MIRA
INFORM REPORT
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Report Date : |
9th March, 2007 |
IDENTIFICATION
DETAILS
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Name : |
CHINA
FIRST METALLURGICAL CONSTRUCTION CO., LTD. |
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Registered Office : |
No. 1274, Heping Avenue, Wuhan, Hubei Province, 430081 Pr
China |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
25.09.1990 |
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Com. Reg. No.: |
4201001104131 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in undertaking all kinds of smelting
projects, building construction, municipal public utilities, mechanical
& instrument installation projects. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 2,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name & Address
CHINA FIRST METALLURGICAL
CONSTRUCTION CO., LTD.
NO. 1274, HEPING AVENUE, WUHAN,
HUBEI PROVINCE, 430081 PR CHINA
TEL: 86 (0) 27-86865872/86863916
FAX: 86 (0)27- 86865838
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 25, 1990
REGISTRATION NO. : 4201001104131
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
8,854
REGISTERED CAPITAL : cny 300,000,000
BUSINESS LINE : CONSTRUCTING
TURNOVER :
CNY 7,260,720,000(AS OF DEC. 31,
2005)
EQUITIES :
CNY 784,081,000(AS
OF DEC. 31, 2005)
PAYMENT :
GOOD
RECOMM. CREDIT RANGE : UP TO USD 2,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY
7.74 =US1$ AS OF 2007-3-7
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing and
renewing business license) on Sep. 25, 1990.
Company Status: Limited liabilities company This form of business in PR
China is defined as a legal person. 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 listed as follows: -manufacturing co. : CNY 500,000.00 -trading &wholesaling
co. : CNY 500,000.00 -retailing co. : CNY
300,000.00 -consultancy & service
co. : CNY 100,000.00 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 50% of the registered capital while
contribution by intangible assets must not exceed 20% 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 Grade I General Contract
of Smelting Projects; Grade I General Contract of
Building Construction; Grade I General Contract
of Municipal Public Utilities; Grade I General Contract
of mechanical & instrument installation projects; Grade I General Contract of steel structure projects; Grade
I General Contract of furnace, Grade I Smelting
machinery equipment installing; Grade I General Contract
of towery tubular; Grade II General Contract
of Plumbing Engineering; Class C Blasting Engineering; indoors and outdoors ornament of all kinds
of the building(including cars, boats and plane); installing and debugging of
fire-fighting equipment; Grade III General Contract
installing and Grade II General Contract Detecting of electric power installations; Highway engineering constructing; equipment
maintenance and repairing services; manufacturing building materials and engineering equipment; undertaking overseas
engineering and domestic international bidding business; importing and
exporting materials, equipment, and fittings needed by its engineering;
dispatching labors working in the fields of engineering, producing and
services; establishing various enterprises according to the country’s
regulation; processing metal structure; importing and exporting commodities and
technologies; processing with imported materials and compensation trade in
agreement; barter trade, carrying trade, lodging; restaurant services (managing
by the subsidiaries with authorization only); selling personal articles (specific provisions needs promise).
SC is mainly
engaged in undertaking all kinds of smelting projects,
building construction, municipal public utilities, and mechanical &
instrument installation projects.
Mr. Yuan
Yucheng has been chairman of SC since
1990.
SC owns
approximately 8,854 staff.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Wuhan. Our checks reveal
that SC owns the total premise about 200,000 square meters.
http://www.cfmcc.com The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
Honors:
======
Over one hundred projects have been rated as
excellent quality projects of ministerial, provincial, civic level; 6 projects
have been rated as State Grade Excellent Quality Project Award (Luban Award), 2
projects have won State Silver Award, one project has won National Decoration
Gold Award.
In 1996, SC was conferred by the Ministry of
Construction of the State the title of the Advanced Enterprises of National
Project Quality Management;
SC have been rated as National Advanced
Construction Enterprise and the enterprise of “Executing the contract with good
credit” for four times;
SC have been rated as the Excellent
Enterprise of Hubei Provincial and Wuhan Civic Level for six times;
SC have been rated for many times as the
enterprise of “ Executing the Contract With Good Credit” and Grade AAA Credit
Enterprise of Wuhan City.
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2006-1-5 |
Registered capital |
CNY 320,000,000 |
CNY 200,000,000 |
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Type of the enterprise |
State-owned Enterprise |
Limited Liabilities Company |
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Name of the enterprise |
China First Metallurgical Construction Corp. |
China First Metallurgical Construction Co.,
Ltd |
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Registered Number |
4201001202091 |
4201001101141 |
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2007-1-22 |
Shareholding and Shareholders |
Shanxi Haixin Iron and Steel Group Co., Ltd.15% Shenzhen International Trust & Investment Co., Ltd. 25.7% Wuhan Iron & Steel Engineering and Technology Group Co., Ltd.5% China Metallurgical Construction (Group) Corp. 50% Ai Qingzhu0.3% Wang Shiqing 0.3% Wu Gangping 0.3% Xie Congwei 0.3% Xiong Jianxin 0.3% Guo Yankun 0.3% Liu Shigen 0.3% Bai Minggen 0.2% Dai Jianren 0.2% Lao Xiaoyun 0.2% Lu Jiang 0.2% Song Guiming 0.2% Yan Yongren 0.2% Yuan Shaoning 0.2% Zhong Li 0.2% Min Hai 0.2% Li Kuansheng 0.4% |
Shanxi Haixin Iron and Steel Group Co., Ltd.10% Shenzhen International Trust & Investment Co., Ltd. 17.13% Wuhan Iron & Steel Engineering and Technology Group Co., Ltd.3.33% China Metallurgical (Group) Co., Ltd. 50% Sunshine 100 realty (Wu han)Co., Ltd. 6.67% Ai Qingzhu0.26% Dai Jianren 0.17% Guo Yankun 0.26% Huang Nengchao 8.79% Lao Xiaoyun 0.17% Li Ganghong 0.17% Li Kuansheng 0.35% Liu Shigen 0.26% Liu Yiming 0.17% Long HuiJun 0.17% Lu Jiang 0.17% Song Guiming 0.17% Wang Shiqing 0.26% Wu Gangping 0.26% Xie Congwei 0.26% Xiong Jianxin 0.26% Yan Yongren 0.17% Yuan Shaoning 0.17% Zhong Li 0.17% Min Hai 0.17% |
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Registered capital |
CNY 200,000,000 |
CNY 300,000,000 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shanxi Haixin Iron and Steel Group Co., Ltd. 10%
Shenzhen International Trust & Investment Co., Ltd. 17.13%
Wuhan Iron & Steel Engineering and Technology Group Co., Ltd 3.33%
China Metallurgical (Group) Co., Ltd. 50.04%
Sunshine 100 realty (Wu han)Co., Ltd. 6.67%
Huang Nengchao 8.79%
Li Kuansheng 0.35%
Ai Qingzhu 0.26%
Guo Yankun 0.26%
Liu Shigen 0.26%
Wang Shiqing 0.26%
Wu Gangping 0.26%
Xie Congwei 0.26%
Xiong Jianxin 0.26%
Dai Jianren 0.17%
Lao Xiaoyun 0.17%
Li Ganghong 0.17%
Liu Yiming 0.17%
Long HuiJun 0.17%
Lu Jiang 0.17%
Song Guiming 0.17%
Yan Yongren 0.17%
Yuan Shaoning 0.17%
Zhong Li 0.17%
Min Hai 0.17%
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Chairman:
Mr. Yuan Yucheng, in his 50’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1990 to present Working
in SC as chairman.
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General Manager:
Mr. Li Kuansheng, in his 50’s with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working
in SC as general manager.
SC is mainly
engaged in undertaking all kinds of smelting
projects, building construction, municipal public utilities, mechanical
& instrument installation projects.
Major Achievements:
=================
Wuhan Iron and Steel (Group)
Corp. No.3 New Blast Furnace Engineering
Wuhan Iron and Steel (Group)
Corp. No.6 Blast Furnace Engineering
Tianjin Seamless Steel Pipe Plant
Shagang Group Steelmaking
Continuous Casting Engineering
Wuhan symbolic building-Tortoise Mountain TV Tower.
China National Steel Co., Ltd.
High-Speed Wire Rod Plant Engineering
Wuhan Iron & Steel (Group)
Corp. High-speed Wire Rod Plant Engineering
Wuhan Iron & Steel (Group)
Corp. No.3 Steelmaking Engineering
Wuhan Iron & Steel (Group)
Corp. Technology Rebuilding Engineering
Wuhan Iron & Steel (Group)
Corp. High-Speed Wire Rod Engineering
SC is known to have the following subsidiaries:
Overseas Business Sector of CFMCC
Electric Installation Engineering Company of CFMCC
Mechanical Installation Company of CFMCC
The Industrial Furnace Engineering Company of CFMCC
Construction and Installation Engineering Company of CFMCC
Wuhan Jingye Groundwork & Foundation Engineering Company Limited
The Industrial Construction and Installation Engineering Company of
CFMCC
Wuhan Road and Bridge Branch of MCC Group
Wuhan Zhongjiang Enterprise Co., Ltd.
Equipment Detecting Company of CFMCC
Construction Company of CFMCC
Overall payment appraisal :
( ) Excellent (X) Good ( ) 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.
SC’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
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Inventory |
287,071 |
291,191 |
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Accounts
receivable |
579,316 |
638,916 |
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Current assets |
1,401,717 |
1,412,726 |
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Fixed assets |
842,818 |
951,226 |
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Total assets |
2,515,890 |
2,604,930 |
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Current liabilities |
1,774,569 |
2,212,968 |
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Total
liabilities |
1,815,039 |
2,220,849 |
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Equities |
700,851 |
784,081 |
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Turnover |
3,162,617 |
7,260,720 |
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Cost of goods
sold |
2,001,509 |
3,837,211 |
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Profit before
tax |
16,164 |
11,637 |
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Less: profit tax |
1,089 |
2,920 |
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Profits |
15,075 |
8,717 |
Important Ratios
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as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
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*Current ratio |
0.79 |
0.64 |
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*Quick ratio |
0.63 |
0.51 |
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*Liabilities
to assets |
0.72 |
0.85 |
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*Net profit
margin (%) |
0.48 |
0.12 |
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*Return on
total assets (%) |
0.60 |
0.33 |
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*Fixed
assets/Total assets |
0.33 |
0.37 |
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*Inventory
/Turnover ×365 |
33days |
15days |
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*Accounts
receivable/Turnover ×365 |
67days |
32days |
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*Turnover/Total
assets |
1.26 |
2.79 |
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*Cost of goods
sold/Turnover |
0.63 |
0.53 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets slightly decreased, but still remains at an
average level.
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SC’s cost of goods sold to turnover ratio became lower, even though the
cost of goods increased.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a normal level.
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The inventory of SC is maintained in a normal level.
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The accounts receivable of SC is maintained in an acceptable level.
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SC’s turnover doubled, and is in a fairly good level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is considered large-sized in its line with favorable market conditions.
Over the past 17 years, SC has made a stable growth with satisfactory profit.
It is considered a credit line up to USD 2,000,000 appears to be within SC’s
capacities.
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)