MIRA
INFORM REPORT
|
Report Date : |
17.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
TONGYU HEAVY INDUSTY CO., LTD. |
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Formerly Known As : |
Shandong Tongyu
Group Co., Ltd. |
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Registered Office : |
High-Tech Industrial Development Zone, Yucheng, Shandong Province
251200 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
25.05.2002 |
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Com. Reg. No.: |
370000228021369 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling pipe moulds and forgings |
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No. of Employees : |
1687 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
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 - in 2010
China became the world's largest exporter. Reforms began with the phasing out
of collectivized agriculture, and expanded to include the gradual
liberalization of prices, fiscal decentralization, increased autonomy for state
enterprises, creation of a diversified banking system, development of stock
markets, rapid growth of the private sector, and opening to foreign trade and
investment. China has implemented reforms in a gradualist fashion. In recent
years, China has renewed its support for state-owned enterprises in sectors it
considers important to "economic security," explicitly looking to
foster globally competitive national champions. After keeping its currency
tightly linked to the US dollar for years, in July 2005 China revalued its
currency by 2.1% against the US dollar and moved to an exchange rate system
that references a basket of currencies. From mid 2005 to late 2008 cumulative
appreciation of the renminbi against the US dollar was more than 20%, but the
exchange rate remained virtually pegged to the dollar from the onset of the
global financial crisis until June 2010, when Beijing allowed resumption of a
gradual appreciation. The restructuring of the economy and resulting efficiency
gains have contributed to a more than tenfold increase in GDP since 1978.
Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2010 stood as the second-largest economy in the world
after the US, having surpassed Japan in 2001. The dollar values of China's
agricultural and industrial output each exceed those of the US; China is second
to the US in the value of services it produces. Still, per capita income is
below the world average. The Chinese government faces numerous economic
challenges, including: (a) reducing its high domestic savings rate and
correspondingly low domestic demand; (b) sustaining adequate job growth for
tens of millions of migrants and new entrants to the work force; (c) reducing
corruption and other economic crimes; and (d) containing environmental damage
and social strife related to the economy's rapid transformation. Economic
development has progressed further in coastal provinces than in the interior,
and by 2011 more than 250 million migrant workers and their dependents had
relocated to urban areas to find work. One consequence of population control
policy 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
economic development. The Chinese government is seeking to add energy
production capacity from sources other than coal and oil, focusing on nuclear
and alternative energy development. In 2010-11, China faced high inflation
resulting largely from its credit-fueled stimulus program. Some tightening
measures appear to have controlled inflation, but GDP growth consequently
slowed to near 9% for 2011. An economic slowdown in Europe is expected to
further drag Chinese growth in 2012. Debt overhang from the stimulus program,
particularly among local governments, and a property price bubble challenge
policy makers currently. The government's 12th Five-Year Plan, adopted in March
2011, emphasizes continued economic reforms and the need to increase domestic
consumption in order to make the economy less dependent on exports in the
future. However, China has made only marginal progress toward these rebalancing
goals.
|
Source : CIA |
Company name & address
Tongyu
Heavy Industy Co., Ltd.
HIGH-tech INDUSTRial DEVELOPMENT ZONE
YUCHENG, SHANDONG PROVINCE 251200 PR CHINA
TEL: 86 (0) 534-7520668/7521157
FAX: 86 (0) 534-7521470/7287789
EXECUTIVE
SUMMARY
Date of Registration : may 25, 2002
REGISTRATION NO. : 370000228021369
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : cny 900,000,000
staff : 1,687
BUSINESS CATEGORY : MANUFACTURING & trading
REVENUE :
CNY 698,749,000 (CONSOLIDATED,
JAN. 1, 2012 TO JUN. 30, 2012)
EQUITIES :
CNY 3,650,267,000 (CONSOLIDATED,
AS OF JUN. 30, 2012)
WEBSITE : www.tongyuheavy.com
E-MAIL :
tyzgsaj@126.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE : CNY 6.23 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
LEGAL STATUS & HISTORY
SC was established as a limited liabilities company of PRC on may
25, 2002. However, SC changed to present legal form, and was registered
as shares limited company of PRC
with State Administration of Industry & Commerce (SAIC) under registration
No.: 370000228021369 in March
2010.
SC’s Organization Code Certificate No.:
16757547-1
SC’s Tax No.: 371482167575471
SC’s registered capital: cny 900,000,000
SC’s paid-in capital: cny 900,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2009-06 |
Registered Capital |
CNY 143,216,500 |
CNY 171,216,500 |
|
2009-11 |
Registered Capital |
CNY 171,216,500 |
CNY 180,000,000 |
|
2010-03 |
Registered Capital |
CNY 180,000,000 |
CNY 270,000,000 |
|
Legal Form |
Limited Liabilities Company |
Shares Limited
Company |
|
|
Company Name |
Shandong Tongyu Group Co., Ltd. |
Tongyu Heavy Industry Ltd. |
|
|
-- |
Registration No. |
3700002802136 |
370000228021369 |
|
Registered
Capital |
CNY
270,000,000 |
cny
900,000,000 |
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) (As of June 30, 2012) |
% of Shareholding |
|
Si Xingkui |
16.65 |
|
Shandong High and New
Technology Venture Investment Co., Ltd. |
15 |
|
Zhu Jinzhi |
8.9 |
|
Chen Qilong |
3.75 |
|
Zhao Meijuan |
3.75 |
|
Chen Bingzhi |
3.13 |
|
Li Dexing |
1.53 |
|
Yang Hong |
1.3 |
|
Yang Xinghou |
1.26 |
|
Wang Shizhen |
0.89 |
|
Other Shareholders |
43.84 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Si
Xingkui |
|
Vice Chairman |
Wang
Shizhen |
|
General Manager |
Sun
Tieguang |
|
Deputy General Manager |
Li
Dexing |
|
Yang
Xinghou |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 300185
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As of June 30, 2012)
----------------------------------
Si Xingkui 16.65
Shandong High and New Technology Venture
Investment Co., Ltd. 15
Zhu Jinzhi 8.9
Chen Qilong 3.75
Zhao Meijuan 3.75
Chen Bingzhi 3.13
Li Dexing 1.53
Yang Hong 1.3
Yang Xinghou 1.26
Wang Shizhen 0.89
Other Shareholders 43.84
MANAGEMENT
Si
Xingkui, Legal
Representative and Chairman
-------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 59
Ø Qualification: University
Ø Working experience
(s):
From 2002 to present, working in SC as legal representative and chairman, also as director of Changzhou Jin'an Metallurgical Equipment Co., Ltd.
Wang
Shizhen, Vice Chairman
----------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø Qualification: University
Ø Working experience
(s):
From 2006 to 2011, worked in SC as general manager
From 2011 to present, working in SC as vice chairman, also working in Changzhou Jin’an Metallurgical Equipment Co., Ltd. as chairman
Sun
Tieguang, General Manager
------------------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø Qualification: University
Ø Working experience
(s):
From 2008 to 2011, worked in Zhongye Jingcheng (Yingkou) Equipment Technology Co., Ltd. as deputy general manager
From 2001 to present, working in SC as general manager
Li
Dexing, Deputy General Manager
-----------------------------------------------------------
Ø
Gender: M
Ø
Age: 62
Ø Qualification: University
Ø Working experience
(s):
From 2010 to present, working in SC as deputy
general manager
Yang
Xinghou, Deputy General Manager
-----------------------------------------------------------------
Ø
Gender: M
Ø
Age: 43
Ø Qualification: MBA
Ø Working experience
(s):
From 2002 to 2010, as director of SC
From 2010 to present, working in SC as deputy general manager
BUSINESS OPERATION
SC’s registered business
scope includes manufacturing and selling large forging accessories, ESR ingot,
forging, tube mould, numerically controlled machine tools and general
nonstandard mechanical equipment; importing and exporting commodities and
technology; manufacturing castings (with permits if needed).
SC is mainly
engaged in manufacturing and selling pipe moulds and forgings.
Brand:
Tongyu
SC’s products
mainly include:
5MW wind turbine
shaft
73 ton Low Carbon
and Nitrogen Austenitic ESR Ingot
MW-class fiber
maintaining direct drive wind turbine shaft
3MW wind turbine
shaft
SC sources its materials 100%
from domestic market. SC sells 70% of its products in domestic market, and 30%
to overseas market, mainly Southeast Asian market.
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.
*Major Customers:
==============
Cmai
Industries Llc
Hebei Hongrun
Heavy Industry Group Co., Ltd.
Dalian
Huarui Heavy Industry Group Co., Ltd.
Shanghai
Electronic Wind Power Equipment Co., Ltd.
Dongfang
Electronic New Energy Equipment (Hangzhou) Co., Ltd.
Guodian
United Power Technology (Chifeng) Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 1,687 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have the following
subsidiaries at present:
n
Yucheng Tongyu Renewable Resources Co., Ltd.
n
Yucheng Tongyu New Energy Machinery Casting Co., Ltd.
n
Changzhou Jin’an Metallurgical Equipment Co., Ltd.
n
Shandong Yucheng Xinyuan Thermoelectricity Co., Ltd.
n
Shandong Innovation Venture Capital Co., Ltd.
n
Yucheng Rural Credit Cooperative Union
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
China
Construction Bank Yucheng Sub-branch
AC#:
37001846301050153147
Agricultural
Bank of China Yucheng Sub-branch
AC#:
15-785101140007789
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Jun. 30, 2012 |
|
1,783,819 |
1,721,775 |
|
|
Trading financial assets |
0 |
0 |
|
Accounts
receivable |
563,715 |
772,695 |
|
Notes receivable |
135,715 |
127,988 |
|
Advances to
suppliers |
75,090 |
41,435 |
|
Interest
receivable |
17,495 |
36,159 |
|
Other receivable |
7,401 |
6,637 |
|
Inventory |
684,431 |
819,274 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
3 |
490 |
|
|
------------------ |
------------------ |
|
Current assets |
3,267,669 |
3,526,453 |
|
Long-term
investments |
79,412 |
85,666 |
|
Real estate
investment |
0 |
7,116 |
|
Fixed assets |
1,006,143 |
1,257,233 |
|
Construction in
progress |
1,209,365 |
1,212,879 |
|
Project
materials |
0 |
0 |
|
Fixed assets in
liquidation |
0 |
0 |
|
Intangible
assets |
224,827 |
247,132 |
|
Goodwill |
0 |
3,195 |
|
Long-term
deferred expense |
587 |
567 |
|
Deferred income
tax assets |
25,046 |
26,504 |
|
Other
non-current assets |
82,923 |
82,924 |
|
|
------------------ |
------------------ |
|
Total assets |
5,895,972 |
6,449,669 |
|
|
============= |
============= |
|
Short-term loans |
1,120,200 |
1,757,050 |
|
Notes payable |
237,886 |
116,967 |
|
Accounts payable |
198,914 |
262,199 |
|
Payroll payable |
36,605 |
28,696 |
|
Taxes payable |
-30,155 |
-65,548 |
|
Interest payable |
0 |
32,700 |
|
Advances from
clients |
26,230 |
38,512 |
|
Other payable |
72,417 |
79,286 |
|
Other current
liabilities |
196,678 |
195,598 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,858,775 |
2,445,460 |
|
Non-current
liabilities |
432,894 |
353,942 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
2,291,669 |
2,799,402 |
|
Equities |
3,604,303 |
3,650,267 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
5,895,972 |
6,449,669 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
Jan.
1, 2012 to Jun. 30, 2012 |
|
Revenue |
1,235,956 |
698,749 |
|
Cost of sales |
911,617 |
553,200 |
|
Business Taxes and Surcharges |
11,476 |
3,697 |
|
Sales expense |
19,225 |
14,145 |
|
Management expense |
107,669 |
40,208 |
|
Finance expense |
25,303 |
18,453 |
|
Asset impairment loss |
8,965 |
3,953 |
|
Investment
income |
3,004 |
6,253 |
|
Non-operating
income |
68,775 |
51,503 |
|
Non-operating expense |
2,089 |
226 |
|
Profit before
tax |
221,390 |
122,619 |
|
Less: profit tax |
36,541 |
20,018 |
|
184,849 |
102,601 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Jun. 30, 2012 |
|
*Current ratio |
1.76 |
1.44 |
|
*Quick ratio |
1.39 |
1.11 |
|
*Liabilities
to assets |
0.39 |
0.43 |
|
*Net profit
margin (%) |
14.96 |
14.68 |
|
*Return on
total assets (%) |
3.14 |
1.59 |
|
*Inventory /
Revenue ×365/180 |
203 days |
212 days |
|
*Accounts
receivable/ Revenue ×365/180 |
167 days |
200 days |
|
*
Revenue/Total assets |
0.21 |
0.11 |
|
* Cost of
sales / Revenue |
0.74 |
0.79 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC appears good in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is average.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears fairly large.
l
The short-term loans of SC appear large.
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with
fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.39 |
|
UK Pound |
1 |
Rs.87.78 |
|
Euro |
1 |
Rs.71.29 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.