MIRA
INFORM REPORT
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Report Date : |
02.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
HEYE SPECIAL
STEEL CO., LTD. |
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Registered Office : |
No. 171 Yuejin Road, Shijiazhuang, Hebei Province, 050031 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
21.08. 2000 |
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Com. Reg. No.: |
130000400002523 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Producing and
Selling Steel Products. |
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 : |
No Complaints |
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Litigation : |
Clear |
name & address
HEYE SPECIAL STEEL
CO., LTD.
NO. 171 YUEJIN ROAD, SHIJIAZHUANG, HEBEI
PROVINCE, 050031 PR CHINA
TEL: 0086-311-87930092 FAX:
0086-311-85617658
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUG. 21, 2000
REGISTRATION NO. :
130000400002523
REGISTERED LEGAL FORM : SHARES
LIMITED CO.
CHIEF EXECUTIVE :
MR. CAI RANG (CHAIRMAN)
STAFF STRENGTH :
1,000
REGISTERED CAPITAL : CNY
127,872,714
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 667,320,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 301,730,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 2,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.88566 = USD 1
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 Shares
limited co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Aug. 21, 2000.
Company Status: Shares limited co. This form of
business in PR China is defined as a legal person. Its registered capital
is divided into shares of equal par value and the co. raises capital by
issuing share certificates by promotion or by public offer. Shareholders
bear limited liability to the extent of shareholding, and the co. is liable
for its debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares
limited co. are as follows: The
establishment of the co. requires at least two promoters and no more than
200, half of whom shall be domiciled in China.. Natural person are allowed
to serve as promoters. The minimum
registered capital of a co. is CNY 5M. while that of the co. with foreign
investment is CNY 5M. The total capital of a co. which propose to apply for
publicly listed must be no less than CNY 30M. The board of
directors must consist of five to nineteen directors. If the co. raises capital by public offer, the promoters must
not subscribe less than 35% of the total shares. the promoters’ shares are
restricted to transfer- within one year of the offer. A state-owned
enterprise that is restructured into a shares limited co. must comply with
the conditions & requirements specified under the law &
administrative rule.
SC’s registered business scope includes researching and developing new
metallurgical materials and products; producing and selling high alloy steel
and deep processing products; technical services; transfer of progeny;
exporting high-velocity tools, steel products,
alloy steels, metallurgical products, mechanical and electrical products
(excluding export commodities under state-unified operation) and related technology, importing raw
materials, machinery equipment, instruments and meters, parts (excluding import commodities operated by the
state-designated companies) and technology needed in the manufacture and
research, processing with imported materials, processing with imported samples,
assembling with imported parts, and compensation trade in agreement.
SC is mainly
engaged in producing and selling steel products.
Mr. Cai Rang is
legal representative and chairman of SC at present.
SC is known to have approx. 1,000 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Shijiazhuang.
Our checks reveal that SC owns the total premise, but SC’s accountant refused
to release the gross area of the premise.
http://www.hss-cn.com/ The design is professional and the content
is well organized. At present it is both in Chinese and English versions.
E-Mail: steels@hss-cn.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Advanced
Technology & Materials Co., Ltd. 51
Sumitomo Corporation (China) Ltd. 15
Sumitomo Corporation (Japan) 9
Other Shareholders 25
Advanced
Technology & Materials Co., Ltd.
=================================
Advanced Technology & Materials Co., Ltd. is a listed
company in Shenzhen Stock Exchange Market with the code of 000969. Advanced
Technology & Materials Co., Ltd. (AT&M) was mainly initiated by the
Central Iron & Steel Research Institute and co-founded by the other five
partners including Tsinghua Unisplendor (Group) Corp. The registered office of
the company is in Zhongguancun Science & Technology Park, Beijing. After
the examination and approval of the China Securities Regulatory Commission,
AT&M issued 60 million A-shares on Shenzhen Stock Exchange in May 2000.
l
Legal representative and chairman:
Mr. Cai Rang, in
his 50’s with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Yang Wenyi, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
SC is mainly
engaged in producing and selling steel products.
SC’s products mainly include: high-speed steel, powder-metallurgical
high-speed steel, die steel, rare earth permanent magnet material, other
special alloy.
SC sources its materials 90% from domestic market and 10% from the
overseas market. SC sells 30% of its products to overseas market and 70% in domestic market.
The buying terms of SC include Check, L/C, 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.
*Major Suppliers*
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Shijiazhuang Electric Power Bureau
*Major Customer*
==============
Chengdu Chengliang Co., Ltd.
SC is known to invest in the following companies:
HeYe & Summit Tools Co., Ltd.
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 and our debt collection record concerning SC.
Trade payment experience: SC’s suppliers
declined to make any comments.
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
Shijiazhuang Yudong Sub-branch
AC#10402490408091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2007 |
as
of Dec. 31, 2006 |
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Cash & bank |
36,410 |
27,350 |
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Bills receivable |
52,230 |
34,990 |
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Accounts
receivable |
30,920 |
28,250 |
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Other
receivables |
0 |
0 |
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Advances to
suppliers |
23,830 |
4,280 |
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Inventory |
180,930 |
132,010 |
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Prepaid expenses |
0 |
0 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
324,320 |
226,880 |
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Fixed assets net
value |
69,090 |
72,600 |
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Projects under
construction |
15,010 |
1,970 |
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Project
materials |
90 |
70 |
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Long term
investment |
68,910 |
100,410 |
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Other assets |
0 |
940 |
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------------------ |
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Total assets |
477,420 |
402,870 |
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============= |
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Short loans |
30,000 |
0 |
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Bills payable |
2,050 |
0 |
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Accounts payable |
45,990 |
90,390 |
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Advances from
clients |
51,280 |
37,630 |
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Accrued payable |
3,430 |
7,140 |
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Tax payable |
680 |
5,350 |
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Other payable |
34,260 |
38,470 |
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Surcharge
payable |
0 |
0 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
167,690 |
178,980 |
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Long-term loans |
6,900 |
41,900 |
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Specified
payables |
1,100 |
0 |
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Total
liabilities |
175,690 |
220,880 |
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Equities |
301,730 |
181,990 |
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Total
liabilities & equities |
477,420 |
402,870 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2007 |
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Turnover |
667,320 |
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Cost of goods
sold |
580,700 |
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Sales expense |
9,100 |
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Management expense |
12,010 |
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Finance expense |
350 |
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Profit before
tax |
66,680 |
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Less: profit tax |
1,180 |
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Profits |
65,500 |
Important Ratios
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as
of Dec. 31, 2007 |
as
of Dec. 31, 2006 |
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*Current ratio |
1.93 |
1.27 |
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*Quick ratio |
0.86 |
0.53 |
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*Liabilities
to assets |
0.37 |
0.55 |
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*Net profit
margin (%) |
9.82 |
/ |
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*Return on
total assets (%) |
13.72 |
/ |
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*Inventory
/Turnover ×365 |
99 days |
/ |
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*Accounts
receivable/Turnover ×365 |
17 days |
/ |
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*Turnover/Total
assets |
1.40 |
/ |
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* Cost of
goods sold/Turnover |
0.87 |
/ |
PROFITABILITY: FAIRLY
GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly good level.
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SC’s quick ratio is maintained in a normal level.
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The inventory conversion period of SC appears long.
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The accounts receivable of SC appears average.
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SC’s short-term loan is in an average level.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
SC is considered large-sized in its line with fairly good financial
conditions. The large amount of inventory could be a threat to SC’s financial
condition. A credit line up to USD 2,000,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.50.52 |
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UK Pound |
1 |
Rs.75.08 |
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Euro |
1 |
Rs.63.72 |
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
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%)