MIRA
INFORM REPORT
|
Report Date : |
17.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
China
Railway Group Limited |
|
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Registered Office : |
no. |
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Country : |
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Financials (as on) : |
30.09.2012 |
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Date of Incorporation : |
12.09.2007 |
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Com. Reg. No.: |
100000000041175 |
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Legal Form : |
Shares Limited Company |
|
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Line of Business : |
Engaged
in taking overall responsibility of civil engineering building, lines, pipes
and equipment installment; and international trade. |
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|
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No. of Employees : |
54,088 |
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 |
|
Status : |
Good |
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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 and address
China Railway Group Limited
no. 1
xinghuo road, fengtai district, beijing 100070 PR CHINA
TEL: 86
(0) 10-51878413
FAX: 86
(0) 10-51878417
EXECUTIVE SUMMARY
Date of Registration : september 12, 2007
REGISTRATION NO. : 100000000041175
LEGAL FORM :
SHARES LIMITED COMPANY
REGISTERED CAPITAL :
cny 21,299,900,000
staff : 54,088
BUSINESS CATEGORY :
Engineering and trading
REVENUE :
CNY 319,557,129,000 (CONSOLIDATED, JAN. 1, 2012 TO SEP. 30, 2012)
EQUITIES :
CNY 84,933,618,000 (CONSOLIDATED, AS OF SEP. 30, 2012)
WEBSITE : www.crec.cn
E-MAIL : ir@crec.cn
PAYMENT : AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : good
OPERATIONAL TREND :
UPWARD
GENERAL REPUTATION : Excellent
EXCHANGE RATE : CNY 6.24 = USD
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.: 100000000041175
on September 12, 2007.
SC’s Organization Code Certificate
No.: 71093500-3
SC’s registered capital: cny 21,299,900,000
SC’s paid-in capital: cny 21,299,900,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (As of June 30, 2012) |
% of Shareholding |
|
China Railway Engineering
Corporation |
56.1 |
|
Hkscc Nominees Limited |
19.43 |
|
The National Social Security
Fund Council-III |
2.19 |
|
Guotai Junan Securities Co., Ltd.-Customer
Credit Transactions Backed Securities Accounts |
0.15 |
|
Bank of China- SZSE 300 Index
Securities Investment Fund |
0.13 |
|
Bill & Melinda Gates
Foundation Trust |
0.12 |
|
Industrial and Commercial Bank
of China- Hua Tai Bairui CSI 300 Exchange-Traded Index Securities Investment
Fund |
0.12 |
|
Maanshan City Changtai
Investment Center |
0.09 |
|
The Dai-ichi Life Insurance
Company, Limited |
0.09 |
|
Zhonghai Trust Co., Ltd.-Pujiangzhixing
11# Collective Fund Trust Plan |
0.08 |
|
Other Shareholders |
21.5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Li
Changjin |
|
Vice Chairman |
Yao
Guiqing |
|
CEO |
Bai
Zhongren |
RECENT DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market
with the code of 601390
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
(As of June 30, 2012)
----------------------------------
China Railway Engineering Corporation
56.1
Hkscc Nominees Limited 19.43
The National Social Security
Fund Council
2.19
Guotai Junan Securities Co.,
Ltd.-Customer Credit Transactions Backed Securities Accounts
0.15
Bank of China- SZSE 300 Index
Securities Investment Fund
0.13
Bill & Melinda Gates
Foundation Trust 0.12
Industrial and Commercial Bank
of China- Hua Tai Bairui CSI 300 Exchange-Traded Index Securities Investment
Fund 0.12
Maanshan City Changtai
Investment Center
0.09
The Dai-ichi Life Insurance
Company, Limited
0.09
Zhonghai Trust Co.,
Ltd.-Pujiangzhixing 11# Collective Fund Trust Plan
0.08
Other Shareholders
21.5
China Railway Engineering Corporation
------------------------------------------------------
Date of Registration: March 7, 1990
Registration No.: 100000000010518
Legal Form:
State-Owned Enterprise
Registered Capital: CNY 10,814,920,000
Hkscc Nominees Limited
-------------------------------------
Date of Registration: May 14, 1991
Registration No.: 0309729
Legal Form: Private
Status: Live
MANAGEMENT
Li
Changjin, Legal Representative and Chairman
----------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 53
Ø
Qualification: University
Ø
Working experience (s):
From 2008 to 2010, worked in SC as CEO
From 2010 to present, working in SC as legal
representative and chairman
Also working in China Railway Engineering
Corporation and Sicomines Sarl as legal representative
Yao
Guiqing, Vice Chairman
-------------------------------------------------
Ø
Gender: M
Ø
Age: 57
Ø
Qualification: University
Ø
Working experience (s):
From 2007 to 2009, worked in SC as vice CEO
From 2009 to 2010, worked in SC as chairman of
the supervisory board
From 2010 to present, working in SC as vice
chairman
Bai
Zhongren , CEO
--------------------------------------
Ø
Gender: M
Ø
Age: 51
Ø
Qualification: University
Ø
Working experience (s):
From 2009 to 2010, worked in Fujian Rongqiao
Group Co., Ltd. as vice CEO
From 2010 to present, working in SC as CEO
BUSINESS OPERATION
SC’s
registered business scope includes taking overall responsibility of civil engineering
building, lines, pipes and equipment installment; separate survey, design,
construction, supervision, technical consultancy, technical transfer, technical
services for the above projects; researching, producing, selling and leasing
machinery equipment, materials, components, steel beams, steel structure and
building materials special for civil engineering; providing temporary
transportation and related services before the newly railway officially
finished; taking overall responsibility of domestic and overseas projects;
property development and operation, resources development, logistics; import
and export; counter trade and transit trade; selling cars; and selling
electronic products and telecommunication equipment, electronic materials,
building materials & hardware, plumbing materials, and grocery.
SC is
mainly engaged in taking overall responsibility of civil engineering building,
lines, pipes and equipment installment; and international trade.
SC sources its materials 80%
from domestic market, 20% from overseas market. SC sells 70% of its products in
domestic market, and 30% to overseas market, mainly to U.S.A., Southeast Asia,
etc.
The buying terms of SC include Check, T/T, L/C 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*
-----------------------
Sicomines
Co., Ltd.
Lince
Railway Co., Ltd.
Chongqing
Dianzhong Highway Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 54,088 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
China Overseas Engineering Group Co., Ltd.
n
China Railway First Group Co., Ltd.
n
China Railway Second Group Co., Ltd.
n
China Railway Third Group Co., Ltd.
(Also known as China Railway No. 3 Engineering Group Co., Ltd.)
n
China Railway Fourth Group Co., Ltd.
n
China Railway Fifth Group Co., Ltd.
n
China Railway Sixth Group Co., Ltd.
n
China Railway Seventh Group Co., Ltd.
n
China Railway Eighth Group Co., Ltd.
n
China Railway Ninth Group Co., Ltd.
n
China Railway Tenth Group Co., Ltd.
n
China Overseas Engineering Group Co., Ltd.
Etc.
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:
Industrial
and Commercial Bank of China Beijing Xikezhan Sub-branch
AC#: 0200066029020706676
FINANCIALS
Consolidated Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2011 |
As of Sep. 30, 2012 |
|
63,582,878 |
65,860,009 |
|
|
Trading financial assets |
60,169 |
73,815 |
|
Accounts
receivable |
96,344,763 |
93,765,798 |
|
Notes
receivable |
1,475,666 |
1,115,049 |
|
Advances
to suppliers |
24,745,510 |
34,825,550 |
|
Interest
receivable |
45,712 |
97,157 |
|
Other
receivable |
20,596,894 |
26,735,989 |
|
Inventory |
151,698,898 |
183,497,709 |
|
Non-current
assets within one year |
723,746 |
777,384 |
|
Other
current assets |
627,930 |
724,844 |
|
|
------------------ |
------------------ |
|
Current
assets |
359,902,166 |
407,473,304 |
|
Long-term
investments |
7,020,703 |
7,330,393 |
|
Real
estate investment |
3,302,002 |
1,762,510 |
|
Fixed
assets |
32,359,273 |
32,505,791 |
|
Construction
in progress |
4,907,440 |
6,236,136 |
|
Project
materials |
345,751 |
562,289 |
|
Fixed
assets in liquidation |
5,606 |
13,479 |
|
Intangible
assets |
45,518,034 |
45,277,907 |
|
Goodwill |
864,858 |
868,357 |
|
Long-term
deferred expense |
232,889 |
353,568 |
|
Deferred
income tax assets |
3,283,679 |
3,569,815 |
|
Other
non-current assets |
10,989,696 |
13,911,831 |
|
|
------------------ |
------------------ |
|
Total
assets |
468,732,097 |
519,865,380 |
|
|
============= |
============= |
|
Short-term
loans |
51,013,315 |
61,167,414 |
|
Notes
payable |
13,504,013 |
19,468,336 |
|
Accounts
payable |
145,585,488 |
141,957,985 |
|
Payroll
payable |
2,438,860 |
2,335,673 |
|
Taxes
payable |
9,906,986 |
8,984,379 |
|
Interest
payable |
870,812 |
1,138,586 |
|
Advances
from clients |
49,888,012 |
68,076,458 |
|
Other
payable |
25,258,027 |
25,004,277 |
|
Other
current liabilities |
7,105,529 |
8,376,150 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
305,571,042 |
336,509,258 |
|
Non-current
liabilities |
81,810,923 |
98,422,504 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
387,381,965 |
434,931,762 |
|
Equities |
81,350,132 |
84,933,618 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
468,732,097 |
519,865,380 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2011 |
Jan. 1, 2012 to Sep. 30, 2012 |
|
Revenue |
460,720,225 |
319,557,129 |
|
Cost of sales |
412,033,049 |
286,750,872 |
|
Business Taxes and Surcharges |
14,947,741 |
9,707,520 |
|
Sales expense |
1,812,955 |
1,228,644 |
|
Management expense |
19,126,083 |
12,931,014 |
|
Finance expense |
3,036,963 |
3,466,162 |
|
Asset impairment loss |
683,335 |
74,365 |
|
Investment
income |
80,428 |
626,820 |
|
Non-operating
income |
786,535 |
349,454 |
|
Non-operating expense |
210,680 |
105,925 |
|
Profit
before tax |
9,600,261 |
6,203,147 |
|
Less:
profit tax |
2,360,715 |
1,613,629 |
|
7,239,546 |
4,589,518 |
Important
Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Sep. 30, 2012 |
|
*Current
ratio |
1.18 |
1.21 |
|
*Quick
ratio |
0.68 |
0.67 |
|
*Liabilities
to assets |
0.83 |
0.84 |
|
*Net
profit margin (%) |
1.57 |
1.44 |
|
*Return
on total assets (%) |
1.54 |
0.88 |
|
*Inventory
/ Revenue ×365/270 |
121
days |
156
days |
|
*Accounts
receivable/ Revenue ×365/270 |
77
days |
80
days |
|
*
Revenue/Total assets |
0.98 |
0.61 |
|
*
Cost of sales / Revenue |
0.89 |
0.90 |
FINANCIAL COMMENTS
PROFITABILITY:
GOOD
l
The revenue of SC appears good in its
line.
l
SC’s net profit margin is average.
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
fair level.
l
The inventory of SC appears fairly
large.
l
The accounts receivable of SC appears
average.
l
The short-term loans of SC appear
average.
l
SC’s revenue is in an average level, comparing
with the size of its total assets.
LEVERAGE:
GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is
minimal.
Overall
financial condition of the SC: Good.
CONCLUSIONS
SC is considered large-sized in its line with good financial
conditions. Taking into consideration of SC’s general performance, reputation
as well as market conditions, credit dealings with SC in favorable terms can be
considered.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.99 |
|
|
1 |
Rs.87.21 |
|
Euro |
1 |
Rs.70.22 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.