MIRA
INFORM REPORT
|
Report Date : |
18.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
Laiwu
Steel Corporation |
|
|
|
|
Registered Office : |
no. 21 Xinxing Road, Gangcheng District, Laiwu,
Shandong Province 271104 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.09.2011 |
|
|
|
|
Date of Incorporation : |
22.08.1997 |
|
|
|
|
Com. Reg. No.: |
370000018012418 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and Selling Pig Iron, Steel Ingots,
Billets, Steel |
|
|
|
|
No. of Employees : |
15,534 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 20,000,000 |
|
Status : |
Good |
|
Payment Behaviour : |
No complaints |
|
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name and address
Laiwu
Steel Corporation
no. 21
xinxing road, gangcheng district, laiwu
shandong
province 271104 PR CHINA
TEL: 86
(0) 634-6820601
FAX: 86
(0) 634-6821094
EXECUTIVE SUMMARY
Date of Registration : august 22, 1997
REGISTRATION NO. : 370000018012418
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL :
cny 922,273,092
staff : 15,534
BUSINESS CATEGORY :
manufacturing
REVENUE :
CNY 34,607,620,000 (FROM JAN. 1 TO SEP. 30, 2011)
EQUITIES :
CNY 6,192,129,000 (AS OF SEP. 30, 2011)
WEBSITE : www.laigang.com
E-MAIL :
lggfzqb@126.com
PAYMENT : AVERAGE
Recommended Credit Limit : UP TO USD 20,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
fairly good
OPERATIONAL TREND :
UPWARD
GENERAL REPUTATION : GOOD
EXCHANGE RATE : CNY 6.30 = 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
Not yet be determined
LEGAL STATUS & HISTORY
SC was
established as a shares limited company
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 370000018012418 on August 22, 1997.
SC’s Organization Code Certificate
No.: 26717943-3
SC’s registered capital: cny 922,273,092
SC’s paid-in capital: cny 922,273,092
Registration Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
|
1999 |
Registered Capital |
CNY 794,700,000 |
CNY 871,182,000 |
|
2002 |
Registered Capital |
CNY 871,182,000 |
cny 922,273,092 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s)
(as of June 30, 2011) |
% of Shareholding |
|
Laiwu Steel Group, Ltd. |
74.65 |
|
Shandong Province Economic
Development & Investment Co. |
1.16 |
|
Wang Siyan |
0.38 |
|
Shandong Chuangcheng Industry
Co., Ltd. |
0.36 |
|
China Construction
Bank-Shangtou Morgan Advantage Securities Investment Fund |
0.34 |
|
Shandong Yongtong Industry Co.,
Ltd. |
0.26 |
|
Zhai Jun |
0.23 |
|
Liu Liyan |
0.19 |
|
China Industrial International
Trust Limited- Subscription of New Shares of Single
Capital Trust Project |
0.19 |
|
Sheng Yongsheng |
0.18 |
|
Other Shareholders |
22.06 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Chen Qixiang |
|
Vice Chairman |
Tian Kening |
|
General Manager |
Luo Dengwu |
|
Deputy General Manager |
Lv Ming |
|
Wang Guanglian |
|
|
Yan Fuheng |
|
|
Wang Jichao |
RECENT DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600102.
SHAREHOLDER CHART &
BACKGROUND
Name
(as of June 30, 2011) %
of Shareholding
Laiwu Steel Group, Ltd.
74.65
Shandong Province Economic
Development & Investment Co.
1.16
Wang Siyan
0.38
Shandong Chuangcheng Industry
Co., Ltd.
0.36
China Construction Bank-Shangtou
Morgan Advantage Securities Investment Fund
0.34
Shandong Yongtong Industry Co.,
Ltd.
0.26
Zhai Jun
0.23
Liu Liyan
0.19
China Industrial International
Trust Limited- Subscription of New Shares of Single Capital Trust Project
0.19
Sheng Yongsheng
0.18
Other Shareholders
22.06
Laiwu Steel Group, Ltd.
=====================
Laiwu Steel Group Limited is a special large and integrated iron and
steel complex equipped with two production lines(converter and EAF production
system),which covers mining, sintering, coking, iron-making, steel-making,
continuous casting, rolling and the relevant utility supply, transportation,
machinery processing, construction and installation etc.. And it’s also honored
as one of the 100 most competitive enterprises, one of the 100 most industrial
technology development enterprises, national first level energy saving
enterprise, one of the 512 main enterprises supported by the state, excellent
enterprise for its good after-sale service and an enterprise adhering to the
contract and stressing on its good reputation in Shandong Province.
Date of Registration: May 6, 1999
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 3,122,693,300
MANAGEMENT
Chen Qixiang, Legal Representative and Chairman
------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 55
Ø
Qualification:
University
Ø
Working
experience (s):
Before, worked in Jinan Iron and Steel Company Ltd.
as chairman
At present, working in SC as legal representative and
chairman, also working in Laiwu Steel Group, Ltd. as
vice chairman and general manager
Tian Kening , Vice Chairman
-------------------------------------------------
Ø
Gender: M
Ø
Age: 56
Ø
Qualification:
University
Ø
Working
experience (s):
At
present, working in SC as vice chairman, also working in Laiwu Steel Group, Ltd. as deputy general manager
Luo Dengwu , General Manager
----------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø
Qualification:
Master Degree
Ø
Working
experience (s):
Before, worked in SC as deputy general manager
At present, working in SC as general manager
Lv Ming , Deputy General Manager
------------------------------------------------------
Ø
Gender: M
Ø
Age: 38
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
Wang Guanglian, Deputy General Manager
---------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 48
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
Yan Fuheng , Deputy General Manager
--------------------------------------------------------------
Ø
Gender: M
Ø
Age: 53
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
Wang Jichao, Deputy General Manager
----------------------------------------------------------------
Ø
Gender: M
Ø
Age: 51
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
BUSINESS OPERATION
SC’s registered business scope includes
manufacturing and selling pig iron, steel ingots, billets, steel, forgings,
coke, slag, coke products and steelmaking by-products; blast furnace gas supply, heat supply; international trade.
SC is
mainly engaged in manufacturing and selling steel products.
SC’s products mainly include:
pig iron, steel billets, steel ingots, and steel products.
SC sources its materials 70% from domestic
market, mainly Shandong, and 30% from overseas market. SC sells 65% of its
products in domestic market, mainly Shandong, Guangdong, etc., and 35% to
overseas market, mainly Southeast Asia, USA, South Korea, Japan, Canada, Middle
East, etc..
The
buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms
of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Foshan Henglong trade Co., Ltd.
China Railway 12th Bureau Group Co., Ltd.
PT CAKUNG PRIMA STEEL
Shandong Hualu Real Estate Development Co., Ltd.
*Major Suppliers:
==============
Laiwu Steel Group,
Ltd.
Shandong Laigang
Construction Co., Ltd.
Laigang Laidong
Industry Co., Ltd.
Shandong Lubi
Building Materials Co., Ltd.
Laiwu Steel Group
Jinding Industry Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 15,534
staff at present.
SC owns an area as
its operating office & factory of approx. 13,200,000 sq. meters at the
heading address.
RELATED COMPANY
SC is known to have 5
subsidiaries at present:
n
Laigang Wuxi Economic Trade Co., Ltd.
n
Laigang (Guangdong) Economic Trade Co., Ltd.
n
Laigang Shanghai Economic Trade Co., Ltd.
n
Laiwu Steel Metallurgical and Ecological Engineering Technology Co.,
Ltd.
n
Shandong Laigang Heavy Section Steel Co., Ltd.
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’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.
BANKING
Basic Bank:
Industrial
and Commercial Bank of China Laiwu Gangcheng Sub-branch
AC#:
1617011014200001525
Agricultural Bank
of China Laiwu Gangcheng Sub-branch
AC#:
680301040003930
Bank of China
Laiwu Gangcheng Sub-branch
AC#:
16132728094001
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Sep. 30, 2011 |
|
1,432,385 |
524,945 |
|
|
Held for trading financial assets |
0 |
0 |
|
Notes receivable |
438,083 |
2,320,671 |
|
Accounts
receivable |
105,180 |
145,535 |
|
Advances to
suppliers |
583,626 |
234,724 |
|
Interest
receivable |
0 |
0 |
|
Other receivable |
10,655 |
6,018 |
|
Inventory |
3,157,417 |
2,377,138 |
|
Other current
assets |
0 |
51,663 |
|
|
------------------ |
------------------ |
|
Current assets |
5,727,346 |
5,660,694 |
|
Long-term equity
investment |
15,000 |
185,000 |
|
Fixed assets |
10,029,924 |
9,298,201 |
|
Construction in
progress |
965,109 |
1,226,375 |
|
Project
materials |
0 |
0 |
|
Intangible
assets |
25,807 |
141,896 |
|
Goodwill |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
34,659 |
37,309 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
16,797,845 |
16,549,475 |
|
|
============= |
============= |
|
Short-term loans |
896,029 |
293,838 |
|
Held for trading
financial liabilities |
0 |
0 |
|
Notes payable |
567,264 |
184,490 |
|
Accounts payable |
2,598,549 |
4,080,189 |
|
Advances from
clients |
851,230 |
663,096 |
|
Payroll payable |
207,817 |
215,126 |
|
Tax payable |
175,621 |
18,987 |
|
Interest payable |
98,280 |
74,485 |
|
Dividend payable |
0 |
0 |
|
Other payable |
239,300 |
32,882 |
|
Current
liabilities due within one year |
861,189 |
598,093 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
6,495,279 |
6,161,186 |
|
Non-current
liabilities |
4,308,182 |
4,196,160 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
10,803,461 |
10,357,346 |
|
Equities |
5,994,384 |
6,192,129 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
16,797,845 |
16,549,475 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
From
Jan. 1 to Sep. 30, 2011 |
|
Revenue |
40,290,837 |
34,607,620 |
|
Cost of sales |
38,474,914 |
33,245,585 |
|
Taxes and surcharges |
101,776 |
69,780 |
|
Sales expense |
153,894 |
107,068 |
|
Management expense |
1,066,769 |
691,094 |
|
Finance expense |
442,182 |
238,327 |
|
Investment
income |
0 |
0 |
|
Non-operating
income |
92,314 |
21,650 |
|
Non-operating expense |
11,628 |
18,104 |
|
Profit before
tax |
125,350 |
258,448 |
|
Less: profit tax |
1,566 |
8,940 |
|
Profits |
123,784 |
249,508 |
Important Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Sep. 30, 2011 |
|
*Current ratio |
0.88 |
0.92 |
|
*Quick ratio |
0.40 |
0.53 |
|
*Liabilities
to assets |
0.64 |
0.63 |
|
*Net profit
margin (%) |
0.31 |
0.72 |
|
*Return on
total assets (%) |
0.74 |
1.51 |
|
*Inventory /
Revenue ×365/270 |
29
days |
19 days |
|
*Accounts receivable/
Revenue ×365/270 |
1
day |
2 days |
|
*
Revenue/Total assets |
2.40 |
2.09 |
|
* Cost of
sales / Revenue |
0.95 |
0.96 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
good.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
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. A credit line up to USD 20,000,000
would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.21 |
|
|
1 |
Rs.77.75 |
|
Euro |
1 |
Rs.64.58 |
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.