship; Investment(40%)

Name (English)	TIANJIN NOLITE STEEL CO., LTD.
License Status	Operational
Name Of Legal Representative	Li Bingfeng
Registered Capital	CNY 20,000,000.00
Country	China
Registration No.	120223000062547
Unified Social Credit Code	91120223572301917K
Legal Form	Limited Liabilities Company
Share Holding	8,000,000.00
Currency Of Share Holding	CNY
% Ownership	40
Position	Supervisor
Date of Establishment	2011-03-29

MANAGEMENT

-	Name	Position	Gender
1	Gao Rongmei	Executive Director	-

DIRECTORS AND SUPERVISORS

-	Name	Position	Gender
1	Gao Rongmei	Executive Director	-
2	Meng Fanmin	Supervisor	-

JUDICIAL INFORMATION

DEFAULT EXECUTED PARTY

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

D. Judicial information of database.

SUBJECT AS EXECUTED PARTY

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

D. Judicial information of database.

CIVIL & COMMERCIAL TRIAL PROCESS

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

D. Judicial information of database.

CIVIL & COMMERCIAL JUDGMENT DOCUMENT

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

D. Judicial information of database.

ADMINISTRATIVE ILLEGAL

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

D. Judicial information of database.

OPERATION INFORMATION

MAIN BUSINESS

Main Business	Manufacture and sales of steel pipe
Products & Service	SC is mainly engaged in manufacture and sales of steel pipe. Its products include high frequency welded pipe, galvanized steel pipe, oil casing, oil pipe, steel plastic composite pipe, color coil, galvanized steel plate, cold coil, strip steel and so on.

OPERATION FACILITIES

Business Address	Daqiuzhuang Industrial Zone, Jinghai District, Tianjin City(Office; Plant)
Tel	(86 22)88383163
Fax	(86 22)58357360
Post code	301606
Environment	Major industrial area
Ownership	-
Traffic Condition	Relatively convenient

Business Address	Floor 18, Boning Diwang Square, Xiaoxiang South Road, Yuelu Dist, Changsha City, Hunan Province(Office)
Tel	(86 731)89702586
Mobile	(86)13687358803
Post code	410000
Environment	Downtown district
Ownership	Rented
Traffic Condition	Convenient

SALES INFORMATION

Region	Products		Customer Type	Number of Customers	Payment Terms	Region	Percentage
Domestic	Steel tube products		Petroleum enterprises, natural gas enterprises, electric power enterprises and traders etc	More than 10	Credit payment and prompt payment etc	All over China	10
International	Steel tube products		Traders etc	More than 10	L/C; T/T etc	Europe and the United States, Southeast Asia, Africa, the Middle East etc	90
OTHER INFORMATION		SC's products are sold at home and abroad, mainly in the international markets like Arabia, United Arab Emirates, Venezuela, South Africa, Vietnam, the United States etc. Its clients are mainly petroleum enterprises, natural gas enterprises, electric power enterprises and traders etc. Currently subject has certain sales network.

PURCHASE INFORMATION

Region	Main Products Purchased		Number of Suppliers	Payment Terms	Region	Percentage
Domestic	Steel and other raw materials and production equipment, office equipment, etc.		More than 10	Credit payment and prompt payment etc	All over China	100
OTHER INFORMATION		SC's products are wholly purchased in the domestic markets. Its suppliers are mainly manufacturers and traders of steel materials. Currently, subject has stable purchase channels.

NOTE TO CREDIT RECORD

Note	SC’s staff was cautious and refused to disclose the suppliers’ names and purchasing information of the company due to business secrecy. The suppliers’ names are unavailable through public channels. Hence no payment records of subject can be provided in the report.

ELECTRICITY CONSUMPTION RECORD

No electricity consumption record of subject can be obtained as the electricity consumer may not be filed with subject's name.

QUALIFICATIONS & TRENDS

TRADEMARKS

-	Name	Image	Registration No.	International Classification	Country
1	-		15542366	6	China

AUTHENTICATION INFORMATION

-	Certificate Category	Certificate No.	Issue Date	Expire Date	Status
1	Quality Management System Certification (ISO9000)	QAIC/CN/141829	2017-10-11	2020-10-10	Valid

EXPORT/IMPORT PERMIT

EXPORT/IMPORT PERMIT

Yes

IMPORT / EXPORT DETAILS

2016 Import / Export Volume (USD 1,000)
Import Volume	Export Volume
-	17,995.00

2016 Exporting Regions (USD 1,000)
Exporting Regions	Export Volume
Vietnam	1,213
United Arab Emirates	745
Saudi Arabia	734
South Africa	730
Other	8,408
Venezuela	6,165

2016 Exported Products (USD 1,000)
Exported Products	Export Volume
Other	4,757
Line pipe of a kind used for oil or gas pipelines, not welded of stainless steel	2,758
Other, welded, of circular crosssection, of iron or nonalloy steel	1,155
Line pipe of a kind used for oil or gas pipelines, the external diameter of which exceeds 406.4mm	3,836
Having an outside diameter not exceeding 114.3 mm	977
Other	4,512

2015 Import / Export Volume (USD 1,000)
Import Volume	Export Volume
-	9,041.00

2015 Exporting Regions (USD 1,000)
Exporting Regions	Export Volume
Venezuela	3,083
United Arab Emirates	2,007
Dominica Rep	1,406
South Africa	924
U.S.A	817
Other	9,649

2015 Exported Products (USD 1,000)
Exported Products	Export Volume
Line pipe of a kind used for oil or gas pipelines, the external diameter of which exceeds 406.4mm	5,850
Line pipe of a kind used for oil or gas pipelines, not welded of stainless steel	3,191
Other	2,903
Other, welded, of circular crosssection, of iron or nonalloy steel	1,324
Other	3,405
Of square or rectangular crosssection	1,213

EMPLOYEE

Employee Number	500
OTHER INFORMATION	Subject's staff confirmed the above information.

WEBSITES

-	Website	Name	File No	Registrant
1	www.xinyuesteel.com	TIANJIN XINYUE INDUSTRIAL AND TRADE CO.,LTD.	Jin ICP 17006102-1	-

Website	www.xinyuesteel.com
Country	China
Status	Normal
Name	TIANJIN XINYUE INDUSTRIAL AND TRADE CO.,LTD.
Sponsor Name	TIANJIN XINYUE INDUSTRIAL AND TRADE CO.,LTD.
Hosted By	Enterprise
File No.	Jin ICP 17006102-1

ABNORMAL TAX PAYER

As of the reporting date, no related record about subject is found through below sources:

A. Website of Tax Bureau of China;

B. Website of local Tax Bureau of subject's location;

C. Taxpayer information of database.

TAX ARREARS LIST

As of the reporting date, no related record about subject is found through below sources:

A. Website of Tax Bureau of China;

B. Website of local Tax Bureau of subject's location;

C. Taxpayer information of database.

DEBT ARREARS LIST

As of the reporting date, no related record about subject is found through below sources:

A. Major telecommunication operators of China;

B. Telecommunication information of database.

FINANCIAL INFORMATION

DETAILED FINANCIAL INFORMATION (UNIT: CNY 1,000)

Financial Note: Due to the lack of a clear government policy regarding the transparency of enterprise financial information, some financial items might be missing in the financial statements, causing possible inequality between the sum of the provided items and the provided total numbers.

Assets
Year	2015-12-31	2016-12-31
Report Type	Annual Report	Annual Report
Statement Type	Individual	Individual
Source	AIC	AIC
Audited or Not	Unknown	Unknown
Total Assets	30,220	53,700
Liabilities
Year	2015-12-31	2016-12-31
Total Liabilities	9,600	34,390
Total Owner’s Equity	20,620	19,310
Total Liabilities and Owner's Equity	30,220	53,700

Income Statement
Year	2015-12-31	2016-12-31
Operating Income	113,250	126,140
Total Profit	320	70
Income Tax	80	20
Net Profit	240	50

GROWTH RATE OF MAJOR FINANCIAL

	2015	Growth(%)	2016
Operating Income	113,250	11.38	126,140
Total Assets	30,220	77.70	53,700
Total Profit	320	-78.13	70
Net Profit	240	-79.17	50
Total Liabilities	9,600	258.23	34,390
Total Owner’s Equity	20,620	-6.35	19,310

IMPORTANT RATIO

Profitability	2015	2016
Return on net assets (%)	1.16	0.26
Return on total assets (%)	0.79	0.09
Net profit margin (%)	0.21	0.04
Operation capacity	2015	2016
Turnover of total assets	3.75	2.35
Solvency	2015	2016
Liabilities to assets ratio (%)	31.77	64.04
Development capacity	2015	2016
Yearly Growth of Operating Income (%)	-	11.38
Yearly growth of total assets (%)	-	77.70

FINANCIALS & ANALYSIS

Financial Note

Subject’s detailed financial figures in 2016 and 2015 are unavailable through all available sources. Subject’s staff was contacted but declined to provide complete financial information. Only the financial highlights of the company in 2016 and 2015 obtained through AIC source are provided for client’s reference.

INDUSTRY INFORMATION

INDUSTRY CODE

SIC (China)	3140,Steel Pressing 【Major】
ISIC	2410,Manufacture of basic iron and steel
NACE	24.3,Manufacture of basic iron and steel

INDUSTRY FINANCIAL AVERAGE

-	2015	Subject	Best(10%)	Average	Worst(10%)
Solvency	Liabilities to Assets Ratio (%)	31.77	54.50	65.40	92.65
	Current ratio	-	1.54	0.74	0.30
	Quick ratio	-	0.96	0.46	0.19
Development Capacity	Yearly Growth of Operating Income (%)	-	19.08	5.89	-9.92
	Yearly Growth of Gross Profit (%)	-	11.34	1.80	-15.37
	Yearly Growth of Total Assets (%)	-	10.08	3.51	-8.50
Profitability	Return on net assets (%)	1.16	7.11	2.07	-9.27
	Return on total assets (%)	0.79	6.75	1.60	-6.10
	Gross profit margin (%)	-	13.05	3.60	-9.05
Operation Capacity	Turnover of total assets	3.75	2.07	0.81	0.27
	Turnover of current assets	-	3.33	1.71	0.63
	Turnover days of account receivable	-	13.17	24.99	91.25

-	2016	Subject	Best(10%)	Average	Worst(10%)
Solvency	Liabilities to Assets Ratio (%)	64.04	51.78	63.44	96.36
	Current ratio	-	1.46	0.72	0.31
	Quick ratio	-	0.91	0.45	0.20
Development Capacity	Yearly Growth of Operating Income (%)	11.38	18.13	5.71	-10.32
	Yearly Growth of Gross Profit (%)	-	10.77	1.75	-15.98
	Yearly Growth of Total Assets (%)	77.70	9.58	3.40	-8.84
Profitability	Return on net assets (%)	0.26	6.75	2.01	-9.64
	Return on total assets (%)	0.09	6.41	1.55	-6.35
	Gross profit margin (%)	-	12.40	3.49	-9.41
Operation Capacity	Turnover of total assets	2.35	1.97	0.79	0.28
	Turnover of current assets	-	3.16	1.66	0.66
	Turnover days of account receivable	-	12.51	24.24	94.90

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.38
UK Pound	1	INR 91.09
Euro	1	INR 79.75
CNY	1	INR 10.59

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRI
Report Prepared by :	SYL

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)